32.02.01.10

.10 Action of Department on Application for an Initial Certificate of Registration.

A. The Department shall issue an initial certificate of registration when it determines that all of the following conditions have been met:

(1) The provider has been issued a preliminary certificate of registration;

(2) The provider has received all licenses and certifications and letters of exemption required as of that date from MDH, MHCC, and the Department;

(3) The provider has submitted documentation which demonstrates to the satisfaction of the Department that:

(a) Agreements have been executed for at least 65 percent of the independent living units, and

(b) At least 10 percent of the total entrance fee has been paid as a deposit for each unit for which an agreement has been executed;

(4) The provider has submitted documentation to the satisfaction of the Department that there is a commitment for permanent long-term financing;

(5) The provider has submitted documentation which demonstrates to the satisfaction of the Department that closing on construction financing has taken place; and

(6) The form and substance of all advertising and other promotional materials filed are not deceptive, misleading, or likely to mislead.

B. If requested, a verification letter may be issued to the construction lender by the Department when it is determined that the conditions stated in §A(1)—(4), and (6) of this regulation have been met and that an initial certificate of registration will be issued for the new units when closing on the construction loan has taken place.

C. If the conditions in §A of this regulation are not met, the Department shall issue a denial of an initial certificate of registration, in writing, which includes the reasons for the denial. The provider may resubmit an amended application within the time limits set forth in §D of this regulation.

D. If an initial certificate of registration is not issued within 24 months of the issuance of the preliminary certificate of registration, or a longer time allowed by the Department for good cause shown, as defined in §E of this regulation, the Department shall require the provider to refund all deposits and to cease in its attempts to offer continuing care under that application. A further intent to provide continuing care shall require a new application, including a feasibility study.

E. The Department may not deny a request for an extension of time if the provider demonstrates reasonable progress toward acquiring an initial certificate of registration.