{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4902.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4902.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4902.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4902.html"}],"law_id":69028,"edition_id":1,"section_id":69028,"structure_id":15908,"section_number":"38.2-4902","catch_line":"Disclosure statement","history":"1985, c. 554, \u00a7 38.1-957; 1986, cc. 562, 598; 1992, c. 139; 2012, cc. 208, 303.","full_text":"A\n\nThe disclosure statement of each facility shall contain all of the following information unless such information is contained in the continuing care contract and a copy of that contract is attached to and made a part of the initial disclosure statement:1\n\nThe name and business address of the provider and a statement of whether the provider is a partnership, foundation, association, corporation or other type of business or legal entity.2\n\nFull information regarding ownership of the property on which the facility is or will be operated and of the buildings in which it is or will be operated.3\n\nThe names and business addresses of the officers, directors, trustees, managing or general partners, and any person having a ten percent or greater equity or beneficial interest in the provider, and a description of such person’s interest in or occupation with the provider.4\n\nFor (i) the provider, (ii) any person named in response to subdivision 3 of this subsection or (iii) the proposed management, if the facility will be managed on a day-to-day basis by a person other than an individual directly employed by the provider:\n\t\t\t\ta. A description of any business experience in the operation or management of similar facilities.\n\t\t\t\tb. The name and address of any professional service, firm, association, foundation, trust, partnership or corporation or any other business or legal entity in which such person has, or which has in such person, a 10 percent or greater interest and which it is presently intended will or may provide goods, leases or services to the provider of a value of $500 or more, within any year, including:1\n\nA description of the goods, leases or services and the probable or anticipated cost thereof to the provider;2\n\nThe process by which the contract was awarded;3\n\nAny additional offers that were received; and4\n\nAny additional information requested by the Commission detailing how and why a contract was awarded.\n\t\t\t\t\tc. A description of any matter in which such person:1\n\nHas been convicted of a felony or pleaded nolo contendere to a criminal charge, or been held liable or enjoined in a civil action by final judgment, if the crime or civil action involved fraud, embezzlement, fraudulent conversion, misappropriation of property or moral turpitude; or2\n\nIs subject to an injunctive or restrictive order of a court of record, or within the past five years had any state or federal license or permit suspended or revoked as a result of an action brought by a governmental agency or department, arising out of or relating to business activity or health care, including without limitation actions affecting a license to operate a foster care facility, nursing home, retirement home, home for the aged or facility registered under this chapter or similar laws in another state; or3\n\nIs currently the subject of any state or federal prosecution, or administrative investigation involving allegations of fraud, embezzlement, fraudulent conversion, or misappropriation of property.5\n\nA statement as to:\n\t\t\t\ta. Whether the provider is or ever has been affiliated with a religious, charitable or other nonprofit organization, the nature of any such affiliation, and the extent to which the affiliate organization is or will be responsible for the financial and contractual obligations of the provider.\n\t\t\t\tb. Any provision of the federal Internal Revenue Code under which the provider is exempt from the payment of income tax.6\n\nThe location and description of the real property of the facility, existing or proposed, and to the extent proposed, the estimated completion date or dates of improvements, whether or not construction has begun and the contingencies under which construction may be deferred.7\n\nThe services provided or proposed to be provided under continuing care contracts, including the extent to which medical care is furnished or is available pursuant to any arrangement. The disclosure statement shall clearly state which services are included in basic continuing care contracts and which services are made available by the provider at extra charge.8\n\nA description of all fees required of residents, including any entrance fee and periodic charges. The description shall include (i) a description of all proposed uses of any funds or property required to be transferred to the provider or any other person prior to the resident’s occupancy of the facility and of any entrance fee, (ii) a description of provisions for the escrowing and return of any such funds, assets or entrance fee, the manner and any conditions of return and to whom earnings on escrowed funds are payable and (iii) a description of the manner by which the provider may adjust periodic charges or other recurring fees and any limitations on such adjustments. If the facility is already in operation, or if the provider operates one or more similar facilities within this Commonwealth, there shall be included tables showing the frequency and average dollar amount of each increase in periodic rates at each facility for the previous five years or such shorter period that the facility has been operated by the provider.9\n\nAny provisions that have been made or will be made to provide reserve funding or security to enable the provider to fully perform its obligations under continuing care contracts, including the establishment of escrow accounts, trusts or reserve funds, together with the manner in which such funds will be invested and the names and experience of persons who will make the investment decisions. The disclosure statement shall clearly state whether or not reserve funds are maintained.10\n\nCertified financial statements of the provider, including (i) a balance sheet as of the end of the two most recent fiscal years and (ii) income statements of the provider for the two most recent fiscal years or such shorter period that the provider has been in existence.11\n\nA pro forma income statement for the current fiscal year.12\n\nIf operation of the facility has not yet commenced, a statement of the anticipated source and application of the funds used or to be used in the purchase or construction of the facility, including:\n\t\t\t\ta. An estimate of the cost of purchasing or constructing and equipping the facility including such related costs as financing expense, legal expense, land costs, occupancy development costs and all other similar costs that the provider expects to incur or become obligated for prior to the commencement of operations.\n\t\t\t\tb. A description of any mortgage loan or other long-term financing intended to be used for any purpose in the financing of the facility and of the anticipated terms and costs of such financing, including without limitation, all payments of the proceeds of such financing to the provider, management or any related person.\n\t\t\t\tc. An estimate of the percentage of entrance fees that will be used or pledged for the construction or purchase of the facility, as security for long-term financing or for any other use in connection with the commencement of operation of the facility.\n\t\t\t\td. An estimate of the total entrance fees to be received from or on behalf of residents at or prior to commencement of operation of the facility.\n\t\t\t\te. An estimate of the funds, if any, which are anticipated to be necessary to fund start-up losses and provide reserve funds to assure full performance of the obligations of the provider under continuing care contracts.\n\t\t\t\tf. A projection of estimated income from fees and charges other than entrance fees, showing individual rates presently anticipated to be charged and including a description of the assumptions used for calculating the estimated occupancy rate of the facility and the effect on the income of the facility of any government subsidies for health care services to be provided pursuant to the continuing care contracts.\n\t\t\t\tg. A projection of estimated operating expenses of the facility, including (i) a description of the assumptions used in calculating any expenses and separate allowances for the replacement of equipment and furnishings and anticipated major structural repairs or additions and (ii) an estimate of the percentage of occupancy required for continued operation of the facility.\n\t\t\t\th. Identification of any assets pledged as collateral for any purpose.\n\t\t\t\ti. An estimate of annual payments of principal and interest required by any mortgage loan or other long-term financing.13\n\nA description of the provider’s criteria for admission of new residents.14\n\nA description of the provider’s policies regarding access to the facility and its services for nonresidents.15\n\nAny other material information concerning the facility or the provider that may be required by the Commission or included by the provider.16\n\nThe procedure by which a resident may file a complaint or disclose any concern.B\n\nThe disclosure statement shall state on its cover that the filing of the disclosure statement with the Commission does not constitute recommendation or endorsement of the facility by the Commission.C\n\nA copy of the standard form or forms for continuing care contracts used by the provider shall be attached as an exhibit to each disclosure statement.D\n\nIf the Commission determines that the disclosure statement does not comply with the provisions of this chapter, it shall have the right to take action pursuant to § 38.2-4931.","order_by":null,"text":{"0":{"id":249867,"text":"The disclosure statement of each facility shall contain all of the following information unless such information is contained in the continuing care contract and a copy of that contract is attached to and made a part of the initial disclosure statement:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":249868,"text":"The name and business address of the provider and a statement of whether the provider is a partnership, foundation, association, corporation or other type of business or legal entity.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":249869,"text":"Full information regarding ownership of the property on which the facility is or will be operated and of the buildings in which it is or will be operated.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":249870,"text":"The names and business addresses of the officers, directors, trustees, managing or general partners, and any person having a ten percent or greater equity or beneficial interest in the provider, and a description of such person’s interest in or occupation with the provider.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":249871,"text":"For (i) the provider, (ii) any person named in response to subdivision 3 of this subsection or (iii) the proposed management, if the facility will be managed on a day-to-day basis by a person other than an individual directly employed by the provider:\n\t\t\t\ta. A description of any business experience in the operation or management of similar facilities.\n\t\t\t\tb. The name and address of any professional service, firm, association, foundation, trust, partnership or corporation or any other business or legal entity in which such person has, or which has in such person, a 10 percent or greater interest and which it is presently intended will or may provide goods, leases or services to the provider of a value of $500 or more, within any year, including:","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A41"},"5":{"id":249872,"text":"A description of the goods, leases or services and the probable or anticipated cost thereof to the provider;","type":"section","prefixes":["A","4","1"],"prefix":"1","entire_prefix":"A41","prefix_anchor":"A41","level":3,"prior_prefix":"A4","next_prefix":"A42"},"6":{"id":249873,"text":"The process by which the contract was awarded;","type":"section","prefixes":["A","4","2"],"prefix":"2","entire_prefix":"A42","prefix_anchor":"A42","level":3,"prior_prefix":"A41","next_prefix":"A43"},"7":{"id":249874,"text":"Any additional offers that were received; and","type":"section","prefixes":["A","4","3"],"prefix":"3","entire_prefix":"A43","prefix_anchor":"A43","level":3,"prior_prefix":"A42","next_prefix":"A44"},"8":{"id":249875,"text":"Any additional information requested by the Commission detailing how and why a contract was awarded.\n\t\t\t\t\tc. A description of any matter in which such person:","type":"section","prefixes":["A","4","4"],"prefix":"4","entire_prefix":"A44","prefix_anchor":"A44","level":3,"prior_prefix":"A43","next_prefix":"A41"},"9":{"id":249876,"text":"Has been convicted of a felony or pleaded nolo contendere to a criminal charge, or been held liable or enjoined in a civil action by final judgment, if the crime or civil action involved fraud, embezzlement, fraudulent conversion, misappropriation of property or moral turpitude; or","type":"section","prefixes":["A","4","1"],"prefix":"1","entire_prefix":"A41","prefix_anchor":"A41","level":3,"prior_prefix":"A44","next_prefix":"A42"},"10":{"id":249877,"text":"Is subject to an injunctive or restrictive order of a court of record, or within the past five years had any state or federal license or permit suspended or revoked as a result of an action brought by a governmental agency or department, arising out of or relating to business activity or health care, including without limitation actions affecting a license to operate a foster care facility, nursing home, retirement home, home for the aged or facility registered under this chapter or similar laws in another state; or","type":"section","prefixes":["A","4","2"],"prefix":"2","entire_prefix":"A42","prefix_anchor":"A42","level":3,"prior_prefix":"A41","next_prefix":"A43"},"11":{"id":249878,"text":"Is currently the subject of any state or federal prosecution, or administrative investigation involving allegations of fraud, embezzlement, fraudulent conversion, or misappropriation of property.","type":"section","prefixes":["A","4","3"],"prefix":"3","entire_prefix":"A43","prefix_anchor":"A43","level":3,"prior_prefix":"A42","next_prefix":"A5"},"12":{"id":249879,"text":"A statement as to:\n\t\t\t\ta. Whether the provider is or ever has been affiliated with a religious, charitable or other nonprofit organization, the nature of any such affiliation, and the extent to which the affiliate organization is or will be responsible for the financial and contractual obligations of the provider.\n\t\t\t\tb. Any provision of the federal Internal Revenue Code under which the provider is exempt from the payment of income tax.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A43","next_prefix":"A6"},"13":{"id":249880,"text":"The location and description of the real property of the facility, existing or proposed, and to the extent proposed, the estimated completion date or dates of improvements, whether or not construction has begun and the contingencies under which construction may be deferred.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"14":{"id":249881,"text":"The services provided or proposed to be provided under continuing care contracts, including the extent to which medical care is furnished or is available pursuant to any arrangement. The disclosure statement shall clearly state which services are included in basic continuing care contracts and which services are made available by the provider at extra charge.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"15":{"id":249882,"text":"A description of all fees required of residents, including any entrance fee and periodic charges. The description shall include (i) a description of all proposed uses of any funds or property required to be transferred to the provider or any other person prior to the resident’s occupancy of the facility and of any entrance fee, (ii) a description of provisions for the escrowing and return of any such funds, assets or entrance fee, the manner and any conditions of return and to whom earnings on escrowed funds are payable and (iii) a description of the manner by which the provider may adjust periodic charges or other recurring fees and any limitations on such adjustments. If the facility is already in operation, or if the provider operates one or more similar facilities within this Commonwealth, there shall be included tables showing the frequency and average dollar amount of each increase in periodic rates at each facility for the previous five years or such shorter period that the facility has been operated by the provider.","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"16":{"id":249883,"text":"Any provisions that have been made or will be made to provide reserve funding or security to enable the provider to fully perform its obligations under continuing care contracts, including the establishment of escrow accounts, trusts or reserve funds, together with the manner in which such funds will be invested and the names and experience of persons who will make the investment decisions. The disclosure statement shall clearly state whether or not reserve funds are maintained.","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"17":{"id":249884,"text":"Certified financial statements of the provider, including (i) a balance sheet as of the end of the two most recent fiscal years and (ii) income statements of the provider for the two most recent fiscal years or such shorter period that the provider has been in existence.","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"A11"},"18":{"id":249885,"text":"A pro forma income statement for the current fiscal year.","type":"section","prefixes":["A","11"],"prefix":"11","entire_prefix":"A11","prefix_anchor":"A11","level":2,"prior_prefix":"A10","next_prefix":"A12"},"19":{"id":249886,"text":"If operation of the facility has not yet commenced, a statement of the anticipated source and application of the funds used or to be used in the purchase or construction of the facility, including:\n\t\t\t\ta. An estimate of the cost of purchasing or constructing and equipping the facility including such related costs as financing expense, legal expense, land costs, occupancy development costs and all other similar costs that the provider expects to incur or become obligated for prior to the commencement of operations.\n\t\t\t\tb. A description of any mortgage loan or other long-term financing intended to be used for any purpose in the financing of the facility and of the anticipated terms and costs of such financing, including without limitation, all payments of the proceeds of such financing to the provider, management or any related person.\n\t\t\t\tc. An estimate of the percentage of entrance fees that will be used or pledged for the construction or purchase of the facility, as security for long-term financing or for any other use in connection with the commencement of operation of the facility.\n\t\t\t\td. An estimate of the total entrance fees to be received from or on behalf of residents at or prior to commencement of operation of the facility.\n\t\t\t\te. An estimate of the funds, if any, which are anticipated to be necessary to fund start-up losses and provide reserve funds to assure full performance of the obligations of the provider under continuing care contracts.\n\t\t\t\tf. A projection of estimated income from fees and charges other than entrance fees, showing individual rates presently anticipated to be charged and including a description of the assumptions used for calculating the estimated occupancy rate of the facility and the effect on the income of the facility of any government subsidies for health care services to be provided pursuant to the continuing care contracts.\n\t\t\t\tg. A projection of estimated operating expenses of the facility, including (i) a description of the assumptions used in calculating any expenses and separate allowances for the replacement of equipment and furnishings and anticipated major structural repairs or additions and (ii) an estimate of the percentage of occupancy required for continued operation of the facility.\n\t\t\t\th. Identification of any assets pledged as collateral for any purpose.\n\t\t\t\ti. An estimate of annual payments of principal and interest required by any mortgage loan or other long-term financing.","type":"section","prefixes":["A","12"],"prefix":"12","entire_prefix":"A12","prefix_anchor":"A12","level":2,"prior_prefix":"A11","next_prefix":"A13"},"20":{"id":249887,"text":"A description of the provider’s criteria for admission of new residents.","type":"section","prefixes":["A","13"],"prefix":"13","entire_prefix":"A13","prefix_anchor":"A13","level":2,"prior_prefix":"A12","next_prefix":"A14"},"21":{"id":249888,"text":"A description of the provider’s policies regarding access to the facility and its services for nonresidents.","type":"section","prefixes":["A","14"],"prefix":"14","entire_prefix":"A14","prefix_anchor":"A14","level":2,"prior_prefix":"A13","next_prefix":"A15"},"22":{"id":249889,"text":"Any other material information concerning the facility or the provider that may be required by the Commission or included by the provider.","type":"section","prefixes":["A","15"],"prefix":"15","entire_prefix":"A15","prefix_anchor":"A15","level":2,"prior_prefix":"A14","next_prefix":"A16"},"23":{"id":249890,"text":"The procedure by which a resident may file a complaint or disclose any concern.","type":"section","prefixes":["A","16"],"prefix":"16","entire_prefix":"A16","prefix_anchor":"A16","level":2,"prior_prefix":"A15","next_prefix":"B"},"24":{"id":249891,"text":"The disclosure statement shall state on its cover that the filing of the disclosure statement with the Commission does not constitute recommendation or endorsement of the facility by the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A16","next_prefix":"C"},"25":{"id":249892,"text":"A copy of the standard form or forms for continuing care contracts used by the provider shall be attached as an exhibit to each disclosure statement.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"26":{"id":249893,"text":"If the Commission determines that the disclosure statement does not comply with the provisions of this chapter, it shall have the right to take action pursuant to § 38.2-4931.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15908,"edition_id":1,"name":"Registration of Continuing Care Providers","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":14288,"metadata":{},"date_created":"2026-06-26 04:01:42","date_modified":"2026-06-26 04:01:42","permalink":{"id":217357,"object_type":"structure","relational_id":15908,"identifier":"1","token":"38.2\/49\/1","url":"\/38.2\/49\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14288,"edition_id":1,"name":"Continuing Care Providers and Community-Based Continuing Care Providers","identifier":"49","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:47:37","date_modified":"2026-06-26 03:47:37","permalink":{"id":217355,"object_type":"structure","relational_id":14288,"identifier":"49","token":"38.2\/49","url":"\/38.2\/49\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":83470,"structure_id":15908,"section_number":"38.2-4900","catch_line":"Definitions","url":"\/38.2-4900\/","token":"38.2\/49\/1\/38.2-4900","metadata":false},{"id":84861,"structure_id":15908,"section_number":"38.2-4901","catch_line":"Registration","url":"\/38.2-4901\/","token":"38.2\/49\/1\/38.2-4901","metadata":false},{"id":69028,"structure_id":15908,"section_number":"38.2-4902","catch_line":"Disclosure statement","url":"\/38.2-4902\/","token":"38.2\/49\/1\/38.2-4902","metadata":false},{"id":61685,"structure_id":15908,"section_number":"38.2-4903","catch_line":"Availability of disclosure statement to prospective residents","url":"\/38.2-4903\/","token":"38.2\/49\/1\/38.2-4903","metadata":false},{"id":63774,"structure_id":15908,"section_number":"38.2-4904","catch_line":"Annual disclosure statements","url":"\/38.2-4904\/","token":"38.2\/49\/1\/38.2-4904","metadata":false},{"id":66671,"structure_id":15908,"section_number":"38.2-4904.1","catch_line":"Escrow of entrance fee to continuing care providers and others","url":"\/38.2-4904.1\/","token":"38.2\/49\/1\/38.2-4904.1","metadata":false},{"id":65856,"structure_id":15908,"section_number":"38.2-4905","catch_line":"Resident's contract","url":"\/38.2-4905\/","token":"38.2\/49\/1\/38.2-4905","metadata":false},{"id":78221,"structure_id":15908,"section_number":"38.2-4906","catch_line":"Repealed","url":"\/38.2-4906\/","token":"38.2\/49\/1\/38.2-4906","metadata":false},{"id":69644,"structure_id":15908,"section_number":"38.2-4910","catch_line":"Right of organization","url":"\/38.2-4910\/","token":"38.2\/49\/1\/38.2-4910","metadata":false},{"id":81292,"structure_id":15908,"section_number":"38.2-4911","catch_line":"Repealed","url":"\/38.2-4911\/","token":"38.2\/49\/1\/38.2-4911","metadata":false},{"id":62354,"structure_id":15908,"section_number":"38.2-4912","catch_line":"Special provisions for existing providers; rights of residents with certain existing providers","url":"\/38.2-4912\/","token":"38.2\/49\/1\/38.2-4912","metadata":false},{"id":84487,"structure_id":15908,"section_number":"38.2-4913","catch_line":"Repealed","url":"\/38.2-4913\/","token":"38.2\/49\/1\/38.2-4913","metadata":false},{"id":73529,"structure_id":15908,"section_number":"38.2-4917","catch_line":"Certain providers exempted","url":"\/38.2-4917\/","token":"38.2\/49\/1\/38.2-4917","metadata":false}],"previous_section":{"id":84861,"structure_id":15908,"section_number":"38.2-4901","catch_line":"Registration","url":"\/38.2-4901\/","token":"38.2\/49\/1\/38.2-4901","metadata":false},"next_section":{"id":61685,"structure_id":15908,"section_number":"38.2-4903","catch_line":"Availability of disclosure statement to prospective residents","url":"\/38.2-4903\/","token":"38.2\/49\/1\/38.2-4903","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4902\/","history_text":"

This law was first created in 1985. The record of its establishment is cataloged in chapter 554 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1985 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1986, chapters 562 and 598; in 1992, chapter 139; in 2012, chapters 208<\/a> and 303<\/a>.<\/p>","references":false,"refers_to":[{"id":61444,"section_number":"38.2-4931","catch_line":"Cease and desist orders; injunctions","order_by":null,"url":"\/38.2-4931\/"}],"permalink":{"id":217367,"object_type":"law","relational_id":69028,"identifier":"38.2-4902","token":"38.2\/49\/1\/38.2-4902","url":"\/38.2-4902\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4902\/","token":"38.2\/49\/1\/38.2-4902","dublin_core":{"Title":"Disclosure statement","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4902","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The disclosure statement<\/span> of each facility<\/span> shall contain all of the following information unless such information is contained in the continuing care<\/span> contract<\/span> and a copy of that contract<\/span> is attached to and made a part of the initial disclosure statement<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The name and business address of the provider<\/span> and a statement of whether the provider<\/span> is a partnership, foundation, association, corporation or other type of business or legal entity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Full information regarding ownership of the property on which the facility<\/span> is or will be operated and of the buildings in which it is or will be operated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The names and business addresses of the officers, directors, trustees, managing or general partners, and any person<\/span> having a ten percent or greater equity<\/span> or beneficial interest in the provider<\/span>, and a description of such person<\/span>’s interest in or occupation with the provider<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For (i) the provider<\/span>, (ii) any person<\/span> named in response to subdivision 3 of this subsection or (iii) the proposed management, if the facility<\/span> will be managed on a day-to-day basis by a person<\/span> other than an individual directly employed by the provider<\/span>:\n\t\t\t\ta. A description of any business experience in the operation or management of similar facilities.\n\t\t\t\tb. The name and address of any professional service, firm, association, foundation, trust, partnership or corporation or any other business or legal entity in which such person<\/span> has, or which has in such person<\/span>, a 10 percent or greater interest and which it is presently intended will or may provide goods, leases or services to the provider<\/span> of a value of $500 or more, within any year, including: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A description of the goods, leases or services and the probable or anticipated cost thereof to the provider<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The process by which the contract<\/span> was awarded; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any additional offers that were received; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any additional information requested by the Commission<\/span> detailing how and why a contract<\/span> was awarded.\n\t\t\t\t\tc. A description of any matter in which such person<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Has been convicted of a felony<\/span> or pleaded nolo contendere<\/span> to a criminal charge, or been held liable or enjoined in a civil action<\/span> by final judgment<\/span>, if the crime<\/span> or civil action<\/span> involved fraud<\/span>, embezzlement<\/span>, fraudulent conversion, misappropriation of property or moral turpitude<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Is subject to an injunctive or restrictive order<\/span> of a court<\/span> of record, or within the past five years had any state<\/span> or federal license or permit suspended or revoked as a result of an action brought by a governmental agency or department, arising out of or relating to business activity or health care, including without limitation actions affecting a license to operate a foster care facility<\/span>, nursing home, retirement home, home for the aged or facility<\/span> registered under this chapter or similar laws<\/span> in another state<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Is currently the subject of any state<\/span> or federal prosecution<\/span>, or administrative investigation involving allegations<\/span> of fraud<\/span>, embezzlement<\/span>, fraudulent conversion, or misappropriation of property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A statement as to:\n\t\t\t\ta. Whether the provider<\/span> is or ever has been affiliated with a religious, charitable or other nonprofit organization, the nature of any such affiliation, and the extent to which the affiliate organization is or will be responsible for the financial and contractual obligations of the provider<\/span>.\n\t\t\t\tb. Any provision of the federal Internal Revenue Code under which the provider<\/span> is exempt from the payment of income tax. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The location and description of the real property of the facility<\/span>, existing or proposed, and to the extent proposed, the estimated completion date or dates of improvements, whether or not construction has begun and the contingencies under which construction may be deferred. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The services provided or proposed to be provided under continuing care<\/span> contracts<\/span>, including the extent to which medical care is furnished or is available pursuant to any arrangement. The disclosure statement<\/span> shall clearly state<\/span> which services are included in basic continuing care<\/span> contracts<\/span> and which services are made available by the provider<\/span> at extra charge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> A description of all fees required of residents<\/span>, including any entrance fee<\/span> and periodic charges. The description shall include (i) a description of all proposed uses of any funds or property required to be transferred to the provider<\/span> or any other person<\/span> prior to the resident<\/span>’s occupancy of the facility<\/span> and of any entrance fee<\/span>, (ii) a description of provisions for the escrowing and return of any such funds, assets<\/span> or entrance fee<\/span>, the manner and any conditions of return and to whom earnings on escrowed funds are payable and (iii) a description of the manner by which the provider<\/span> may adjust periodic charges or other recurring fees and any limitations on such adjustments. If the facility<\/span> is already in operation, or if the provider<\/span> operates one or more similar facilities within this Commonwealth, there shall be included tables showing the frequency and average dollar amount of each increase in periodic rates<\/span><\/span> at each facility<\/span> for the previous five years or such shorter period that the facility<\/span> has been operated by the provider<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Any provisions that have been made or will be made to provide reserve funding or security to enable the provider<\/span> to fully perform its obligations under continuing care<\/span> contracts<\/span>, including the establishment of escrow accounts, trusts or reserve funds, together with the manner in which such funds will be invested and the names and experience of persons<\/span> who will make the investment decisions. The disclosure statement<\/span> shall clearly state<\/span> whether or not reserve funds are maintained. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Certified financial statements of the provider<\/span>, including (i) a balance sheet as of the end of the two most recent fiscal years and (ii) income statements of the provider<\/span> for the two most recent fiscal years or such shorter period that the provider<\/span> has been in existence. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> A pro forma income statement for the current fiscal year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> If operation of the facility<\/span> has not yet commenced, a statement of the anticipated source and application of the funds used or to be used in the purchase or construction of the facility<\/span>, including:\n\t\t\t\ta. An estimate of the cost of purchasing or constructing and equipping the facility<\/span> including such related costs as financing expense, legal expense, land costs, occupancy development costs and all other similar costs that the provider<\/span> expects to incur or become obligated for prior to the commencement of operations.\n\t\t\t\tb. A description of any mortgage loan or other long-term financing intended to be used for any purpose in the financing of the facility<\/span> and of the anticipated terms and costs of such financing, including without limitation, all payments of the proceeds of such financing to the provider<\/span>, management or any related person<\/span>.\n\t\t\t\tc. An estimate of the percentage of entrance fees<\/span> that will be used or pledged for the construction or purchase of the facility<\/span>, as security for long-term financing or for any other use in connection with the commencement of operation of the facility<\/span>.\n\t\t\t\td. An estimate of the total entrance fees<\/span> to be received from or on behalf of residents<\/span> at or prior to commencement of operation of the facility<\/span>.\n\t\t\t\te. An estimate of the funds, if any, which are anticipated to be necessary to fund start-up losses and provide reserve funds to assure full performance of the obligations of the provider<\/span> under continuing care<\/span> contracts<\/span>.\n\t\t\t\tf. A projection of estimated income from fees and charges other than entrance fees<\/span>, showing individual rates<\/span><\/span> presently anticipated to be charged and including a description of the assumptions used for calculating the estimated occupancy rate<\/span> of the facility<\/span> and the effect on the income of the facility<\/span> of any government subsidies for health care services to be provided pursuant to the continuing care<\/span> contracts<\/span>.\n\t\t\t\tg. A projection of estimated operating expenses of the facility<\/span>, including (i) a description of the assumptions used in calculating any expenses and separate allowances for the replacement of equipment and furnishings and anticipated major structural repairs or additions and (ii) an estimate of the percentage of occupancy required for continued operation of the facility<\/span>.\n\t\t\t\th. Identification of any assets<\/span> pledged as collateral<\/span> for any purpose.\n\t\t\t\ti. An estimate of annual payments of principal and interest required by any mortgage loan or other long-term financing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> A description of the provider<\/span>’s criteria for admission of new residents<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> A description of the provider<\/span>’s policies regarding access to the facility<\/span> and its services for nonresidents. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> Any other material<\/span> information concerning the facility<\/span> or the provider<\/span> that may be required by the Commission<\/span> or included by the provider<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> The procedure by which a resident<\/span> may file a complaint or disclose any concern. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The disclosure statement<\/span> shall state<\/span> on its cover that the filing of the disclosure statement<\/span> with the Commission<\/span> does not constitute recommendation or endorsement of the facility<\/span> by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A copy of the standard form or forms for continuing care<\/span> contracts<\/span> used by the provider<\/span> shall be attached as an exhibit to each disclosure statement<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the Commission<\/span> determines that the disclosure statement<\/span> does not comply with the provisions of this chapter, it shall have the right to take action pursuant to § 38.2-4931<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISCLOSURE STATEMENT (\u00a7 38.2-4902)\n\nA. The disclosure statement of each facility shall contain all of the following\ninformation unless such information is contained in the continuing care contract\nand a copy of that contract is attached to and made a part of the initial\ndisclosure statement:\n\n 1. The name and business address of the provider and a statement of whether\n the provider is a partnership, foundation, association, corporation or other\n type of business or legal entity.\n\n 2. Full information regarding ownership of the property on which the facility\n is or will be operated and of the buildings in which it is or will be\n operated.\n\n 3. The names and business addresses of the officers, directors, trustees,\n managing or general partners, and any person having a ten percent or greater\n equity or beneficial interest in the provider, and a description of such\n person’s interest in or occupation with the provider.\n\n 4. For (i) the provider, (ii) any person named in response to subdivision 3 of\n this subsection or (iii) the proposed management, if the facility will be\n managed on a day-to-day basis by a person other than an individual directly\n employed by the provider:\n \t\t\t\ta. A description of any business experience in the operation or management\n of similar facilities.\n \t\t\t\tb. The name and address of any professional service, firm, association,\n foundation, trust, partnership or corporation or any other business or legal\n entity in which such person has, or which has in such person, a 10 percent or\n greater interest and which it is presently intended will or may provide goods,\n leases or services to the provider of a value of $500 or more, within any\n year, including:\n\n 1. A description of the goods, leases or services and the probable or\n anticipated cost thereof to the provider;\n\n 2. The process by which the contract was awarded;\n\n 3. Any additional offers that were received; and\n\n 4. Any additional information requested by the Commission detailing how and\n why a contract was awarded.\n \t\t\t\t\tc. A description of any matter in which such person:\n\n 1. Has been convicted of a felony or pleaded nolo contendere to a criminal\n charge, or been held liable or enjoined in a civil action by final judgment,\n if the crime or civil action involved fraud, embezzlement, fraudulent\n conversion, misappropriation of property or moral turpitude; or\n\n 2. Is subject to an injunctive or restrictive order of a court of record, or\n within the past five years had any state or federal license or permit\n suspended or revoked as a result of an action brought by a governmental\n agency or department, arising out of or relating to business activity or\n health care, including without limitation actions affecting a license to\n operate a foster care facility, nursing home, retirement home, home for the\n aged or facility registered under this chapter or similar laws in another\n state; or\n\n 3. Is currently the subject of any state or federal prosecution, or\n administrative investigation involving allegations of fraud, embezzlement,\n fraudulent conversion, or misappropriation of property.\n\n 5. A statement as to:\n \t\t\t\ta. Whether the provider is or ever has been affiliated with a religious,\n charitable or other nonprofit organization, the nature of any such\n affiliation, and the extent to which the affiliate organization is or will be\n responsible for the financial and contractual obligations of the provider.\n \t\t\t\tb. Any provision of the federal Internal Revenue Code under which the\n provider is exempt from the payment of income tax.\n\n 6. The location and description of the real property of the facility, existing\n or proposed, and to the extent proposed, the estimated completion date or\n dates of improvements, whether or not construction has begun and the\n contingencies under which construction may be deferred.\n\n 7. The services provided or proposed to be provided under continuing care\n contracts, including the extent to which medical care is furnished or is\n available pursuant to any arrangement. The disclosure statement shall clearly\n state which services are included in basic continuing care contracts and which\n services are made available by the provider at extra charge.\n\n 8. A description of all fees required of residents, including any entrance fee\n and periodic charges. The description shall include (i) a description of all\n proposed uses of any funds or property required to be transferred to the\n provider or any other person prior to the resident’s occupancy of the\n facility and of any entrance fee, (ii) a description of provisions for the\n escrowing and return of any such funds, assets or entrance fee, the manner and\n any conditions of return and to whom earnings on escrowed funds are payable\n and (iii) a description of the manner by which the provider may adjust\n periodic charges or other recurring fees and any limitations on such\n adjustments. If the facility is already in operation, or if the provider\n operates one or more similar facilities within this Commonwealth, there shall\n be included tables showing the frequency and average dollar amount of each\n increase in periodic rates at each facility for the previous five years or\n such shorter period that the facility has been operated by the provider.\n\n 9. Any provisions that have been made or will be made to provide reserve\n funding or security to enable the provider to fully perform its obligations\n under continuing care contracts, including the establishment of escrow\n accounts, trusts or reserve funds, together with the manner in which such\n funds will be invested and the names and experience of persons who will make\n the investment decisions. The disclosure statement shall clearly state whether\n or not reserve funds are maintained.\n\n 10. Certified financial statements of the provider, including (i) a balance\n sheet as of the end of the two most recent fiscal years and (ii) income\n statements of the provider for the two most recent fiscal years or such\n shorter period that the provider has been in existence.\n\n 11. A pro forma income statement for the current fiscal year.\n\n 12. If operation of the facility has not yet commenced, a statement of the\n anticipated source and application of the funds used or to be used in the\n purchase or construction of the facility, including:\n \t\t\t\ta. An estimate of the cost of purchasing or constructing and equipping the\n facility including such related costs as financing expense, legal expense,\n land costs, occupancy development costs and all other similar costs that the\n provider expects to incur or become obligated for prior to the commencement of\n operations.\n \t\t\t\tb. A description of any mortgage loan or other long-term financing\n intended to be used for any purpose in the financing of the facility and of\n the anticipated terms and costs of such financing, including without\n limitation, all payments of the proceeds of such financing to the provider,\n management or any related person.\n \t\t\t\tc. An estimate of the percentage of entrance fees that will be used or\n pledged for the construction or purchase of the facility, as security for\n long-term financing or for any other use in connection with the commencement\n of operation of the facility.\n \t\t\t\td. An estimate of the total entrance fees to be received from or on behalf\n of residents at or prior to commencement of operation of the facility.\n \t\t\t\te. An estimate of the funds, if any, which are anticipated to be necessary\n to fund start-up losses and provide reserve funds to assure full performance\n of the obligations of the provider under continuing care contracts.\n \t\t\t\tf. A projection of estimated income from fees and charges other than\n entrance fees, showing individual rates presently anticipated to be charged\n and including a description of the assumptions used for calculating the\n estimated occupancy rate of the facility and the effect on the income of the\n facility of any government subsidies for health care services to be provided\n pursuant to the continuing care contracts.\n \t\t\t\tg. A projection of estimated operating expenses of the facility, including\n (i) a description of the assumptions used in calculating any expenses and\n separate allowances for the replacement of equipment and furnishings and\n anticipated major structural repairs or additions and (ii) an estimate of the\n percentage of occupancy required for continued operation of the facility.\n \t\t\t\th. Identification of any assets pledged as collateral for any purpose.\n \t\t\t\ti. An estimate of annual payments of principal and interest required by\n any mortgage loan or other long-term financing.\n\n 13. A description of the provider’s criteria for admission of new\n residents.\n\n 14. A description of the provider’s policies regarding access to the\n facility and its services for nonresidents.\n\n 15. Any other material information concerning the facility or the provider\n that may be required by the Commission or included by the provider.\n\n 16. The procedure by which a resident may file a complaint or disclose any\n concern.\n\nB. The disclosure statement shall state on its cover that the filing of the\ndisclosure statement with the Commission does not constitute recommendation or\nendorsement of the facility by the Commission.\n\nC. A copy of the standard form or forms for continuing care contracts used by\nthe provider shall be attached as an exhibit to each disclosure statement.\n\nD. If the Commission determines that the disclosure statement does not comply\nwith the provisions of this chapter, it shall have the right to take action\npursuant to § 38.2-4931.\n\nHISTORY: 1985, c. 554, \u00a7 38.1-957; 1986, cc. 562, 598; 1992, c. 139; 2012, cc.\n208, 303.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}