§ 10-412. Initial certificate of registration

   (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.

HISTORY: An. Code 1957, art. 70B, § 11(a)-(d); 2007, ch. 3, § 2.