Florida, where more than 21% of residents are 65 or older, has long been a retirement haven. But its long-term care providers have struggled to keep up with demand, thanks to a series of rules that stymied construction of new continuing care retirement communities.
Legislation signed into law Monday seeks to remove some of those barriers.
“Florida law regulating CCRCs is regarded as one of the most stringent in the nation because of its financial reserve and disclosure requirements and restrictions on the release of escrowed entrance fees,” said Nick Van Der Linden, director of communications for LeadingAge Florida. “Consequently, the number of CCRCs licensed by the Florida Office of Insurance Regulation has not increased in more than 20 years.”
Gov. Ron DeSantis’ (R) signing of CS/CS/HB 1573 Monday will help ensure the future viability and financial strength of the CCRC model, LeadingAge said. It supported the legislation in conjunction with its members and the Florida Life Care Residents Association, a statewide nonprofit group of CCRC residents. The law’s provisions become effective Saturday.
“This new law will help streamline the process of expansion, among other provisions, to help ensure that Florida seniors have a robust array of high-quality senior living options available to them,” LeadingAge Florida President and CEO Steve Bahmer said in a statement.
As McKnight’s Senior Living previously reported, Florida HB 1573 / SB 622 is meant to streamline financial reporting requirements, expand the types of institutions that may issue a letter of credit, and address concerns of investors in tax-exempt bonds, according to supporters.
Florida has 70 CCRCs with more than 31,000 residents, but most recent growth in that area has been through expansions and satellite campuses, Van Der Linden said Tuesday. Few new players wanted to enter the sector under old obligations, he added.
Even though it has more seniors, Florida has fewer CCRCs than Pennsylvania, Ohio or California, according to the Ziegler/LeadingAge 200.
Among other changes, the new rules modify current requirements for the expansion of established CCRCs so they can get escrowed funds back earlier to start paying off debt, thereby reducing cost. Until now, the total entrance fee must be received for half of all proposed units before escrowed funds are released. Now, developers will be able to get back some funds when 75% or more of the proposed units are reserved through deposit.
The changes also do away with duplicative audit requirements and require providers to disclose whether they have resident representation on their board and when a change in management occurs.
Bahmer has said that LeadingAge Florida supported the bill to ensure the state’s “healthy and vibrant” senior living market. He also called lawmakers’ support and recognition of CCRCs as “an important part of our state’s retirement portfolio.”
“This legislation will help ensure the future viability and financial strength of these communities and help make them available to an even greater number of seniors,” he said in a statement in late April. “Our focus is to ensure the ongoing viability and financial strength of the CCRC model in Florida by making it easier for providers to access capital while minimizing unnecessary bureaucracy that can get in the way of growth.”
