Harborside's bankruptcy illustrates a larger trend among continuing-care retirement communities, with at least 16 filing for bankruptcy since 2020. This has resulted in losses of nearly $190 million for over 1,000 families. Approximately 212 residents from Harborside will receive just 32% of their entrance fees through a Chapter 11 plan, reflecting broader vulnerabilities among similar facilities that heavily rely on upfront fees. Economic downturns exacerbate these issues, particularly when housing markets stall, affecting occupancy and financial sustainability.
After a Chapter 11 bankruptcy plan, residents of Harborside are expected to recover only 32% of their entrance fees, equating to approximately $121 million.
Since 2020, at least 16 similar communities across the U.S. have filed for bankruptcy, impacting over 1,000 families and wiping out nearly $190 million in savings.
Harborside's case highlights a broader trend where retirement facilities rely on large upfront fees funded by retirees, which become unsustainable during economic downturns.
The U.S. Senate Special Committee on Aging noted that continuing-care retirement communities are vulnerable during economic downturns due to their dependency on the housing market.
Collection
[
|
...
]