Understanding the Foundation: The 55+ Designation
A 55+ community, or active adult community, is a type of age-restricted housing designed for older adults seeking a particular lifestyle. The age restrictions are made possible by the Housing for Older Persons Act (HOPA), a federal law that exempts certain housing from the Fair Housing Act's prohibition on familial status discrimination. This exemption means communities can legally restrict residency based on age, but there are important caveats.
The HOPA 80/20 Rule
Under HOPA, a community must meet three requirements to qualify for the 55+ exemption. One of the most significant is the "80/20 rule." This rule mandates that at least 80% of the occupied units must be occupied by at least one person who is 55 years of age or older. The remaining 20% of units can be occupied by individuals younger than 55, as long as the community continues to demonstrate an intent to provide housing for older persons and adheres to HUD age verification procedures. This crucial 20% allowance is what often creates an opening for adult children to live in the community, subject to specific community guidelines.
Exceptions and Variations in Community Rules
While federal law provides a framework, the specifics are left to each community's Covenants, Conditions, and Restrictions (CC&Rs) and Homeowners Association (HOA) rules. These rules dictate who, besides the qualifying resident, is permitted to live in the home and under what circumstances. This is where most of the variance occurs.
Some common exceptions include:
- Live-in Caregivers: An adult child serving as a live-in caregiver for a 55+ parent is often permitted, as this directly supports the resident. This is a common arrangement and is frequently outlined in the community's policies.
- Adult Children with Disabilities: In certain cases, an adult child with a disability may be permitted to reside in the community if they are dependent on their parent for care. This aligns with fair housing protections for individuals with disabilities.
- Spousal Allowances: If one member of a couple is 55 or older and the other is younger, the younger spouse is generally permitted to live in the community. However, policies regarding the minimum age for a younger spouse can vary widely.
- General Age Exceptions: Some communities, utilizing the 20% allowance under HOPA, permit younger adult family members (over 18) to live in the home, provided at least one resident meets the 55+ age requirement. The community may also impose additional restrictions, such as an annual residency limit for younger occupants.
What to Do Before You Buy: Your Due Diligence Checklist
Before you commit to a 55+ community, it is essential to perform thorough research, especially if an adult child intends to live with you. Follow these steps to avoid any unexpected issues:
- Read the CC&Rs: The community's official documents are the most important source of information. These will explicitly detail the rules regarding all occupants, including adult children, disabled relatives, and caregivers. Do not rely on verbal assurances.
- Speak with the HOA: Contact the Homeowners Association directly to clarify any policies that are unclear. Ask specific questions about long-term residency for adult children and any exceptions that might apply to your family's situation.
- Consult a Real Estate Attorney: To ensure you fully understand the legal implications of the community's rules and how they align with local and federal fair housing laws, seek advice from a legal professional experienced in these matters.
- Discuss Family Needs: Have an open and honest conversation with all family members involved. Ensure everyone understands the rules and is comfortable with the community's environment and restrictions before making a significant life change.
Comparison of Community Rule Flexibility
| Feature | Typical 55+ Community | Flexible 55+ Community |
|---|---|---|
| Adult Child Residency | Generally limited, with strict age minimums (often 18+) and conditions. | More lenient, often allowing adult children (18+) to live with the qualifying parent as a resident. |
| Caregiver Allowances | Clearly defined exceptions for live-in caregivers. | May have clearer or broader policies regarding family caregivers. |
| Permanent Residency Age | Must have at least one resident 55+. Any younger permanent resident counts toward the 20% limit. | Utilizes the 20% allowance more openly for younger adult occupants. |
| Visitor Rules | Restrictions on the duration of visits for younger guests, especially minors. | Clear, but potentially less restrictive, rules for younger visitors and grandchildren. |
Inheriting Property in a 55+ Community
A critical point to consider is what happens to the home upon the death of the 55+ resident. An adult child can inherit the property, but residency is a different matter. The community's rules determine if the child is eligible to live there if they do not meet the age requirement. In many cases, the adult child will need to sell the home, or, if renting is permitted, find an age-qualified tenant. This is a complex legal issue and should be addressed in estate planning. For more information, consult the U.S. Department of Housing and Urban Development (HUD) on Fair Housing laws.
Conclusion: Making an Informed Decision
Determining whether an adult child can live in a 55+ community requires careful consideration of both federal law and specific community rules. While the HOPA 80/20 rule provides a potential pathway, exceptions for adult children are not guaranteed. The best course of action is to thoroughly investigate a community's CC&Rs and contact the HOA directly to confirm their policies. By doing so, you can make an informed decision that meets the needs of your entire family and ensures a smooth transition to your new home.
