AARP APPLAUDS ENACTMENT OF BIPARTISAN

LEGISLATION PROTECTING CCRC RESIDENTS

Legislation protects consumers by establishing time limits on resident refunds

TRENTON – On August 17^th, Governor Murphy signed into law a bill that means good news for New Jersey residents considering a move to a Continuing Care Retirement Community (CCRC).

Before moving into a CCRC, many potential residents must first pay an entrance fee – often six figures. When the resident moves out or dies, a portion of that fee is supposed to be refunded to the resident or the estate. Prior to the bill’s passage, there was no time limit on when a CCRC had to return the funds. It could take several years, particularly if the resident’s unit wasn’t immediately resold.

The new law establishes a new process for delivering refunds  – one that ensures that CCRC’s cannot needlessly or indefinitely retain funds owed to a resident or an estate.

AARP volunteer Ed Nagle was a tireless advocate for the bill’s passage after he fought for over five years to get a refund from his mother’s CCRC following her death in 2004.

“It is clear to me that, if this legislation had been in place when my mom passed, much of the gaming, fraud and damage that my family sustained could have been avoided,” said Nagle. “I am very pleased now to finally know that future CCRC residents and families will be treated with the fairness and respect they deserve.”

There are currently over 10,000 seniors living in 25 CCRCs across New Jersey, according to The Organization of Residents Associations of New Jersey.

“On behalf of our 1.3 million New Jersey members, AARP applauds Governor Murphy as well as the primary sponsors of the bill, Senator Christopher “Kip” Bateman (LD-16) and Assemblyman Eric Houghtaling (LD-11), for their leadership,” said India Hayes Larrier, Associate State Director of Advocacy for AARP New Jersey. “The law provides stronger consumer protections for residents and will help to ensure that families across the state don’t suffer needless financial hardship.”

While the law does not retroactively alter the contracts for current CCRC residents, it does establish the refund time limit for any CCRC contracts signed after the law takes effect on November 15, 2018.

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AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.