A VIETNAM veteran has been forced out of her dream home after the cost of living rose exponentially.
Martha Bray, an 84-year-old veteran, warned that this could happen to anyone.
Bray was delighted to move into River Glen of St. Charles, a senior living community located west of Chicago, after being impressed by its amenities and sense of community.
The living facility advertises many of its desirable features that make it different than other senior living communities.
The space had big bay windows, tended lawns, and an abundance of afternoon sunlight that Bray felt justified the steep entry price point.
In 2013, she paid a whopping $314,000 entry fee for a townhouse within the community in addition to a monthly maintenance fee.
However, the property was soon acquired by two investment companies that quickly raised rents on Bray and other residents.
The new proprietors of River Glen, Jaybird Capital from Cedar Rapids, Iowa, and Citrine Investment Group from Chicago, made the decision to significantly raise the monthly rental fees, causing distress among the residents who were now faced with exorbitant bills.
The new property owners had jacked up the monthly fee from $1,395 to $6,500 — a 365% increase, Bray told NBC News.
“We had to agree to their conditions by Sept. 1 or move,” Bray recalled.
Unable to pay the new fee, the veteran ultimately decided to pack up and move.
However, she was only repaid 75% of the original entry fee, which means she was duped out of at least $100,000.
“I just want people to know not to believe a damn word anybody says,” Bray cautioned.
“Your money is not safe,” she added.
Despite outcry from former residents, lawyers have confirmed that the additional fees were perfectly legal.
The community home stated that rental amounts are “based off fair market rates,” which includes several factors like taxes, gas, and electricity.
Jaybird Senior Living’s Full Statement
“River Glen of St. Charles has established a solid standing in the neighboring tri-city areas, especially for our highly sought-after services such as assisted living, memory care, and hospice care. We consistently maintain impressive occupancy levels, typically ranging between 95% and 100%, and we take pride in our loyal and experienced staff members.
The townhome units at River Glen of St. Charles recently went from a non-rental to a rentalstructure. The decision to transition the townhome housing model was guided by the increasingdemand for rental structures versus buy-in. As the baby boomer generation ages, there has beena noticeable shift toward communities that cater to specific lifestyle preferences while remainingfinancially accessible, mirroring an industry-wide transition away from the outdated buy-in model.
By shifting away from the buy-in model, we are following trends set forth by other senior livingproviders within this market. We have expanded opportunities for a broader range of seniors andbaby boomers to access our lifestyle offerings, rendering them more affordable as they would nothave to tap into investments or put down a large portion of their savings to live in our community.
The rental structure rates were based off fair market rates within this geographic area.
The monthly rates were established following the completion of a thorough market study. These rates align with the St. Charles and tri-city market averages, the amenities and services offered, and the necessary adjustments caused by high inflation and the increased cost of living.The monthly rental fee includes landscaping, lawn care, and snow removal, and covers the costs of taxes, water, gas, and electric bills, exterior maintenance, and appliance repair.
The townhome residents were part of an agreement that allowed for this restructuring. Those who chose not to transition to the monthly rental structure did so in accordance with the terms of their contracts. We accommodated all residents. All were afforded the opportunity to stay in their town home under their existing contracts until those contracts expired. Those who chose to leavedid so through a negotiated buyout process, as permitted by their contracts.
Under the operation of Jaybird Senior Living, River Glen of St. Charles will continue to serve seniors and remain at the forefront of senior care in the tri-city area.”
– Kevin Russell, Chairman of Jaybird Senior Living
Source: CBS News
Jaybird CEO Kevin Russell said the new charges were “guided by the increasing demand for rental structures versus buy-in,” according to a statement provided to CBS News in 2023.
“Those who chose not to transition to the monthly rental structure did so in accordance with the terms of their contracts,” Russell added.
Oftentimes, drastic changes like this are driven by investors who want to drive up profit.
According to an American Seniors Housing Association (ASHA) report, eight of the 50 biggest operators in the senior housing space were private equity firms in 2024.
There are efforts to achieve stricter regulations and more conversations about these changes in hopes of bringing some transparency to the industry.
The Center for Medicare Advocacy advised people to review their contracts carefully with a lawyer before signing anything to avoid such unfortunate circumstances.
If possible, they urge people to research which company or entity owns the property that you or a loved one is considering living in.
