Who will own the retirement community?
The sponsor of the project will be a group from within the community with the mission and the resources to provide housing of this sort for older adults. The sponsor will form a not-for-profit 501(C3) corporation to assume ownership of the project led by a local Board of Directors. 

How does the community pay for itself?
Once the community is full, (usually within 2 years of opening) it supports itself based upon entrance fees, monthly service fees and rentals. The community model is based on resident makeup of 70% equity (entrance fees) and 30% rentals. The entrance fees are partially refundable with the owner retaining 10% per year of resident occupancy until year 5 when the portion returned to the resident reaches 50%. This level of refund never goes any lower no matter how long the resident remains in the community. In addition to the entrance fee, a monthly service fee is paid by the resident to cover the long list of provided services. The rental fee is based on a combination of monthly service fee and housing costs. A summary of fees for various communities is included.

What does it cost to build a community and where does the money come from?
Total Project Cost: $5.7M
Owner / Sponsor Equity: $1M
Bond / Mortgage: $4.7M

The owner/sponsor equity can consist of a combination of land, cash or pledged assets. The mortgage typically is obtained from local banks who purchase tax exempt bonds issued by the local Industrial Development Agency.

If at is the sponsor’s financial exposure and for what period of time?
The sponsor will need to provide equity for the project in the amount of approximately $1,000,000.00. This money will be paid back to the sponsor once the construction loan is paid out and the permanent financing is in place. Typically, this process will take up to three years. There is no requirement for sponsor guarantees on the balance of the loan.

Do these projects pay real estate taxes?
It is our goal that each project contribute to the community where it is located. Depending upon the ownership of the project; a number of possibilities may exist. The Purcell Group will assist the owners in determining what is the best option for dealing with the local taxing jurisdictions

Who will operate the facility?
The local not-for-profit corporation typically operates the facilities. The Purcell Group will assist with the hiring and training of all staff positions and assume any management role required after the facility is completed.

What is the Purcell Groups role in these projects? 
The Purcell Group will direct the sponsor through every phase of the project from demographic analysis through site selection to construction, marketing and management of the facility.

How is a retirement community of this type different from others we have seen?
Our communities are distinctive for three basic reasons: community size, setting and target market The small size of the projects allows for familiarity and social interaction by all residents throughout the facility. Our one-level design promotes easy access to all areas. The communities typically are located in a pastoral setting but still close to shopping and other conveniences. Our target market consists of independent adults who do not qualify for subsidized housing, yet find the costs of home maintenance 
and the availability and cost of supportive services in their own homes to be more than they can comfortably afford.

How is the Purcell Group different from other developers?
The Purcell Group brings to every potential project the economies of scale and the expertise resulting from the successful construction of seven projects throughout New York State. Our construct on experience results in lower costs for your project and our royalty agreements for projects of this type lower the owner’s “soft costs.” Our method of operations results in jobs for local construction companies in addition to the purchasing of building materials locally. The not-for-profit corporation who run the facility maintains local control of the project in addition to local banks often providing the long-term funding for the community.

It seems expensive... can people in our area really afford this?
When one considers the real costs of maintaining a home or living in an apartment, one will see that their may be savings when moving to a community such as the one proposed A comparative analysis of actual expenses between living in This project and living at home will only help to illustrate this premise. Several residents have actually offered us testimonials once they realized how their actual living expenses decreased.

Can anyone from our potential sponsorship group visit one of your projects?
The Purcell Group has collaborated on seven projects throughout New York State. You are welcome to visit any of our sites at your convenience.  Please contact the community manager at the facility that you would like to visit. (see also our community listings)

If you have any other questions about Purcell Communities, please e-mail us at:
info@purcellcommunities.com