N.Y. Comp. Codes R. & Regs. tit. 10, § 903.2 – Purposes.

(a) Prior to the issuance of a certificate of authority, authorization shall be granted by the commissioner pursuant to section 903.4 of this Part to a prospective applicant or an applicant for a certificate of authority for the purposes of:
1. (1) testing the market demand for the proposed community; and
2. (2) allowing prospective residents to place their names on a waiting list for admission to the proposed community and to apply the reservation fee on priority basis to an actual entrance fee or entrance fee deposit if and when the applicant is issued a certificate of authority pursuant to section 900.7 of this Title.
(b) Subsequent to the issuance of a certificate of authority, authorization may be granted by the commissioner pursuant to section 903.4 of this Part to a life care community operator for the purpose of allowing prospective residents to place their names on a waiting list for admission to the community and to apply the reservation fee on a priority basis to an actual entrance fee or entrance fee deposit when a suitable unit becomes available.