Bill > SB897

This bill, known as the RCFE Residents Foreclosure Protection Act of 2011, aims to protect residents of residential care facilities for the elderly (RCFEs) by requiring facility operators to provide timely notification of significant financial distress. Specifically, it mandates that licensees of RCFEs must inform the department, the State Long-Term Care Ombudsman, all current residents and their legal representatives, and prospective residents and their legal representatives, within two business days of learning about or experiencing events such as a notice of default or trustee's sale on the property, an eviction lawsuit (unlawful detainer action), the licensee filing for bankruptcy, a written notice of unpaid rent, or a utility company's intent to terminate essential services within 15 days. The department will then initiate appropriate actions, and failure to comply can result in daily civil penalties of up to $100 per day, not exceeding $2,000, and potentially license suspension or revocation, especially if a resident suffers harm due to a relocation without proper notification. This act does not apply to RCFEs that have obtained a certificate of authority to offer continuing care contracts.