ActionAging.com CCRC learning center

Is your CCRC financially sound?

When you pay an entrance fee to contract with a CCRC you make a lifelong commitment for which the CCRC promises you residence and services for the rest of your life.  Some CCRCs, though, go bankrupt while others encounter financial difficulties and are sold or financially reorganized.

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NaCCRA Positions

In addition to NaCCRA's support for the Model Laws, which include many financial protections for CCRC residents, and for the Bill of Rights, which recognizes the financial investment required of entrance fee CCRC residents, NaCCRA has two more directly targeted proposals.

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Position on Financial Strength. NaCCRA considers provider financial strength to be a key pillar for the security of CCRC residents. A provider with a “negative net asset position,” i.e. GAAP or statutory liabilities greater than assets dilutes the financial security needed for the assured fulfillment of lifetime continuing care contracts. A Negative Net Asset Position is Not Positive.

Position on Resident Financial Protection. NaCCRA advocates a collective guaranty mechanism for entrance fee senior housing enterprises like that for insurance companies to provide financial guarantees like those for bank deposits, insurance policies, stock brokerage accounts, and pension benefits.

Model Financial Guaranty Law as a guide to developing a practical mechanism to allow early intervention to reduce the financial impact of impairment; to prevent deepening insolvencies; and to shield residents from management failure.