120 STAT. 352
Guidelines.
26 USC 7872.
26 USC 142 note.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
PUBLIC LAW 109–222—MAY 17, 2006
‘‘(h) EXCEPTION FOR LOANS TO QUALIFIED CONTINUING CARE FACILITIES.— ‘‘(1) IN GENERAL.—This section shall not apply for any calendar year to any below-market loan owed by a facility which on the last day of such year is a qualified continuing care facility, if such loan was made pursuant to a continuing care contract and if the lender (or the lender’s spouse) attains age 62 before the close of such year. ‘‘(2) CONTINUING CARE CONTRACT.—For purposes of this section, the term ‘continuing care contract’ means a written contract between an individual and a qualified continuing care facility under which— ‘‘(A) the individual or individual’s spouse may use a qualified continuing care facility for their life or lives, ‘‘(B) the individual or individual’s spouse will be provided with housing, as appropriate for the health of such individual or individual’s spouse— ‘‘(i) in an independent living unit (which has additional available facilities outside such unit for the provision of meals and other personal care), and ‘‘(ii) in an assisted living facility or a nursing facility, as is available in the continuing care facility, and ‘‘(C) the individual or individual’s spouse will be provided assisted living or nursing care as the health of such individual or individual’s spouse requires, and as is available in the continuing care facility. The Secretary shall issue guidance which limits such term to contracts which provide only facilities, care, and services described in this paragraph. ‘‘(3) QUALIFIED CONTINUING CARE FACILITY.— ‘‘(A) IN GENERAL.—For purposes of this section, the term ‘qualified continuing care facility’ means 1 or more facilities— ‘‘(i) which are designed to provide services under continuing care contracts, ‘‘(ii) which include an independent living unit, plus an assisted living or nursing facility, or both, and ‘‘(iii) substantially all of the independent living unit residents of which are covered by continuing care contracts. ‘‘(B) NURSING HOMES EXCLUDED.—The term ‘qualified continuing care facility’ shall not include any facility which is of a type which is traditionally considered a nursing home. ‘‘(4) TERMINATION.—This subsection shall not apply to any calendar year after 2010.’’. (b) CONFORMING AMENDMENTS.— (1) Section 7872(g) is amended by adding at the end the following new paragraph: ‘‘(6) SUSPENSION OF APPLICATION.—Paragraph (1) shall not apply for any calendar year to which subsection (h) applies.’’. (2) Section 142(d)(2)(B) is amended by striking ‘‘Section 7872(g)’’ and inserting ‘‘Subsections (g) and (h) of section 7872’’. (c) EFFECTIVE DATE.—The amendment made by this section shall apply to calendar years beginning after December 31, 2005, with respect to loans made before, on, or after such date.
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