(NaCCRA)
CCRC Governance Standards
Many CCRCs require Entrance Fee Investments for admission of a magnitude comparable to the cash equity investment that one might expect to make in a resident ownership context, yet resident representation on CCRC Boards of Directors has become a matter of controversy among CCRC residents.
The communities provide a public benefit in allowing people to provide responsibly for their own contingent costs of aging and that commitment to responsible action should not be penalized by arbitrarily depriving them of input into the decisions that affect their lives.
Thus, it is the public interest that CCRCs operate with governance practices that balance residents’ interests with the career interests of the executives who manage senior housing and senior services entities.
Some providers who exclude residents from their Boards have argued that residents have a conflict of interest that would inhibit them from increasing fees when needed sufficiently to ensure the sound operation of the facility. Others have argued that residents can be naive concerning business operations and may make short sighted decisions that could adversely affect the competent management of the CCRC.
NaCCRA Web Site
| Model CCRC Governance |
| Model CCRC Cooperative Conversion Process |
Hence, it seems desirable to include qualified residents in governance when that is consistent with the aims of the CCRC and it is discriminatory to disqualify a person from service merely because he or she is a resident.
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