But there is a connection. The initial fee is meant to help keep down the costs of the monthly assessment, developers say. Life-care communities were often run by a church. An elderly person would give all of his or her money to the community in exchange for a promise to receive care for life. Probably the biggest change with fees relates to their refundability.
Many communities now offer to refund at least a portion of the entry costs.
However, as with most other communities, the money is not returned with interest. And you never share in the appreciation of the property. Other refund arrangements are possible. Some communities have a declining refund scale. Other communities offer a partial refund.