Entrance Fee

    An Entrance Fee is required of all tenants. It is established initially as a percentage of the initial construction costs of the unit to be leased - not the total building, just the individual suite. (See Construction Financing for further explanation).

    This Entrance Fee is not an investment that earns interest or dividends and does not give the tenant ownership of any part of the building. When a tenant moves out, the lease is terminated and the unit is offered to a new tenant. The vacating tenant is entitled to have the full amount of the Entrance Fee reimbursed from the Refund Fund and the new tenant must pay an equivalent amount. This new Entrance Fee is then returned to the Refund Fund. The amount of the Entrance Fee remains constant for each new tenant and does not increase with demand, real estate markets or interest rates. It is possible for the Sponsor Corporation to change the Entrance Fee from time to time. Any gain from this change must go back into the Corporation, not to the Sponsor organization. The Entrance Fee is not different even if the facility allows for Lease Assignment at Market Value.