New York Laws
Article 46-A - Fee-for-Service Continuing Care Retirement Communities Demonstration Program
4661 - Consumer Safeguards.

* § 4661. Consumer safeguards. The applicant shall demonstrate the
financial feasibility of the facility. The operator shall provide a
statement of the anticipated source and application of the funds used or
to be used in the purchase or construction of the facility, including:

1. An estimate of the cost of purchasing or constructing and equipping
the facility, which includes related costs such as financing expenses,
legal expenses, land costs, marketing and development costs and other
similar cost the provider expects to incur or become obligated for prior
to the commencement of operations;

2. A description of any mortgage loan or other long-term financing
intended to be used for the financing of the facility and the
anticipated terms and costs of financing;

3. An estimate of the total amount of entrance fees to be received
from or on behalf of residents at or prior to commencement of operation
of the facility;

4. An estimate of the funds, if any, which are anticipated to be
necessary to fund start-up losses, and provide reserve funds to assure
full performance of the obligations of the provider under contracts for
the provision of continuing care;

5. A projection of estimated income from fees and charges other than
entrance fees, a description of individual rates anticipated to be
charged, the assumptions used for calculating the estimated occupancy
rate of the facility and the effect on the income of the facility of
government subsidies, if any, for health care services provided pursuant
to the contracts for fee-for-service continuing care;

6. 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;

7. Identification of assets pledged as collateral for any purpose;

8. An estimate of annual payments or principal and interest required
by any mortgage loan or other long-term financing; and

9. Such other material information concerning the facility or the
operator as required by the commissioner or as agreed upon by the
operator and the prospective resident.

* NB There are 2 § 4661's