There are 201 units up for sale in Seal Beach Leisure World as of Monday, May 21.
The fact that so many units are up for sale does not necessarily mean bad news for the retirement community.
The units range in price from $59,000 to $409,000, according to current real estate listings provided by Chamber of Commerce President Nat Ferguson.
There are 6,482 cooperative units and 128 condominiums in Leisure World, according to the 2011 Annual Report for the Golden Rain Foundation of Seal Beach.
Leisure World is home to approximately 9,000 residents. That’s slightly more than a third of the city’s overall population of 24,168 reported by the 2010 U.S. Census. The retirement community straddles two City Council districts.
Seal Beach Mayor Michael Levitt, who lives in Leisure World and represents District 5 on the council, speculated that the economy may be the reason for the glut on the market.
Levitt said the community is lookin at an economy where people may feel they don’t make enough money—or don’t have enough retirement money—and are staying where they are rather than move into Leisure World.
Residents who buy into Leisure World by a share in one of the 16 mutual benefit corporations that make up the gated community. A shareholder is allowed to live in a unit, but does not own the unit.
The price of the share, however, is based on the market value of the unit the resident chooses to move into.
“Each of the 16 mutuals owns its own property,” Levitt said.
He said that the units on the real estate market don’t represent a problem for Leisure World as long as someone lives in them.
However, there might be a problem if the units were empty because the family of a deceased member did not or could not move in, because then a resident would not be maintaining the unit.
Without knowing how many of those 201 units are occupied or empty, it is impossible to know if the for-sale units represent a potential drain on Leisure World’s income. The Golden Rain Foundation charges a monthly fee for shareholders living in Leisure World.
Golden Rain Foundation Executive Director Dan Schaeffer checked with an unspecified number of real estate agents and confirmed the 201 unit figure.
“I am not aware of these units in our Community requiring any changes to the monthly carrying charges for our shareholders,” Schaeffer said.
Shareholders are not allowed to sublet units.
“We want to be sure that everyone that moves in here is reliable, responsible and can take care of themselves,” Levitt said.
Levitt said allowing units to be sublet would not allow Leisure World that level of control to make
Potential residents are screened for physical and financial health.
To make a comment on this story at the Sun Newspapers’ Web site, go to www.sunnews.org.
