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Category: Legal
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Experience:  Civil; Family; HOA; Landlord/Tenant; Real Estate; Probate; Insurance; Immigration; Wills & Trusts
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can a senior residence raise their rates any time?

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can a senior residence raise their rates any time?

LADYLAWYER : Whether they can raise the rates would depend on the contract that your mother (or her guardian) signed when she moved in. I can tell you the generally, these facilities do raise their rates with very little notice and tailor their contracts to allow them to do so.

so their is no protection for the resident? what can I do to challenge this ?

LADYLAWYER : If you feel that the facility is doing something illegal or inappropriate, the best thing to do is to file a complaint with the CA Department of Social Services: You can also get an elder care attorney to review our mother's contract and have the director's decision challenged.

you mean there is no limit to how often or how much they can raise rates?

LADYLAWYER : The resident agrees to sign a contract, just like a tenant would sign one for a rental home. The terms of that contract are going to control--that is why it is important for anyone to make sure they know what the contract says before they sign it. Otherwise, they are bound by the terms of the contract, even if the contract does not protect their interests. Now, that does not mean that the facility can do anything illegal or put any language in the contract that is unconscionable or against public policy and expect to get away with it. But as far as rates go, there is no CA law that caps the rates a residential care facility can charge. If the facility is clearing getting people in the door at one rate and changing the rate on them very soon thereafter, then social services may step in and do something. But you will have to file the complaint first or have an attorney threaten then with breach of contract, fraud, and breach of good faith and fair dealing.
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