When a client asks about 55+ community rules and costs, they want two things. They want to know who is allowed to live there, and they want to know what it costs each month. Here's how I teach it. You explain the written rules. You show the real monthly number. You never tell anyone whether a community is "right for them." That part is their call. Your job is homes, money and documents.
The short answer
A federal law called the Housing for Older Persons Act (HOPA) lets a community limit itself to older residents. To use the 55+ version of that rule, at least 80% of the occupied homes must have at least one resident who is 55 or older. The community must also publish its age policy and check ages on a regular basis. Everything past that comes from the community's own recorded covenants. Those covenants differ a lot. Dues differ a lot, too. Some cover heat and water. Some cover only a clubhouse. So you read the documents for the exact home every time.
Step by step
- Find the recorded age rule. Ask where the age or occupancy rule is recorded. Get the declaration and rules, not the marketing flyer. Confirm the rule applies to the exact home your client wants.
- Read the occupancy details. Covenants often set a minimum age for other residents (for example, a spouse or partner under 55), limit how long younger guests can stay each year, and limit renting. Write down what the document says. Don't guess and don't summarize from memory.
- Understand the 20% cushion. The 80% rule leaves room in the other 20%. Many communities use that room for things like a surviving spouse under 55. It is not a promise that a younger buyer can get in. Point clients to the covenant and the association.
- Get the dues and what they cover. Ask for the budget and a maintenance chart. Some dues cover heat, water, sewer, trash, roof and exterior. Others cover common areas, snow on shared streets and the clubhouse, and the owner handles the roof.
- Check for a metro district. Newer communities often sit in a metro district. That shows up as extra mills on the property tax bill, not in the dues. See HOA vs metro district.
- Read reserves and minutes. A big project with thin reserves can turn into a special assessment. Read the reserve study and 12 to 24 months of board minutes before the association documents deadline.
- Build the total monthly number. Payment (if any), taxes, metro district mills, insurance, dues and any known assessment. That's the number to compare.
A worked example (illustration only)
Two homes at the same price. One is an older condo-style community. One is a newer single-family 55+ community.
| Older condo community | Newer single-family community | |
|---|---|---|
| Monthly dues | $650 | $225 |
| Dues include heat and water | Yes | No |
| Dues include roof and exterior | Yes | No |
| Metro district on tax bill | No | Yes, about $300/month |
| Owner pays utilities and roof reserve | Electric only | All utilities, plus save for roof |
The newer home looks cheaper on dues. Add the metro district, utilities and roof savings, and the gap can close or flip.
Illustration only. These numbers are made up to show the math. Real dues, taxes and district levies come from the association documents and the county tax record for the exact home. A lender sets any loan terms. The annual percentage rate (APR) on any loan would differ from a note rate. This is not an offer of credit. Rules change. Check current HOA information at the Colorado Division of Real Estate HOA Center.
How to explain it to your client
"Every 55+ community writes its own rules on top of the federal age rule. I'm not going to tell you what the rules are from memory. I'm going to get you the recorded documents so you can read exactly who can live there, how long guests can stay and whether you can ever rent it. Then we'll line up the total monthly cost, not just the dues, so you can compare two communities fairly."
Watch-outs
- Don't steer. Describe the community rules and the homes. Never say who "would fit in" or who "should" live there. Fair housing still applies. Read HUD's rule at 24 CFR Part 100, Subpart E.
- Don't promise an exception. Only the association can approve a resident or a rental.
- Dues aren't the whole bill. Metro district mills, utilities and the roof can be bigger than the dues gap.
- Resale takes the same rules. Your seller's future buyer must also qualify. The buyer pool is smaller, so price and condition matter more.
- Senior tax exemption may not follow them. It has its own rules. See downsizing and rightsizing clients.
- Read the assessments. Older buildings can carry big repair bills. Check minutes and reserves.
Further reading
- 55+ Community Rules and Costs in Colorado on kennarealestate.com
- HOA Fees in Colorado 55+ Communities: Document Checklist on kennarealestate.com
This is training for real estate agents. It isn't legal, tax or lending advice. Check with your managing broker.
Questions
What is the 80% rule?
Under HOPA, a 55+ community needs at least 80% of occupied homes to have one resident 55 or older. It must also publish its policy and verify ages.
Can someone under 55 live there?
It depends on the recorded covenant. Many allow a younger spouse or partner. Read the document and ask the association.
Are higher dues worse?
Not always. Higher dues can cover heat, water, roof and exterior that the owner would pay for somewhere else. Compare what the dues buy.
Where do I find the HOA documents?
From the association or management company. The Colorado contract has an Association Documents deadline so your buyer can review them.
Can my buyer rent it out later?
Many 55+ communities restrict rentals, and a tenant may need to meet the age rule. Read the rental section before the offer.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.