(a) Sections 33.401(b) - (e) and 33.402(a) of this title apply to continuing care in residence.
(b) Entrance fees must be held in escrow as set forth in Health and Safety Code §246.071. An escrow agent cannot release, and the provider cannot request or accept, entrance fee funds from the escrow agent without department approval. A provider must file CCRC Form 14a (FIN607) to request release of entrance fee escrow funds for identified residents. An escrow agent must file a CCRC Form 9 (FIN392) when a provider requests the agent release entrance fee escrow account funds.
(c) To obtain department approval:
  (1) a provider must verify in Form 14a (FIN607) that:
    (A) the identified residents are receiving continuing care in residence;
    (B) the requested amount complies with amortization schedules contained in the continuing care in residence contracts; and
    (C) the provider's assets exceed the actuarial present value of the expected costs of performing all remaining obligations to all residents under continuing care contracts; and
  (2) the provider must disclose its operating ratio and current ratio. A provider is not eligible for a release of continuing care in residence entrance fee escrow funds if the provider's:
    (A) operating ratio is greater than 100 percent, unless there is a cash flow analysis acceptable to the department; or
    (B) current ratio is no greater than 150 percent.
(d) The department will issue a determination on the request for release of continuing care in residence entrance fee escrow funds to both the provider and escrow agent.

Source Note: The provisions of this §33.104 adopted to be effective April 17, 2019, 44 TexReg 1867