       CMHC reports that there are more than 45 Life Lease projects across Canada as well as many successful projects in the United States and Great Britain. Numerous new projects are currently under development for a variety of age and interest groups. Life Lease is usually used in multi-residential housing developments when the residents have similar housing and life style needs. |
Life Lease is a tried and true approach to developing and operating housing projects for seniors, mature adults and special interest groups. CMHC reports that there are more than 45 Life Lease projects across Canada as well as many successful projects in the United States and Great Britain. Numerous new projects are currently under development for a variety of age and interest groups.
While relatively new to Ontario, Life Lease provides the opportunity for housing affordability, security, and common community. Life Lease is usually used in multi-residential housing developments when the residents have similar housing and life style needs. The actual characteristics of each Life Lease Project are established by the sponsoring non-profit organization in conjunction with the prospective residents.
A Life Lease is a housing arrangement where the resident purchases the Right to Occupy a housing unit and to use the common facilities. At any time the resident can decide to transfer this right back to another qualifying purchaser either directly or by way of the non-profit organization depending upon the process and qualifying criteria set up by the sponsor organization. In this way the resident can earn a return on their investment similar to the return on the sale of their own home.
The actual conditions of this right of transfer are determined by the non-profit organization that establishes the Life Lease project. Most non-profit organizations, in consultation with the residents, restrict who can live in the building to ensure that the integrity of the community is maintained. Often the Life Lease project maintains a waiting list of applicants, who meet the entrance criteria for the housing community, and have first option to purchase the Life Lease.
The cost of the Life Lease to the resident is the cost of the construction of their specific unit plus a proportionate share of the common areas of the building. Since there is no "developer's profit", the non-profit corporation bases the final cost to the residents on the actual costs needed to break even on the project plus a reasonable contingency fund.
Life Lease offers security of tenure, resident involvement in the design, development and management of the project, and centralized worry free maintenance.
Residents pay a low Monthly Occupancy Fee to cover the costs of maintenance, insurance, management, and life style services. Usually the monthly occupancy fee is between $150 and $250 depending upon the size of the unit, the type of project and the type of common area facilities. Those residents with smaller units pay less towards the operation of the project than those residents who live in larger units. The residents normally pay their own utilities, property taxes and contents insurance. Special services such as housekeeping, meals and transportation would be an optional extra.
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