Mass. commission presses for clearer entrance-fee refunds as legislators consider disclosure bill

Members of the Commission on Aging and Independence on a tour at Brookhaven at Lexington focused public attention on entrance-fee refund practices at continuing-care retirement communities and on a pending state disclosure bill.

The commission discussed a LeadingAge Massachusetts member survey reporting an average of about 117 days for communities to provide refunds of entrance fees after resale of a unit. Alyssa, a LeadingAge Massachusetts representative who presented the survey results, said the association collected responses from 20 of its 22 member CCRCs in Massachusetts and that most refunds occur only after receipt of a new entrance fee.

The commission tied the refund discussion to broader questions about financial viability. Several speakers noted that resident refunds are generally treated as unsecured claims in bankruptcy, behind lenders and bondholders, but that purchasers and bankruptcy courts…