Michigan Laws 554.935 – Delivery of continuing care agreements, emergency plan, and disclosure statement; availability of feasibility study
Current as of: 2024 | Check for updates
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Terms Used In Michigan Laws 554.935
- community: means a retirement community in which a person undertakes to provide or arrange for continuing care and which is 1 or more of the following:
(i) An adult foster care facility. See Michigan Laws 554.903Continuing care: means some or all of the following services:
(i) A living unit. See Michigan Laws 554.903Continuing care agreement: means a written agreement, including a long-term lease or an agreement conferring a life interest, between a member and a continuing care community for continuing care upon payment of an entrance fee. See Michigan Laws 554.903 Department: means the department of licensing and regulatory affairs. See Michigan Laws 554.905 Disclosure statement: means a disclosure statement as required under section 19(1)(c) or that may be required by the department under section 25, as applicable. See Michigan Laws 554.905 Entrance fee: means money paid in a lump sum or installments or property transferred pursuant to a continuing care agreement before initiation of continuing care for 1 or more individuals and that confers the right to the continuing care. See Michigan Laws 554.905 in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q Living unit: means a physical space within a continuing care community set aside for the exclusive use or control of 1 or more specific members. See Michigan Laws 554.905 Member: means an individual who enters into a continuing care agreement with a continuing care community. See Michigan Laws 554.907
(1) A continuing care community shall deliver to a prospective member all continuing care agreements pertinent to the continuing care sought by the prospective member, the continuing care community emergency plan in case of power outage, and the disclosure statement most recently approved by the department. The delivery shall be by a method considered acceptable by the continuing care community and the prospective member and shall occur by the earlier of the following:
(a) The continuing care community’s acceptance of a nonrefundable application fee from the prospective member, unless all of the following apply:
(i) The nonrefundable application fee does not exceed $500.00.
(ii) The availability of a disclosure statement is disclosed in writing to the prospective member.
(iii) A disclosure statement is made available to the prospective member upon request.
(b) The prospective member’s payment of at least 10% of the total entrance fee to reserve a living unit.
(2) Upon execution of the continuing care agreement and payment of the full entrance fee amount, the continuing care community shall provide the member with a physical copy of both of the following:
(a) The executed continuing care agreement.
(b) A physical copy of the disclosure statement, unless a physical copy has already been provided under subsection (1).
(3) A continuing care community shall make the feasibility study required under section 19 available for review by a member or prospective member upon request.