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How to Maintain an Age-Restricted Community

4/3/2014

 
Age-restricted communities are on the rise, due in part to aging baby boomers and longer life expectancy.  We are often asked about the requirements for maintaining an age-restricted community.  As a general rule, the Federal Fair Housing Act (“FHA”) prohibits discrimination against families with children.  However, exemptions were carved out to allow for age-restricted communities under the Housing For Older Persons Act of 1995 (“HOPA”), as long as certain requirements are met.

In order to qualify as a legally recognized age-restricted community for the purposes of the FHA and HOPA, a community must demonstrate the following:
1.  It is intended and operated for persons aged 55 and older;

2.  It publishes and adheres to policies and procedures that demonstrate its intent to qualify for the exemption;

3.  At least 80% of the units in the community are occupied by at least one person who is aged 55 or older; and

4.  It must provide age verification of its members by reliable surveys, affidavits or other documentation.
If an Association does not comply with all of the above requirements, it will not qualify for the exemption under the FHA and HOPA.  In addition, if a qualified age-restricted community falls out of compliance with any of the above requirements, it could lose its exempt status under the FHA and HOPA and could be subject to liability for discrimination based on family status.  An Association attempting to maintain an age-restricted community without complying with these requirements could also be sued by its members for selective enforcement or failure to enforce.  

As a result, it is of the utmost importance that an age-restricted community properly maintain its status as such by demonstrating its compliance with the above requirements.  For more information on how to maintain a qualified age-restricted community through advertising, document drafting, verifications procedures, etc., please do not hesitate to contact us.

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