Complaint Investigation Report

Based on interviews and the review of documents and information provided, the RP reported that they reviewed the Residence and Care Agreement (RCA) on behalf of a prospective resident and expressed concern regarding the contract provision stating that no entrance fee repayment would be issued in the event of death resulting from a natural disaster, catastrophic event, pandemic, or similar occurrence involving multiple residents. The Department reviewed the RCA, which discloses this provision in Section IX.D (Death). The provision further states that exceptions may be made at the provider’s discretion.

The RP further alleged that the provider denied admission in retaliation for raising concerns about the contract. The Department reviewed the RCA which states in section IX A. “(Cancellation Period) “Cancellation Period. Under California law, there will be a cancellation period of ninety (90) days after the date that you first occupy your Residence during which either the Provider or you may cancel this Agreement, with or without cause (the “Cancellation Period”). For purposes of this Agreement, you shall be deemed to “occupy” your Residence as of the date that you receive a key entitling you to occupy it. If the Provider cancels this Agreement without cause, it will provide you with thirty (30) days’ written notice of such cancellation. If you cancel this Agreement, you will provide the Provider with the written Notice of Cancellation attached to this Agreement as Appendix G.”

The RP also stated that the provider was unable to confirm whether the unit contained lead-based paint. The Department did not obtain sufficient evidence to support that the provider violated any applicable requirement related to such disclosure.

Additionally, documentation reviewed indicates that wire instructions for Umpqua Bank were initially provided and later corrected to Columbia Bank. The statute does not outline that the wiring information be included in the agreement. The provider subsequently corrected the information and explained that different financial institutions may be used depending on the property.