(a) Required.- A provider may not provide continuing care until the Department issues an initial certificate of registration.
(b) Application - Form.- An application for an initial certificate of registration shall be filed in a form satisfactory to the Department.
(c) Application - Contents.- An application shall include at least the following information:
(1) for a project other than a conversion, verification that continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the total entrance fee for each contracted unit has been collected;
(2) for a conversion project, verification that at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
(i) leases;
(ii) continuing care agreements executed with subscribers who have paid a deposit that:
1. equals at least 10% of the total entrance fee; and
2. has been deposited by the provider under an escrow agreement approved by the Department; or
(iii) other appropriate contractual arrangements;
(3) verification that the provider has received a written commitment for permanent long-term financing; and
(4) if construction financing is required, verification that the provider has applied for the financing.
(d) Lenders.-
(1) If requested by the permanent financing lender, the Department may issue a letter stating that the requirements of subsection (c)(1) of this section have been met.
(2) If requested by the construction lender, the Department may issue a letter stating that:
(i) the requirements of subsection (c)(1) and (3) of this section have been met; and
(ii) the initial certificate of registration will be issued on the closing of the construction loan.
(e) Issuance of certificate.-
(1) The Department shall issue an initial certificate of registration to a provider if the Department determines that:
(i) the provider has a preliminary certificate of registration;
(ii) the provider has submitted the required documents;
(iii) the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;
(iv) for a project other than a conversion, continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the entrance fee has been paid as a deposit for each contracted unit;
(v) for a conversion project, at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
1. leases;
2. continuing care agreements executed with subscribers who have paid a deposit that:
A. equals at least 10% of the total entrance fee; and
B. has been deposited by the provider under an escrow agreement approved by the Department; or
3. other appropriate contractual arrangements;
(vi) if construction financing is required, closing on the financing has occurred; and
(vii) the provider has a commitment for permanent long-term financing.
(2) The Department may issue the initial certificate of registration for a period not exceeding 18 months.
(f) Use of deposits held in escrow.- A deposit held in escrow may not be used until:
(1) an initial certificate of registration has been issued;
(2) construction is completed;
(3) the provider has a certificate of occupancy or the equivalent from the appropriate local jurisdiction; and
(4) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene or the Department.
(g) Failure to obtain certificate of registration.- If an initial certificate of registration is not issued within 24 months after the issuance of a preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, the provider shall refund all deposits and stop offering continuing care under that application.
(a) Required.- A provider may not provide continuing care until the Department issues an initial certificate of registration.
(b) Application - Form.- An application for an initial certificate of registration shall be filed in a form satisfactory to the Department.
(c) Application - Contents.- An application shall include at least the following information:
(1) for a project other than a conversion, verification that continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the total entrance fee for each contracted unit has been collected;
(2) for a conversion project, verification that at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
(i) leases;
(ii) continuing care agreements executed with subscribers who have paid a deposit that:
1. equals at least 10% of the total entrance fee; and
2. has been deposited by the provider under an escrow agreement approved by the Department; or
(iii) other appropriate contractual arrangements;
(3) verification that the provider has received a written commitment for permanent long-term financing; and
(4) if construction financing is required, verification that the provider has applied for the financing.
(d) Lenders.-
(1) If requested by the permanent financing lender, the Department may issue a letter stating that the requirements of subsection (c)(1) of this section have been met.
(2) If requested by the construction lender, the Department may issue a letter stating that:
(i) the requirements of subsection (c)(1) and (3) of this section have been met; and
(ii) the initial certificate of registration will be issued on the closing of the construction loan.
(e) Issuance of certificate.-
(1) The Department shall issue an initial certificate of registration to a provider if the Department determines that:
(i) the provider has a preliminary certificate of registration;
(ii) the provider has submitted the required documents;
(iii) the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;
(iv) for a project other than a conversion, continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the entrance fee has been paid as a deposit for each contracted unit;
(v) for a conversion project, at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
1. leases;
2. continuing care agreements executed with subscribers who have paid a deposit that:
A. equals at least 10% of the total entrance fee; and
B. has been deposited by the provider under an escrow agreement approved by the Department; or
3. other appropriate contractual arrangements;
(vi) if construction financing is required, closing on the financing has occurred; and
(vii) the provider has a commitment for permanent long-term financing.
(2) The Department may issue the initial certificate of registration for a period not exceeding 18 months.
(f) Use of deposits held in escrow.- A deposit held in escrow may not be used until:
(1) an initial certificate of registration has been issued;
(2) construction is completed;
(3) the provider has a certificate of occupancy or the equivalent from the appropriate local jurisdiction; and
(4) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene or the Department.
(g) Failure to obtain certificate of registration.- If an initial certificate of registration is not issued within 24 months after the issuance of a preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, the provider shall refund all deposits and stop offering continuing care under that application.
(a) Required.- A provider may not provide continuing care until the Department issues an initial certificate of registration.
(b) Application - Form.- An application for an initial certificate of registration shall be filed in a form satisfactory to the Department.
(c) Application - Contents.- An application shall include at least the following information:
(1) for a project other than a conversion, verification that continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the total entrance fee for each contracted unit has been collected;
(2) for a conversion project, verification that at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
(i) leases;
(ii) continuing care agreements executed with subscribers who have paid a deposit that:
1. equals at least 10% of the total entrance fee; and
2. has been deposited by the provider under an escrow agreement approved by the Department; or
(iii) other appropriate contractual arrangements;
(3) verification that the provider has received a written commitment for permanent long-term financing; and
(4) if construction financing is required, verification that the provider has applied for the financing.
(d) Lenders.-
(1) If requested by the permanent financing lender, the Department may issue a letter stating that the requirements of subsection (c)(1) of this section have been met.
(2) If requested by the construction lender, the Department may issue a letter stating that:
(i) the requirements of subsection (c)(1) and (3) of this section have been met; and
(ii) the initial certificate of registration will be issued on the closing of the construction loan.
(e) Issuance of certificate.-
(1) The Department shall issue an initial certificate of registration to a provider if the Department determines that:
(i) the provider has a preliminary certificate of registration;
(ii) the provider has submitted the required documents;
(iii) the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;
(iv) for a project other than a conversion, continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the entrance fee has been paid as a deposit for each contracted unit;
(v) for a conversion project, at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:
1. leases;
2. continuing care agreements executed with subscribers who have paid a deposit that:
A. equals at least 10% of the total entrance fee; and
B. has been deposited by the provider under an escrow agreement approved by the Department; or
3. other appropriate contractual arrangements;
(vi) if construction financing is required, closing on the financing has occurred; and
(vii) the provider has a commitment for permanent long-term financing.
(2) The Department may issue the initial certificate of registration for a period not exceeding 18 months.
(f) Use of deposits held in escrow.- A deposit held in escrow may not be used until:
(1) an initial certificate of registration has been issued;
(2) construction is completed;
(3) the provider has a certificate of occupancy or the equivalent from the appropriate local jurisdiction; and
(4) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene or the Department.
(g) Failure to obtain certificate of registration.- If an initial certificate of registration is not issued within 24 months after the issuance of a preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, the provider shall refund all deposits and stop offering continuing care under that application.
