Lifting residents 55+ age

In the April issue of the AARP Bulletin there is an article concerning developers requesting the age restriction be lifted
on 55+ communities.

The Article: The market for age-restricted housing has gone bust as the economic downturn prompts
many boomers, unable to sell their homes, to age in place instead. In New Jersey, "it is much more
difficult to find construction financing, and many banks are saying they will not lend at all" for such
projects, says Jeffrey Otteau, president of the Otteau Valuation Group. Meanwhile, sales of new homes
have lagged so badly that many developers have asked to lift the age Planning Association.
"For the last ten years, there has been a huge influx of age-restricted housing built, or perhaps over-
built." Much of it is in the south, Midwest and Southwest, where the National Association of Home
Builders say not much is being built now. In at least two states outside those regrestrictions - typically requiring
residents to be 55-plus - they had imposed. Local officials have often granted the requests, rather than
have near-vacant complexes. It's an "issue that's going on across the country, "says Jennifer Raitt,
chairwoman of the housing and community development division of the American ions that joined the
boom late, New Jersey and Massachusetts, some towns have lifted age restrictions.

Who are the local officials that wield such power as to lift age restricted communities? It is my impression
that the developer receives breaks from the federal government, though I do not know the exact incentives a developer
has to build such communities.

Any thoughts?

It is my understanding that the federal government gets involved in "tax breaks" for 55+ communities is when they receive subsidies for low income residents. Otherwise, the 55+ age restriction is a generalized exception to bias prohibitions in the Fair Housing Act.

Keep in mind that a large number of 55+ communities are run by profit-making companies (e.g. Brookdale Senior Living) which have significant control despite the existence of residential equity ownership. Brookdale, as the largest owner of 55+ communities has been losing money for several years saw its occupancy rate drop below 90 percent last year. Some of its facilities are experiencing 15-30 percent vacancy rates. I believe they have started overlooking age restrictions, particularly when it comes to family members buying/occupying units to provide care for older parents who live in nearby units.

Many developments received zoning approval as 55+ communities. It could be that local zoning boards are being approached to change the zoning restrictions.