Page:United States Statutes at Large Volume 99 Part 1.djvu/534

 99 STAT. 512

PUBLIC LAW 99-121—OCT. 11, 1985 "(I) reside in a separate, independent living unit with additional facilities outside such unit for the providing of meals and other personal care, and "(ID not require long-term nursing care, and "(ii) then will be provided long-term and skilled nursing care as the health of such individual or individual's spouse requires, and "(C) no additional substantial payment is required if such individual or individual's spouse requires increased personal care services or long-term and skilled nursing care. "(4) 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, and "(ii) substantially all of the residents of which are covered by continuing care contracts. "(B)

SUBSTANTIALLY ALL FACILITIES MUST BE OWNED OR

OPERATED BY BORROWER.—A facility shall not be treated as a qualified continuing care facility unless substantially all facilities which are used to provide services which are required to be provided under a continuing care contract are owned or operated by the borrower. "(C) 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. "(5) ADJUSTMENT OF LIMIT FOR INFLATION.—

"(A) IN GENERAL.—In the case of any loan made during any calendar year after 1986 to which paragraph (1) applies, the dollar amount in paragraph (2) shall be increased by the inflation adjustment for such calendar year. Any increase under the preceding sentence shall be rounded to the nearest multiple of $100 (or, if such increase is a multiple of $50, such increase shall be increased to the nearest multiple of $100). "(B) INFLATION ADJUSTMENT.—For purposes of subparagraph (A), the inflation adjustment for any calendar year is the percentage (if any) by which— "(i) the CPI for the preceding calendar year exceeds "(ii) the CPI for calendar year 1985. For purposes of the preceding sentence, the CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on September 30 of such calendar year." (b) CLARIFICATION OF APPLICATION OF BELOW-MARKET INTEREST RATE RULES TO LOANS TO QUALIFIED CONTINUING CARE FACILITIES.—

98 Stat. 699. 26 USC 7872.

Paragraph (1) of section 7872(c) of such Code (relating to belowmarket loans to which section applies) is amended by adding at the end thereof the following new subparagraph: "(F) LOANS TO QUALIFIED CONTINUING CARE FACILITIES.—

Any loan to any qualified continuing care facility pursuant to a continuing care contract." (c) CONFORMING AMENDMENTS.—

(1) Paragraph (1) of section 7872(c) of such Code is amended by inserting "and subsection (g)" after "subsection".

�