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The Unsettling Transition at River Glen Senior Living Community

A Home of Hope and Community

When Martha Bray and her husband made the significant decision to relocate to River Glen, a senior living community located west of Chicago, their intention was to find a place where they could comfortably spend their golden years. The Brays were drawn to the community’s scenic tree-lined streets, beautifully tended lawns, and the well-maintained red-brick townhomes. They believed that this charming location would be their final home, where tranquility and community warmth awaited them.

In 2013, the couple invested a hefty $314,000 as an entry fee to secure their townhouse, alongside additional monthly maintenance fees. Although they did not acquire ownership of the property, their contract assured them that if they chose to leave at any point, they would be entitled to 85% of the current market value assessed by a local realtor. This agreement offered a sense of financial security and peace of mind to the Brays.

Photo courtesy of Martha Bray

A Devastating Shift

Martha Bray, now 83 and a Vietnam veteran, enjoyed life at River Glen even after the passing of her husband in 2016. However, the comfort and security she had felt within the community began to unravel in late June 2023, when a sudden knock at her door heralded troubling news. River Glen had been acquired by a private equity firm and a real estate investment group, drastically altering the financial agreements that residents like Bray thought were secure.

The new ownership, Jaybird Capital from Cedar Rapids, Iowa, and Citrine Investment Group from Chicago, dramatically increased Bray’s monthly maintenance fee from $1,395 to an astounding $6,500, marking a staggering 365% hike. The new contract also stipulated that should Bray decide to exit the community, she would only be reimbursed 75% of her original entry fee, a sharp reduction from what she had expected.

“We had to agree to their conditions by September 1, or we had to leave,” Bray recounted, highlighting the harsh ultimatum forced upon her and her neighbors.

Ultimately, Bray decided to relocate, but she estimates her decisions came at a significant financial loss—at least $100,000—because although property values had increased, her compensation was based on the diminished formula of 75% of her initial entry fee.

Dismay and Disillusionment

“I just want people to understand not to believe a single word anyone tells them,” Bray urged regarding senior living contracts. “Your money isn’t safe.” This sentiment resonates deeply among many residents of senior living facilities, who typically expect to remain in their communities for the rest of their lives after buying in. However, a growing trend among investors—especially private equity firms seeking significant returns—has begun to change the terms of those agreements, often leaving residents vulnerable and unprotected.

Residents like Bray, who imagined their contracts would shield them, found to their dismay that those arrangements could easily be discarded by new ownership. Many faced inflated fees and reduced returns on their deposits. Bray and her neighbors sought legal counsel to discuss the possibility of contesting these changes, but they were met with uncertainty and the realization that a lawsuit, while feasible, was not guaranteed to succeed.

“The new owners could do whatever they wanted,” Bray expressed. “They owned the place. They made the rules.”

Photo courtesy of Samira Puscar, NBC News

The Landscape of Senior Living Changes

After initially offering to respond to inquiries from NBC News, Jaybird Senior Living’s spokesperson, Meg Harper, ceased communication. Meanwhile, Jaybird’s CEO, Kevin Russell, claimed in a statement provided to CBS News Chicago in 2023, that the modifications made to residents’ agreements were a response to the rising demand for rental structures rather than traditional buy-ins, framing these changes as aligned with market trends.

Lucas Hammonds, a financial specialist in senior living, described alterations like those at River Glen as increasingly common, driven by profit-seeking investors. “For the people affected by this, these are major concerns,” Hammonds stated. “The bargain has changed. It’s destabilizing.”

A String of Tragedies

In conversations with nine current and former residents of River Glen, the feedback was consistent—prior to the new ownership, assessment scores were high, and the community boasted a positive reputation.

Jaybird, having purchased River Glen for $20 million alongside Citrine, manages around forty senior living communities mainly concentrated in the Midwest. The company’s disturbing history reveals previous fatalities in its Iowa facilities, where residents wandered off from memory care. This has raised significant questions regarding safety protocols and staff accountability.

Kimberly Graham from the Polk County Attorney’s Office emphasized the pressing need for legislative action. "Because Iowa lacks a negligent homicide law, it has been challenging to seek accountability for these incidents,” she remarked.

A Need for Clarity and Protection

For residents feeling abandoned and misled, the need for legal clarity has never been more critical. Many are turning to resources like AI legalese decoder, a technology that simplifies complex legal jargon, aiding individuals in understanding intricate contracts commonly associated with senior living communities. By decoding legal terms and conditions into straightforward language, AI legalese decoder empowers residents to grasp their agreements more fully, thus enabling more informed decisions about their futures.

The Unbreakable Bonds of Community

Susan French, who experienced the abrupt changes at River Glen first-hand, shared her thoughts, noting the lack of proper communication during this transition. The inflated maintenance fees forced her to remain for two additional months, causing stress and anxiety.

“It was one of the most frightening experiences in my life, and it left a mark,” she said. French and others have considered legal action, but the complexities and costs involved led to their decision to forego pursuing suits, leaving them feeling unprotected.

Ann Richards, another resident, echoed similar sentiments, advocating for legislative reform to shield seniors from such abrupt changes. Despite the upheaval, former residents find camaraderie in their shared experiences, gathering for lunches to maintain their bonds beyond their previous home.

Photo courtesy of Samira Puscar, NBC News

In a landscape increasingly shaped by profit-driven motives, the need for vigilance and support is paramount. A collective effort, including resources like AI legalese decoder, can empower residents to navigate these turbulent waters and advocate for their rights and dignity as they seek safe havens in their later years.

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