101.070 Escrow account required for registration of new continuing care retirement community; entrance fees in escrow; use of escrow funds
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/or/ors-chapter-101/continuing-care-retirement-communities/101-070·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
101.070 Escrow account required for registration of new continuing care retirement community; entrance fees in escrow; use of escrow funds.
(1)As a condition of registration for a new continuing care retirement community, the Department of Human Services shall require that the provider establish an escrow account with a bank, trust company or other escrow agent and that any entrance fees received by the provider prior to the date the resident is permitted to occupy the living unit in the CCRC be placed in the escrow account.
(2)Upon written request by the provider, the department shall approve the release of the funds from escrow if the department is satisfied that:
(a)The provider has received a certificate of occupancy by local authorities and has collected no less than 10 percent of each individual resident’s entrance fee for no less than 50 percent of the total number of units;
(b)Anticipated proceeds of any first mortgage loan or other long term financing commitment plus funds from other sources in the actual possession of the provider are equal to not less than:
(A)Fifty percent of the aggregate cost of constructing or purchasing and equipping and furnishing the CCRC; and
(B)Fifty percent of the funds, which the provider estimated in its disclosure pursuant to ORS 101.050, to fund start-up losses of the CCRC; and
(c)A commitment has been received by the provider for any permanent mortgage loan or other long term financing commitment, which commitment the provider disclosed pursuant to ORS 101.050, and any conditions of this commitment prior to disbursement of funds thereunder, other than completion of the construction or closing of the purchase of the CCRC, have been substantially satisfied.
(3)In the event a prospective resident withdraws from the residency agreement prior to occupancy, the entrance fee described in ORS 101.080 may not be refunded to the prospective resident until such time as the prospective resident’s unit has been resold.
(4)If the entrance fees in an escrow account are not released within 48 months after the escrow account is opened, entrance fees paid, less the escrow fee, shall be returned to the residents unless an extension is granted by the department.
(5)Nothing in this section requires the escrow of any nonrefundable application fee charged to prospective residents.
(6)An entrance fee held in escrow may be returned by the escrow agent, at any time, to the person or persons who paid the fee to the provider upon receipt by the escrow agent of notice from the provider that such person is entitled to a refund of the entrance fee. [1989 c.693 §13; 2009 c.201 §6]