The 80/20 Rule in a 55+ Community, Explained

If you are shopping in a 55+ community, you will hear about the 80/20 rule. It is simple once you see it.

Under federal housing law, a 55+ community can qualify as housing for older persons if at least 80 percent of occupied units have at least one resident who is 55 or older. The remaining 20 percent can be occupied by people who are not. The community must also publish and follow policies that show it intends to operate as 55+.

What it means for you

The community keeps its status by watching the mix of residents. Most communities set their own rules inside that framework, such as minimum ages for permanent residents and limits on how long younger guests can stay.

What to check before you buy

1. The community's age policy in its CC&Rs.
2. Rules for guests and for family who may inherit the home.
3. Rules about renting.

MY TAKE: The best protection is reading the rules before you make an offer, not after.

I am not an attorney, and communities differ, so confirm details in the governing documents. Questions? Reach me at 760-464-8138. No pressure, ever.