2013 Maryland Code
HUMAN SERVICES
§ 10-412 - Initial certificate of registration

§10-412.

(a) A provider may not provide continuing care until the Department issues an initial certificate of registration.

(b) An application for an initial certificate of registration shall be filed in a form satisfactory to the Department.

(c) An application shall include at least the following information:

(1) for a project other than a conversion, verification that continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the total entrance fee for each contracted unit has been collected;

(2) for a conversion project, verification that at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:

(i) leases;

(ii) continuing care agreements executed with subscribers who have paid a deposit that:

1. equals at least 10% of the total entrance fee; and

2. has been deposited by the provider under an escrow agreement approved by the Department; or

(iii) other appropriate contractual arrangements;

(3) verification that the provider has received a written commitment for permanent long-term financing; and

(4) if construction financing is required, verification that the provider has applied for the financing.

(d) (1) If requested by the permanent financing lender, the Department may issue a letter stating that the requirements of subsection (c)(1) of this section have been met.

(2) If requested by the construction lender, the Department may issue a letter stating that:

(i) the requirements of subsection (c)(1) and (3) of this section have been met; and

(ii) the initial certificate of registration will be issued on the closing of the construction loan.

(e) (1) The Department shall issue an initial certificate of registration to a provider if the Department determines that:

(i) the provider has a preliminary certificate of registration;

(ii) the provider has submitted the required documents;

(iii) the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;

(iv) for a project other than a conversion, continuing care agreements have been executed with subscribers for at least 65% of the independent living units and at least 10% of the entrance fee has been paid as a deposit for each contracted unit;

(v) for a conversion project, at least 80% of the accommodations in the project that are not licensed as assisted living or comprehensive care beds are occupied or reserved in accordance with:

1. leases;

2. continuing care agreements executed with subscribers who have paid a deposit that:

A. equals at least 10% of the total entrance fee; and

B. has been deposited by the provider under an escrow agreement approved by the Department; or

3. other appropriate contractual arrangements;

(vi) if construction financing is required, closing on the financing has occurred; and

(vii) the provider has a commitment for permanent long-term financing.

(2) The Department may issue the initial certificate of registration for a period not exceeding 18 months.

(f) A deposit held in escrow may not be used until:

(1) an initial certificate of registration has been issued;

(2) construction is completed;

(3) the provider has a certificate of occupancy or the equivalent from the appropriate local jurisdiction; and

(4) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene or the Department.

(g) If an initial certificate of registration is not issued within 24 months after the issuance of a preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, the provider shall refund all deposits and stop offering continuing care under that application.