New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 19 - CONTINUING CARE RETIREMENT COMMUNITY RULES › Subchapter 4 - DISCLOSURE STATEMENT › Section 5:19-4.2 - Contents of disclosure statement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The disclosure
				statement shall contain the following information unless the information is
				contained in the contract:
1. The name and
				business address of the provider and a statement of whether the provider is a
				partnership, corporation or other type of legal entity;
2. The names and business addresses of the
				officers, directors, trustees, managing or general partners and any person having a
				10 percent or greater equity or beneficial interest in the provider and a
				description of that person's interest in or occupation with the provider;
3. With respect to the provider, any person named
				in response to (a)2 above and the proposed operator, if the facility is managed on a
				day-to-day basis by a person other than an individual directly employed by the
				provider:
i. A description of the person's
				business experience, if any, in the operation or management of similar
				facilities;
ii. The name and address of
				any professional service firm, association, trust, partnership or corporation in
				which the person has a 10 percent or greater interest and which may provide goods,
				leases or services to the facility of a value of $ 500.00 or more, within any
				year;
iii. A description of the goods,
				leases or services provided pursuant to (a)3ii above and the probable or anticipated
				cost thereof to the facility or provider;
iv. A description of any matter in which the
				person has been convicted of a crime or pleaded nolo contendere to a criminal
				charge, or has been held liable or enjoined in a civil action which involved fraud,
				embezzlement, fraudulent conversion or misappropriation of property; and
v. A description of any matter in which the person
				is subject to a currently effective injunctive or restrictive court order or, within
				the past five years, had a state or Federal license or permit suspended or revoked
				as a result of an action brought by a governmental agency or department, which arose
				out of or related to business activity or health care, including actions affecting a
				license to operate a residential health care facility, rooming or boarding house,
				nursing home, retirement home, home for the aged or facility certified under the Act
				or a similar act in another state.
4. A statement whether the provider is or ever has
				been affiliated with a religious, charitable or other non-profit organization, the
				nature of the affiliation, if any, the extent to which the affiliate organization is
				responsible for the financial and contractual obligations of the provider, and the
				provision of the Federal Internal Revenue Code, if any, under which the provider or
				affiliate is exempt from the payment of income tax;
5. The location and description of the physical
				property of the facility, both existing and proposed, and, with respect to proposed
				property, the estimated completion date, the date construction began or shall begin
				and the contingencies subject to which construction may be deferred.
6. A statement of what laws and regulations apply
				to the operation and maintenance of the facility and which public agencies have
				jurisdiction over the facility;
7. The
				services provided or proposed to be provided under contracts for continuing care at
				the facility, including the extent to which medical care and other services are
				furnished under the basic contract and which other care or services are available at
				or by the facility at extra charge;
8. A
				description of all fees required of residents subject to contracts for continuing
				care, including the application fee, entrance fee and periodic charges, if any, the
				manner by which the provider may adjust periodic charges or other recurring fees and
				the limitation on the adjustments, if any, and, if the facility is already in
				operation or if the provider or operator operates one or more similar facilities
				within this State, tables showing the frequency and average dollar amount of each
				increase in periodic rates at each facility for the previous five years or as many
				years as the facility has been operated by the provider or operator, whichever is
				less;
9. The provisions that have been
				made or will be made, if any, to provide reserve funding or security which will
				enable the provider to fully perform its obligations under contracts to provide
				continuing care at the facility, including the establishment of escrow accounts,
				trusts or reserve funds, the manner in which the funds shall be invested and the
				names and experience of persons who will make the investment decisions;
10. Certified financial statements of the provider
				which include balance sheets and income statements for the two most recent completed
				fiscal years or for as long as the provider has been in existence, whichever is
				less;
11. If the operation of the
				facility has not yet commenced, a statement of the anticipated source and
				application of the funds used or to be used in the purchase or construction of the
				facility, including:
i. An estimate of the cost of
				purchasing or construction and equipping the facility which includes related costs
				such as financing expenses, legal expenses, land costs, marketing and development
				costs and other similar costs the provider expects to incur or become obligation for
				prior to the commencement of operations;
ii. A description of any mortgage loan or other
				long-term financing intended to be used for the financing of the facility and the
				anticipated terms and costs of the financing;
iii. An estimate of the total amount of entrance
				fees to be received from or on behalf of residents at or prior to commencement of
				operation of the facility;
iv. An
				estimate of the funds, if any, which are anticipated to be necessary to fund
				start-up losses and provide reserve funds to assure full performance of the
				obligations of the provider under contracts for the provision of continuing
				care;
v. A projection of estimated
				income from fees and charges other than entrance fees, a description of individual
				rates anticipated to be charged, the assumptions used in calculating the estimated
				occupancy rate of the facility and the effect on the income of the facility of
				government subsidies, if any, for health care services provided pursuant to the
				contracts for continuing care;
vi. A
				projection of estimated operating expenses of the facility, including a description
				of the assumptions used in calculating the expenses and separate allowances, if any,
				the replacement of equipment and furnishings and any anticipated major structural
				repairs or additions.
vii.
				Identification of assets pledged as collateral for any purpose; and
viii. An estimate of annual payments of principal
				and interest required by any mortgage loan or other long-term financing.
12. The "Bill of Rights for Continuing
				Care Retirement Community Residents in Independent Living," in such terms and in
				such form as required by this chapter;
13. Notice that the prospective resident shall
				have 30 days to review the disclosure statement and written explanation of
				residents' rights and responsibilities prior to executing the contract;
14. Notice of the resident's right to cancel the
				agreement within 30 days after signing and then to receive a full refund, except for
				the application fee. This notice shall also advise that the prospective resident may
				wait to occupy a unit until the end of the 30-day rescission period;
15. A copy of the rules and regulations of the
				facility regarding the resident's responsibilities and conduct acceptable to the
				facility, which rules and regulations shall not limit, restrict, or be otherwise
				inconsistent with the rights set forth in the "Bill of Rights for Continuing Care
				Retirement Community Residents in Independent Living"; and
16. Other material information concerning a
				specific facility or provider as the provider wishes. SUBCHAPTER 6.
				CONTRACTS