Bill Text: NJ A2747 | 2018-2019 | Regular Session | Chaptered


Bill Title: Limits time continuing care retirement communities may retain refundable entrance fee after resident vacates facility; provides for disposition of certain personal property.*

Spectrum: Bipartisan Bill

Status: (Passed) 2018-08-17 - Approved P.L.2018, c.98. [A2747 Detail]

Download: New_Jersey-2018-A2747-Chaptered.html

2 - Note

 


P.L. 2018, CHAPTER 98, approved August 17, 2018

Assembly Committee Substitute (Third Reprint) for

Assembly, Nos. 2747 and 880

 

 


An Act concerning the return of continuing care retirement community refundable entrance fees and amending P.L.2013, c.167.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   Section 7 of P.L.2013, c.167 (C.52:27D-360.7) is amended to read as follows:

      7.   a.  (1) A resident may, upon 60-days' written notice of the intent to vacate, cancel the continuing care agreement for any reason.

      (2) Upon vacating the unit, a resident or resident's estate cancelling a continuing care agreement also shall provide written notice to the owner or manager of that facility that the unit is vacated. The notice shall declare that all personal property of the resident or estate thereof has been removed.

      (3) After a unit is vacated, the facility may restore the unit to its original condition. 1[If] The facility may remove1 any personal property of the prior resident 1that1 remains in the unit 1[, the facility may continue to impose monthly fees until the property is removed, and the facility may remove any such property]1 beginning on the twenty-first day following the date upon which notice of vacancy was received.  3[1The facility may continue to impose monthly fees for up to 90 days after the date the unit is completely vacated and all personal property of the prior resident has been removed, and may additionally continue to impose monthly fees for any period during which the personal property of the prior resident remains in the unit.1]3

      (4) In the case of a continuing care agreement that provides for a refundable entrance fee, the facility shall assign the vacated unit a sequential 1refund1 number among all the available units with refundable entrance fees once the unit is restored pursuant to paragraph (3) of this subsection, but not later than 60 days 1[following receipt of the notice that the unit is vacated] after the date that all the conditions for issuing a sequential refund number, as provided in the continuing care agreement, are fulfilled1.

      b.   Upon cancellation of the continuing care agreement by either the resident or the facility, the resident shall have the right to receive a refund of the amount of any entrance fee as provided in the continuing care agreement.  The amount of the entrance fee shall be set forth in a clear and conspicuous manner in the continuing care agreement.

      c.   A resident shall be provided at least 60-days' written notice from the facility if the resident's continuing care agreement is being cancelled due to a violation of the facility's rules or regulations. Notification may be waived if the facility can demonstrate just cause for terminating the continuing care agreement in accordance with N.J.A.C.5:19-6.5(c).  The resident may challenge the facility's notice of continuing care agreement cancellation by requesting a hearing in the same manner as for a hearing in a contested case pursuant to section 9 of P.L.1968, c.410 (C.52:14B-9).

      d.   In a continuing care agreement that provides for a refundable entrance fee, when a resident permanently vacates the facility, or, in the case of two residents occupying the same residence, when both vacate at the same time, the facility shall provide to the resident or residents or the legal representative of the resident's estate, whichever is applicable, a refund of the refundable entrance fee amount without interest, as set forth in the agreement.  Any unpaid fees or charges incurred by the resident including unpaid monthly service fees, as well as the amount of any charitable assistance that the facility has provided to the resident, may also be deducted from the remaining balance of the refund of the entrance fee.  Any balance to the resident shall be payable [within 60 days from the date the residence is resold and the entrance fee from the new resident has been received] based upon the order of the sequential 1refund1 number assigned to a unit pursuant to paragraph (4) of subsection a. of this section and the availability of funds from the proceeds of the resale of all vacated units with refundable entrance fees.

      e.   When an entrance fee deposit is refundable, it shall be paid to either the resident, the resident's named beneficiary, or the legal representative of the resident's estate, whichever is applicable.  A resident shall have the right to change, in writing, the named beneficiary for the entrance fee refund at any time.

      1f.  Notwithstanding the provisions of subsection d. of this section to the contrary, a facility may apply to the Commissioner of Community Affairs for approval to implement an alternative methodology for making refund payments of refundable entrance fees, which 2[may be based on the availability of funds from the resale of like or similar groups of units with refundable entrance fees at the facility.  For the purposes of this section, a group of units may be categorized as "like or similar" based on the units having comparable characteristics, such as the units having a substantially equivalent square footage, number of bedrooms, location, age of construction, or a combination of one or more of these characteristics.  If a facility receives approval for an alternative refund methodology based on like or similar groups of units, the continuing care agreement for each unit shall identify the group of units into which the unit has been categorized] approval shall not be granted unless the facility can demonstrate that the use of the alternative methodology is resident-focused and provides for a more equitable and timely payment of refundable entrance fees2.1

(cf: P.L.2013, c.167, s.7)

 

     2.    This act shall take effect 1[immediately] 90 days after the date of enactment, and shall apply to continuing care agreements entered into on or after that date1.

 

 

                                

 

     Limits time continuing care retirement communities may retain refundable entrance fee after resident vacates facility; provides for disposition of certain personal property.

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