Plans subject to this Part must comply with the format and minimum disclosure requirements set forth herein in addition to the requirements of provisions of article 23-A of the GBL.
The outside front cover of the offering plan shall contain the following information in the following order:
SEE PAGE ___ FOR SPECIAL RISKS TO RESIDENTS must be printed apart from other print and be in capital letters, in bold-face roman type at least eight-point modern type and at least two points leaded.
THIS OFFERING PLAN IS THE ENTIRE OFFER TO LEASE THESE UNITS IN A SENIOR RESIDENTIAL COMMUNITY. NEW YORK LAW REQUIRES THE SPONSOR TO DISCLOSE ALL MATERIAL INFORMATION IN THIS PLAN AND TO FILE THIS PLAN WITH THE NEW YORK STATE OFFICE OF THE ATTORNEY GENERAL PRIOR TO TAKING ENTRANCE FEES AND LEASING OR OFFERING TO LEASE ANY UNIT IN A SENIOR RESIDENTIAL COMMUNITY. FILING WITH THE OFFICE OF THE ATTORNEY GENERAL DOES NOT MEAN THAT THE DEPARTMENT OR ANY OTHER GOVERNMENT AGENCY HAS APPROVED THIS OFFERING.
The format and order set forth below must be followed in the table of contents. Include headings for the subjects not marked with an asterisk. In addition, a limited number of headings may be added to the plan. Headings for subjects that are marked with an asterisk may be omitted if the subject matter is not applicable to the offering. Omissions, other than headings marked with an asterisk in the table of contents, and additions should be expressly noted and explained in the transmittal letter. Alternative wording for headings to meet particular facts are set forth in parentheses. Documentation listed in Part II of the table of contents shall be included in full in Part II of the plan. The texts of such documents which will be binding upon the sponsor or the board of managers, such as the residency agreement, the power of attorney, and the by-laws of the senior residential community shall be consistent with the disclosures in the plan and shall conform to the requirements of this section.
TABLE OF CONTENTS
_________________________________________________
PART I
PAGE
* SPECIAL RISKS ______________________________________________________
INTRODUCTION ______________________________________________________
DESCRIPTION OF PROPERTY AND IMPROVEMENTS ______________________________________________________
* LOCATION AND AREA INFORMATION ______________________________________________________
SCHEDULE OF UNITS AND FEES, SCHEDULE A-1 ______________________________________________________
* REFUND CHART, SCHEDULE A-2 ______________________________________________________
BUDGET FOR FIRST YEAR OF OPERATION, SCHEDULE B-1______________________________________________________
* BUDGET FOR INDIVIDUAL ENERGY COSTS, SCHEDULE B-2 ______________________________________________________
CHANGES IN ENTRANCE FEES, MONTHLY SERVICE FEES AND UNITS ______________________________________________________
* ACCOUNTANT'S CERTIFIED STATEMENTS OF OPERATION OF THE SPONSOR ______________________________________________________
PROCEDURE TO RESERVE UNITS AND ESTABLISH RESIDENCY ______________________________________________________
* FINANCING FOR QUALIFIED RESIDENTS ______________________________________________________
EFFECTIVENESS ______________________________________________________
TERMS OF RESIDENCY AGREEMENT ______________________________________________________
FEES AND FINANCIAL ASPECTS ______________________________________________________
RESIDENTIAL SERVICES AND AMENITIES ______________________________________________________
HEALTH CARE SERVICES ______________________________________________________
STAFF ______________________________________________________
TERMINATION OF OCCUPANCY ______________________________________________________
RESIDENTS' RIGHTS ______________________________________________________
PRE-OCCUPANCY RIGHTS AND OBLIGATIONS ______________________________________________________
RIGHTS AND OBLIGATIONS OF THE SPONSOR ______________________________________________________
UPKEEP OF UNITS AND RESTRICTIONS ON OCCUPANCY ______________________________________________________
TAX IMPLICATIONS ______________________________________________________
*OPINION(S) OF COUNSEL ______________________________________________________
IDENTITY OF PARTIES ______________________________________________________
DOCUMENTS ON FILE ______________________________________________________
GENERAL ______________________________________________________
* RESERVATION OF AIR AND DEVELOPMENTAL RIGHTS ______________________________________________________
SPONSOR'S STATEMENT OF SPECIFICATIONS OR BUILDING ______________________________________________________
CONDITION ______________________________________________________
TABLE OF CONTENTS ______________________________________________________
PART II
PAGE
RESIDENCY AGREEMENT ______________________________________________________
CONFIDENTIAL DATA STATEMENT ______________________________________________________
APPLICATION FORM ______________________________________________________
FINANCIAL DATA FORM ______________________________________________________
* FORM OF NOTE AND RELATED FINANCING DOCUMENTS ______________________________________________________
DESCRIPTION OF PROPERTY AND SPECIFICATIONS OR BUILDING CONDITION ______________________________________________________
* FLOOR PLANS ______________________________________________________
* ASBESTOS REPORT ______________________________________________________
*HOUSE RULES ______________________________________________________
CERTIFICATIONS ______________________________________________________
SPONSOR AND PRINCIPALS ______________________________________________________
SPONSOR'S ENGINEER (OR ARCHITECT) ______________________________________________________
SPONSOR'S EXPERT CONCERNING ADEQUACY OF BUDGET ______________________________________________________
This section, if applicable, must be on a separate page following the table of contents. All features of a plan which involve significant risk or are reasonably likely to affect disproportionately or unusually the monthly charges, rights, or obligations of residents must be conspicuously disclosed and highlighted. A brief description of the nature of the risk should be given in this section and a more thorough description should be given in a referenced later section. Uncertainties as to whether a risk should be described in this section should be resolved in favor of inclusion.
The introduction must:
ENTRANCE INTO A RESIDENCY AGREEMENT HAS MANY SIGNIFICANT LEGAL AND FINANCIAL CONSEQUENCES. THE ATTORNEY GENERAL STRONGLY URGES YOU TO READ THIS OFFERING PLAN CAREFULLY AND TO CONSULT WITH AN ATTORNEY BEFORE SIGNING A RESIDENCY AGREEMENT.
This section should:
This section should:
SCHEDULE A-1 | |||||||
Schedule of Units and Fees | |||||||
Based on Projected First Full Year of Operations | |||||||
Entrance Fees | Monthly Fees | ||||||
Unit Name & Square Footage | Unit Type | # Units | Traditional Plan (no refund) | Refundable 50% | Refundable 90% | Refundable Plans | Traditional Plan |
Standard 780 ft2 | 1 Bd Rm/ 1 Bath | 8 | $ 50,000 | $100,000 | $140,000 | $1,250 | $1,500 |
Deluxe 1,750 ft2 | 2 Bd Rm/ 2 Bath | 16 | $125,000 | $225,000 | $300,000 | $2,300 | $2,750 |
SCHEDULE A-2 | |||||||
REFUND CHART | |||||||
Amount of Entrance Fee to be Refunded After the following Terms of Occupancy | |||||||
90% Refund Option | |||||||
Unit Type | Entrance Fee | 4 Months | 6 Months | 10 Months | 12 Months* | ||
Standard | $140,000 | $135,000 | $132,500 | $128,000 | $126,000 | ||
Deluxe | $300,000 | $290,900 | $285,000 | $275,000 | $270,000 | ||
*After 12 months of occupancy, the refund will not be diminished beyond the amount indicated above. | |||||||
50% Refund Option | |||||||
Unit Type | Entrance Fee | 4 Months | 6 Months | 12 Months | 24 Months | 36 Months | 48 Months* |
Standard | $100,000 | $ 95,000 | $ 90,000 | $ 80,000 | $ 70,000 | $ 60,000 | $ 50,000* |
Deluxe | $225,000 | $212,500 | $200,000 | $180,000 | $157,500 | $135,000 | $112,500** |
**After 48 months of occupancy, the refund will not be diminished beyond the amount indicated above. | |||||||
Traditional Plan (0% Refund Option) | |||||||
Unit Type | Entrance Fee | 4 Months | 6 Months | 12 Months | 24 Months | 36 Months | 48 Months* |
Standard | $ 50,000 | $ 45,000 | $ 43,000 | $36,000 | $ 25,000 | $12,500 | $0** |
Deluxe | $125,000 | $115,000 | $105,000 | $80,000 | $62,500 | $31,000 | $0** |
**After 48 months of occupancy, the refund will not be diminished beyond the amount indicated above. |
The plan must describe all projected income and expenses for the first year of operation of the residence in schedule B-1.
SCHEDULE B-1
Budget For First Year of Operation
Beginning _______1, 20__
Projected Income
Monthly Fees_ $__ __________________________________________________________
Entrance Fees_ $__ __________________________________________________________
*Commercial_ $__ __________________________________________________________
*Laundry_ $__ __________________________________________________________
*Other (Explain)_ $__ __________________________________________________________
TOTAL_ $__ __________________________________________________________
Projected Expenses
Salaries and Benefits_ $__ __________________________________________________________
Heating_ $__ __________________________________________________________
Utilities (electricity and gas)_ $__ __________________________________________________________
Water charges and sewer rents_ $__ __________________________________________________________
Repairs, maintenance and supplies_ $__ __________________________________________________________
Housekeeping and Laundry_ $__ __________________________________________________________
Food Services_ $__ __________________________________________________________
*Service contracts_ $__ __________________________________________________________
Insurance_ $__ __________________________________________________________
Management fees_ $__ __________________________________________________________
Administrative costs_ $__ __________________________________________________________
Real Estate Taxes_ $__ __________________________________________________________
Debt Service_ $__ __________________________________________________________
Legal fees and audit fees_ $__ __________________________________________________________
*Other_ $__ __________________________________________________________
*Contingency_ $__ __________________________________________________________
*Homeowners association dues_ $__ __________________________________________________________
*Yearly reserve fund_ $__ __________________________________________________________
TOTAL_ $__ __________________________________________________________
If the residence is going to include commercial, professional, retail or other than residential units:
Include certified statements of income and expense of sponsor, prepared on an annual basis, for the two most recent fiscal years of operation prepared by an independent certified public accountant. No report need be filed for a fiscal year which ends less than three months prior to the date the proposed offering plan is submitted to the Office of the Attorney General. If the sponsor has been in operation for less than two years, include a statement for the period during which sponsor has been in existence. If, after the plan is filed but before it is declared effective, a more recent fiscal year has ended and the sponsor has had three additional months after the end of the more recent fiscal year to prepare a certified statement, sponsor must amend the plan to include the certified statement for the more recent fiscal year.
State the procedure to be followed in reserving a unit and taking occupancy, including any application procedure and steps required if the application is accepted.
Disclose the terms of any commitment by sponsor or a lender procured by sponsor to provide financing of the entrance fee.
The plan must explain whether a prospective resident's right to commence occupancy is contingent upon the plan's being declared effective. If the offer is not contingent on the plan being declared effective, highlight as a special risk. Disclose that because no minimum number of residency agreements are required before occupancy commences, residents who initially take occupancy may be living in a substantially vacant residence for an indeterminate period of time. Disclose any financial risk factors resulting from such minimal occupancy.
A copy of the full residency agreement must be included in Part II as an exhibit to the plan. The following information should be included in the residency agreement.
Describe any exercise facilities and classes and educational, social and cultural activities covered.
Describe the rights and obligations of sponsor under the plan and applicable law with respect to the offering including, but not limited to, the following elements:
Also state the above information for all individuals who own or control a 10 percent or greater equity interest in the sponsor.
State that sponsor shall keep copies of the plan, all documents referred to in the plan and all exhibits submitted to the Office of the Attorney General in connection with the filing of the plan, on file and available for inspection without charge and copying at a reasonable charge at a specified location for six years from the date the plan is accepted for filing.
Describe any other material facts concerning the sponsor, the broker, the managing agent, any of their principals, the property, the offering, and prospective residents' rights and obligations including the following:
Include the following provisions:
N.Y. Comp. Codes R. & Regs. Tit. 13 § 25.3