(1) As a condition of registration for a new community, the Department of Human Services shall require that the provider establish an escrow account with a bank, trust company or other escrow agent and that any entrance fees received by the provider prior to the date the resident is permitted to occupy the living unit in the community be placed in the escrow account.
(2) These funds shall be released by the department at such time the department is satisfied that:
(a) The provider has collected no less than 10 percent of each individual resident’s entrance fee for no less than 50 percent of the total number of units;
(b) Anticipated proceeds of any first mortgage loan or other long term financing commitment plus funds from other sources in the actual possession of the provider are equal to not less than:
(A) Fifty percent of the aggregate cost of constructing or purchasing and equipping and furnishing the community; and
(B) Fifty percent of the funds, which the provider estimated in its disclosure pursuant to ORS 101.050, to fund start-up losses of the community; and
(c) A commitment has been received by the provider for any permanent mortgage loan or other long term financing commitment, which commitment the provider disclosed pursuant to ORS 101.050, and any conditions of this commitment prior to disbursement of funds thereunder, other than completion of the construction or closing of the purchase of the community, have been substantially satisfied.
(3) In the event a prospective resident withdraws from the residency agreement prior to occupancy, the entrance fee described in ORS 101.080 shall not be refunded to the prospective resident until such time as the prospective resident’s unit has been resold.
(4) If the entrance fees in an escrow account are not released within 36 months after the escrow account is opened, entrance fees paid, less the escrow fee, shall be returned to the residents unless an extension is granted by the department.
(5) Nothing in this section requires the escrow of any nonrefundable application fee charged to prospective residents.
(6) An entrance fee held in escrow may be returned by the escrow agent, at any time, to the person or persons who paid the fee to the provider upon receipt by the escrow agent of notice from the provider that such person is entitled to a refund of the entrance fee. [1989 c.693 §13]
Section: Previous 101.020 101.030 101.040 101.050 101.055 101.060 101.065 101.070 101.080 101.090 101.100 101.110 101.120 101.130 101.140 NextLast modified: August 7, 2008