Retirement Living. Overseas Resort Communities: "The Best Lifestyle Beyond the Border for Retired and Active Persons"

AN OPPORTUNITY FOR HOUSING DEVELOPMENT

In our Project there will be an opportunity for Non-For-Profit Corporations, such as Religious or Fraternal Organizations, to develop Apartment Homes in multistory buildings in our resort-style retirement communities. The Tenants of those Apartment Homes will be able to enjoy all the amenities and activities of our village and will save money because they will not have to pay for the construction of such amenities as golf course, marina, medical clinic, etc.

Here we are providing only a rough general information about the Life Lease program. The exact terms and conditions regarding each Life Lease housing will be drafted by the Non-For-Profit Corporations doing the development. There is no standard format for a Life Lease but they all have certain things in common:

1.- The term of the lease is geared to outlast the expected lifetime of the Tenant.

2.- A lump sum is paid by the Tenant for the entire term of the lease rather than a series of monthly payments.

3.- The Landlord (a Non-For-Profit Corporation) agrees to pay back all or a substantial portion of the rent on the death of the Tenant or when Tenant vacates the unit.

4.- The Landlord uses the prepaid rents to acquire the land and build the rental units and the amenities. In effect, the Tenants finance the project at no interest by paying their rent in a lump sum rather than over a period of time.

5.- Persons become participants by purchasing a Right to Occupy a Unit. This Right to Occupy Agreement does not convey full or partial ownership of the Real Estate. It does entitle the occupants to live in their own home at a low monthly charge which contains no capital cost component. The Right to Occupy Agreement also entitles the occupants to use and enjoy the home of their choice as long as they are able or wish to do so.

6.- All maintenance costs are the responsibility of the non-profit organization and are paid for under a monthly occupancy fee. All operating costs of a life lease project are budgeted at the lowest break-even point which minimizes the monthly occupancy fees paid by residents.

The non-profit alternative of Life Lease housing prevents a corporation from profiting on retirement incomes. Life Lease is a perfect partnership between a charitable community service organization and active retirees looking for long-term, secure, appropriate accommodations. The Life Lease offers residents a form of housing that provides guaranteed tenure, a hedge against inflation and all of the security and comfort you expect in your retirement year, all at reasonable cost. A life lease project provides an opportunity to purchase an interest in the project and to "share" in any appreciated value of the building and property. Life lease communities create a sense of security and well-being for residents.

The Life Lease program is for people looking for a Lifestyle change to better suite their needs, such as: flexibility, low maintenance and security, leave for extended trips, no residential worries at home, no maintenance. You will have secure occupancy in a housing development that responds to the needs of 55+ adults with active lifestyles who wish to “age in place.” Our Life Lease housing has senior-friendly features in suites and public areas: wider doorways, lever-style hardware, walk-in showers, and complete barrier-free suites are available in the Assisted Living program.

Living at our Project includes selecting a lovely, secure home and so much more! Your investment ensures a full, active and secure lifestyle that assures peace of mind, new-found freedom from home maintenance and easy access to a comprehensive array of services. It is financed by a simple one time security deposit and a low monthly fee. With a Lifetime Lease, you enjoy many of the benefits associated with ownership, without assuming the entire financial burden of purchasing your apartment home.

Each owner pays a monthly occupancy fee based on the size of his or her apartment suite. This way, the cost to operate the common amenities and maintain the grounds is fairly apportioned to everyone. The monthly fee should not be confused with a conventional rent payment since it covers much more. The monthly occupancy fee may cover costs such as: all exterior cleaning and maintenance, common areas, hot and cold water, sewer, garbage and trash removal, management and administrative costs, insurance on buildings, replacement reserve fund for future replacement of capital items, security check of your residence during your absence, medical emergency alert system, resident services staff support, change of residence assistance, organized trips, social/cultural events, resident activities, and more. These fees are payable monthly once you take possession of your suite.

When Life Lease purchasers, or their estates, wish to sell or transfer their leases, they receive the market value of their suites, less administration fees, similar to a condominium or detached home. Therefore, it is the “market” that determines what the leasehold ownership of Life Lease is worth. The non-profit sponsor coordinates the sale of the lease to another eligible person. The resident is not required to find the next buyer of the suite. Resale of suites is the responsibility of the Non-For-Profit Corporation. The amount required to purchase the Life Lease is referred to as the Entrance Fee. Upon termination of the Life Lease, Entrance Fees are refunded in full (in accordance with the conditions outlined in the Life Lease agreement).

The lease can be terminated voluntarily by the tenant with written 90-day notice and delivery of vacant possession, or automatically upon the death of the tenant. Where there are two tenants, the lease is terminated upon the last to die. The landlord can terminate the lease with 30 days' notice for a default in payment, and without notice if the landlord deems the tenant's actions to be a nuisance, detrimental to the project or a danger to other tenants.

Life lease projects typically include features such as a multi-purpose room with kitchen, hobby/games room, library, meeting room, resident storage lockers, security controlled entrance system, and recreation areas. Depending on the Life Lease setup, tenants can realize a number of benefits some of which are:

Ö Participate in Not-For-Profit Project Development.

Ö Participate in the opportunity for Capital Investment.

Ö Benefit from the potential for capital appreciation on the right to occupy.

Ö The cost of the Life Lease to the resident is the cost of construction of their suite plus a proportionate share the common costs such as land and common space within the project. Since there is no "developer's profit" the non-for-profit organization bases the final costs needed to operate on a break even basis plus traditionally accepted levels of contingency. Non profit rent includes reserves for capital replacement, vacancies and bad/debt.

Ö Enjoy security of tenure by way of the Life Lease. There is no termination date (in the event of Death, all capital is returned to the Estate unless there is a surviving spouse on the lease).

Ö Benefit from sharing costs with others i.e. economies of scale (group investment power).

Ö All building and grounds maintenance, administration, common costs, property taxes, debt service, building insurance, electrical, sewer and water, costs are the responsibility of the non-for-profit organization and included in the resident's monthly housing occupancy charge. Residents are usually only responsible for the costs of telephone and insurance for household contents only.

Ö Enjoy the use of common amenities, games room, exercise room, multipurpose room, lounges, solariums, landscaped grounds and share common needs and interests with others in a community like setting.

Ö Participate in the ongoing operations by way of representation at Resident Association and Board level.

IF YOU KNOW OF ANY NOT-FOR-PROFIT ORGANIZATION THAT MIGHT BE INTERESTED IN DEVELOPING A LIFE LEASE HOUSING IN OUR PROJECT, PLEASE CONTACT US IMMEDIATELY.