N.Y. Public Health Law § 4661: Consumer safeguards

* § 4661. Consumer safeguards. The applicant shall demonstrate the

financial feasibility of the facility. The operator shall provide 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 constructing and equipping

the facility, which includes related costs such as financing expenses,

legal expenses, land costs, marketing and development costs and other

similar cost 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 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 fee-for-service 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;

8. An estimate of annual payments or principal and interest required

by any mortgage loan or other long-term financing; and

9. Such other material information concerning the facility or the

operator as required by the commissioner or as agreed upon by the

operator and the prospective resident.

* NB There are 2 § 4661's