The new owners jacked up the rent by 365%.
These contracts are notoriously complex, and many homeowners enter into them by themselves without the help of a professional to guide them. We have many of these in Arizona. READ AND MAKE SURE THE CONTRACT IS UNDERSTOOD IN ITS ENTIRETY.
“CHANGES ARE MADE BY THE TERMS OF THE CONTRACT"
After it's understood, decide if you want to sign on the dotted line.
Senior living communities are licensed by the states they operate in and all require that they maintain certain levels of staffing and training, a review of state laws shows. Other rules vary, with most requiring owners to provide residents with comprehensive consumer disclosures outlining the services provided, fees, and conditions under which an agreement may be terminated or changed.
If the contract transfers, new owners might try to amend it. Many senior living contracts include clauses allowing unilateral changes to fees, services, or policies with notice (e.g., 30 or 60 days).
The refund clause is a core term of your agreement. If the acquisition is a stock sale or a full transfer of the operating entity, the new company inherits the contract as-is, including the obligation to refund, be it 75%, 85% of that which is specified in the contract.
In reviewing the rules governing senior living facilities in this article, NBC News "found no language barring new owners from buying a facility and changing the residents’ contracts".
For adverse circumstances—like contract disputes, refund delays, or service failures—the Department of Health or Department of Aging (sometimes called the Department of Elder Affairs) often has jurisdiction. This agency could investigate whether the community violated its contract or state regulations. The State Attorney General's office can direct you to the appropriate entity in your specific state. That is the starting point, eventually, an Elder Law Attorney may be necessary. Use a specialist in this field.
In Scottsdale, Arizona we have Luxury Senior Living organizations that have original costs as high as $600K and Monthly fees starting at $4k per month. I can not overstate the importance of fully understanding the contract that you approve with your signature.
Note: The nucleus of this article emanated from an NBC article where residents have lost investments.
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