Understanding 55+ communities in South Jersey

How 55+ communities work under federal law

The federal Fair Housing Act generally protects families with children from housing discrimination. The Housing for Older Persons Act of 1995 allows an exception for communities that qualify as housing for older persons.

Under HUD’s rules (24 CFR 100.305), at least 80 percent of a 55+ community’s occupied units must be occupied by at least one person 55 or older. The community must also publish and follow policies that show it intends to operate as 55+ housing (24 CFR 100.306). These can show up in its rules, covenants, deed restrictions, leases, advertising and signs.

The community must be able to verify ages through reliable surveys and affidavits, updated at least once every two years (24 CFR 100.307). Accepted proof includes a driver’s license, birth certificate, passport, military ID or a signed certification from an adult in the household.

Here’s what that means for you. Each community sets its own rules within that framework, such as whether younger residents may live in a home, how long guests may stay, and what proof of age is required at purchase. Read them before you make an offer.

Association documents to read before you buy

When a 55+ community is a condominium, a cooperative, or a subdivision with an association that manages shared property, New Jersey treats it as a planned real estate development. New Jersey’s Planned Real Estate Development Full Disclosure Act (PREDFDA) is administered by the Department of Community Affairs (DCA). It requires developers to register an offering plan with the DCA before offering units for sale. The DCA also publishes a Purchaser’s Certification of Compliance with Age Restriction Requirements form.

New Jersey law also requires associations to complete and fund a capital reserve study (N.J.S.A. 45:22A-44.2), with limited exceptions. The study looks at reserve balances, the condition of common areas, and a 30-year funding plan. If an association has sent owners a notice about reduced reserve funding, the seller must give the buyer a copy of the most recent notice before a contract is signed (N.J.S.A. 45:22A-44.3).

When you look at a home, ask for the master deed or declaration, bylaws, rules and regulations, the current budget, the most recent reserve study, and any notice of special assessments. Let’s walk through your options together so the monthly fees and rules make sense before you commit.

New Jersey property tax relief programs to look into

New Jersey has three property tax relief programs that may apply to homeowners in 55+ communities, depending on age, income and residency. All three are run by the NJ Division of Taxation.

Senior Freeze (the Property Tax Reimbursement program) reimburses eligible senior citizens and disabled persons for increases in property tax on their main home. ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) offers relief to residents who own or rent their main home in New Jersey. Stay NJ offers property tax benefits to eligible homeowners age 65 and older.

Applicants claim all three on one combined form, Form PAS-1, online or on paper. Income limits, deadlines and benefit amounts change, so check the Division of Taxation’s program pages and its online status tools for current rules. If you’re moving within New Jersey, ask how a move affects your eligibility before you sell.

Selling a longtime home or downsizing

Selling a home you’ve lived in for years raises practical questions: what to keep, what to repair, and how to time the sale with your next move. It can also raise tax questions. The IRS says you may be able to exclude some or all of the gain from selling your main home if you owned it and used it as your residence for at least two of the last five years. IRS Publication 523 explains the full rules, and a CPA can apply them to your situation.

New Jersey offers a partial exemption from the Realty Transfer Fee that sellers pay for qualifying senior citizens age 62 or older and qualifying disabled persons. You claim it on Form RTF-1. Your closing attorney can confirm whether it applies.

When a home is being sold by an estate, the process adds steps. Cathy helps executors and families sell estate property during probate, working alongside their attorney.

How Cathy helps

Cathy Walters has been a licensed New Jersey real estate professional since 2007 and has called South Jersey home since 1984. She represents buyers and sellers across Burlington, Camden, Gloucester, Salem, Cumberland and Mercer counties.

For sellers, she handles listing preparation, pricing strategy and marketing, and her eye for design helps you decide how to present the home. For buyers, she helps you read a community’s rules and see a property’s potential. For families selling an estate home during probate, she works alongside their attorney on prep, cleanouts, repairs and marketing.

She also connects clients with a network of real estate attorneys, contractors, CPAs, inspectors, estate planners and mortgage professionals, so each question goes to the right expert. Let’s look at the bigger picture together.

Before you buy in a 55+ community: what to check

• Read the community’s age policy, including rules for younger residents and guests.
• Ask what proof of age the community requires at purchase.
• Get the master deed or declaration, bylaws, and rules and regulations.
• Review the current budget, monthly fees and the most recent capital reserve study.
• Ask whether any special assessments are planned or have been discussed.
• Check the Division of Taxation’s pages for Senior Freeze, ANCHOR and Stay NJ eligibility.
• Have a real estate attorney review the association documents during attorney review.