What is a Continuing Care Retirement Community?

The Continuing Care Contracts Branch of the California State Department of Social Services (DSS) defines a CCRC as a facility that provides a continuing care contract which includes a promise to provide one or more elements of care for more than one year, in exchange for the payment of an entrance fee, periodic charges, or both.

A Continuing Care Retirement Community (CCRC) provides peace of mind for a growing number of seniors who want to live independently now but would like to have health care services close at hand should the need arise.

Fountaingrove Lodge, an Aegis Senior Community, will operate as a CCRC.  The community will provide beautifully designed cottages, apartments and flats, with activities and amenities planned to enhance wellness and contemporary living.  Health care services are available in the home or at the on-site Care Center, which offers residential assisted living, Alzheimer’s, and dementia care, paid for on a fee-for-service basis as a resident may need it.

What is the difference between a CCRC, a Life Care Community, and an Ownership model?

In California, Life Care Communities offer contracts that cover all health care costs including assisted living, hospital care, and physician’s visits, most of which are already covered by a resident’s private health insurance or Medicare.  Choices of providers and hospitals are usually limited.  Entrance and monthly fees are usually very high, because they must cover the potential cost of health care for the entire community. The refundable portion of the entrance fee for a Life Care Community typically erodes to nothing in three to five years, leaving no equity to the resident or the estate.

Very few retirement communities which operate on an Ownership Model provide a continuum of care that includes assisted living, Alzheimer’s and dementia care.  Residents of these communities usually must move to another facility for such care.  This can be very upsetting and results in additional expenses because the resident or the resident’s estate remains responsible for the ongoing monthly fees and all costs of ownership until the unit is sold. 

Most CCRC’s, including Fountaingrove Lodge, are developed and operated by organizations with extensive experience in managing retirement communities and particular expertise in delivering quality health care services at a reasonable cost.  One of the major advantages of living at a CCRC is having health care services available on site.  This proximity allows a partner or friends to easily visit if one relocates to the Care Center.

At Fountaingrove Lodge, up to 100% of the original entrance fee is repaid to the resident or his/her estate when the home is re-reserved and the residency agreement is terminated.

How does a CCRC differ from a rental retirement community? 

At many rental communities, residents who need a higher level of care are required to move to a different facility where assisted living, Alzheimer’s or dementia care, is offered.  It is often difficult to find another situation which meets the standards they currently enjoy and is convenient for the partner or friends to visit.

Rental communities are not subject to the same stringent rules that govern CCRC’s, and they are not subject to the State of California DSS oversight and regulations.  These important regulations are designed to ensure the high standards of care and  strong financial management that must be in place at a CCRC.

Because there is a greater turnover in rental communities, and residents must move to other facilities when health care is needed, the population of rental communities is more transient.

What is the purpose of an entrance fee and what does it cover?

To provide the financial resources needed to operate as a CCRC, retirement communities in California and elsewhere typically charge an entrance fee and a monthly fee.  The entrance fee helps to keep the monthly fee lower.  At Fountaingrove Lodge, the two fees together cover the right of residency in a cottage, apartment or flat, and provide for services such as dining, housekeeping, maintenance for homes and grounds, parking, scheduled transportation, the general wellness program, and access to community amenities and activities.

Is there an entrance fee for a second person?

At Fountaingrove Lodge we do NOT charge an entrance fee for a second person.

The second person monthly fee represents only the cost of food, additional utilities, housekeeping, and other community services.

Who monitors or regulates CCRCs and the financial operations of these communities?  What guarantee do I have that my reservation deposit and my entrance fee are secure?

The financial operation and solvency of CCRCs in California are closely monitored by the DSS (Department of Social Services).  State law requires that reservation deposits and entrance fees be placed in an individual escrow account at a financial institution approved by DSS. The funds remain in escrow until the Community proves that it has met stringent State requirements.  The California DSS continues to regulate the Community after the release of the funds and requires the Community to maintain certain cash reserves in amounts sufficient to meet State requirements.

What happens to the interest accrued while my deposit is in escrow?

You will receive all of the interest accrued during the time your deposits are held in the escrow account, in accordance with the effective rates for that account. 

If a couple is living in the community and one of them requires a higher level of care, does the couple have to move to the Care Center or can the independent partner remain in their home?  Will any additional charges apply?

One of the biggest benefits of CCRCs for couples is that a partner who is independent can continue living in his or her home while the partner who requires a higher level of care can relocate to the Care Center.  Monthly fees will be adjusted to reflect the services for the partner in the Care Center and required ancillary items.

How can I take advantage of CCRC living at Fountaingrove Lodge?

A Priority Program will soon be initiated, and we invite you to join.  As a Member of this Program, you will receive a variety of benefits, including $2,000 in free upgrades and the ability to select your preferred cottage, apartment or flat prior to public offering at a pre-construction price.  The Fountaingrove Golf and Country Club is making available special senior golf memberships, and their Athletic and Social memberships can be purchased at half price.  It is easy to become a Priority Program Member.  Simply fill out the application forms and make a $1,000 completely refundable deposit.  Please call for more information.