A proposed bill meant to modernize Florida’s continuing care retirement community laws includes changes to regulatory oversight and transparency for residents.
Florida HB 1573 / SB 622 would streamline financial reporting requirements, expand the types of institutions that may issue a letter of credit, and address concerns of investors in tax-exempt bonds, according to supporters.
LeadingAge Florida supports updating current law around CCRCs to simplify access to capital, support expansion among CCRCs, and reduce unnecessary reporting to ensure the state’s “healthy and vibrant” senior living market. President and CEO Steve Bahmer said he was grateful for lawmakers’ support and recognition of CCRCs / life plan communities as “an important part of our state’s retirement portfolio.”
“This legislation will help ensure the future viability and financial strength of these communities and help make them available to an even greater number of seniors,” he said in a statement. “Our focus is to ensure the ongoing viability and financial strength of the CCRC model in Florida by making it easier for providers to access capital while minimizing unnecessary bureaucracy that can get in the way of growth,”
The bill also is supported by the Florida Life Care Residents Association, a nonprofit association of CCRC residents.
In Florida, CCRC contracts are considered an insurance product and are reviewed and approved by the state Office of Insurance Regulation. In 2019, the state enacted board statutory changes to increase the OIR’s authority to regulate CCRCs.
The current bill would make it easier for a provider to access escrowed resident fees as part of an expansion, reduce the state’s time to approve or deny an expansion application, create notification requirements for escrow withdrawals, expand the types of financial institutions from which a provider can obtain a letter of credit, and change penalties for contract cancellations.
The bill also would clarify a resident’s right to participate in a resident council, require providers to designate a resident representative at each community, implement meeting notice requirements and require communities to notify the resident council after a change in management.
If passed, the bill’s provisions would go into effect July 1.
