Richard, Other/Just Looking in Port Orange, FL

How does a communities Prospectus Language affect the interpretation of the 80/20 HUD ruling.?

Asked by Richard, Port Orange, FL Fri Oct 2, 2009

If the Prospectus for an Adult Mobile Manufactured Home Community in the State of Florida states that at least one Residents of Occupied Homes must be 55 Years old or older in order to live in the community can the owner of the community rent to younger than 55 yrs. old and say they have that right under HUD's 80/20 rule. Was the 80/20 rule implemented in order so these communities residents could aviod having to pay any school taxes as there would be no school age chrildren living in these Adult Communities

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Lisa Hill’s answer
I used to work for a brokerage that primarily sold manufactured & mobile homes, and my current brokerage has a division for these types of properties. It's my understanding that the 80/20 rule for Senior Communities is for residents who have family members over the age of 45, who may be added to the tile and inherit the home if the original owner who was over 55 were to pass away. You'll also find that most senior communities, regardless of the actual verbiage of the 80/20 laws, will make an exception for someone who is over 45 to buy a home in that community, if their percentage is far enough below the 20% allowance. But they have to make sure their percentage does not fall below 80% of residents who are over the age of 55. In doing so, they will typically make allowances only for potential buyers who are over the age of 45.

This is all a generalization of course, based on my experience selling mobile & manufactured homes in 55+ communities. As for the school taxes, at one time, the park owners (for parks where the home owners pay lot rent) DID have to pay those taxes when they originally bought the land, regardless of the type of PUD. However, people who buy homes in any type of senior community, are buying into a "lifestyle". That lifestyle does not include children. Even if their grand-children visit during the summer, they cannot stay for more than 30 days... actually, no children can stay for more than a total of 30 days during the entire year. In my own experience, the school taxes has not been an issue for the buyers. But it's only logical that they wouldn't be contributing to the taxes if they won't be using any of the school services.

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Lisa C. Hill "The Smart Choice" for all your real estate needs"
Adams Cameron & Co., REALTORS®
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