• What is an Entrance Fee for a Senior Living Community? 

    What is an Entrance Fee for a Senior Living Community? 

Many non-profit Continuing Care Retirement Communities (CCRC) require an entrance fee. Or at the very least, offer an entrance fee option. The entrance fees can be viewed as a membership fee paid as you move into a community. It’s what provides you access to services you may need in the future.

Answers To 4 Entrance Fee FAQ’s

1. Am I Buying The Home?

No. There are a few ownership models outside of Ohio. But most CCRCs (which may also be referred to as a Life Plan Community) retain the ownership of the homes.  

The advantage to that individual is that the community has the responsibility to maintain the property not you. Freed from home ownership, you won’t ever need to sell a house again. Or worry about real estate market fluctuations.

2. So What Am I Paying For?

What is purchased is a contract for services detailed in the community’s Residency Agreement.  Briefly, it’s access to the continuum of care:

  • Independent living
  • Assisted living
  • Nursing care
  • Inpatient and/or outpatient therapy

So you have access to services and any level of care that you may need as you age.

This one-time fee is paid upon entry into the community based on the size and location of the selected home. In addition to the number of people residing there. 

Many non-profits CCRC include the assurance that care will be available, even if an individual outlives their financial assets. At Twin Towers, this is done through our Foundation’s Benevolent Care Fund. Therefore we ensure that if a resident in our community has exhausted their resources, they can remain within our community. 

3. How Do Most People Pay The Entrance Fee?

Most people use the proceeds from the sale of their house or condo to pay their entry fee although some use savings or liquidate investments.

Timing the sale of a house and paying an entrance fee for your first choice future home in a community can be tricky.  Here at Twin Towers, we ask for a 10% deposit of the entrance fee to start the application process. This starts a 90-day period during which many individuals sell their house.  

In certain circumstances, Twin Towers offers a payment deferral plan through a Promissory Note option. It allows you to make your move to the community. Then you defer payment of the balance of the entrance fee until your house sells, interest-free for up to one year.  We found this to alleviate much of the logistics with moving money around in an individual’s financial portfolio.

4. Do I Still Pay A Monthly Fee?

Yes. The monthly fee furnishes the comprehensive package of services associated with the level of care in which you live. 

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Twin Towers is a continuing care retirement community in Cincinnati, Ohio, offering patio homes, apartments, rehab services and more. We’re focused on supporting the vibrant and active lifestyles of our residents so they can age well. For more information, contact Twin Towers online or at 513-853-2000.

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