Illinois Administrative Code › Title 77 - PUBLIC HEALTH › Part 396 - LIFE CARE FACILITIES CONTRACT CODE › Section 396.50 - Provider Responsibilities

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 At the time of or prior to the execution of a life care contract and the
			 transfer of any money or other property to a provider or escrow agent, the
			 provider shall deliver to the resident a copy of a financial disclosure
			 statement reflecting the provider's financial condition (Section 5(a) of the
			 Act).
b) The life care contract
			 shall provide that any person entering the contract shall have a period of 14
			 days beginning with the first full calendar day following the execution of the
			 contract, or the payment of an initial sum of money as a deposit or application
			 fee, or receipt of the financial disclosure statement, whichever occurs last,
			 within which to rescind the life care contract without penalty or further
			 obligation. In the event of such rescission, all money or property paid or
			 transferred by such person shall be fully refunded. No person shall be required
			 to move into a facility until after the expiration of the 14 day recision
			 period (Section 5(b) of the Act).
c) To the extent that a facility also
			 qualifies as a long-term care facility under the Nursing Home Care Act, then
			 the long-term care portion of the facility must comply with that Act and the
			 regulations promulgated thereunder as well as the Act and this Part.
d) When required by subsections (e) and (f)
			 below, the provider shall establish and maintain on a current basis, an escrow
			 account and/or letter of credit with a bank, trust company, or other financial
			 institution located in the State of Illinois. Such financial institution shall
			 provide to the Department notification describing the facility's escrow account
			 or letter of credit on an annual basis and within 15 days of any change
			 affecting the escrow account or letter of credit.
e) Requirements for new facilities:
1) If the entrance fee applies to a living
			 unit which has not previously been occupied by any resident, all entrance fee
			 payments representing either all or any smaller portion of the total entrance
			 fee shall be paid to the escrow agent by the resident (Section 7(a)(1) of the
			 Act).
2) When the provider has sold
			 at least 1/2 of the living units covered by a single permit, obtained a
			 mortgage commitment, if needed, and obtained all necessary zoning permits and
			 certificates of need, if required, the escrow agent may release a sum
			 representing 1/5 of the resident's total entrance fee to the provider. Upon
			 completion of the foundation of the living unit an additional 1/5 of the
			 resident's total entrance fee may be released to the provider. When the living
			 unit is under roof a further and additional 1/5 of the resident's total
			 entrance fee may be released to the provider. All remaining monies, if any,
			 shall remain in escrow until the resident's living unit is substantially
			 completed and ready for occupancy by the resident. When the living unit is
			 ready for occupancy the escrow agent may release the remaining escrow amount to
			 the provider and further entrance fee payments, if any, may be paid by the
			 resident to the provider directly. All monies released from escrow shall be
			 used for the facility and for no other purpose. (Section 7(a)(2) of the
			 Act)