Age-restricted communities — commonly called "55+" or "active adult" communities — are HOAs with legal permission to limit residency based on age, something that would otherwise violate the Fair Housing Act's protections against age discrimination. This carve-out exists under a specific federal exemption, and it comes with real compliance requirements the community has to maintain.
The legal basis: the "80/20 rule"
Under the Housing for Older Persons Act (HOPA), a community can legally restrict residency by age if it meets specific criteria, most notably that at least 80% of occupied units have at least one resident age 55 or older. This isn't just a marketing label — communities have to actively verify and maintain this ratio, typically through periodic age verification surveys of residents. A community that markets itself as 55+ but doesn't actually meet and maintain this threshold risks losing its legal exemption and exposure to fair housing complaints.
What this means in practice
- At least one resident per unit must typically be 55+ — this doesn't mean every resident must be 55+; a younger spouse or resident can live in a qualifying unit as long as someone in that household meets the age threshold.
- Up to 20% of units can have no age-qualifying resident, giving some flexibility, though associations often manage this carefully to avoid drifting below the 80% threshold.
- Communities generally cannot have anyone under 18 as a permanent resident, even in the 20% non-qualifying units, under most 55+ community policies (though HOPA itself is about the 55+ threshold specifically; many communities layer on their own additional restrictions).
What to check before buying into one
- Ask directly about current age compliance and how the community verifies it (surveys, registration at move-in)
- Understand guest and extended-stay policies — many restrict how long younger family members or grandchildren can stay
- Review amenities — many 55+ communities are built around age-relevant amenities (fewer or no playgrounds, more clubhouse/fitness/social programming) which is worth confirming matches what you're looking for
- Understand resale implications — if you're buying as an investment or plan to eventually pass the home to younger family members to live in, confirm how that interacts with the age restriction
Everything else still applies
Beyond the age restriction itself, a 55+ community operates like any other HOA — same considerations around fees (see our fees guide), reserves, governance, and rules apply equally.
Related: What is an HOA? · Buying checklist