On January 22, 2025, the New Hampshire Legislature introduced Senate Bill 124, a comprehensive measure aimed at enhancing transparency and financial accountability within Continuing Care Retirement Communities (CCRCs). The bill seeks to address concerns regarding the management of resident funds and the financial viability of these facilities, particularly in light of the growing elderly population in the state.

Senate Bill 124 outlines a series of key provisions that require CCRCs to provide detailed disclosure statements to prospective residents. These statements must include information on policies for receiving advance deposits and entrance fees, specifying how these funds will be maintained in bank, investment, or escrow accounts. The bill mandates that any interest accrued on these deposits be disclosed, ensuring that residents are informed about the financial handling of their funds prior to signing contracts.

Additionally, the bill stipulates that CCRCs must present audited financial statements, including balance sheets and income statements for the past two years, to provide a clear picture of their financial health. For facilities not yet operational, the bill requires extensive projections of costs, expected income, and occupancy rates over a five-year period, along with analyses of competing facilities and demographic trends.

Notably, the bill has sparked discussions among lawmakers and stakeholders regarding its implications for the CCRC industry. Proponents argue that increased transparency will protect residents and their families from potential financial mismanagement, while opponents express concerns about the regulatory burden it may impose on new and existing facilities.

Experts suggest that the bill could lead to a more stable CCRC market, as potential residents will have access to critical financial information that may influence their decisions. However, there are worries that stringent requirements could deter new facilities from entering the market, potentially limiting options for seniors seeking care.

As the legislative process unfolds, Senate Bill 124 is poised to significantly impact the landscape of senior living in New Hampshire, with potential ripple effects on both the economic and social fabric of the state. The bill will undergo further scrutiny and debate in the coming weeks, with stakeholders closely monitoring its progress and implications for the future of CCRCs.