New Jersey § 52:27d-336

§ 52:27d-336.

The provider shall provide a disclosure statement to a prospective resident of a continuing

care facility or the person with whom the provider shall enter into a contract to

provide continuing care, prior to the execution of the contract or at the time of

or prior to the transfer of any money or other property to the provider by or on behalf

of the prospective resident, whichever occurs first. The cover page of the disclosure statement shall state in a prominent location and

type face, the date of the disclosure statement. The disclosure statement shall be written in plain English and in language understandable

by a layperson. The provider shall attach a copy of the standard form of contract for continuing care

used by the provider as an exhibit to each disclosure statement. The disclosure statement shall contain the following information unless the information

is contained in the contract: a. The name and business address of the provider and a statement of whether the provider

is a partnership, corporation or other type of legal entity. b. The names and business addresses of the officers, directors, trustees, managing

or general partners and any person having a 10% or greater equity or beneficial interest

in the provider and a description of that person's interest in or occupation with

the provider. c. With respect to the provider, any person named in response to subsection b. of

this section and the proposed operator, if the facility is managed on a day-to-day

basis by a person other than an individual directly employed by the provider: (1) A description of the person's business experience, if any, in the operation or

management of similar facilities; (2) The name and address of any professional service firm, association, trust, partnership

or corporation in which the person has a 10% or greater interest and which may provide

goods, leases or services to the facility of a value of $500.00 or more, within any

year; (3) A description of the goods, leases or services provided pursuant to paragraph

(2) of this subsection and the probable or anticipated cost thereof to the facility

or provider; (4) A description of any matter in which the person has been convicted of a felony

or pleaded nolo contendere to a felony charge, or has been held liable or enjoined

in a civil action which involved fraud, embezzlement, fraudulent conversion or misappropriation

of property; and (5) A description of any matter in which the person is subject to a currently effective

injunctive or restrictive court order or, within the past five years, had a State

or federal license or permit suspended or revoked as a result of an action brought

by a governmental agency or department, which arose out of or related to business

activity or health care, including actions affecting a license to operate a residential

health care facility, nursing home, retirement home, home for the aged or facility

registered under this act or a similar act in another state. d. A statement whether the provider is or ever has been affiliated with a religious,

charitable or other nonprofit organization, the nature of the affiliation, if any,

the extent to which the affiliate organization is responsible for the financial and

contractual obligations of the provider, and the provision of the federal Internal

Revenue Code, if any, under which the provider or affiliate is exempt from the payment

of income tax. e. The location and description of the physical property of the facility, both existing

and proposed, and with respect to proposed property, the estimated completion date,

the date construction began or shall begin and the contingencies subject to which

construction may be deferred. f. The services provided or proposed to be provided under contracts for continuing

care at the facility, including the extent to which medical care and other services

are furnished under the basic contract and which other care or services are available

at or by the facility at extra charge. g. A description of all fees required of residents, including the application fee,

entrance fee and periodic charges, if any, the manner by which the provider may adjust

periodic charges or other recurring fees and the limitation on the adjustments, if

any, and if the facility is already in operation or if the provider or operator operates

one or more similar facilities within this State, tables showing the frequency and

average dollar amount of each increase in periodic rates at each facility for the

previous five years or as many years as the facility has been operated by the provider

or operator, whichever is less. h. The provisions that have been made or will be made, if any, to provide reserve

funding or security which will enable the provider to fully perform its obligation

under contracts to provide continuing care at the facility, including the establishment

of escrow accounts, trusts or reserve funds, the manner in which the funds shall be

invested and the names and experience of persons who will make the investment decisions. i. Certified financial statements of the provider, which include balance sheets and

income statements for the two most recently completed fiscal years or for as long

as the provider has been in existence, whichever is less. j. If operation of the facility has not yet commenced, a statement of the anticipated

source and application of the funds used or to be used in the purchase or construction

of the facility, including: (1) An estimate of the cost of purchasing or construction and equipping the facility,

which includes related costs such as financing expenses, legal expenses, land costs,

marketing and development costs and other similar costs the provider expects to incur

or become obligated for prior to the commencement of operations; (2) A description of any mortgage loan or other long-term financing intended to be

used for the financing of the facility and the anticipated terms and costs of the

financing; (3) An estimate of the total amount of entrance fees to be received from or on behalf

of residents at or prior to commencement of operation of the facility; (4) An estimate of the funds, if any, which are anticipated to be necessary to fund

start-up losses and provide reserve funds to assure full performance of the obligations

of the provider under contracts for the provision of continuing care; (5) A projection of estimated income from fees and charges other than entrance fees,

a description of individual rates anticipated to be charged, the assumptions used

for calculating the estimated occupancy rate of the facility and the effect on the

income of the facility of government subsidies, if any, for health care services provided

pursuant to the contracts for continuing care; (6) A projection of estimated operating expenses of the facility, including a description

of the assumptions used in calculating the expenses and separate allowances, if any,

the replacement of equipment and furnishings and any anticipated major structural

repairs or additions; (7) Identification of assets pledged as collateral for any purpose; and (8) An estimate of annual payments of principal and interest required by any mortgage

loan or other long-term financing. k. Other material information concerning the facility or the provider as required

by the department or as the provider wishes to include. l. The provider shall designate and make knowledgeable personnel available to prospective

residents to answer questions about any information contained in the disclosure statement

or contract. The provider shall also advise prospective residents to seek the independent advice

of an attorney and financial advisor of their choice concerning the disclosure statement

or contract. The disclosure statement and the contract shall each state on the cover or top of

the first page in bold print the following: “This matter involves a substantial financial

investment and a legally binding contract. In evaluating the disclosure statement and the contract prior to any commitment,

it is recommended that you consult with an attorney and financial advisor of your

choice, if you so elect, who can review these documents with you.”