Continuing Care Retirement Communities (CCRC)

Answer:
The new law, N.C.G.S. Chapter 58, Article 64A, takes effect December 1, 2025.
After this date, all continuing care providers must comply with its provisions.
 

Answer:
North Carolina’s CCRC laws had remained largely unchanged since the 1980s. The industry has evolved from small, nonprofit, faith-based communities into multi-site, multi-state, and for-profit organizations with complex ownership and management structures.
The new Article 64A modernizes oversight by:

• Expanding financial safeguards such as escrows, operating reserves, and actuarial reviews.
• Requiring enhanced disclosure of governance, refund data, and financial ratios.
• Strengthening the Commissioner’s authority for enforcement when a provider is in a hazardous condition.
• Requiring electronic filings and standardized reporting.
• Mandating public posting of Disclosure Statements on the NCDOI website.

Answer:
Key updates include, but are not limited to:

• Definitions, Oversight, and Authority
  • Updated definitions and clarified Commissioner powers.
  • Electronic submission required for all filings.
  • Certain documents designated as confidential.
• Licensing and New Community Applications
  • Four-step licensing process codified (Permit → Start-Up → Preliminary → Permanent License).
  • Application fees: $200 Permit; $2,000 Start-Up.
  • Feasibility Study required at Step 3.
  • Permits/Certificates expire after 36 months unless extended.
• Expansion Projects
  • Two-step process: notification + application.
  • Commissioner approval required only for expansions ≥ 20 % of independent-living units.
• Financial Safeguards
  • Escrowed deposits must be delivered to the escrow agent within 10 days.
  • Funds released only after presale, construction, and occupancy thresholds are met.
  • Operating reserve recalculated semi-annually based on occupancy.
  • Quarterly financial statements must be filed with the Commissioner.
• Disclosure Statements
  • Expanded governance and financial disclosures.
  • Annual update within 150 days of fiscal year-end ($2,000 fee).
  • Disclosure Statement current if dated within 1 year + 160 days.
• Continuing Care at Home (CCAH)
  • Replaces “continuing care services without lodging.”
  • New $500 application fee and detailed contract provisions.
  • Must include cautionary notice above signature line.
• Resident Protections and Governance
  • 10-day notice to Commissioner and residents of reserve deficiencies, covenant breaches, or refund delays.
  • Semiannual resident meetings must include at least one independent board member.
  • Advisory Committee expanded to 12 members; meetings open to the public.

Answer:
Once a CCRC achieves at least a 90% average independent-living unit occupancy for 12 months, the minimum operating reserve equals 25 % of total operating costs.
If occupancy falls below 90%, the operating reserve would be as follows:
 

Providers must calculate and adjust reserves semi-annually using current occupancy data.

Answer:

• Permit to Accept Deposits application – $200
• Start-Up Certificate application – $2,000
• Continuing Care at Home application – $500
• Annual filing fee – $2,000 (increased from $1,000)
• Late annual filing fee – $1,000 plus $30 per day after 30 days late (may be waived for good cause)
• Expansion application - $1,000

Answer:
If the Department determines that a provider is operating in a hazardous condition, the Commissioner may take action under state law to protect residents and ensure the provider can continue meeting its obligations.

The Department can take various actions proportionate to the severity of the condition, such as:

• Increasing monitoring or conducting an investigation or examination.
• Requiring the provider to submit a Corrective Action Plan to fix identified problems.
• Limiting, suspending, or revoking the provider’s license if issues are not resolved.
• Issuing cease and desist orders or other enforcement actions for violations of law.
• Placing the provider under supervision, rehabilitation, or liquidation if necessary to protect residents.

These steps are designed to correct problems early, maintain compliance, and ensure residents’ rights and contracts are protected.

Answer:
Article 64A does not establish a formal “Residents’ Bill of Rights.”

However, Part 14 of Article 64A does provide specific rights, including:

• The right of self-organization.
• The right to be represented by an individual of the resident’s own choosing.
• The right to engage in concerted activities to remain informed about the operation of the provider and the CCRC, or for other mutual aid or protection.
• The right to establish a residents’ council.
• The right to semiannual meetings with the governing body (attended by an independent board member).