Section 26-A8200. LICENSURE PROCEDURES

8200.1An individual or business entity seeking to development, construct, operate, purchase, or expand a continuing care facility (“applicant”) shall apply for a license in accordance with the procedures contained in this section.  All forms referred to in this section and following sections may be found on the Department of Insurance, Securities, and Banking website at disb.dc.gov.

8200.2For new or development stage facilities, the applicant shall submit the following items to the Commissioner for review:

(a)The applicant’s name, address, and telephone number;

(b)A copy of a non-binding reservation agreement form (a nonbinding agreement between a continuing care facility and future resident (or his or her representative) to reserve a unit in the continuing care facility);

(c)An escrow agreement to establish an escrow account in compliance with the requirements of section 109 of the Act;

(d)A narrative describing the facility, its mode of operation, and its location; and

(e)Any advertising materials to be used.

8200.3After submitting all of the items described in subsection 8200.2, the applicant for a new or development stage facility may:

(a)Disseminate materials describing the intent to develop a continuing care facility; and

(b)Enter into fully refundable non-binding reservation agreements for up to one thousand dollars ($1,000).  All funds received shall be escrowed with  a bank, trust company, or other independent person or entity agreed upon  by the provider and the resident.

8200.4To obtain a Start-Up Certificate, an applicant for a new or development stage facility or provider shall have submitted the items described in section 8200.2 and shall submit the following to the Commissioner for review:

(a)An application for licensure, accompanied by a five hundred dollar ($500) filing fee;

(b)A disclosure statement as required by section 105 of the Act;

(c)A copy of a binding reservation agreement form or resident agreement form; and

(d)A market feasibility study.

8200.5Upon issuance of a Start-Up Certificate, the applicant or provider may:

(a)Enter into binding reservation agreements or resident agreements;

(b)Accept entrance fees and entrance fee deposits over one thousand dollars ($1,000).  Any funds received shall be escrowed and shall be released only  with the approval of the Commissioner;

(c)Begin site preparation work; and

(d)Construct model units for marketing.

8200.6To obtain a Preliminary Certificate, an applicant or provider must hold a valid Start-Up Certificate and shall submit the following to the Commissioner for review:

(a)An explanation of any material differences between actual costs and projected costs contained in the Start-Up Certificate submission, except  that an explanation is not required for existing continuing care facilities  that are seeking to expand;

(b)An updated disclosure statement;

(c)Current interim financial statements; and

(d)Confirmation of signed reservation agreements for at least 50 percent (50%) of any new units and confirmation that those units were reserved  through a deposit equal to at least 10 percent (10%) of the entrance fee or  by a non-refundable deposit equal to the periodic fee for at least two (2)  months for continuing care facilities that have no entrance fee.

8200.7Upon issuance of a Preliminary Certificate, an applicant or provider may:

(a)Purchase or construct a continuing care facility;

(b)Renovate or develop structure(s) not already licensed as a continuing care facility; or

(c)Expand an existing continuing care facility in excess of ten percent (10%) of the current number of available independent living units or available  health related units/beds.

8200.8To obtain a Permanent License, an applicant or provider must hold a valid Preliminary Certificate and shall submit the following to the Commissioner for review at least sixty (60) days before the opening of the continuing care facility:

(a)An updated application for licensure;

(b)An updated disclosure statement;

(c)Confirmation of signed reservation agreements for new units required by the continuing care facility to break even and confirmation that those units  were reserved by a deposit equal to at least ten percent (10%) of the  entrance fee or by a non-refundable deposit equal to the periodic fee for at  least two (2) months for continuing care facilities that have no entrance  fee;

(d)All reports as required by an approved accrediting organization for the continuing care facility to maintain its accreditation; and

(e)A summary of the report of an actuary estimating the capacity of the applicant or provider to meet its contractual obligation to the residents.

8200.9Upon issuance of a Permanent License and satisfaction of all other legal requirements, the applicant or provider may:

(a) Open the continuing care facility; and

(b)Provide continuing care services.

8200.10If all other licensing requirements are met, the Commissioner may, in lieu of denying the issuance of a Permanent License, issue a Restricted or Conditional License to an applicant if one (1) or more of the following conditions exist:

(a)A hazardous financial condition; or

(b)Occupancy at the facility, or the number of executed agreements for new units at the facility, is below the level at which the facility would break  even.

8200.11Upon issuance of a Restricted or Conditional License, a provider may operate the facility under the conditions or restricts established by the Commissioner until such time as the Commissioner alters the conditions or restrictions or issues a Permanent License.

8200.12Upon issuance of a Restricted or Conditional License, a provider shall file with the Commissioner each quarter a financial statement and an occupancy report, both due no later than forty-five (45) days following the end of each fiscal quarter.

8200.13All continuing care facilities operating in the District of Columbia on the effective date of these regulations shall submit an application for a Permanent License with a filing fee of five hundred dollars ($500) attached within one hundred twenty (120) days after the effective date of these regulations.  An existing continuing care facility may apply for a Permanent License without first obtaining a Start-Up Certificate or Preliminary Certificate.  An application for a Permanent License under this subsection shall be accompanied by the following:

(a)Disclosure statement;

(b)Financial statements;

(c)Escrow agreement;

(d)Narrative describing the facility, its mode of operation, and the location;

(e)Advertising materials that are used or to be used; and

(f)Confirmation of signed agreements for units in the continuing care facility to break even and confirmation that those units were reserved by a deposit equal to at least ten percent (10%) of the entrance fee or by a non-refundable deposit equal to the periodic fee for at least two (2) months for continuing care facilities that  have no entrance fee.

8200.14A continuing care facility that has applied for a Permanent License pursuant to subsection 8200.13 may continue to operate until the Commissioner acts upon the application for a Permanent License.  If the application is denied, the applicant shall thereafter be treated as a continuing care facility whose license or certificate of authority has been revoked.

authority

The Administrator of the Office of Documents and Administrative Issuances (ODAI), pursuant to the authority set forth in section 309 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1203; D.C. Official Code § 2-559), and the Commissioner of the Department of Insurance, Securities and Banking (DISB), pursuant to the authority set forth in section 117 of the Continuing Care Retirement Communities Act of 2004, effective April 6, 2005 (D.C. Law 15-270; D.C. Official Code § 44-151.01, et seq.(2005 Supp.))(“Act”).

source

Notice of Final Rulemaking published at 53 DCR 1399 (February 24, 2006); as amended by Corrected Notice of Final Rulemaking published at 53 DCR 8475 (October 20, 2006); as corrected by Errata Notice published at 58 DCR 2421 (March 18, 2011).