What a 55 Plus Community Costs Each Month
People usually price a 55 plus community by the price of the house, and then they're surprised by the second number. The dues, the assessments and the charges that only show up in the association documents can add up to a meaningful monthly figure. Here is the whole of it.
The parts of the monthly number
- Mortgage or the cash you tied up in the purchase
- Association dues, usually monthly, sometimes quarterly
- Property tax, which an age exemption may reduce in some states
- Home insurance, and separately flood insurance in some places
- Utilities not included in the dues
- Any optional club, golf or marina membership
What dues normally cover, and what they do not
Dues usually pay for the shared things: landscaping on common ground, the clubhouse, the pool, security gates, private road upkeep, and sometimes exterior paint and roofs on attached homes. They rarely cover what happens inside your own walls, and that's where the confusion starts. Read the schedule rather than taking the sales office summary, because two communities a mile apart can draw that line in different places.
Special assessments
When a shared cost runs past what the reserve fund holds, the association bills owners directly. A new roof on the clubhouse, a repaved road, a pool rebuilt to code. These arrive as a one-off demand, they aren't optional, and they are the single biggest cost shock in age-restricted communities. Ask for the reserve study and the assessment history before you buy.
Land-lease communities are priced differently
In some 55 plus communities you own the home and rent the land it sits on. The purchase price looks low because it is only buying the structure. The lot rent is then a monthly payment that can rise under the terms of the lease, and it usually continues for as long as the home sits there. That model suits some people well. Just know which one you're looking at before you compare prices.
Questions for the association, in writing
- What are the dues now, and what were they three and five years ago?
- How much is in the reserve fund, and when was the reserve study done?
- What assessments have been levied in the last ten years, and for how much?
- What exactly do the dues cover, line by line?
- Are there transfer, initiation or capital contribution fees when a home changes hands?
- Is there a cap on how much dues can rise in a year?
How this compares with independent living
An independent living community charges one monthly fee that typically includes meals, housekeeping, transport and activities, and you rent rather than own. A 55 plus community is ordinary home ownership with shared amenities and an age rule. The first is a service package. The second is property, with everything property brings, including the work of selling it later. They don't compare neatly.
The cost nobody quotes
Resale. Age-restricted homes sell to a smaller pool of buyers, and a community with high dues, a weak reserve or a recent large assessment sells more slowly. If there is any chance of moving again within a few years, ask the local agent how long homes there are sitting on the market.
Next step
If you are weighing a 55 plus community against independent living, a HavenLine advisor can talk through what each one really includes. HavenLine is a referral service, not a care provider, and there is no obligation.
Questions
Do dues go up every year?
They can, and most associations review them annually.
Can I refuse to pay a special assessment?
No. An assessment properly levied is a debt against the home and can lead to a lien.
Does a 55 plus community include care?
No. These are age-restricted homes with shared amenities and nothing more. If help is needed later it comes in separately, usually through a home care agency you hire and pay yourself, and the association has no part in arranging it.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.