Whether you are a baby boomer or generation x-er planning the next phase of your life, 55+ communities are gaining in popularity as an appealing housing option that promotes independence within a planned structure designed to enhance quality of life for residents aged 55 and older.
But you may be wondering to yourself, are 55+ communities legal? The simple answer is yes, under U.S. federal law, they are perfectly legal even though they openly restrict the admission of their residents on the basis of age. The Housing for Older Persons Act provides the guidelines under which 55+ communities not only operate but continue to thrive.
There are strict requirements that these communities must meet in order to operate as a 55+ community, and many have rules in place that limit who else can live there. As with any housing decision, there are pros and cons, and it is important to see both sides to make a truly informed decision that impacts yourself or a loved one.
The Fair Housing Act
In 1968 the United States Congress enacted a historic piece of legislation known as The Fair Housing Act, which sought to eliminate discrimination by landlords and sellers against renters and buyers and afford all Americans an equal opportunity to find suitable housing. This federal law identified seven classes or bases upon which discriminatory practices were occurring in the housing marketplace:
- Race;
- Color;
- National origin;
- Religion;
- Sex;
- Disability; and
- Family status
It was thereafter illegal to discriminate against a renter or home buyer on the basis of the above-protected attributes, and the U.S. Department of Housing and Urban Development (HUD) was charged with enforcing the law’s provisions.
Today, many states have enacted their own fair housing laws to supplement the federal Fair Housing Act, and depending on the particular state, these regulations protect additional classes such as ancestry, marital or domestic status, and sexual orientation and gender identification.
The Housing for Older Persons Act
There is one attribute that is noticeably absent from the above lists of federally and state protected classes – discrimination on the basis of age, specifically restricting community populations to persons over a certain age.
In 1995, President Bill Clinton signed into law the Housing for Older Persons Act (HOPA), which created an exemption to the family status class protected under the Fair Housing Act of 1968. In essence, HOPA created a specific exception for “senior” housing, allowing these communities to restrict residents to certain ages while avoiding liability for discriminating against would-be residents on the basis of familial status.
What Exactly are 55+ Communities?
They go by many names, and perhaps you have heard them all: 55-plus communities, active adult communities, independent living communities, and age-restricted communities. Whatever the terminology, they all refer to the same concept, which is a community that restricts the minimum age of its residents, whether they rent or own.
There were two specific exceptions that HOPA carved out to avoid liability of senior communities under the protected familial status class of the Fair Housing Act (which prohibits discrimination against households that include pregnant women or children under the age of 18) with the aim of promoting the housing interests of an increasingly aging population:
- If all of the occupants or residents of the community are over the age of 62 then the community is exempt from the Fair Housing Act; or
- If at least 80 percent of the occupied units include at least one resident who is verifiably over the age of 55, and the community follows a clearly defined policy demonstrating an intent to provide housing for those aged 55 or older, then the community is exempt from the Fair Housing Act.
As long as a 55+ community can clearly demonstrate its adherence to either of these two conditions, then it qualifies as an exempt operation and is generally free to establish its own bylaws and regulations that impose even stricter age requirements (for instance, that 100 percent of occupied units have at least one resident age 55 or older).
Are 55+ Communities the Same as Retirement Homes?
No, they are not. Whereas 55+ communities stress a vibrant, active and independent lifestyle, retirement homes and assisted living centers are more often associated with elderly residents in need of part-time or full-time medical assistance or care. In many retirement homes and assisted living centers, there is an on-premises team of caregivers and medical professionals to provide around the clock care.
Today’s 55+ communities are master-planned developments with meticulously designed features and thoughtfully appointed amenities that cater uniquely to residents aged 55 and over. Use of door handles versus door knobs for easier door opening, wider entryways without any barriers to permit the use of walkers and wheelchairs, and extensive walking paths are but a few examples of these details.
Contrary to popular belief, many residents of 55+ communities remain an active part of the workforce and, in fact, are at the peak of their earning power. Because these are managed communities, physically demanding chores such as watering and mowing the lawn, or shoveling snow from the driveway, or clearing out the rain gutters are no longer concerns.
Can Younger People Live in 55+ Communities?
Because of the underlying age requirements to be exempt under HOPA and not run afoul of the Fair Housing Act, 55+ communities typically have strict policies governing residents and occupants under the age of 55. The bare minimum requirement is that 80% of all occupied units have at least one occupant age 55 or older.
A common requirement in 55+ communities is that in addition to the occupant age 55 or older, any other adult residing in the same household must be over the age of 40, and in the case of children of the 55+ occupant, they must be at least 18 years of age to live in the same household. Minor children under the age of 18 are not typically permitted to be full-time, permanent residents in these communities.
Since the federal legal threshold is 80%, there are certain communities that seek to diversify their populations with a small percentage of younger residents. To keep things manageable and not run the risk of violating federal guidelines these developments will restrict the allowable percentage of younger residents to 10 to 15 percent.
55+ Community Living
For many people considering a 55+ community, the thought of worry-free, resort-style living sounds appealing. Among the features of these developments are central community hubs for gathering and socializing, and since they promote an active lifestyle, there are daily events ranging from exercise sessions to art and cooking classes.
Despite the emphasis on independence, the reality of 55+ communities is that they cater to an aging clientele. As such, medical services are either readily available on-property or they are a moment’s notice away. This provides peace of mind not only for the residents but for their families as well. There is an increasing number of hybrid facilities that combine independent living and assisted living in the same complex.
Why a 55+ Community may not be Right for You
As with any communal living arrangement with shared common areas, there is a certain level of privacy that is sacrificed. For residents with grandchildren, the age restrictions may impede on precious time spent with young ones. Virtually all properties prohibit child residents, and many restrict or limit the amount of time that children can spend visiting residents, particularly overnight stays.
According to the U.S. Census Bureau, by the year 2030, one out of five Americans will be over the age of 65. 55+ communities may not be the ideal option for everyone 55 years and older, but as the number of these developments continues to grow, and as a significant portion of our population ages, it is clear that they are warmly embraced as today’s alternative to yesterday’s convalescent homes.