Who sponsors and finances a Life Lease project?
Life Lease sponsors have included churches, cultural organizations, nursing and retirement home operators, hospitals, private developers and municipalities. These sponsors develop the project and provide the necessary equity and financing, and, in most cases, continue to own and manage the project. The financing for construction and subsequent operation ultimately comes from the people who purchase Life Lease interests in the development. However, it is the sponsor that creates the vision and incurs the financial risks involved with development. Once the residents have taken occupancy of their suites, they pay a Monthly Occupancy Fee to share the cost of operating and maintaining the common areas, grounds and overall building.
