Any person or entity considering the development of a new continuing care retirement community (CCRC) or the continuation of the operation of a CCRC in existence prior to April 6, 2005 in the District of Columbia must do so in accordance with the Continuing Care Retirement Communities Act of 2004 (DC Official Code § 44-151.01 et seq.), including following the licensing steps detailed in 53 DCR 1399 published on February 24, 2006. The licensing steps for CCRCs detailed in the regulations have four basic phases that include the discovery phase, pre-development phase, construction and development phase, and operating phase.
Step 1 – Notification
During the “discovery phase,” and prior to the dissemination of any materials describing the intent to develop a continuing care retirement community (“CCRC”), a provider must notify the DC Department of Insurance, Securities and Banking (DISB) of their intent to market and develop a CCRC (Form CCRC-01). It is expected that prior to notifying DISB, some preliminary work in identifying a market, identifying a site within the market, and performing a preliminary market assessment will have already been done.
The non-binding reservation agreement (“NBRA”) required to be submitted to DISB during Step 1 is an agreement used by providers who are in the “discovery phase” of their development, and is designed to measure and validate the interest in a proposed CCRC. The NBRA allows a potential resident to reserve a living unit in the proposed CCRC, for a period of time, in return for a monetary deposit not to exceed one thousand dollars ($1,000.00), all of which must be placed in escrow. The deposit, with or without interest depending on the agreement, is totally refundable at any time at the request of the depositor. Once a provider has notified DISB of their intent to market and develop a CCRC, DISB will require that a monthly status report (Form CCRC-14) be filed with the department.
Step 2 – Start-Up Certificate
Prior to moving into the “pre-development phase”, a Start-Up Certificate must be obtained from DISB. The Start-Up Certificate Application (Form CCRC-02) is the most voluminous application, and it is suggested that the provider plan for and accumulate the information required in the application as far in advance as possible in order to give DISB ample time to review the completed application prior to the time that the provider desires to begin their full marketing campaign. Items required to be filed with the Start-Up Application include a disclosure statement, audited financial statements, a market feasibility study and a financial feasibility study.
Upon issuance of a Start-Up Certificate, a provider may:
- Enter into binding Reservation Agreements or Resident Agreements;
- Begin site preparation work; and
- Construct model units for marketing.
After the issuance of a Start-Up Certificate, a provider will be required to submit a monthly status report (Form CCRC-14) as well as quarterly financial statements to the department.
Step 3 – Preliminary Certificate
When a provider is ready to move into the “construction/development phase” the provider may apply for a Preliminary Certificate (Form CCRC-03) provided however, that they have entered into binding reservation/resident agreements equal to at least 50 percent (50%) of the total number of independent living units being developed (accompanied by a deposit equal to at least 10 percent (10%) of the entrance fee or a non-refundable deposit equal to at least two months periodic fee for facilities that have no entrance fee). Once the Preliminary Certificate has been issued, a provider may purchase or construct a CCRC, or renovate or develop structure(s) not already licensed as a CCRC. Monthly status reporting (Form CCRC-14) and quarterly financial reporting to the department will be required.
Step 4 – Permanent License
At least 60 days before the scheduled opening of a facility a provider must apply for a Permanent Continuing Care Retirement Community License (Form CCRC-04). The completed application must include an updated disclosure statement, as well as, confirmation of signed agreements for new units required by the continuing care facility to break-even, reserved by 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 months for facilities that have no entrance fee.
Upon issuance of the Permanent License, a provider can, presuming all other legal requirements have been met or completed, open the CCRC and provide continuing care. DISB will require that quarterly occupancy reports and quarterly financial statements be filed with the Department until stabilized occupancy is achieved, unless otherwise directed by the department.
Entities operating as CCRCs prior to April 6, 2005
NOTE: All CCRC facilities operating as such in the District of Columbia on the effective date of these regulations must submit an application for Permanent Licensure with a filing fee in the amount of $500.00 attached within 120 days after the effective date of the final regulations (June 26, 2006).
The existing continuing care retirement facilities may apply for a Permanent License without first obtaining a Start-Up Certificate or Preliminary Certificate. The permanent licensure application under this subsection must include a disclosure statement; financial statements; escrow agreement; narrative describing the facility, its mode of operation and its location; advertising materials that are used or to be used; and confirmation of signed agreements for units in the Continuing Care facility to break-even, reserved by a deposit equal to at least 10% of the entrance fee or by a non-refundable deposit equal to the periodic fee for at least two months for facilities that have no entrance fee.
Upon issuance of the Permanent License, a provider can, presuming all other legal requirements have been met or completed, continue to provide continuing care services. DISB may require that quarterly occupancy reports and quarterly financial statements be filed with the department depending on the stability of the occupancy level in the CCRC.
The following forms are available in [PDF] format.
- Step # 1: Notification of Intent to Develop a Continuing Care Retirement Community
- Step # 2: Application for Continuing Care Retirement Community License (Start-up Certificate)
- Step # 3: Application for Continuing Care Retirement Community License (Preliminary Certificate)
- Step # 4: Application for Continuing Care Retirement Community License (Permanent License)
- Step # 13: Occupancy Report
- Step # 14: New Facility Monthly Status Report
- Form A - CCRC: Acquisition Control of or Merger Statement Instructions
- CCRC Disclosure Statement Instructions and Form