The Peninsula Regent (TPR) is offering existing members the option to voluntarily convert from the current equity ownership model to an entrance fee contract model. Under the existing equity model, members own their condominium and, when they move out or pass away, monthly service fees continue until the residence is resold to a new member. Members are also subject to transfer fees and market risk associated with condominium resale values.

TPR developed the conversion program in response to declining resale values, lengthy resale periods, and reduced net proceeds for departing members and their families. The conversion option is intended to provide greater financial predictability and reduce the uncertainty associated with the current resale process.

Under the conversion program, TPR purchases the member’s condominium, for approximately 75% of the member’s original purchase price, and the value is converted into an entrance fee under a new Resident Care Agreement. No cash exchange is required at the time of conversion. Instead, the member receives a promissory note secured by a recorded Deed of Trust, with repayment occurring after the member permanently leaves the community and the unit is reoccupied. Members who convert continue to receive the same services and pay the same monthly fees while living at TPR, but monthly fee obligations end upon move-out, eliminating a significant financial burden that exists under the equity model.

For members and their families, the entrance fee model provides more predictable repayment, eliminates transfer fees, ends monthly fee obligations after move-out, and protects against further erosion of value caused by declining condo resale prices or extended marketing periods.

For TPR, the conversion program supports long-term financial stability by moving away from a resale-dependent equity model, creating more predictable entrance fee funding, improving the organization’s ability to maintain building and infrastructure, and providing resources for strategic investments in healthcare services and operations.

Conversion Program Documents: These are the primary legal documents associated with TPR’s Entrance Fee Conversion Program. Members and their advisors are encouraged to review these materials carefully to understand the contractual terms, repayment provisions, and legal protections related to the conversion process.

Residence & Care Agreement
Purchase and Sale Agreement
Promissory Note
Deed of Trust

 

Q&A Parts 1, 2 and 3: This three-part Frequently Asked Questions resource provides detailed information about TPR’s Entrance Fee Conversion Program, including how the conversion works, financial considerations, repayment timing, and options available to members. The documents are designed to help members and their families better understand the program and make informed decisions about whether conversion is right for their individual circumstances.

Q&A Part 1
Q&A Part 2
Q&A Part 3