In a private conversation, one member from another state sounded a cautionary note. "Be careful what you ask for," he said. He anticipates that the bond ratings for communities where residents are granted preferential status will suffer. He said that because the bond have higher risk, the interest on the bonds will be higher. This cost of borrowing gets passed on to residents.
Others have suggested that residents should be protected with insurance that is mandated for all life care providers -- something akin to the FDIC that protects depositors against bank failures. This approach would require standards and regulatory enforcement of best practices to prevent abuses.
Yet another approach to be considered is separating the rental/hospitality transaction from the insurance/medical contingency aspects. Residents would have a lifecare insurance policy that is unaffected by the business fortunes of the property.
What do you think?
Richmond Shreve
NaCCRA Board Member
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