Understanding the HOPA and the 80/20 Rule
Passed in 1995, the Housing for Older Persons Act (HOPA) is a federal law that creates an exemption to the Fair Housing Act's prohibition on familial status discrimination. This law allows communities to legally enforce age-based restrictions as long as they meet specific requirements set by the U.S. Department of Housing and Urban Development (HUD). For a community to qualify as '55 and older,' it must adhere to the following three conditions:
- 80/20 Rule: At least 80% of the occupied units must have at least one person who is 55 years of age or older. This rule provides the legal basis for allowing a certain percentage of homes to be occupied by individuals who don't meet the age requirement. The law does not mandate that the other 20% of residents be under 55, only that the community is not in violation if some younger residents are present.
- Intent: The community must publish and adhere to policies and procedures that clearly demonstrate its intent to provide housing for older persons. This can include marketing materials and official documents that describe the community as 55+.
- Age Verification: The community must maintain a system for verifying the ages of its residents at least once every two years.
The 80/20 rule is often the path for younger residents. A 25-year-old would fall under the 20% allowance for non-qualifying residents, but their eligibility is not guaranteed and is subject to the specific rules of the community's homeowners' association (HOA).
Exceptions that Permit a 25-Year-Old to Reside in a 55+ Community
While a 25-year-old cannot simply purchase or rent a home in a 55+ community on their own, several common scenarios legally permit their residency. In all cases, the younger person must be living with an age-qualified individual and be approved by the HOA.
Living with an Age-Qualified Relative
One of the most common exceptions is when a younger family member, such as an adult child, lives with their parent or grandparent who is 55 or older. The community's covenants, conditions, and restrictions (CC&Rs) will outline the specific rules, such as minimum age requirements for the non-qualifying resident. A 25-year-old is almost always considered an adult child in this context, but they must meet any additional criteria set by the HOA.
Disabled Adult Child or Grandchild
HOPA requires that communities make exceptions for people with disabilities, even if they are under 55. If a 25-year-old has a mental or physical disability and requires support from a parent or grandparent who is an age-qualified resident, the community cannot deny their occupancy based on age. The community may require documentation of the disability and the caregiving relationship.
Live-in Caregiver
Under certain circumstances, an adult under 55 may be allowed to live with an older resident as a necessary live-in caregiver. The specifics vary by state and community, but this exception allows essential support staff to reside in the home with the senior resident. The 25-year-old would likely need to prove that they are performing substantial duties related to the care of the qualifying resident.
What if the Age-Qualified Resident Moves or Passes Away?
This is a critical consideration. Many community bylaws specify that if the qualifying resident dies, moves, or the household splits, the younger, non-qualifying resident is no longer eligible to live in the community and may be forced to sell the home. The rules regarding this transition are complex and vary significantly. For instance, in California, a younger "qualified permanent resident" may be able to stay under specific conditions, such as having been a long-term resident with the senior. It is imperative to review the community's governing documents thoroughly before making any decisions.
Comparison of Residency Scenarios for a 25-Year-Old
| Scenario | Is it typically allowed? | Conditions | Potential Risks | Restrictions After Qualifying Resident Leaves? |
|---|---|---|---|---|
| Living with an Age-Qualified Parent/Grandparent | Yes | Must live with a resident who is 55+; may have minimum age for non-qualified resident (e.g., 18+). | Risk of being forced to move if the older relative no longer resides in the home. | Varies; often requires the younger person to move or sell the property. |
| Disabled Adult Child of a Resident | Yes, federally protected | Must be a disabled child or grandchild requiring residence due to disability; requires verification. | Potential for conflict with community management over required verification process. | Protected under federal law and community exemptions as long as conditions are met. |
| Live-in Caregiver | Yes, but varies | Must be providing care for a qualifying resident; requires documentation and HOA approval. | Caregiver residency ends if the older resident moves or passes away and care is no longer needed. | Caregiver must move out once employment ends or qualifying resident leaves. |
| Spouse of an Age-Qualified Resident | Yes | Spouse of a 55+ resident can typically reside there; some communities have a minimum age for the younger spouse (e.g., 40+). | If the 55+ spouse dies, the younger spouse's right to remain is at the HOA's discretion, as HOPA offers no protection. | Often forced to move or sell the property, depending on community rules and governing documents. |
| Inheriting the Home | Ownership possible, occupancy uncertain | A person under 55 can inherit the property, but cannot automatically live there. | May be forced to sell or rent the property to a qualified resident; residency is not guaranteed. | Residency typically not permitted; property must be sold or rented to someone age-qualified. |
Community Bylaws and the Age Verification Process
Even if federal law allows for flexibility, the specific CC&Rs of each individual community are the ultimate authority. Before making any arrangements, it is crucial to review these governing documents. For a 25-year-old considering residency with an older relative, this involves looking at the following:
- Minimum Age for Non-Qualifying Residents: Some communities may set a minimum age (e.g., 40+) for the younger resident, though many allow adult children over 18.
- Verification of Age: The community will enforce HOPA's age verification requirements, which involve providing official identification to prove residency eligibility.
- Rules for Visitors: Most communities have strict limits on how long visitors under the age limit can stay, to prevent circumventing the residency rules.
- Inheritance Provisions: Special attention should be paid to what happens if the younger resident inherits the property. This is a common point of contention and legal action.
What to Do If You're Under 55 and Want to Live in a 55+ Community
For a 25-year-old, the process is not as simple as finding a property. It requires thorough research and consultation. The best steps include:
- Identify an Age-Qualified Household Member: A younger person can only live in the community if they reside with a qualifying resident who is 55 or older, such as a parent or grandparent.
- Review the Community's Documents: Obtain and carefully read the community's CC&Rs and bylaws. Do not rely solely on verbal assurances from real estate agents or current residents.
- Seek Legal Counsel: Consult with a real estate attorney who is familiar with HOPA and local housing laws, particularly regarding the long-term implications, such as what happens if the qualifying resident moves or passes away.
- Confirm the Community's Status: Ensure the community is legally recognized as 55+ housing and complies with all HUD regulations to avoid potential issues.
Conclusion
While federal law, specifically the Housing for Older Persons Act (HOPA), provides some flexibility, a 25-year-old cannot independently live in a 55+ community. Residency for a younger person is almost always contingent on living with an age-qualified resident (55 or older) under specific circumstances, such as being an adult child, spouse, or caregiver. The community's particular governing documents will spell out the exact rules and potential restrictions, especially regarding what happens if the qualifying resident leaves the home. It is crucial for a 25-year-old and their older relative to investigate these rules carefully and understand all the conditions of residency before moving forward. Navigating these regulations with a qualified real estate professional or attorney is the best way to ensure compliance and avoid future complications.
Table of Potential Hurdles for Younger Residents
| Hurdle | Details | Mitigation Strategy |
|---|---|---|
| Qualifying Resident Passes Away | The younger, non-qualifying resident may lose their eligibility to live in the home. | Review the CC&Rs for rules on inheritance and surviving younger residents; consult an estate planning attorney. |
| Rental Restrictions | The community may prohibit renting the home to anyone under 55 or to non-qualifying renters altogether. | Ask the HOA for rental policies and verify that renting to age-qualified persons is permitted. |
| HOA Rules | Some HOAs may have stricter rules than the federal 80/20 standard, or may enforce rules more rigorously. | Request and read the full set of governing documents before purchasing or moving in. |
| Age Verification | The community requires proof of age for residents, and may conduct checks every two years. | Be prepared to provide official identification and comply with all age verification procedures. |
| Unexpected Life Events | Divorce or a need for a different living arrangement could impact the younger person's residency. | Understand the bylaws regarding prolonged absence of the qualifying resident and how it impacts the non-qualifying one. |
(https://www.55places.com/blog/what-is-the-8020-rule-in-active-adult-communities)
