Abstract
The Department of Social Services has the authority to permit the foundation of the CCRC in California. There are two major involvements of the department. The first is to obtain the financial stability of the CCRC and the second is to secure the rights of the inhabitants. As for the financial stability, income from operations during the most recent five years for which audited financial statements have been completed. The statements include the operating income, the operating expense, net income from operations, non-operating income or expense and excluding extraordinary items. The resident may cancel the transaction without cause at any time within 90 days from the date of the first occupy of the living unit. All continuing care contracts shall be in writing and shall contain all the information required by the Health and Safety Code. The entrance fee is protected to deposit into the escrow account. The department also supervises the CCRC to protect the resident rights and the resident council.
