House Bill 170 Summary: Continuing Care Retirement Communities Act

• Repeals existing Article 64 of Chapter 58 and establishes comprehensive new Article 64A to regulate continuing care retirement communities (CCRCs) and continuing care without lodging programs in North Carolina.

• Creates a tiered licensing system requiring providers to obtain permits to accept deposits, start-up certificates, preliminary certificates, and permanent licenses from the Insurance Commissioner before operating.

• Mandates providers maintain escrow accounts for entrance fees and deposits, establish operating reserves (ranging from 12.5% to 50% of operating costs based on occupancy rates), and submit annual audited financial statements and five-year prospective financial projections.

• Requires providers to deliver comprehensive disclosure statements to prospective residents covering fees, services, financial condition, management, and contractual obligations, with specific provisions for rescission rights and refund terms.

• Establishes oversight mechanisms including actuarial studies, semiannual resident meetings, Commissioner examination authority, hazard condition determinations, and enforcement actions up to license revocation for violations, with civil liability and criminal penalties for willful violations.