It is extremely important that the potential BUYER of an Adult Community LIVING UNIT - HOME/CONDO - needs to understand the legal structure of the association as well as its financial position BEFORE buying.
CO-OP Associations makes all its homeowners as owners of the association as well as all homes within the community. As a result, the homeowner could some day find that a mis-managed Community Association puts that homeowner at financial risk. Thus, the potential homeowner needs to assess that risk in advance of purchase. Normally, an expert opinion maybe advisable if the homeowner lacks legal and/or financial expertise.
Similar risk could exist for CONDO Associations, which take on larger responsibilites.
Home Owner Associations (HOA's) which allow the homeowner to buy the property in fee-simple minimize the role of the Adult Community Association within the community which should minimize the financial risk.
Bottom line, the potential homeowner needs to secure appropriate advice from his/her advisors - legal and accounting - to assess any potential financial risk in the near term as well as determine if the community is currently well managed. Adult Community legal and financial information should be available for such review at nominal copying costs.
In the event that you like more information about these matters or advice as to who you should discuss these matters with, I would welcome the opportunity to be of service and/or make suggestions.
FYI - working with Ocean County College, NJ - I formulated the Adult Community Leadership Certificate Program and teach several of the core and elective courses as an Adjunct Professor.
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