California’s AB 1983 Adds a Sequential Option for CCRC Entrance-Fee Repayment
California has enacted AB 1983, which takes effect January 1, 2027. It adds an optional “repayable in sequential order” contract alongside the existing model that generally ties repayment to resale or reoccupancy of the resident’s unit. Under the new option, providers assign terminated contracts a place in line and fund a separate repayment account from entrance fees received as units with sequential-order contracts are reoccupied.
The provider must pay within 14 calendar days after the account has enough money for the next refund in sequence; the deadline does not start until that funding trigger occurs. The law does not require providers to adopt the new model, and it does not guarantee that a refund will arrive sooner. Residents considering a California contract may want to ask which repayment model applies and what the provider’s average and longest wait times have been. What refund information should a community make easiest for residents to compare?
Read the full article here: Hanson Bridgett’s AB 1983 analysis.