N.Y. Comp. Codes R. & Regs. tit. 10 § 903.6

Current through Register Vol. 46, No. 53, December 31, 2024

Section 903.6 - Priority reservation fees and agreements

(a) A prospective resident shall have the right to cancel the priority reservation agreement upon written notification to the prospective applicant, applicant or operator and/or to the escrow agent.

(b) A prospective applicant, applicant or operator shall have the right to cancel the priority reservation agreement upon written notification to the prospective resident or his/her representative and to the escrow agent.

(c) Priority reservation fees may not exceed $2,000 and must be deposited directly with an escrow agent pursuant to section 903.5 of this Part.

(d) Priority reservation application fees collected from prospective residents upon application for a priority reservation may not exceed $250.

(e) Priority reservation fees may only be collected pursuant to a written priority reservation agreement between the entity authorized to enter into such agreements pursuant to section 903.4 of this Part and a prospective resident or a prospective resident's legal representative and only upon issuance of such agreement to the prospective resident or his or her legal representative.

(f) The priority reservation agreement must include at a minimum, the following information:

(1) the name and location of the community or the proposed community;

(2) the name and address of the prospective applicant or applicant, or in the case of an existing community operating under a certificate of authority, the operator;

(3) the name, address and phone number of a contact person;

(4) the name and address of the person paying the reservation fee;

(5) the name and address of the escrow agent;

(6) the type of unit being reserved;

(7) the estimated entrance fee and monthly fee clearly identified as an estimate or in the case of an existing community operating under a certificate of authority, the current entrance fee and monthly fee with a statement indicating that these fees are subject to change and may be changed by the time the prospective resident enters into a life care contract with the operator;

(8) the signature of the person paying the reservation fee and the signature of the prospective applicant or applicant, operator or their agent;

(9) a statement of the effective period of the agreement not to exceed the duration of the commissioner's authorization pursuant to section 903.4(c) of this Part; and

(10) a statement of the refund policy pertaining to priority reservation application fees;

(11) in the case of a proposed community, the following notices in bold 12- point type:

(i) the cancelable priority reservation agreement does not obligate the person entering into the agreement in any way;

(ii) there is no guarantee by the prospective applicant or applicant, that the fees estimated in the agreement will not change;

(iii) the community described is only a proposed community and any model units are only representative of units in a proposed community which is subject to a formal submission of a certificate of authority application by the prospective applicant or applicant, and its subsequent approval or disapproval by the Life Care Community Council;

(iv) there is no guarantee that the unit described in the agreement or represented by any model unit will be built or otherwise made available as described or at all;

(v) the person paying the priority reservation fee may receive a refund of the fee with interest earned at the prevailing rates upon request; and

(vi) should a certificate of authority be issued by the Life Care Community Council to the prospective applicant or applicant, the prospective resident shall be entitled on a priority basis to apply the reservation fee to an actual entrance fee or entrance fee deposit on a unit not already under contract; and

(12) in the case of an existing community operating under a certificate of authority, the following notices in bold 12-point type:

(i) the cancelable priority reservation agreement does not in any way obligate the person entering into the agreement;

(ii) there is no guarantee by the operator that the current fees set forth in the reservation agreement will not change;

(iii) the person paying the priority reservation fee may receive a refund of the fee with interest accrued at the prevailing rates upon request; and

(iv) the person paying the fee shall be entitled on a priority basis to apply the reservation fee to an actual entrance fee or entrance fee deposit on a unit not already under contract.

N.Y. Comp. Codes R. & Regs. Tit. 10 § 903.6