Active Elderly Communities is a privately-held corporation that develops, maintains, and operates independent living residential facilities for active elderly persons. The company has been in business for 10 years (McCarley, 2003).
The company acquires existing properties (condominium buildings or apartment building) that conform to the company's criteria (one- or two-story structures; 16-to-32 units; maximum 70:100 building-land ratio; convenient to transportation, medical, entertainment, and shopping facilities; low-crime rate area). These properties are refurbished and remodeled by the company to provide residential accommodations for physically independent persons aged 60 and older. The company performs all exterior and interior maintenance on the buildings and grounds; includes payment for all utilities in the leasing fee; arranges for a security service to monitor facilities on a regularly scheduled basis throughout the day; and maintains an on-site resident manager (McCarley, 2003).
The company, as this time, does not offer facilities and services for persons who require assistance with daily living functions (such as bathing, dressing, cooking, and so forth). Further, the company does not provide any health care services for residents either on-site or through contract providers off-site (McCarley, 2003).
The company provides services to single elderly persons or to elderly couples. People younger than 60 are not permitted to reside in the community on a permanent basis; however, such persons may reside in the community as guests of permanent residents for periods of two-weeks or less (McCarley, 2003).
The company maintains legal title to all properties. Residents must commit to leases on units within the property. The minimum lease is a two-year contract, with automatic renewal guaranteed if accounts are current and residents continue to meet the criteria for residents, e.g., active adults who can care for t...