Section 4657. Initial disclosure statement

Prior to the execution of a
  contract, or before the transfer of any money, other than  a  refundable
  priority   reservation   fee   or  non-refundable  priority  reservation
  agreement application  fee,  to  an  operator  by  or  on  behalf  of  a
  prospective resident, whichever occurs first, the operator shall deliver
  to  the  person  with  whom  the  contract is to be entered into, or the
  person's legal representative,  the  most  recent  annual  statement  as
  required  by  section forty-six hundred fifty-eight of this article, and
  an initial disclosure statement which contains the following:
    1. The information contained in the contract, unless a  copy  of  such
  contract  is  attached  to  and  made  a  part of the initial disclosure
  statement, together with full disclosure of the  use  of  any  fees  and
  charges in connection with the contract, including entrance fees;
    2.  The  information  required  in paragraph h and subparagraphs (ii),
  (iii) and (iv) of paragraph i of subdivision two  of  section  forty-six
  hundred fifty-five of this article;
    3.  The  name  and business address of the provider and a statement of
  whether the provider is  an  individual,  partnership,  corporation,  or
  other legal entity;
    4.  The  name  and  address of any person whose name is required to be
  provided pursuant to subdivisions two and three of this section and  any
  professional service, firm, association, foundation, trust, partnership,
  corporation,  or any other business or legal entity in which such person
  has, or which has in such person, a ten percent or greater interest  and
  which  it  is  presently  intended will or may provide goods, leases, or
  services to the provider of a value of five  hundred  dollars  or  more,
  within  any  year,  including  a  description  of  the  goods, leases or
  services and the probable or anticipated cost thereof to the provider;
    5. If the facility is to be operated by a manager:
    a. the identities of any other facilities managed by  said  individual
  or  entity  and  a  copy  of  the agreement currently in effect or to be
  entered into between the provider and the manager for the  operation  of
  the facility;
    b.  if  the  manager  is incorporated or established and operated on a
  for-profit basis, the identity of all individuals  or  entities  holding
  any  ownership  or  beneficial  interest in the manager, and fees or any
  other compensation anticipated to be paid by the provider to the manager
  for the operation of the facility; and
    c. the method by which the manager was chosen to manage  the  facility
  and,  if  the  manager  was  chosen because of a condition in a mortgage
  commitment to the provider, the identity of the mortgagee requiring  the
  condition in the commitment;
    6.  A  description of the proposed or existing facility, including the
  location, size and anticipated completion date, if not completed;
    7. A statement as to whether the applicant was or  is  affiliated,  or
  has  a  contractual relationship, with a religious, charitable, or other
  nonprofit  organization,  the  extent  of  any   such   affiliation   or
  contractual   relationship,  and  the  extent  to  which  the  nonprofit
  organization will be  responsible  for  the  financial  and  contractual
  obligations of the applicant;
    8.  If  the  facility  is  already  in  operation  or if the applicant
  operates one or more similar facilities within or outside of this state,
  a statement of the changes in the scope of or  the  rates  for  care  or
  services  provided,  including  tables showing the frequency and average
  dollar amount of each increase in periodic rates at each  such  facility
  for  the  previous five years or such shorter period as the facility may
  have been operated by the provider;

    9. If the applicant is the subsidiary corporation or the affiliate  of
  another  corporation,  a statement identifying the parent corporation or
  the other affiliate corporation, the primary activities of such  parent,
  or  other  affiliate  corporation, the interest in the applicant held by
  such  parent or other affiliate corporation, and the extent to which the
  parent corporation will be responsible for the financial and contractual
  obligations of the subsidiary;
    10. The most recent financial statement of the  provider  prepared  in
  accordance  with  generally  accepted accounting principles applied on a
  consistent basis and certified by an  independent  certified  or  public
  accountant,  including  a  balance sheet as of the end of the provider's
  last fiscal year and income statements for the last two fiscal years, or
  such shorter period of time as the provider has been in operation;
    11. If construction, lease, rental, or purchase of  the  facility  has
  not  yet  been  completed,  a  statement  of  the anticipated source and
  application of the funds to be used in such purchase, lease, rental,  or
  construction, including but not limited to:
    a.   an   estimate  of  the  cost  of  purchasing,  leasing,  renting,
  constructing and equipping the facility, including, but not limited  to,
  such  related  costs  as financing expenses, legal expenses, land costs,
  occupancy development costs,  and  all  other  similar  costs  that  the
  provider  expects  to  incur  or  become  obligated  for  prior  to  the
  commencement of occupancy;
    b. an estimate  of  the  total  entrance  fees  to  be  received  from
  residents upon completion of occupancy;
    c. a description of any mortgage loan or the other long-term financing
  intended  to  be  used  for the financing of the facility, including the
  anticipated terms and costs of such financing;
    d. an estimate of any funds which are anticipated to be  necessary  to
  fund  start-up  losses and to assure full performance of the obligations
  of the operator pursuant to fee-for-service  continuing  care  contracts
  including, but not limited to, any reserves required pursuant to section
  forty-six hundred sixty-four of this article;
    e.  a  projection of estimated income from fees and charges other than
  entrance fees, a description  of  individual  rates  anticipated  to  be
  charged,   and  the  assumptions  used  for  calculating  the  estimated
  occupancy rate of the facility;
    f. a projection of  estimated  operating  expenses  of  the  facility,
  including  a  description  of  the  assumptions  used in calculating the
  expenses and separate allowances, if any, the replacement  of  equipment
  and   furnishings  and  any  anticipated  major  structural  repairs  or
  additions;
    g. identification of assets pledged as collateral for any purpose; and
    h. an estimate of assets pledged as collateral for any purpose;
    12. A statement indicating community residents who are enrolled  in  a
  health maintenance organization may have nursing facility benefits under
  both  the  health  maintenance  organization subscriber contract and the
  fee-for-service continuing care  contract.  Such  statement  shall  also
  indicate  that  if the health maintenance organization and the community
  cannot reach an agreement on appropriate  financial  arrangements,  then
  the  resident  may  have  to  be  admitted to a facility approved by the
  health maintenance organization  in  order  to  receive  their  Medicare
  benefit  for  nursing  facility  services  under  the health maintenance
  organization subscriber contract;
    13. The initial disclosure statement  and  marketing  materials  of  a
  community  must clearly include a description of the services offered as
  part of its contract, and must clearly differentiate among  the  various
  types of contracts which it offers;

    14.  In  accordance  with  regulations promulgated by the council, the
  operator shall prepare a standard information sheet  for  each  approved
  fee-for-service  continuing  care  retirement  community,  which must be
  approved by the department, distributed with the  community's  marketing
  materials  and  attached to the initial disclosure statement prepared in
  accordance with this section. The standard information  sheet  shall  be
  prepared  in  plain language and in twelve point type and shall include,
  but shall not be limited to the following information:
    a. a brief description  of  the  community,  including  its  name  and
  location and amenities and services available;
    b.  the  name,  address,  and  telephone  number of the operator and a
  contact person employed by the operator;
    c. the number and  types  of  independent  living  units,  adult  care
  facility  units  and nursing home beds and whether such beds are on-site
  or off-site;
    d. the types of contracts available;
    e. a listing of all fees, charges, and refund options and the services
  covered by such fees and charges;
    f. any insurance coverage required of residents; and
    g. any other information which the council determines  will  assist  a
  consumer  in  comparing  the  benefits and costs of different continuing
  care  retirement  communities  and   fee-for-service   continuing   care
  retirement communities; and
    15.   Any   other  information  as  may  be  required  by  regulations
  promulgated by the council.
    * NB There are 2 § 4657's