Section 10-412 - Initial certificate of registration. - Maryland Statutes

§ 10-412. Initial certificate of registration.
 

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

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

(c)  Application - Contents.- 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)  Lenders.-  

(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)  Issuance of certificate.-  

(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)  Use of deposits held in escrow.- 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)  Failure to obtain certificate of registration.- 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. 
 

[An. Code 1957, art. 70B, § 11(a)-(d); 2007, ch. 3, § 2.]