Continuing care contracts: repayable contracts.

Existing law establishes the State Department of Social Services and sets forth its powers and duties, including, but not limited to, the certification and regulation of continuing care retirement communities, as defined. Existing law requires a continuing care retirement community to possess a certificate of authority from the department before it can enter into a continuing care contract, as defined. Existing law regulates different types of continuing care contracts, including, among others, a repayable contract. A repayable contract is a continuing care contract that includes a promise to repay all or a portion of an entrance fee that is conditioned upon reoccupancy or resale of the unit previously occupied by the resident. This bill would, for contracts entered into or amended on or after January 1, 2019, revise the definition of a "repayable contract" to also include a contract that includes a promise to repay all or a portion of an entrance fee on a sequential basis from an entrance fee repayment pool that is funded by the resale of units in the pool at the facility, as they become available, would set forth conditions for repayment of these amounts, and would declare that these contracts are subject to the same legal requirements as other repayable contracts.