✨ Pricing; Costs; Finances

MaCCRA just published the increases members reported for 2023. Some will increase in December, others in July. The increases shown for 2023 in red are the simple addition of more than one increase in the year.

2023 Increases for Maryland Chapter members in %.

8.00

8.50

3.50

7.50

5.50

8.50

16.00

8.30

7.50

4.10

7.50

9.00

5.50

6.19

5.00

6.00

7.80

7.50

3.50

8.00

Ann MacKay

Charlestown in MD

I am afraid that the fee increases for 2023 will mostly be over 6%. Where I formally lived, I understand the fee increase for the coming year is 6.5%.

Jim Haynes

Loomis Communities (Massachusetts) is imposing just shy of a 6% increase. It has traditionally been right around 3%. And like others on this Forum, we are seeing an increasing numbers of fees for minor services. Health, maintenance and information technology.

Nancy Eddy

nbeddy@gmail.comr

Oak Hammock announced a fee increase of 7% but in addition we are now being charged for minor assistance that had always been included such as hanging a picture on an existing hook--a task that according to the resident involved took less than five minutes but for which the resident was charged the "minimum" of half hour of labor. Some of us feel as though we are being nickel and dimed to death and wonder what happened to the service we had been promised.

Hi Devera,

The more desirable units are the areas with lower vacancy rates. They are the larger units with garages.

Kay

Hi,

I think I just saw your post. I am usually good with computers, but getting used to these forums has taken me a while. Feel free to email me directly at robertskay@yahoo.com.

Best,

Kay

Hi All,

We live in a CRCRC in Medford, New Jersey. Rate increases are in the Spring of each year. Our contract does not specify any limits on monthly rate increases. This past year, we saw different fee increases in desirable areas for the first time. Monthly fee increases were 2% in less desirable units and 4% in the more desirable. This is not sustainable in the long run. Our current manager is gradually moving to outsource functions like maintenance and housekeeping.

I have 2 friends who have been here for 20 years. They pay exorbitant monthly fees! Some possible solutions: fees freeze after 15 years, or some other #; fees freeze after age 90; limit fees to a certain percentage after 10 years, i.e., 2% or 3%.

Ingleside at King Farm in Rockville, Maryland just announced the increases for 2023. We have annual increases effective January 1 of each year. Our 2023 increases will be 9% for Independent Living and Skilled Nursing, and 3% for Assisted Living and Memory Support Assisted Living. The explanation for the lower rates for the two AL neighborhoods was market pressures.

This is above the Social Security increase of 8.7% and farther above what most people will receive in pension increases. At the same time, our investments have declined substantially in value so it is harder to meet them from selling investments.

Bill Samuel, Resident, Ingleside at King Farm, billsamuel3@gmail.com

Hi Kay. I posted a reply to your comment a couple of days ago, but haven’t seen it in the forum. Did you get it? Joe Benedict

What type of units are considered desirable and what are the least desirable units you mentioned?

Well, our budget process isn’t complete yet, but it appears our annual increase will be slightly below 10%, the highest since we moved in. I object to having such a huge increase passed along as a single fee just as the montly rent rather than a modest 3-4% as rent and the remainder as an assessment to cover unusually high costs in a “bad” year. The reason is simple-the increase as rent will be there forever and, more importantly will COMPOUND each year, whereas an assessment wouldn’t. I tried to suggest the mixed approach with two different executive directors and one regional rep of the owning corporation but got no meaningful response (no response at all from one). The nearly 10% increase becomes a windfall for the owner if costs go down, as my cost is compounding upwards until I die or move out.

I live at Medford Leas in Nee Jersey. We are a CCRC. Our annual fee increase was 4% for our most desirable units and 2% for the least desirable ones. Our contracts do not include any mention of fee increases but obviously 4% is not sustainable.

What kinds of fee increases are we seeing? Westminster Place in Evanston Illinois raised fees by 4.5% on April 1. They have now announced an additional increase of 3.5% effective Oct. 1. Depending how you calculate it, this is a 6% to 8% increase for the year. Inflation is running at about 8% tp 9%; so that does not seem unreasonable to me.

What increases are other Communities seeing?