Option is alternative to rentals
By Deb Silverthorn
Opening its doors to a wider circle of prospective residents, The Legacy Midtown Park (LMP) has added an entrance fee option in addition to its original rental opportunity. LMP is the only nonprofit continuing care retirement community in the area to offer both opportunities. The entrance fee plan is similar to that of its sister property The Legacy at Willow Bend.
“The Legacy at Midtown Park, across the campus, is now 90% occupied. We are securing new residents all the time. When we opened two years ago, we lost a few prospective residents who preferred an entry fee option. We’ve continued to be asked about the entrance fee plan by current residents and potential future residents who are interested in the protection this plan allows. We’re now glad to provide the choice between the two but there is no pressure,” said Dana Hanks, LMP’s sales director.
The entrance fee program allows residents a level of financial security. For LMP, it allows coverage of daily operations, liquidity and support as the community invests in capital projects. Upon the resident’s move or passing and the receipt of a like entrance fee, the resident or their estate will be returned 90% of the entry fee.
Current residents who moved in under the rental agreement are able to migrate to the entrance fee plan and can take advantage of health care discounts and other move-in benefits currently in place.
Future residents choosing the entrance fee program can move in under the community’s “summer incentives,” which include discounts on the entrance fees, lower monthly fees, a move-in credit to offset moving expenses and a private housewarming party. New residents will also lock in a 25% discount on future health care services received throughout the campus.
There are only a limited number of apartment units, no more than 20% of LMP’s 184 units, available with the entrance fee option. Entrance fees range between $350,000 and $1 million, averaging $665,000. Early in the program’s rollout there were introductory meetings and conversations, resident participation and positive feedback.
“The entrance fee program has become common around the country for decades. The Legacy Willow Bend has been successful with the program for 15 years,” said Terry Purchal, The Legacy Senior Communities CFO.
In addition, depending on each resident’s tax situation, a portion of both the entrance fee and ongoing monthly fees paid may be deducted as a prepaid health care cost, providing added financial benefit.
LMP is offering a limited number of refundable plans at 60% and 0%; these options have a different pricing structure which can further lower entrance or monthly fees.
Should financial hardship cause a resident’s assets to be depleted, they may be able to draw down on their refund to pay community fees. A benevolence program for those who qualify is also available.
“We are happy to meet with anyone, our residents already living here and those who are considering the move to our community, to answer any questions and guide them as best we can,” said Alyssa Adam, LMP’s chief marketing officer.
“We definitely recommend people speak to their families and their own financial advisers as they consider the options,” said Adam. “If they wish us to come in on a conversation, we are happy to do that too.”