What is HOPA in real estate: A handy guide

Are you interested in housing for senior citizens? You need to understand what is HOPA in real estate. The Housing for Older Persons Act of 1995 (HOPA) is key to creating and maintaining housing for older adults. This law helps shape vibrant, active adult communities across the country, ensuring older adults have great places to live that cater to their needs. Here, we will delve into the essential aspects of HOPA, its requirements, and its impact on active adult communities. 

So, what is HOPA in real estate?

The Housing for Older Persons Act of 1995 (HOPA) is a significant legislation in real estate. It’s designed particularly for communities of adults aged 55 years or older. By following HOPA’s guidelines, communities can stay compliant and provide supportive environments for their older residents.

Interestingly, this Act amended the Fair Housing Act, providing certain exemptions that allow these communities to operate without violating familial status discrimination laws. 

If a community fails to meet the HOPA requirements, it may lose its status as a 55+ community and could be subject to legal challenges for discrimination based on familial status. This means the community would no longer be exempt from the provisions of the Fair Housing Act that prohibit discrimination against families with children.

What are the key HOPA provisions?

The U.S. Department of Housing and Urban Development (HUD) oversees the implementation of HOPA. HUD ensures that communities claiming the 55+ exemption adhere to the stipulated policies and procedures and that they operate in compliance with the Act. And, the facility or community publishes as a 55+ community. 

As a consequence, such communities must regularly report their adherence to these requirements to avoid penalties and ensure continued eligibility. You can view the rules and regulations that HOPA follows, below. 

Age 55 or older rule

HOPA mandates that a housing facility or community must have at least 80% of its living units occupied by at least one person who is 55 years of age or older. The remaining 20% of units can be occupied by younger individuals, provided the community meets all other HOPA requirements. This rule is pivotal in ensuring that the community genuinely serves older adults and is a cornerstone of compliance.

Adherence to policies and procedures

To qualify under HOPA, a community must publish and adhere to policies and procedures that demonstrate that it is intended and operated as housing for persons 55 years of age or older. These policies should be clear, well-documented, and consistently implemented.

Verification of occupancy by persons 55 and above

Communities must demonstrate their senior citizen occupancy through regular verification, such as through surveys or other reliable documentation. This is to ensure that the age requirements are continuously met.

Demonstration of intent and operation

The community must clearly specify its intent and operation through marketing materials, lease agreements, and community activities. These communities need to maintain records that show their commitment to serving this demographic. 

What types of documentation are acceptable for verifying the age of occupants?

Acceptable documentation for verifying age can include:

• Government-issued identification (e.g., driver’s licenses, passports).
• Birth certificates.
• Certification from a medical professional.
• Other reliable sources of information that can confirm the age of the occupants.

What are some benefits that HOPA offers?

HOPA has given rise to numerous active adult communities that cater specifically to the needs and lifestyles of older adults. These communities offer amenities and activities that promote an active and engaged lifestyle, making them attractive to older people.

And, it provides exemptions from familial status discrimination laws. That is to say, HOPA allows these communities to limit residency based on age without violating the Fair Housing Act. This ensures that older adults can live in environments tailored to their needs.

Key takeaway

The Department of Housing for Older Persons Act of 1995 (HOPA) offers a critical piece of legislation that supports the creation and maintenance of housing specifically designed for older adults. Moreover, the HUD oversees that the facility or community complies with rules. This Act continues to shape the landscape of active adult communities. It promotes vibrant and engaged lifestyles for older adults across the United States.

Written by Ramona Sinha. December 28, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.