SB 475 Summary

• Requires continuing care retirement facilities to pay full lump-sum payments conditioned on unit resale within 14 days after resale, with mandatory partial payments (10-20% depending on circumstances) within 120 days if unit remains vacant for 120+ days after resident termination.

• Imposes interest penalties on unpaid balances: 4% simple interest (compounded annually) for amounts unpaid after 180 days, and 6% interest for amounts unpaid after 240 days, continuing until full payment is made.

• Prohibits providers from charging monthly fees to residents or their estates once a unit is permanently vacated, except in equity interest contracts.

• Establishes complaint process allowing residents to file with the Department of Social Services if a unit has not been resold within 12 months after becoming available, with department investigation to determine if provider made sufficient good-faith effort to resell or reoccupy.

• Requires providers to repay full lump-sum payments within 20 business days if the department determines insufficient good-faith effort was made; applies to contracts signed after January 1, 2016, with exemptions for certain projects in development before that date until January 1, 2017.