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County of Los Angeles
Department of Consumer Affairs

New Consumer Laws 2010

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CONTINUING CARE RETIREMENT COMMUNITY

AB 407 (Chap. 442); amends H&S sections 1771 and 1788; adds H&S section 1793.80 et seq.)

Background: A continuing care retirement community (CCRC) is a facility that provides continuing care services. CCRCs can be apartment-type dwellings, high-rise buildings, a subdivision setting, or any other housing design. Most CCRCs have three levels of care: Independent living, assisted living, and skilled nursing care. As residents’ needs increase, they move to higher levels of care in the facility. California has 79 CCRCs, which are home to about 20,000 seniors.

Current law regulates the establishment and operation of CCRCs, but there are only minimal regulations governing what happens when a facility shuts down. Since thousands of CCRC residents have collectively entrusted CCRCs with well over $1 billion in entrance fees in return for life-long care, a CCRC closure translates into serious investment loss for residents. Moreover, vulnerable displaced residents face severe physical and psychological harm, such as transfer trauma.

The new law: Requires CCRCs to provide residents at least 120 days of advance notice of permanent closures and to adopt a relocation plan to ensure that the closure is orderly and all residents are adequately provided for.

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For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov