The article makes it sound like someone bought the place and jacked up the monthly maintenance fee by $5000 just because “fuck you.”
Well, given that they bought in under the lump-sum + maintenance model and have somehow been “upgraded” to the rental model, that’s exactly what happened. It would be like buying a home and then the old owner coming back and saying, “you know what, I could get more money renting this place - you have to pay rent now.” These people likely sold their house and used that money to buy into the community - essentially paying for the right to use the building until they die. It’s common in CCRC facilities (continuing care retirement community). You essentially pay for the plant and then pay maintenance, and they guarantee that they will have a spot for you in their care facility as you need more assistance (Independent living -> Assisted Living -> Nursing and/or Memory Care - Hospice). It’s much like a reverse mortgage in that you “buy” your “home” and get to live in it until you die, at which point the deed is turned over with your heirs getting nothing. Except that in this case you don’t get a monthly payment; instead you pay a fee for the facility services which is free of a rent cost. As you move up in care, the fee gets larger to cover the additional services (additional meals, personal assistance, and ultimately nursing care), but it’s just for utilities and services - your payment covers the physical buildings. As you move up, people behind you buy in and that money is used for (CEO bonuses) maintenance and updates to the buildings. Many of these are “non-profits” so the extra money technically isn’t for profit, but there are lots of corporate mouths to feed in CCRCs and they find ways to distribute the money.
Uhh… that’s EXACTLY what it sounds like? Or are you one of those morons that cannot read between the lines of corpo speak?
“negotiated buyout process” my ass.
The people here never owned their homes. They purchased long-term agreements, and as those agreements expired, the owners moved to a different process.
The “negotiated buyout” is from people ending their leases early.
