Qualifying to Live in an Age-Restricted Community

If you live in a 55+ community, you have probably been asked to participate in a community-wide census and to provide proof of age for all residents in your household. You may be reluctant to provide this information in light of the current identity theft crisis, but before you decide to fight a census in your community, please take a moment to read about and understand why your association is asking for this information.

First, let's clear up some misconceptions regarding the federal regulations surrounding 55+ communities. A number of years ago, Federal legislation was introduced that prohibits discrimination in housing based on age and familial relationships. This was done in reaction to a growing trend in the nation toward “adult only” communities. The Federal Government wanted to insure that people would not be denied housing because they had children.

In later years, one exception to the Fair Housing Act was introduced. Housing for older adults is the legal phrase used to describe what we now call 55+ communities. If you have chosen to purchase and live in such a community, you should understand what that really means.

The Federal restrictions on 55+ communities work hand-in-hand with an association's governing documents to insure that there will be at least one person in each household who meets the Federal age requirements. This person does not have to be an owner, but must live in the residence long enough each year for it to be considered their primary residence.

Many people are told about an ”80/20” ratio when purchasing a home in a 55+ community, however, the interpretations of that ratio have been misunderstood by many people. The 20 percent is a safety net. It does not mean that homes may be intentionally purchased and occupied by people who are underage. It is designed to protect the welfare of underage residents in the event that the age qualified resident that they live with passes away. A good example of this is a couple purchasing a home in a 55+ community when one spouse is 57 and the other is 52. Two weeks after they move in, the older spouse passes away suddenly. The younger spouse does not have to sell their home and leave the community.

Some governing documents specifically prohibit the sale of homes in communities to parties where the intended residents do not meet the age restrictions. Builders may do this during the initial sale of homes in a community and associations need not take any action against people who do not meet the age restrictions but who purchased their homes from the builder; but they should not continue to allow this to happen when homes are re-sold.

The reason 55+ communities conduct an age census is that part of the requirements of the Federal Housing Act is that “older adult” communities are subject to audit by the Department of Housing and Urban Development. Fifty-five plus communities must cause a census of the community's population to be conducted every two years and make the data available upon request to HUD. Census data must be documented by proof of age for the age qualified residents such as a drivers license or birth certificate.

Fifty-five plus communities need 100% compliance for their census in order to protect the association's status as a 55+ community. Failure of a HUD audit could result in the community losing that legal status. It is in your best interest and the best interest of your 55+ community to cooperate with your association and provide census data and proof of age when it is requested. It's all just a part of the rules!

Cindy Simpson, PCAM®, AMS®, CMCA®
Community Manager
Mid-Atlantic Management
Warwick, PA