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Assisted Living Law, 5772-2012

חוק הדיור המוגן, תשע"ב-2012

Published: 2012-06-03Consolidated Hebrew text as of 2026-04-01 · Last amended 2026-03-31✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Chapter III: Conditions, Obligations and Restrictions in respect of the Operation of an Assisted Living Home

Conditions for the Operation of an Assisted Living Home§

13.
(a)The Minister, after consultation with the Minister for Senior Citizens, shall prescribe conditions for the operation of an assisted living home in respect of which an operating licence has been granted, inter alia in respect of the following matters:
(1)conditions and measures, including physical, environmental, safety and sanitary conditions, required for the proper operation of the assisted living home; provisions in respect of sanitary conditions shall also be prescribed after consultation with the Minister of Health;
(2)conditions in respect of the experience, professional training and seniority required of the manager of an assisted living home.
(b)Regulations under paragraphs (1) and (2) of subsection (a) require the approval of the Labour, Welfare and Health Committee of the Knesset.

Appointment of a Multi-Disciplinary Team§

14.

The holder of an operating licence shall appoint a multi-disciplinary team comprising a physician, a social worker and a nurse, which shall fulfil in the assisted living home in respect of which the licence was granted to that person the functions set out in this Chapter (in this Law – multi-disciplinary team).

Approval for the Purpose of Admitting a Resident to an Assisted Living Home§

15.

The holder of an operating licence may admit a person as a resident to the assisted living home in respect of which the licence was granted to that person, provided that the multi-disciplinary team has approved that the person is capable of attending to his or her personal needs and of managing his or her household, even if partial assistance is provided to that person.

Obligation to Enter into an Agreement§

16.
(a)The holder of an operating licence shall draw up a written engagement agreement with a person who applies to become a resident in the assisted living home in respect of which the licence was granted to that person and in respect of whom that which is stated in section 15 has been approved (in this Chapter – the person applying to become a resident), which shall regulate the relations between them.
(b)The engagement agreement shall set out, inter alia, the matters listed in section 17(a) as detailed in the disclosure document delivered to the person applying to become a resident, and there shall also be attached to it a specification of the apartment in the assisted living home in which the person applying to become a resident will reside, drawn up in a form prescribed by the Minister, and a copy of the disclosure document and its terms as received by the person applying to become a resident from the holder of the operating licence with whom the engagement agreement is drawn up.
(c)An engagement agreement shall be drawn up, as far as possible, in the language of the person applying to become a resident or in a language spoken and understood by that person, or, at that person's request, in one of the following languages: Hebrew, Arabic, English, Russian or Amharic; notwithstanding the provisions of this subsection, the holder of an operating licence may draw up the agreement in Hebrew if the licence holder provides, at the licence holder's expense, to the resident a translation of the agreement into one of the aforesaid languages or into another language requested by the resident.
(d)The holder of an operating licence who is about to enter into an engagement agreement with a person applying to become a resident shall give that person a reasonable opportunity to review the engagement agreement before signing it, and shall also deliver to that person a copy of the agreement after signing.
(e)The engagement agreement shall be for an indefinite period.

Obligation to Provide a Disclosure Document before the Conclusion of an Agreement§

17.
(a)The holder of an operating licence shall provide a person who requests to become a resident, a reasonable time before the conclusion of an engagement agreement with that person, with a disclosure document, in the form prescribed by the Minister, in which the following matters shall be detailed:
(1)the identity of the licence holder and the manager of the assisted living home, including their names and identity numbers, and if the licence holder is a corporation – the corporation's registration number, and also their addresses and contact details;
(2)the licence number granted to the licence holder, whether the licence is a permanent licence or a conditional licence as referred to in section 7(c), and also the date on which it was granted and its period of validity;
(3)the rights of the licence holder in the real property on which the assisted living home is built or is to be built, as the case may be, and if the licence holder is not the owner of that real property – also the identifying details of the owner of the real property;
(4)the conditions for admission of a person who requests to become a resident to the assisted living home, to the extent that any exist, including conditions relating to the person's medical condition and the conditions for the eviction of a resident on account of a medical condition under the provisions of section 29(a)(3);
(5)a description of the building in the assisted living home, the apartments in which the person who requests to become a resident has expressed interest and the conditions of use thereof;
(6)a description of the public areas in the assisted living home and the conditions of use thereof;
(7)the trial period and its duration, in accordance with the provisions of section 18, and the payments that the resident will make in respect thereof;
(8)the services that the holder of the operating licence will provide to the resident in the assisted living home, in accordance with the provisions of section 19, classified according to mandatory services, services under the agreement and optional services, if any;
(9)the payments that the resident will make, including a deposit, and also the following details in respect of apartments as referred to in paragraph (5):
(a)in respect of the deposit –
(1)the amount of the deposit, and also the mechanism for setting off the deposit against a charge imposed on the resident, to the extent that such a mechanism has been prescribed;
(2)the manner of returning the deposit, in whole or in part, after the termination of the engagement, the provisions in respect of the deduction of amounts from the deposit and the dates for the return of the deposit in accordance with the provisions of section 28(a) and (b);
(3)the linkage of the deposit in accordance with the provisions of section 28(d);
(b)in respect of maintenance fees – their amount, the dates for their payment, the mechanism for their updating as referred to in section 26, and a specification of the services that will be provided to the resident in consideration thereof; in this Law, "maintenance fees" – periodic payment that the resident is obliged to pay to the assisted living home for the services provided to the resident in the assisted living home, without the resident being given a practical option to waive the payment within the framework of the transaction;
(c)in respect of any other payment not included in the maintenance fees – the amount of the payment, the payment dates, the mechanism for their updating and the resident's right to cancel the receipt of services;
(10)the resident's right to have the deposit monies paid by the resident secured, and the details of the security that the licence holder undertakes to provide to the resident to secure the monies in accordance with the provisions of section 27;
(11)details regarding the resident's right to cancel the agreement;
(12)details regarding the existence or absence of a nursing ward in the assisted living home and also any other arrangement relating to the provision of nursing care to the resident;
(13)conditions for the residence of a caregiver in the apartment in the assisted living home, in accordance with the provisions of section 33;
(14)conditions for keeping a pet in the assisted living home;
(15)conditions for the transfer of a resident from one apartment to another apartment in the assisted living home, to a nursing ward in the assisted living home or in another location, or to another medical institution, including the payment arising from such a transfer within the same assisted living home, and the return of the deposit, in whole or in part, in such circumstances;
(16)conditions for the preservation of the right of residence in the assisted living home in the event of the temporary hospitalisation of the resident in another institution, and the payment for the preservation of the said right;
(17)the rules of conduct in the assisted living home prescribed under section 21;
(18)conditions for the removal of belongings from the apartment after the termination of the engagement, including after the death of the resident, and the treatment of belongings that remain in the apartment;
(19)any other matter prescribed by the Minister of Justice in consultation with the Minister.
(b)
(1)The disclosure document shall be signed by the licence holder or a person on the licence holder's behalf, and the date on which it was delivered to the person requesting to become a resident shall be noted therein; the disclosure document, except in respect of the rules of conduct under subsection (a)(17), shall be binding upon the licence holder for thirty days from the date of its delivery;
(2)The disclosure document shall be drawn up, as far as possible, in the language of the person requesting to become a resident or in a language that that person speaks and understands, or in one of the following languages at that person's request: Hebrew, Arabic, English, Russian or Amharic; notwithstanding the foregoing, a holder of an operating licence may draw up the disclosure document in Hebrew if the licence holder has provided, at the licence holder's expense, to the person requesting to become a resident a translation of the disclosure document into one of the said languages or into another language requested by that person;
(3)The provisions under section 4a of the Consumer Protection Law, 5741-1981, in respect of the size of lettering in a standard contract, shall apply, with the necessary modifications, to the disclosure document.
(c)A disclosure document in and of itself shall not constitute a commitment by the person requesting to become a resident or by the licence holder to enter into an engagement agreement.

Trial Period and Cancellation of an Engagement Agreement§

18.
(a)The first three months of a resident's residence in an apartment in an assisted living home shall be a trial period; the parties may extend this period provided that the total trial period does not exceed one year.
(b)During the trial period, a party may give notice to the other party of the cancellation of the engagement agreement, provided that the party gave the other party written notice thereof at least two weeks in advance.
(c)Without derogating from the provisions of subsection (b), a resident may cancel the engagement agreement at any time, provided that the resident gave the licence holder three months' notice thereof; the provisions of section 28 shall apply to such a cancellation.

Obligation to Provide Services to a Resident§

19.
(a)A holder of an operating licence shall provide a resident, by the licence holder or through another, with the following services:
(1)all the services listed in the First Schedule; the said services shall be provided in the scope and manner in which the licence holder undertook towards the resident in the engagement agreement (in this Chapter – mandatory services), and the licence holder may not reduce the scope of the mandatory services or diminish their quality during the period of validity of the agreement;
(2)all the services that the licence holder undertook to provide in the engagement agreement, beyond the mandatory services (in this Chapter – services under the agreement), in the scope and manner in which the licence holder undertook towards the resident in the engagement agreement, and the licence holder may not reduce the scope of the services under the agreement or diminish their quality, unless the licence holder obtained the resident's written consent shortly before the date of the change.
(b)A holder of an operating licence may offer a resident the provision of additional services that are not mandatory services or services under the agreement (in this Chapter – optional services); however, the licence holder may not compel a resident to receive optional services unless the resident has chosen to receive them and the resident's consent thereto was given in advance and in writing.

Obligation to Establish a Nursing Ward§

20.
(a)A holder of an operating licence of an assisted living home with at least 250 apartments shall ensure that a nursing ward operates in the assisted living home, and shall enable a resident who requires hospitalisation to be hospitalised in that ward.
(b)Notwithstanding the provisions of subsection (a), the Commissioner may exempt a licence holder from the obligation to operate a nursing ward, for the duration of the licence, if it has been proved to the Commissioner's satisfaction that all of the following conditions have been met:
(1)a nursing ward operates in proximity to the assisted living home and there is an arrangement between the assisted living home and the nursing ward in respect of the hospitalisation of a resident who requires nursing hospitalisation in that ward;
(2)special reasons exist that justify not establishing or operating a nursing ward in that assisted living home.

Prescribing Rules of Conduct§

21.
(a)A holder of an operating licence shall prescribe reasonable rules of conduct by which the residents of the assisted living home, and also those who visit them or care for them in the assisted living home, are to conduct themselves (in this section – rules of conduct).
(b)A holder of an operating licence may, after consulting with the residents' committee of the assisted living home, to the extent that one has been appointed, amend the rules of conduct, add to them or subtract from them, provided that the licence holder gave the residents at least thirty days' advance notice thereof.

Preservation of the Dignity and Privacy of Residents§

22.
(a)A holder of an operating licence shall ensure the preservation of the dignity and privacy of each resident in the assisted living home, taking into account the wishes of the resident.
(b)Without derogating from the provisions of subsection (a), a holder of an operating licence or a person on the licence holder's behalf may enter a resident's apartment only when one of the following conditions is met:
(1)the resident has given consent thereto;
(2)entry into the apartment is required for the purpose of providing services to the resident in accordance with the provisions of section 19, or for the purpose of maintenance and upkeep of the apartment or of apartments adjacent to the resident's apartment or of the systems of the assisted living home, provided that such entry is carried out, as far as possible, in advance coordination with the resident;
(3)entry is required due to concern for the wellbeing of the resident or for the welfare of other residents in the assisted living home.

Checking the Wellbeing and Welfare of Residents§

23.

A holder of an operating licence is responsible for checking the wellbeing and welfare of each resident in the assisted living home, and for that purpose shall carry out, inter alia, the following actions, all while preserving the privacy of the resident and taking into account the resident's wishes:

(1)checking the wellbeing of the resident; such a check shall be carried out at least once a day;
(2)referring to the multi-disciplinary team, if the licence holder has observed or has been informed that there has been a deterioration in the medical or functional condition of the resident;
(3)immediate reporting to the resident's attorney, to the extent that one has been appointed, regarding an unusual event that has occurred to the resident, including the resident's death, and also a written report to the Commissioner regarding such an event and its circumstances; in the event of an unnatural death of the resident, the licence holder shall also report to the Israel Police.

Employment of Workers or Engagement with Service Providers§

24.
(a)A person who comes into direct and continuous contact with the residents of an assisted living home shall not be employed in the assisted living home, including employment by a manpower contractor or a service contractor as defined in the Employment of Employees by Manpower Contractors Law, 5756-1996, unless the Commissioner has issued an approval in respect of that person confirming that the person has not been convicted of an offence which, by reason of its nature, severity or circumstances, makes a person who committed it liable to endanger residents of the assisted living home or to harm their welfare, and that there are no pending criminal proceedings against the person on suspicion of committing such an offence; if a licence holder has submitted a request to the Commissioner to employ a particular employee, the Commissioner shall respond within seven working days; if the Commissioner has not responded as aforesaid, the licence holder may employ that employee.
(b)Notwithstanding the provisions of subsection (a), in circumstances that require the immediate employment of a worker, a holder of an operating licence who has submitted a request to the Commissioner to employ a particular employee and the Commissioner has not yet responded, may employ that employee under this subsection for a period not exceeding seven working days.
(c)The provisions of subsection (a) shall not apply to the employment of a worker by the resident.

Making Changes to the Areas of an Assisted Living Home§

25.

A holder of an operating licence –

(1)shall not unreasonably reduce the public areas in the assisted living home and shall not unreasonably change their location or character for the worse, unless the licence holder has obtained the Commissioner's approval therefor;
(2)shall not make use of the public areas in the assisted living home in a manner that harms the welfare of the residents; if there is a dispute between a holder of an operating licence and a resident on the question of harm to the resident's welfare, the Commissioner shall decide the matter;
(3)shall not reduce a resident's apartment and shall not unreasonably change its character for the worse;
(4)shall not transfer a resident from the resident's apartment to another apartment except with the resident's consent, save for the purpose of repair, renovation or maintenance of the apartments or building (in this paragraph – repair) that necessitate the transfer of the resident to another apartment in the assisted living home, and for the period of the repair, provided that it is a reasonable period; insofar as possible, the resident shall be transferred to an apartment similar to the resident's apartment.

Collection of Payments from a Resident§

26.
(a)A holder of an operating licence –
(1)shall not collect from a resident a payment that was not specified in the engagement agreement with the resident;
(2)shall not raise the maintenance fees and any other payment that the resident has no practical option to waive within the framework of the transaction, which are collected from the resident, beyond the rate of increase of the Consumer Price Index, except in accordance with a change in the ongoing operating costs of the assisted living home, and not more than the maximum rate prescribed in the engagement agreement;
(3)shall not collect from a resident a payment solely by reason of the resident's departure from the assisted living home.
(b)Notwithstanding the provisions of subsection (a)(1), a holder of an operating licence may collect from a resident a payment for optional services that the licence holder provides to the resident, which were not specified in the engagement agreement, if the resident's consent to receive the services and to pay for them was given in advance and in writing.
(c)A holder of an operating licence shall specify, in a written document to be attached to the payment demand delivered to the resident, the components of the payment collected from the resident.

Mortgage to Secure Deposit Monies§

27.
(a)
(1)A licence holder shall not hold in the licence holder's hands monies in an amount exceeding seven per cent of the deposit paid on behalf of a resident or NIS 70,000, whichever is lower, unless the licence holder has registered a first mortgage on the licence holder's right in the real property on which the assisted living home in which the resident resides is built, excluding a commercial area and the area of a nursing ward; the mortgage shall be registered in favour of a trustee to be appointed by the residents, and the trustee shall note in the trustee's internal records the proportionate share of each of the residents in the total of the deposits;
(2)The trustee shall be appointed at a residents' meeting, by a decision adopted by a majority of votes of the residents participating in the vote, of which reasonable advance notice was given, and the trustee's remuneration shall be reasonable in the circumstances of the matter and shall be determined by the residents and the owner of the assisted living home; if the parties have not reached agreement on the trustee's remuneration, the mortgage shall be registered on the licence holder's right in the real property in favour of each resident separately.
(b)Notwithstanding the provisions of subsection (a), if the assisted living home is registered as a condominium in the condominium register, the licence holder may register the first mortgage referred to in that subsection on the licence holder's right in the real property in favour of the resident, on the apartment in which the resident will reside as specified in the engagement agreement; in this Chapter, "condominium" and "condominium register" – as the terms are defined in section 52 and under the provisions of section 123 of the Land Law, 5729-1969, respectively.
(c)If the assisted living home is built on land owned by a local authority, the mortgage shall be registered on the licence holder's right in the real property as referred to in subsection (a), and the local authority shall not prevent such registration solely on the ground that the land in question is land in its ownership, however, the local authority may prescribe the conditions for registration; the Minister may prescribe conditions in respect of such registration; for the purposes of this subsection, "local authority" – a municipal authority, a local council or a regional council.

Securing Deposit Monies until Registration of a Mortgage§

27a.
(a)If the assisted living home is in the stages of construction and has not yet been occupied, the licence holder shall provide a bank guarantee from an insurer or a banking corporation to a person who has paid deposit monies as referred to in section 27(a); in this Chapter –

"insurer" – as defined in the Financial Services Supervision Law (Insurance), 5741-1981;

"banking corporation" – as defined in the Banking Law (Licensing), 5741-1981.

(b)After the resident has moved to reside in the assisted living home and once the deposit payer has returned the bank guarantee to the licence holder, the licence holder shall be entitled to register, in place of the guarantee, a cautionary note regarding an undertaking to register a mortgage under the provisions of section 27, on the licence holder's right in the real property in favour of a trustee to be appointed by the residents under the provisions of subsection (c) or in favour of the resident, provided that notice as referred to in subsection (e) has been given; if the assisted living home is registered as a condominium in the condominium register, the licence holder may register the cautionary note as aforesaid on the licence holder's right in the real property in favour of the resident on the apartment in which the resident will reside as specified in the engagement agreement.
(c)The trustee shall be appointed at a residents' meeting, by a decision adopted by a majority of votes of the residents participating in the vote, of which reasonable advance notice was given; however, if twenty per cent of the apartments in the assisted living home have not yet been occupied, the trustee shall be appointed by the body that represents the largest number of residents.
(d)The cautionary note under subsection (b) shall be for a period of not more than two years; at the end of the period the licence holder shall register a mortgage on the licence holder's right in the real property under the provisions of section 27.
(e)A creditor in whose favour a charge (security interest) or an undertaking to create a charge (security interest) in respect of the assisted living home has been given shall provide written notice stating that such a charge (security interest) or undertaking to create a charge (security interest) shall not be realised from the resident's apartment.

Alternatives for Securing Deposit Monies§

27b.
(a)Notwithstanding the provisions of section 27, a licence holder may receive payment on account of the deposit as referred to in that section even if a mortgage has not been registered in favour of the resident, provided that the licence holder has done one of the following, and the provisions of sections 27f and 27g shall not apply:
(1)the licence holder has provided the resident with a bank guarantee from an insurer or a banking corporation to secure the deposit monies;
(2)the licence holder has transferred 40 per cent of the deposit to a trustee to be appointed by the licence holder, under a trust agreement in which the resident is the beneficiary; the deposit monies shall be held by the trustee in trust for the benefit of the resident.
(b)The Minister, with the approval of the Labour, Welfare and Health Committee of the Knesset, may prescribe other forms of security for securing the deposit monies, and may prescribe such forms of security for types of assisted living homes or for types of deposits.

Cancellation of the Mortgage or the Cautionary Note§

27c.
(a)If one of the following circumstances has occurred, the provisions of subsections (b) to (d) shall apply, as the case may be:
(1)the licence holder has returned the deposit to the resident or to the trustee appointed by the resident in the mortgage documents, under the provisions of section 28;
(2)the licence holder has transferred the deposit monies in accordance with the engagement agreement;
(3)no deposit balance remains.
(b)If the mortgage or the cautionary note registered under the provisions of section 27 or section 27a(b), as the case may be, is registered in favour of a trustee, the trustee shall delete the resident's name from the trustee's internal records within 14 business days of the date on which documents evidencing the occurrence of one of the circumstances in subsection (a) were furnished to the trustee.
(c)If the mortgage or the cautionary note is registered in favour of the resident under the provisions of section 27(a)(2), 27(b) or 27a(b), the resident, or a person appointed by the resident for that purpose who has declared that the person has no connection to the licence holder, shall submit an application for the cancellation of the mortgage within 14 business days of the date on which documents evidencing the occurrence of one of the circumstances in subsection (a) were furnished to the resident; if an application has not been submitted within the said period, an advocate appointed by the licence holder shall be entitled to submit an application for the cancellation of the mortgage or the cautionary note after documents evidencing the occurrence of one of the circumstances in subsection (a) have been furnished to that advocate.
(d)If the resident has died and has not appointed another person on the resident's behalf to receive the balance of the deposit for the benefit of the heirs, or if the person appointed by the resident as aforesaid has not been located despite reasonable efforts, the licence holder may appoint an advocate who will act in trust for the benefit of the resident's heirs, and that advocate shall be entitled to cancel the mortgage under the provisions of the concluding part of subsection (c) and to hold the deposit monies in trust until they are transferred to the heirs.

General Provisions in respect of Security for Deposit Monies§

27d.
(a)The licence holder shall bear the costs involved in securing the monies paid by a resident on account of a deposit pursuant to the provisions of this Law, and shall not impose those costs on the resident.
(b)A resident is not entitled to choose not to receive security for the deposit monies pursuant to sections 27, 27a or 27b.
(c)Realisation of security given pursuant to this Law shall occur in circumstances of insolvency, including in circumstances of a stay of proceedings order, an assets receivership order, a winding-up order or an order for the appointment of a receiver, or in circumstances in which an absolute impediment to the return of the deposit has arisen; the Minister, in consultation with the Minister of Justice and with the approval of the Labour, Welfare and Health Committee of the Knesset, may prescribe for this purpose additional grounds of insolvency for the realisation of the security.
(d)Where the deposit was paid on behalf of a resident by another person, the provisions of sections 27 to 27c and this section that apply in respect of the resident shall apply in respect of that other person, including that the mortgage or other security for the deposit monies shall be registered in that person's favour.

Exceptions Committee§

27e.
(a)The Minister shall establish an exceptions committee, which shall have three members as detailed below (in this section – the Committee):
(1)the Commissioner;
(2)an employee of the Ministry of Welfare with expertise in the field of accounting and finance, to be appointed by the Minister;
(3)an employee of the Ministry of Justice to be appointed by the Attorney General.
(b)Notwithstanding the provisions of sections 27, 27a and 27b, the Committee may, at the request of a licence holder, exempt that licence holder, fully or partially, from providing security pursuant to those sections, and may also prescribe conditions for such an exemption or direct the provision of other security or any other requirement, if it is satisfied, for reasons that shall be recorded, that there is a substantial difficulty, not dependent on the licence holder, in registering a mortgage, and if it is also satisfied that the licence holder has taken all measures available to it for the registration of a first mortgage pursuant to the provisions of section 27, and that the other security is sufficient.
(c)Where the Committee has determined a full or partial exemption as referred to in subsection (b), the exemption shall be for a period not exceeding two years; however, the Committee may extend the exemption for additional periods not exceeding five years.
(d)The Committee shall make its decision after hearing the representatives of the residents residing in the assisted living home of the licence holder who submitted the request, or persons acting on their behalf, or a representative on behalf of a residents' organisation, and also the representative of the licence holder or a person acting on its behalf; the decision shall be delivered in writing to the licence holder and to the residents' committee, if one exists, or to a representative on behalf of the residents, and shall be published to the public.

Financial Stability of a Licence Holder§

27f.
(a)The Commissioner may require a licence holder, at any time, to demonstrate that it possesses appropriate financial stability as prescribed by the Minister pursuant to the provisions of section 4(a)(4).
(b)If the Commissioner is of the opinion, including in light of information that came to its attention pursuant to the provisions of section 4(a)(4), that one of the following applies, it may notify the residents accordingly:
(1)there is a reasonable concern that the licence holder will fail to meet the going-concern principle;
(2)the ability of the licence holder to return the deposit monies, in whole or in part, in accordance with the terms of the engagement agreement, may be impaired;
(3)the total debt of the licence holder to the residents exceeds the value of the security provided by the licence holder pursuant to the provisions of this Law.

Fund for Financing Health-Related Expenses in Circumstances of Insolvency§

27g.
(a)A licence holder shall not hold in its possession, on account of the deposit, monies for the security of which security interests have been registered pursuant to the provisions of section 27 or 27a, unless it has deposited monies to be held in trust in a joint fund for financing health-related expenses for the benefit of all residents (in this section – health expenses financing fund).
(b)The licence holder shall deposit in the health expenses financing fund monies in respect of each resident who has made a payment on account of a deposit, in the amount specified in item (1) of the Second Schedule, all at the times and in the manner to be prescribed by the Minister; a licence holder shall verify at least once a year that monies have been deposited in the health expenses financing fund in respect of all residents who have made a payment on account of a deposit, and if the number of residents has changed – shall deposit an amount in respect of all residents who made a payment on account of a deposit in that year.
(c)Licence holders to whom the provisions of subsection (a) apply shall deposit monies in the health expenses financing fund, and it shall be managed by the General Guardian in accordance with the provisions under the General Guardian Law, 5738-1978.
(d)A resident in respect of whom the multidisciplinary team has approved that he or she should be vacated from his or her apartment as referred to in section 29(a)(3), and where the circumstances enumerated in section 27d(c) exist, is entitled to receive, from the time of his or her vacation, a monthly payment from the health expenses financing fund to cover the expenses arising from his or her medical condition, in the amount specified in item (2) of the Second Schedule, in a cumulative amount equal to the deposit amount or until the full transfer of the deposit monies to the resident pursuant to the provisions of section 28, whichever is earlier, all as the court shall direct, for the period and in the amounts that it shall direct.
(e)The return of the deposit to the resident pursuant to the provisions of section 28 shall be made after deducting the amounts paid to him or her pursuant to the provisions of subsection (d), which shall be returned to the health expenses financing fund.

Fund for Financing Expenses in Circumstances of Insolvency§

27h.
(a)A licence holder shall not hold in its possession, on account of the deposit, monies for the security of which security interests have been registered pursuant to the provisions of section 27 or 27a, unless it has deposited monies to be held in trust in a joint fund for financing expenses in circumstances of insolvency for the benefit of all residents (in this section – insolvency fund).
(b)The licence holder shall deposit in the insolvency fund monies as referred to in subsection (a), in respect of each apartment in the assisted living home in which the residents residing therein have made a payment on account of a deposit, in the amount specified in the Third Schedule, all at the times and in the manner to be prescribed by the Minister; a licence holder shall verify at least once a year that monies have been deposited in the insolvency fund in respect of all such apartments, and if the number of such apartments has changed – shall deposit an amount in respect of each apartment in which the residents residing therein made a payment on account of a deposit in that year.
(c)Licence holders to whom the provisions of subsection (a) apply shall deposit monies in the insolvency fund, and it shall be managed by the General Guardian in accordance with the provisions under the General Guardian Law, 5738-1978.
(d)Where the circumstances enumerated in section 27d(c) exist, the manager of the insolvency fund shall transfer, for the benefit of the assisted living home, pursuant to a court order, monies for the purpose of the ongoing and essential operation of the assisted living home, all as the court shall direct, for the period and in the amounts that it shall direct.

Amendment of the Second Schedule and the Third Schedule and Updating of Amounts§

27i.
(a)The Minister, with the approval of the Labour, Welfare and Health Committee of the Knesset, may, by Order, amend the Second Schedule and the Third Schedule.
(b)The amounts specified in the Second Schedule and in the Third Schedule shall be updated on 1 January of each year (in this subsection – the update date), in accordance with the rate of change of the new index known at that time compared to the base index; for this purpose –

"the index" – the Consumer Price Index published by the Central Bureau of Statistics;

"the base index" – the index most recently published before the preceding update date;

"the new index" – the index most recently published before the update date.

Return of the Deposit§

28.
(a)The holder of an operating licence shall return to the resident or to the trustee appointed pursuant to the provisions of section 27c, as the case may be, following the termination of the engagement with the resident, the deposit paid by the resident, in whole or in part, in accordance with the provisions prescribed for this purpose in the engagement agreement, no later than the date of surrender of the apartment or the date of termination of the engagement agreement, whichever is later; simultaneously, the resident or the trustee appointed pursuant to the provisions of section 27, as the case may be, shall return to the licence holder the security given to it pursuant to section 27, and any other security in its possession.
(b)The holder of an operating licence may retain in trust an amount not exceeding NIS 10,000 from the deposit, to be used for the payment of the balance of the resident's obligations pursuant to the engagement agreement that have not been discharged by the time the deposit was returned; the said amount shall be updated on 1 January of each year in accordance with the rate of increase of the Consumer Price Index compared to the Consumer Price Index published on 1 January of the preceding year.
(c)Upon the death of a resident, the holder of the operating licence shall return the deposit paid by the resident, in whole or in part, in accordance with the provisions prescribed for this purpose in the engagement agreement, to the heirs of the resident, no later than thirty days from the date of delivery of a succession order or a probate order, and if an estate administrator has been appointed for the deceased – from the date of delivery of an order for the appointment of an estate administrator; if a succession order, probate order or estate administration order has not been delivered within six months of the date of the resident's death, the holder of the operating licence shall notify the attorney of the deceased resident, if one has been appointed, of the existence of the deposit; simultaneously with the return of the deposit, the heir shall return to the holder of the operating licence the security given to it pursuant to section 27, and any other security in its possession; for this purpose, "succession order", "probate order", "order for the appointment of an estate administrator" – as the terms are defined in the Succession Law, 5725-1965.
(d)Where a resident is entitled, pursuant to the provisions of this section or pursuant to the provisions of the engagement agreement, to the return of the deposit paid by him or her, in whole or in part, the deposit shall be returned to the resident, to the heirs or to the estate administrator, as the case may be, together with the rate of increase of the Consumer Price Index published before the date of return of the deposit compared to the Consumer Price Index published before the date of payment of the deposit.

Vacation of a Resident from an Apartment§

29.
(a)Notwithstanding the provisions of any law, the holder of an operating licence, the holder of a right in real property or the holder of a right in respect of real property, a creditor of any of them, and also a liquidator, shall not vacate a resident from an apartment in an assisted living home, except where one of the following grounds exists:
(1)the licence holder has cancelled the engagement agreement due to a fundamental breach by the resident, after the resident has not remedied the breach within a reasonable time after being given an extension for remedying it, provided that the resident has not vacated the apartment by the due date, and the engagement agreement includes a condition regarding vacation in such circumstances;
(2)a court has decided on the cancellation of the engagement agreement, pursuant to its terms;
(3)the multidisciplinary team has determined that, due to the resident's medical condition, the resident's best interests require his or her transfer from the apartment, or that, due to the resident's medical condition, the continued stay of the resident in the apartment is detrimental to the other residents of the assisted living home;
(4)a winding-up court as the term is defined in the Companies Ordinance has found that there is no possibility of realising the asset for the benefit of the company's creditors as an assisted living home, and has permitted the liquidator to sell the asset, provided that before the sale is approved, suitable alternative accommodation has been found for the residents to the satisfaction of the court;
(5)the agreement has been cancelled or terminated pursuant to section 18 and the resident has not vacated the apartment.
(b)Notice of the date of vacation shall be given to the resident no less than ninety days before the planned date of vacation.
(c)If the resident, his or her attorney or guardian, as the case may be, has requested to postpone the vacation from the apartment in the assisted living home until alternative accommodation is found, the resident shall be permitted to continue residing in the apartment for a period not exceeding four additional months from the planned date of vacation; this provision shall not apply to a resident vacated pursuant to subsection (a)(1) or (5).
(d)The Commissioner may bring forward the dates referred to in subsections (b) and (c), due to an urgent need to vacate the resident from the apartment on a ground as referred to in subsection (a), except paragraph (3) thereof; the Commissioner shall respond to the application as soon as possible and no later than 14 days from the date it was transmitted to the Commissioner.
(e)
(1)The district physician may bring forward the dates referred to in subsections (b) and (c), due to an urgent need to vacate the resident from the apartment on a ground as referred to in subsection (a)(3), and may permit the vacation of the resident from the apartment prior to the decision on the appeal as referred to in paragraph (2); the district physician shall respond to the application as soon as possible and no later than 14 days from the date it was transmitted to the district physician;
(2)A person who considers himself or herself aggrieved by a decision to vacate a resident on a ground as referred to in subsection (a)(3) may appeal against it to the district physician within 21 days of the making of the decision; the district physician, in consultation with the Commissioner, shall give his or her decision within 14 days, and until the district physician's decision on the appeal the resident shall not be vacated from the apartment in the assisted living home; the provisions of this paragraph shall not derogate from the provisions of subsection (c).

Assignment of Rights or Obligations under an Engagement Agreement§

30.
(a)The holder of an operating licence shall not assign part of its rights or obligations under an engagement agreement.
(b)The holder of an operating licence shall not assign the entire engagement agreement unless all of the following are met:
(1)the assignee is entitled to receive an operating licence;
(2)the assignee has undertaken to fulfil the obligations of the assignor under the engagement agreement;
(3)
(a)the details of the assignee have been provided to each of the residents in the assisted living home before the assignment is carried out, and to the extent that a residents' committee has been appointed – it has given its consent to the assignment, in writing; the residents' committee shall deliver its decision within thirty days from the date on which all the information and documents required for the decision are in its possession;
(b)if the residents' committee has refused to carry out the assignment on unreasonable grounds, or has made its consent conditional on unreasonable conditions, or has not given its consent within the said period, or if no committee has been appointed as aforesaid, the Commissioner may permit the assignment to be carried out without the consent of the residents' committee; the Commissioner shall notify the holder of the operating licence of its decision within ninety days from the date on which the application to permit the assignment was submitted to it and all the information and documents required for the decision were provided to it.

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