28 Tex. Admin. Code § 33.104 - Entrance Fee Escrow Account Requirements
(a) Sections 33.401(b) - (e) and 33.402(a) of
this title apply to continuing care in residence.
(b) Entrance fees must be held in escrow as
set forth in Health and Safety Code §
246.071.
An escrow agent cannot release, and the provider cannot request or accept,
entrance fee funds from the escrow agent without department approval. A
provider must file CCRC Form 14a (FIN607) to request release of entrance fee
escrow funds for identified residents. An escrow agent must file a CCRC Form 9
(FIN392) when a provider requests the agent release entrance fee escrow account
funds.
(c) To obtain department
approval:
(1) a provider must verify in Form
14a (FIN607) that:
(A) the identified
residents are receiving continuing care in residence;
(B) the requested amount complies with
amortization schedules contained in the continuing care in residence contracts;
and
(C) the provider's assets
exceed the actuarial present value of the expected costs of performing all
remaining obligations to all residents under continuing care contracts;
and
(2) the provider must
disclose its operating ratio and current ratio. A provider is not eligible for
a release of continuing care in residence entrance fee escrow funds if the
provider's:
(A) operating ratio is greater
than 100 percent, unless there is a cash flow analysis acceptable to the
department; or
(B) current ratio is
no greater than 150 percent.
(d) The department will issue a determination
on the request for release of continuing care in residence entrance fee escrow
funds to both the provider and escrow agent.
Notes
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