HB2505 Summary

• Requires entrance fees for life care contracts be held in escrow until conditions are met, including substantial construction completion, mortgage commitment, and aggregate fees/financing equal at least 90 percent of facility costs plus start-up funds.

• Mandates entrance fees be returned to contract holders, minus allowable deductions, when the resident's occupancy terminates and the unit is reoccupied by a new resident or within one year, whichever is shorter.

• Requires providers to deliver a separate disclosure document to contract holders before execution of life care contracts that specifies refund eligibility, amounts, timing, and any conditions or limits on refunds.

• Specifies the refund disclosure must be in at least 10-point boldface type, signed by the contract holder and any spouse/partner, witnessed by two independent persons, and separately initialed by the purchaser.

• Applies the amended disclosure requirements to both new and existing life care contracts.