Stratford, The

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Allegation investigated: - Staff not following resident physicians report - Facility Administrator is not certified

Based on client and facility records reviewed, information obtained from facility staff--including administrator-- and CDSS Administrator Certification Unit, these allegations are determined to be unsubstantiated. Although the allegations may have occurred or are valid, there is not enough evidence to prove the alleged violations did or did not occur. Four residents' physicians determined that they were unable to store and administer their medications, so facility provided this assisted living service until authorizations were obtained from MDs for their respective spouses to store and administer medications. However, facility failed to implement assisted living services in accordance with facility guidelines. See Facility Evaluation Report for deficiency. Executive director Janie Woo was appointed as facility administrator in November 2023. She applied for RCFE administrator certification approximately 6 months ago, but has not yet received administrator certificate. According to CDSSthe state’s words, verbatim · CDSS document, Aug 5, 2024 · control 14-AS-20240307142544

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Report on file with the state — no findings text was published for this visit. The complete document is on the state’s site.

Allegation investigated: Sunrise has lower standards for consumer protection for its residents than required for HOA residents. Sunrise residents should have the same consumer protections as HOA residents.

• A review of the continuing care contract executed by both the Provider and the residents revealed that the Provider made plain in its contracts that the residents may not have the same protections as HOA residents. • Specifically, the contract states that the Department of Real Estate “…may not have imposed some requirements on this project which would, in the absence of concurrent jurisdiction with the Department of Social Services, normally be imposed on a condominium project.” • Residents executed the contracts acknowledging the possibility of reduced requirements or protections. • Further – It has been determined that This Department is not responsible for enforcing Department of Real Estate Regulations. The declarations and contracts set out that Sunrise is operating a CCRC and has an exclusive easement to do so. So long as the facility is operated consistent with CDSS’ statutes and regulations, the department has no basis for taking action based on a violation of real estate lithe state’s words, verbatim · CDSS document, Nov 13, 2023 · control 14-AS-20230630154615

Allegation investigated: Civil Code section 5380 requires Sunrise to deposit funds paid into an account under the control of the homeowner’s association. Sunrise is not doing so and therefore is in violation of Civil Code section 5380.

During the course of the investigation into this allegation, the following was determined: • The only funds Sunrise accepts belonging to the association is $70.00 per resident per month collected by Sunrise at the association’s request pursuant to Continuing Care Residence Agreement. • As previously stated, The Department suggests the HOA communicate directly with Sunrise to obtain information about HOA dues paid to Sunrise. The HOA can also rescind its delegation of collecting HOA dues to Sunrise if it desires. Unfoundedthe state’s words, verbatim · CDSS document, Nov 13, 2023 · control 14-AS-20230630154615

Allegation investigated: Transfer fees should not be allowed since the provider is not a broker. In the alternative, transfer fees should be limited in accordance with Civil Code section 4575.

During the Course of the investigation into this allegation, the following was determined: The Transfer Fee is clearly outlined in the Continuing Care Contract and CC&Rs. Residents executed these contracts thereby agreeing to pay a transfer fee upon the sale of their unit. In addition, the department does not interpret the “transfer fee” to be a brokerage fee. The continuing care contract statutes recognize the purchase price of a condominium unit to be an entrance fee and the fees charged upon the sale of the condominium unit to be a resale fee. (See HSC section 1771 subdivisions (e)(3) and (r)(4).) Resale fees or “transfer fees” based on a set fee and appreciation of the unit are not unique to Sunrise. Similar arrangements exist in other equity projects. (See Health and Safety Code (HSC) section 1771(e)(6) [defining “equity project”].) Further, analogous forms of compensation from the sale of a refundable or repayable CCRC unit are standard in the industry. Therefore, the departmentthe state’s words, verbatim · CDSS document, Nov 13, 2023 · control 14-AS-20230630154615

Allegation investigated: The attorney for the HOA contends residents should have a vote in selection of a management company, including whether to extend the contract with the current management company.

During the course of the investigation into this allegation, the following was determined: • In a CCRC, the residents are not a party to the management agreement, even in equity projects. • The provider, as the licensee, is fully responsible for selecting and paying management. In the context of the Stratford, Sunrise’s right act as a provider and to select managers appears to derive from its ownership of certain easements. • The Department understands these easements to be sufficient to establish Sunrise’s control over the community such that it can be licensed and granted a certificate of authority. • The Department is responsible for approving and licensing any management company hired to manage a continuing care retirement community. • It cannot approve of the HOA selecting managers of a licensed community when the HOA does not hold the license. That responsibility lies solely with the licensee, Sunrise. Note that HOAs are prohibited from holding CCRC Certificates of Authority (Heathe state’s words, verbatim · CDSS document, Nov 13, 2023 · control 14-AS-20230630154615

Allegation investigated: There is no governing body as such that makes decisions about The Stratford on which a resident might serve, either as a resident representative or a full-fledged member. The regional and local managers employed by Sunrise Senior Living Management, Inc. (a subsidiary of Sunrise Senior Living LLC) make decisions regarding matters like fee increases, expansion and contraction of services, or other charges that would result in budget variance. The Stratford is therefore unable to have two resident owners participate on a Sunrise Governing body.

During the course of the investigation into this allegation, the following was determined: • The providers are limited liability companies, therefore there is no governing body for the residents to serve on as contemplated by 1771.8, subdivisions (i) and (j). Instead, • Sunrise is required to comply with HSC section 1771.8(s)(2)(A), which provides the provider appoint a select committee of its members to meet in a location that has been designated in the notice of the meeting with the resident association or a resident-elected committee of residents at each of its facilities semiannually and at least 60 days prior to any financial or administrative changes…” Sunrise contends they have met with residents under 1771.8(s)(2)(A), but meeting with just one resident at a time doesn’t appear to comply with the statutes since it requires they meet with, “…the resident association or a resident-elected committee of residents…” NOTE: While the reps are not members of the provider entities, giventhe state’s words, verbatim · CDSS document, Nov 13, 2023 · control 14-AS-20230630154615