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WHAT IS A LIFE LEASE? |
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A Life Lease is a concept in housing that guarantees security of tenure. The Life Lease requires that you put equity into Fred Douglas Place. That equity will be used to help finance the costs of the project. You will be asked for an initial equity contribution, or Entrance Fee. Your Entrance Fee will be used to keep the amount of the building mortgage low. You will not be paid interest on that Entrance Fee but it will be refunded when you vacate, minus a Development Fee of $3,000. In addition to this equity contribution, residents will pay Fred Douglas Place rent to cover the building operating costs, taxes and the lower mortgage payments. This monthly payment will be lower than rents in comparable apartments. Fred Douglas Place can further reduce the monthly costs by using increased amounts of equity contribution, thereby reducing its costs of operating the project. Your Entrance Fee will be protected by a security fund guaranteed by Fred Douglas Place, and is always refundable. |
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