St. Charles elders had to accept new rental costs of $6,100-$6,650 – or leave

ST. CHARLES – This month would have marked four years for Ann and Ron Richards living in one of the 28 townhouses at Delnor Glen – now River Glen of St. Charles.

The couple, both in their 80s, thought the senior community at 975 N. Fifth Ave. in St. Charles would be their last home, eventually moving from independent living to supportive care and then full-time care.

On June 28, the couple received a hand-delivered letter stating the new owner, Jaybird Senior Living, was invoking a clause in their residency contract to convert the townhouses to rentals.

Their monthly fee – outside of their buy-in entrance fee – already had gone up from $600 a month to $1,350 a month.

If they stayed, it would cost $6,650 a month because theirs was an end unit. The monthly rental cost for inside units would be $6,100.

And they had to decide by Aug. 1 or be out by Oct. 1.

“There was no consideration for seniors,” Ann Richards said. “It was money first for them.”

Kathy Abbott, 77, lived in one of the townhouses for 10 years, first with her husband and then on her own after he died.

“There was no warning,” Abbott said. “They never told us they were turning it into rentals. … [An administrator] just came to the door … and presented us with the letter.”

Abbott described a feeling of chaos and helplessness among the elderly residents ranging in age from 75 to 95.

“The way it was done, with so little time to get in touch with an attorney to do anything,” Abbott said. “People had to get loans or had money to buy something else.”

According to documents given to residents, they would receive 75% of their entrance fees, which ranged from $230,000 to $400,000, and they also would be charged a one-time $4,000 “community fee,” which would be deducted from the entrance fee reimbursement.

‘An antiquated model’

Citrine Senior Communities, a joint venture between affiliates of Citrine Investment Group and Jaybird Capital, acquired the 8.8-acre property for $18.6 million in January, with Jaybird as the property manager, records show. The previous sale was $8 million in 2016, according to the records.

Jaybird Senior Living CEO Kevin Russell referred questions to Angie Ehlers, the company’s chief business officer.

Ehlers said Jaybird owns 54 senior communities and the conversion to rentals reflects an industry trend away from a large entrance fee.

“It’s an antiquated model that is not sustainable,” Ehlers said. “It was part of an agreement that allowed for this restructuring. … We were working within the constraints of the contract.”

Ehlers said the change to rental from a buy-in model opens up the market as baby boomers tend to have more monthly income but not the savings for a lump sum buy-in.

As to the emotional toll on the residents at River Glen, Ehlers said, “We have been talking to residents with their individual concerns.”

But others are interested in renting. They already have begun tours and are hosting an open house Oct. 28 and 29.

“A lot of people are excited about the change because it gives them an opportunity to live in our community,” Ehlers said.

Ehlers said Jaybird’s competitor Carriage Oaks of St. Charles also changed from a buy-in to rentals, reflecting the change among senior communities.

Cheryl King, executive director of Carriage Oaks, said they changed from a fee model to monthly rentals in 2019.

Their monthly fee is $4,200 for the top of the line of its 80 apartments and includes all utilities and a continental breakfast, she said.

King echoed Ehler’s explanation, saying the large entrance fee model eventually does not cover ongoing costs.

“For the most part, we had no major issues,” King said.

Other senior living communities such as Greenfields of Geneva still have a residency buy-in, according to its website, greenfieldsgeneva.org.

‘We’ve all cried’

Kathy Abbott’s son, Tony Abbott, said his brother, who is an attorney, reviewed the contract and deemed Jaybird’s actions as legal.

But it still didn’t seem right, he said.

“The emotional and mental damage that this has caused – it’s severe. It’s so much more than the financial,” Abbott said. “They had to purge their belongings and have estate sales. My mother had to purge items that were a sentimental reminder of her husband of 45 years … and all her friends scrambling to find a new place to live.”

Not everyone had resources to assist, he said.

“My mother had two sons who are professionals. We were able to find a place for her to stay,” Abbott said. “But others maybe did not have family members to help. They just had to purge all of their items to accommodate where they were moving to in a short time. It was just horrific.”

Jamie Douglass, whose 95-year-old mother will continue to live there under a legacy contract, criticized the way Jaybird handled the situation.

“It’s just an egregious act to cut seniors off at their knees with a 90-day decision,” Douglass said. “It’s a devastation to the community, a tight-knit community. Most of the elders are of the Greatest Generation and at least three were veterans.”

About five of the 28 residents stayed at River Glen while the rest relocated. About 20 of them met for brunch recently in St. Charles.

“It’s been a crying session,” Ann Richards said of their get-together. “We’ve all cried more than once.”