Proposed legislation in New Mexico would require life plan community operators to be more upfront with investors about community finances.
The resident-backed initiative would not change the way retirement communities operate. The idea behind the legislation is to provide peace of mind to propective residents that they would be notified if a retirement community is having financial difficulties, which might result in their losing their investments.
“We are mandating more transparency so anyone coming into or wanting to be into a continuing care community in New Mexico, they’ll get to see the financial state of the business. And we will also mandate a closure clause which means that if a resident or facilities does start to close, and maybe go bankrupt, that the residents are taken care of, and they’re not destitute,” Katrina Hotrum-Lopez, secretary of New Mexico’s Aging and Long Term Services Department, told local station KOB 4.