Bill > AB1983

This bill expands the definition of a "repayable contract" for continuing care retirement communities, which are facilities offering long-term care services in exchange for an entrance fee. Previously, a repayable contract meant the community promised to return some or all of the entrance fee, but this repayment was contingent on the resident's unit being reoccupied or resold. Now, a repayable contract can also include a promise to repay the entrance fee based on the order in which contracts are terminated, a method referred to as the "sequential order method." To use this method, the community must assign a sequential number to each terminated contract and repay residents from a dedicated account funded by new entrance fees. Once enough funds are in the account to cover the next repayment in the sequence, the community must issue the payment within 14 days. This change aims to provide more clarity and structure to how entrance fees are repaid in certain continuing care retirement community arrangements.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1983