HAMDEN -- Senior citizens choosing to move into continuing-care retirement communities in many cases invest their life's savings in facilities that promise to house and care for them.

But what happens when such a facility itself needs financial help? It can be a disaster for the residents who have signed a contract with the center and have invested large amounts of money in that contract, something that Hamden's state representative wants to see addressed.

State Rep. Michael D'Agostino, D-Hamden, recently introduced "An Act Establishing A Bill of Rights for Residents of Continuing-Care Retirement Communities" that, he said, will give residents of continuing-care retirement communities greater protection in the case of a center dealing with financial problems.

"The purpose of the legislation is to protect the interests of residents who live in these continuing-care retirement communities, for example like residents who live at the Whitney Center in Hamden," he said. "The intent is to create an early warning and safety net calling for disclosure, discussion and a remediation plan when the financial condition of a CCRC could jeopardize the stewardship promised to the residents."

There are no laws or regulations currently that protect residents from the financial problems a facility could face or require financial disclosures or state oversight, D'Agostino said. His bill calls for a facility that drops below certain parameters to be required to submit financial reports to its residents, as well as to the Department of Social Services and the attorney general's office, he said, unless the facility gets DSS approval of a remedial plan.

Downturns in the economy can affect continuing care-retirement communities as seniors have trouble selling their homes to finance the move and occupancy rates at the communities drop. While generally a financially troubled community doesn't resort to kicking out residents, it can cut back on services that affect the residents' quality of life.

Georgia Erickson, president of the Connecticut Continuing Care Retirement Association, is in favor of D'Agostino's bill.

"People choosing to move into independent living at a CCRC often put their life savings into it with the understanding that the CCRC will be a wise steward of their funds," she said. "Current laws and regulations do not cover unsafe gaps with respect to financial disclosure. Residents have become increasingly concerned about issues of financial fairness and disclosure."

Other states including New Jersey and California already have adopted such measures, she said.

"(The residents) shouldn't have to worry about the financial future of the facility," she said.

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