Rate Increases and New Charges: What’s Permitted?

RATE INCREASESIn general, RCFEs are free to set their own rates and charge whatever amount residents are willing to pay.  However, California law requires that facilities comply with certain notice requirements for rate increases to be valid. 

Outline of Residents’ Rights, Residential Care Facilities for the Elderly

I. Admission Rights

Admission Process

  • A facility must not discriminate against a person seeking admission or a resident based on sex, race, color, religion, national origin, marital status, registered domestic partner status, ancestry, actual or perceived sexual orientation, or actual or perceived gender identity.  (HSC 1569.269(b))
  • The admission agreement, its attachments, and any other document that a resident or representative is required to sign as a condition of admission must not require the resident to waive benefits or rights to which the resident is entitled under federal or state law or regulation.  (HSC 1569.269(c))
  • At admission, the facility must advise a resident and resident’s representative of the resident’s rights established by California laws and regulations, give them a complete written copy of the rights, have each resident and representative sign and date a copy of the resident’s rights, and include the signed and dated copy in the resident’s record.  (HSC 1569.267(a))
  • Prior to or at admission, residents have the right to be fully informed of all rules governing their conduct and responsibilities, as evidenced by the resident’s written acknowledgement.  (HSC 1569.269(a)(13))
  • Prior to or at admission, residents have the right to be informed in writing of any resident retention limitations by the state or facility, including any limitations or restrictions on the facility’s ability to meet residents’ needs.  (HSC 1569.269(a)(15))

Admission Agreements (Contracts)

  • All basic services provided under a single fee must be listed in the agreement.

RCFE Closures: Residents’ Rights and Protections

The RCFE Relocation Protection Act of 2008 and subsequent legislation established relocation rights and protections for residents evicted when RCFEs close due to the sale of the business for different uses, or forfeit their license as a result of the sale of the property, surrender of the license or abandonment of the facility.

Eviction Protections for RCFE Residents

Residents have rights and protections against eviction actions.

Causes for Eviction

Current laws and regulations recognize ONLY five (5) reasons for eviction:

  • Failure of resident to pay agreed upon rate for basic services within ten (10) days of due date.