Risks to living in a 55+ community…

Risks to living in a 55+ community are not as has been recently reported, the risk is not having a surviving spouse less than 55 years old having to sell, but grandchildren!

  • A recent article in the Arizona Republic “ Homebuilders pin hopes on retiring Baby Boomers” mistakenly wrote that “ …if the husband died before the wife turned 55, she would most likely be forced to sell the home and would not be allowed to remain there alone.”

The surviving spouse if under 55 is covered by the HUD regulation of 80/20.  Only 80% of the residents need be 55 or more.  The remaining 20% is designed to cover the heirs. That 80% is carefully monitored and checked every 2 years.  To drop under that 80% is a fearful thing in these communities and puts them at risk for losing their Fair Housing exemption and turning overnight into a multigenerational community.

The true risk in purchasing a home in a 55+ community is grandchildren!   Two scenarios create the risk.  The first is today’s economy and high unemployment rate.   Adult children are moving home to Mom and Dad and bringing the grandchildren with them.   The fine print in the 55+ communities HOA’s is that NO ONE under 18 years old can reside for more than a limited number of days.   So Mom and Dad may have to move out of their 55+ resort community and into a multigenerational one! The second risk factor is again Grandchildren.  Adult children move out of state for one reason or another and take those grandchildren with them.  Grandma & Grandpa do not want them to be so far away and choose to leave their 55+ lifestyle and follow the grandchildren.