Entrance Fee Pooling Bill Introduced

AB 2033 (Choi) was introduced in the state legislature to allow the “pooling” of entrance fees. A model heavily used by providers like Erickson Senior Living. The proposal would allow the repayment of entrance fees on a sequential basis based on new entrance fees received, rather than a new entrance fee from a specific vacated unit. The bill also requires the establishment of a refund account, provide notifications to the designated beneficiary, a description of the mechanism for repayment and would apply to continuing care contracts made under the new provisions on or after January 1, 2019.