Mary Ann Rossi, Esquire

The senior population is growing statewide and nationwide, but the projected growth in Chester County from 2005 to 2030 is for 63,179 persons or a 110.4% increase. (Data from the Chester County Planning Commission, Planning Bulletin #55.) Senior care providers stand poised to meet this projected demand.

There are a number of retirement housing models. One type is the age-restricted community. In these communities, an exception provided for by the HUD Regulations adopted pursuant to the Fair Housing Amendments Act permits exclusion of persons less than 55 years of age. At least eighty percent (80%) of the dwelling units in such communities must, at all times, be occupied by one person who is 55 years of age or older. Occupancy of dwellings is generally limited to (a) at least one person 55 years of age or older; (b) persons not 55 years of age or older living with their spouse; and (c) persons providing physical or economic support as a reasonable accommodation to disabled permitted occupants.

Age-restricted communities generally adopt rules and regulations to assure compliance with the restriction to persons 55 years of age or older. Such communities also generally provide recreational amenities, such as a community center, swimming pool, and the like.

Another increasingly popular choice for retirees is a Continuing Care Retirement Community [CCRC] or Continuing Care Development [CCD]. A CCRC is a residential community designed to provide independent and assisted living arrangements for persons aged 55 years and older as part of a planned community that also provides nursing services, medical services, and other health-related services pursuant to an agreement effective for the life of the resident.

CCRCs in Southeastern Pennsylvania evolved primarily from faith-based initiatives providing care for seniors. Early examples of what has become the model for such communities were known as retirement homes or convalescent centers. As communities strove to meet more of their residents' needs, and as reimbursement for medical care made provision of skilled nursing services possible, the modern model for a CCRC evolved.

Modern CCRCs provide independent living units (such as apartments or cottages), assisted care living units, and skilled nursing beds (often including units for persons coping with memory impairment). Previously, CCRCs were often operated by nonprofit corporations, many with religious affiliations. Such CCRCs are still being proposed and constructed. There are, however, increasing numbers of CCRCs being proposed and built by for-profit corporations.

There are many models for CCRC arrangements. There is generally an entrance fee or payment to secure entrance to the community. There is then generally a lease for the independent living unit, which expires when the resident moves into assisted living. It is also possible that the retiree can own the independent living unit pursuant to a life estate deed. The timing of the move from independent to assisted living is usually at the discretion of the management of the CCRC. The concept is that the individual is making a decision literally about how they will live for the balance of their life.

What is lost in control is more than made up for by the lifestyle amenities of a CCRC. Most CCRCs provide ample social, recreational, cultural, and spiritual opportunities. Meals are provided in attractive dining facilities and often banking, personal care, and other such services are available within the community. The CCRC provides a secure, dependable environment for seniors to continue to grow and prosper through their retirement years.

Anyone considering a CCRC should be sure that they understand the legal structure of the particular community and the nature of the ownership of the community. CCRCs are highly regulated and subject to close scrutiny. Not surprisingly, therefore, the Declarations of Covenants and Restrictions and other documents governing the residents are complex legal documents with important consequences.

The aging of the Baby Boom generation is driving an industry that seeks to cater to their needs as they meet the next challenge for their generation - successful retirement.

MacElree Harvey attorneys represent developers, owners and residents of both age-restricted and CCRC communities.

MacElree Harvey
17 West Miner Street
Post Office Box 660
West Chester, PA 19381–0660
p | 610.436.0100
f | 610.430.7885
f | 610.429.4486
e | info@macelree.com