The desire to own a home doesn’t diminish with age. People like having their own place. They never have to hassle with a landlord. They don’t have to move unless they want to.
But lots of seniors want to downsize. And many budget-strapped elders need a spot that’s less expensive than a single-family house.
Since apartments comprise most of the affordable housing for seniors, many opt to rent. But now a small number of price-controlled condominiums are being developed just for older people.
A few local communities have found creative ways to build this type of senior housing. These towns tend to be established suburbs with an aging population. The idea is to provide long-time residents with an affordable home.
The way price-controlled housing works is a little complicated. But with a little patience, seniors can get a great deal, along with a really nice place to live.
In Wilmette, for example, seniors can buy a condominium at the Village Green Atrium project for much less than market value. One-bedroom units cost about $85,000. That may not be affordable by many standards, but it’s $30,000 less than the cost of comparable condominiums in town.
The nice price tag comes with some stipulations, however.
The 35-unit condominium building was constructed on land owned at the time by the village, so it kept the right to purchase back each unit either from the owner or their estate at a specified price. These conditions were written into the condominium declaration.
When someone sells, the village buys the unit. The price is figured as the least of three numbers: the fair market value, the purchase price plus the change in the consumer price index over the time the unit was owned by the seller, or the purchase price plus four percent a year. This gives the owner some return on the investment.
The village doesn’t take a cut of the profits. The unit is resold to someone on a waiting list kept by the village.
“This is one of the few places in town where seniors can buy as opposed to renting,” said Lisa Roberts, a Wilmette planner.
Most price-controlled projects work something like a community land trust.
Under this arrangement, the ownership of the land is separate from the condominium. This allows the trust to specify who can live in the units and how much those units should cost. Most land trusts seek to preserve affordability and certain community standards.
Though land trusts nationwide aren’t building a lot of senior condominiums yet, housing experts think the trend will grow.
There are an increasing number of price-controlled condominiums for special populations, such as the disabled. More senior housing surely will follow, experts say.
The Chicago Mutual Housing Network, a Chicago-based community land trust, is studying the possibility of developing an intergenerational project.
One- third of the housing would be set aside for seniors. Another building would have units just for seniors who need nursing care.
Local towns are already trying variations on the idea.
Last year, Glenview completed the 62-unit Depot Square project. One-bedroom units start at $83,900, two-bedroom units at $119,000. Resale prices are calculated by the village. The village doesn’t actually purchase the unit, though it does maintain the waiting list of buyers.
Other towns, including Highland Park and Lake Bluff, are considering the concept.
The City of Chicago says it will build moderately-priced condominiums for seniors, though no plans are on the drawing board yet.
Since the number of price-controlled projects is small, the list of applicants is long. A several year wait is common.
Waiting lists aren’t first come, first served either. Current residents of the town in which the units are located are given top priority. Next come former residents and then parents of residents. Last are those with no connection to the town.
Low-income candidates also get high priority. There is no income cap, however.
Age restrictions vary. Some towns require applicants to be at least 62 years old. Others specify a minimum age of 65.
So far, residents seem to like the concept. The only complaints have come from relatives settling a resident’s estate.
Huber of Wilmette explains that relatives sometimes disagree with the village’s valuation of the property. Usually a quick reminder of the low original purchase price is enough to gain agreement, she says.
Resources
Here are the phone numbers for some of the agencies and businesses that may help in the hunt for senior housing.
For more information on Village Green Atrium in Wilmette, call 847-251- 2700, ext. 133.
For information on Depot Square in Glenview, call 847-724- 1700.
Or call the Chicago Mutual Housing Network at 773-278-9210.
Continuing care
The American Association of Homes for the Aging, 800-508-9442, has two publications.
“The Continuing Care Retirement Community, a Guidebook for Consumers,” covers topics including services, contacts, and the institution’s financial viability, and includes a cost-comparison worksheet. The price of $10.45 includes shipping and handling.
“The Consumers’ Directory of Continuing Care Retirement Communities” profiles CCRCs nationwide. It costs $33.50, including shipping and handling.
———-
Jane Adler is a Chicago-area freelance writer. If you have questions or information to share regarding housing for senior citizens, write to Senior Housing c/o Chicago Tribune Real Estate Section, 435 N. Michigan Ave., 60611.
