55+ Apartment Communities: The HOPA Rules an Owner Must Follow
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An apartment community can legally limit residency to older adults and turn away families with children only if it qualifies for the Fair Housing Act's exemption for housing for older persons. For 55+ housing, HUD's rules require three things: at least 80% of the occupied units must have at least one resident aged 55 or older (24 CFR 100.305); the community must publish and follow policies and procedures that show it intends to operate as 55+ housing (24 CFR 100.306); and it must verify residents' ages through reliable surveys and affidavits, updated at least once every two years (24 CFR 100.307). A portion of a single building cannot qualify on its own. If a community claims to be 55+ but does not meet these rules, refusing families can be familial status discrimination.
This guide covers what the exemption requires, what a buyer should check, and how it affects operations. It adds to property due diligence.
What does the 80% rule require?
At least 80% of the occupied units must be occupied by at least one person who is 55 or older on the date the exemption is claimed. Temporarily vacant units count if the primary occupant lived there in the past year and plans to return. Empty units are not counted. The community can set stricter rules, such as requiring every household to include someone 55 or older, but it must still meet the 80% minimum and apply its rules consistently.
How does a community show its intent?
HUD looks at, among other things:
- How the community describes itself to prospective residents and in advertising.
- Lease provisions and written rules, covenants or deed restrictions.
- Public postings in common areas describing it as 55+ housing.
- Whether procedures are maintained and applied consistently, and actual practice.
A community that markets itself as "adult" or "senior" but rents to anyone who applies, or never checks ages, is at risk.
How is age verified?
The community needs procedures to routinely determine the occupancy of each unit, including whether at least one occupant is 55 or older, and must update that information at least once every two years through surveys or other means. HUD's rules accept documents such as a driver's license, birth certificate or passport, or a signed certification from an adult occupant. Keep the records, because the community must be able to produce them in response to a complaint.
What should a buyer check?
- Policies. Written 55+ policies, rules and how they are posted and advertised.
- Leases. Age provisions in every lease, and consistency across units.
- Occupancy survey. The latest survey and when it was done (within the last two years), with supporting age documentation.
- The 80% math. Recompute it from the rent roll and survey.
- Complaints. Any HUD, state or local fair housing complaints or lawsuits.
- Lender and zoning. Some zoning approvals or financing were granted because the property is age-restricted. Check for conditions that must continue.
If the property fails the test, decide before closing whether to cure it, operate as a conventional community (and stop age-based restrictions), or walk away.
How does 55+ status affect the business plan?
- Demand and turnover. Older residents can mean longer stays and lower turnover, but the applicant pool is narrower.
- Amenities and operations. Expectations for accessibility, common areas and staff responsiveness may differ.
- Exit. Buyers of 55+ communities will run the same compliance review, so keep the files clean.
- Disclosure to investors. Describe the age restriction, the compliance process and the risk of losing the exemption in the offering documents.
Related guides: Fair Housing accessibility, Tenant screening rules and The value-add plan.
How DoorRaise fits in
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FAQ
Can I make one floor of my building 55+?
No. HUD's rules say a portion or portions of a single building do not constitute a housing facility or community for the exemption.
Can younger residents live in a 55+ community?
Up to 20% of occupied units may be occupied without a resident 55 or older, if the community's own policies allow it. Many communities set stricter rules.
Can I convert an existing apartment building to 55+?
Only if it can meet the 80% test and the other requirements, applied without discriminating against current residents. Talk to a fair housing attorney before you change policies.
Is 62+ housing different?
Yes. Housing intended for and solely occupied by persons 62 or older follows a separate exemption with stricter occupancy rules.
Next step: add the compliance review to your syndication due diligence checklist.
Sources
- 24 CFR 100.304, housing for persons who are 55 years of age or older
- 24 CFR 100.305, 80 percent occupancy
- 24 CFR 100.306, intent to operate as housing for older persons
- 24 CFR 100.307, verification of occupancy
- 42 U.S.C. 3607, religious organization or private club exemption and housing for older persons
This article is general information, not legal advice. State and local law can add requirements. Talk to a fair housing attorney about your property. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.