New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter VII - Life Care Communities › Part 903 - Priority Reservation Agreements › Section 903.6 - Priority reservation fees and agreements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A prospective resident shall have the
				right to cancel the priority reservation agreement upon written notification to
				the prospective applicant, applicant or operator and/or to the escrow
				agent.
(b) A prospective applicant,
				applicant or operator shall have the right to cancel the priority reservation
				agreement upon written notification to the prospective resident or his/her
				representative and to the escrow agent.
(c) Priority reservation fees may not exceed
				$2,000 and must be deposited directly with an escrow agent pursuant to section
				903.5 of this Part.
(d) Priority reservation application fees
				collected from prospective residents upon application for a priority
				reservation may not exceed $250.
(e) Priority reservation fees may only be
				collected pursuant to a written priority reservation agreement between the
				entity authorized to enter into such agreements pursuant to section
				903.4 of this Part and a
				prospective resident or a prospective resident's legal representative and only
				upon issuance of such agreement to the prospective resident or his or her legal
				representative.
(f) The priority
				reservation agreement must include at a minimum, the following information:
(1) the name and location of the community or
				the proposed community;
(2) the
				name and address of the prospective applicant or applicant, or in the case of
				an existing community operating under a certificate of authority, the
				operator;
(3) the name, address and
				phone number of a contact person;
(4) the name and address of the person paying
				the reservation fee;
(5) the name
				and address of the escrow agent;
(6) the type of unit being
				reserved;
(7) the estimated
				entrance fee and monthly fee clearly identified as an estimate or in the case
				of an existing community operating under a certificate of authority, the
				current entrance fee and monthly fee with a statement indicating that these
				fees are subject to change and may be changed by the time the prospective
				resident enters into a life care contract with the operator;
(8) the signature of the person paying the
				reservation fee and the signature of the prospective applicant or applicant,
				operator or their agent;
(9) a
				statement of the effective period of the agreement not to exceed the duration
				of the commissioner's authorization pursuant to section
				903.4(c) of this
				Part; and
(10) a statement of the
				refund policy pertaining to priority reservation application fees;
(11) in the case of a proposed community, the
				following notices in bold 12- point type:
(i)
				the cancelable priority reservation agreement does not obligate the person
				entering into the agreement in any way;
(ii) there is no guarantee by the prospective
				applicant or applicant, that the fees estimated in the agreement will not
				change;
(iii) the community
				described is only a proposed community and any model units are only
				representative of units in a proposed community which is subject to a formal
				submission of a certificate of authority application by the prospective
				applicant or applicant, and its subsequent approval or disapproval by the Life
				Care Community Council;
(iv) there
				is no guarantee that the unit described in the agreement or represented by any
				model unit will be built or otherwise made available as described or at
				all;
(v) the person paying the
				priority reservation fee may receive a refund of the fee with interest earned
				at the prevailing rates upon request; and
(vi) should a certificate of authority be
				issued by the Life Care Community Council to the prospective applicant or
				applicant, the prospective resident shall be entitled on a priority basis to
				apply the reservation fee to an actual entrance fee or entrance fee deposit on
				a unit not already under contract; and
(12) in the case of an existing community
				operating under a certificate of authority, the following notices in bold
				12-point type:
(i) the cancelable priority
				reservation agreement does not in any way obligate the person entering into the
				agreement;
(ii) there is no
				guarantee by the operator that the current fees set forth in the reservation
				agreement will not change;
(iii)
				the person paying the priority reservation fee may receive a refund of the fee
				with interest accrued at the prevailing rates upon request; and
(iv) the person paying the fee shall be
				entitled on a priority basis to apply the reservation fee to an actual entrance
				fee or entrance fee deposit on a unit not already under contract.