Office review·November 3, 2022

At this informal conference were present Mary Schoeggl, Chief Financial Officer, PRS, John Howl, Executive VP, operations, PRS, Josh Blackson, Vice President of Finance and Investment, PRS, Sarah Stel, Executive Director, Saratoga Retirement Community (Saratoga), Wayne Panchesson, Executive Director, The Meadows of Napa Valley (Meadows), Allison Nakatomi, Manager; and Katie Anderson, Assistant Branch Chief. Paramjit Judge, Financial Analyst, Jennifer Walden, Program Analyst, Carla Nuti-Martinez, Regional Manager, Vivien Helbling, Regional Manager, Kimberley Mota, Licensing Program Manager , Sarah Yip, Licensing Program Manager. During the meeting the following was discussed with the Licensee: · Their financials for six years and recognized positive progress from PRS after the expansion project at Meadows including repayment of debt and continuous work towards filling older units at Meadows. CDSS also agreed with the fact that COVID-19 and the expansion project affected their occupancy. However, recurring operating loss and declined occupancy are concerns and as an oversight responsibility, CDSS is requesting quarterly financial statements and an occupancy report to monitor the progress. · Mary Schoeggl shared presentation to the OFHC Board on September 24, 2022, which covered their current financial position, five-year trend, challenges, and projections. Steps to improving their financial position was also provided for both communities and included proforma assumptions, as well. · CDSS’ oversight responsibility was explained and that we would be requiring quarterly reporting to monitor the progress. Also, provided a brief explanation of new legislation SB 707 which also requires the Provider to notify residents 10 calendar days after the submission of information to CDSS. Continued on LIC809C · CDSS explained that this informal conference will not be on the transparency website because this visit is different from the non-compliance conference. Ms. Schoeggl raised the concern that residents stated that CDSS put OFHC on “financial watch”. She went on to explain that this misinformation affects their reputation negatively and will affect their future occupancy negatively, as well. CDSS explained that CDSS never uses the term “financial watch” for financial distress and this is minimal reporting. CDSS explained that it has been working on a couple of items from the complaints received from the Saratoga residents and CDSS will follow up on those items and clarify OFHC’s financial position and the quarterly reporting requirement. The following was agreed upon: · Quarterly Financial Reports and Occupancy Report will be required. The first one will be submitted for the period ending 9/30/22. They will submit each quarter by the 25 th of the month following the quarter ending.