CCRC Regulation and Financial Disclosure Act

The Continuing Care Retirement Community Unit of the Bureau of Homeowner Protection in the Department of Community Affairs (DCA) implements the Continuing Care Retirement Community Regulation and Financial Disclosure Act (N.J.S.A. 52:27D-330 et seq.)  Regulations (N.J.A.C 5:19 et seq.)  were developed and implemented to allow the DCA to administer and enforce the Act. The law requires those who own or run a CCRC to: 

1. Apply for and obtain a “Certificate of Authority” which authorizes the facility to operate as a CCRC.
2. Annually, the CCRC must prepare and file with the Dept. of Community Affairs an Annual Disclosure Statement (ADS) describing the services, financial stability, fees and other contract terms. Increases in a CCRC’s monthly service fees must be registered with the DCA in the form of an amendment to a CCRC’s Disclosure Statement. 

It is important to note, the DCA does not “approve “CCRC or their ADS but rather “certifies” that the CCRC is in compliance with the requirements of the Continuing Care Retirement Community Regulations and Financial Disclosure Act  (N.J.S.A. 52:27D-330 et seq.) and associated regulations  (N.J.A.C 5:19 et seq.) relative to the contents of the ADFS and its Filing with the DCA.  The DCA insures that all aspects of the CCRC are accurately disclosed to potential residents so they can make an informed decision prior to signing a residency agreement.  Additionally, the DCA requires each facility to include language on the cover page strongly recommending each prospective resident to consult with an attorney and financial adviser who can review the documents wit them prior to execution. 

• If a complaint involves a CCRC’s non-compliance with its obligations under the CCRC Regulation and Financial Disclosure Act, it will act to insure compliance.  The DCA is authorized to issue cease and desist orders, levy monetary fines and penalties or revoke a CCRCs Certificate of Authority to insure compliance.  
• If a compliant involves a dispute between a resident and the CCRC which is contractual in nature  (i.e., a dispute involving the Residency Agreement) the DCA does not have jurisdiction to intervene or otherwise become involved in such disputes.  Those contractual dispute complaints need to be addressed in appropriate civil court proceedings.
• If a complaint involves health conditions at the CCRC or resident treatment, those complaints are forwarded to the Department of Health of the New Jersey Long-Term Care Ombudsman.
• The DCA, upon receiving a complaint will first evaluate the complaint allegations to determine if the DCA has jurisdiction as previously explained.  If the DCA determines it does have jurisdiction it will contact the CCRC to address the allegations and thereafter take the appropriate administrative action to achieve compliance.