WHO ARE WE? Retirement Living. Enhancing recreation, social, economic and community services within the Town of Niverville and the region

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2 WHO ARE WE? Retirement Living Niverville Heritage Holdings Inc. (NHHI), developers of Heritage Life - Retirement Living, is a community owned, not for profit corporation that is focused on social enterprise. Formed in 2005, the mandate of NHHI is; Enhancing recreation, social, economic and community services within the Town of Niverville and the region The original members of NHHI were the Niverville Recreation Commission, the Niverville Chamber of Commerce and the Niverville Health and Community Foundation. Each of these entities appointed an individual who would serve on the inaugural board. Today, there are 6 board members with a 7th to be added sometime in Each board member brings knowledge and experience in areas of finance, entrepreneurship, health, human resources, spiritual care and political acumen that collectively form a solid foundation for planning and decision making. NHHI has been the corporation that has driven the fundraising and development of the Niverville Heritage Centre campus into a gathering place for the entire community that includes; Niverville Credit Union Manor, a 36 resident assisted living and supportive housing residence, Heritage Life Personal Care Home, an 80 resident personal care home, the Niverville Primary Health Care Centre, Niverville Medical Clinic (doctor s office), Growing Minds Child Care Centre, Niverville Heritage Dental Centre, Niverville Heritage Gardens, Hespeler s Cookhouse & Tavern and the Niverville Heritage Centre - Event Centre.

3 WHO IS LIFE LEASE FOR? The initial cost of securing a life lease varies widely. First of all, the cost of the unit will be affected by its size, amenities and location. In addition, the proportion of that cost covered by initial payment could be affected by other factors, such as the age of the individual or couple, and the amount of the payment that can be redeemed at the end of the lease by the leaseholders or their heirs. In general, the initial payment for a life lease will typically vary from 25 to 100% of the cost of purchasing a similar unit outright. Life Lease projects cater mainly to senior adults. They particularly provide older homeowners with an opportunity to move into smaller, more manageable housing options than their existing homes. Qualifying homeowners typically are able to use the equity resulting from the sale of their homes for the entrance fee payment. Depending upon the project, the amount of that payment is affected by various factors, including their life expectancy and the redemption value of the unit at the end of the lease. In many cases, financing is also available for some portion of the value of the life lease. Essentially, life lease projects provide individuals and senior aged couples with an affordable housing option with a life time right to occupy a unit and have access to communal facilities and services with the assurance that their neighbours will be in the same age group. Heritage Life Retirement Living policy requires that the minimum age of an individual or one of the partners be 55 years or older. If the qualifying spouse passed away leaving an under aged partner, that person will be grandfathered into the life lease unit and not be required to move.

4 WHAT IS LIFE LEASE? HOW THE LIFE LEASE STRATEGY WORKS In a life-lease project, an individual or couple acquires the life lease through a single upfront payment called the entrance fee. In addition, they are responsible for paying a monthly common fee towards the management and upkeep of the property and a monthly rent amount if the entrance fee is less than the retail value of acquiring the suite. Life-lease residents are neither owners nor renters. They have a leasehold interest in their accommodation, which is defined in a contract, and giving them the life-time right to occupy their suite and to use various common areas and facilities. When a life-lease occupant moves out or passes away, the tenancy generally reverts back to the sponsoring organization. The occupants or their heirs receive the amount redeemable at the end of the lease. The sponsor then resells the rights to the unit to another individual or couple meeting the age requirements. In addition, some non-profit life-lease sponsors may give preference to a community constituency. There are various types of life leases. They are differentiated mostly by how the redemption value of the initial payment is determined. Different approaches will be more suitable to different seniors, depending upon such factors as their life expectancy, their equity and their concern about protecting or enhancing that equity. Similarly, different approaches will be preferred by different providers depending upon their objectives. Heritage Life Retirement Living offers both a Guaranteed Buy Back Option and an Equity Based Option both explained elsewhere in this information package.

5 PEACE OF MIND & OPPORTUNITY Heritage Life Retirement Living offers 2 different opportunities for individuals and couples to acquire a life lease unit. 1. GUARANTEED BUY BACK OPTION An individual or couple would pay an Entrance Fee typically 25% (or more) of the value of the life lease suite up to 100% of the suite value. For example, a 50% Entrance Fee for a suite valued at $200,000 would be $100,000. A monthly rental amount would then be determined that is based on financing the difference between the Entrance Fee and the suite value.. Using the example above, the balance of $100,000 (difference between the suite cost and the Entrance Fee $200,000-$100,000 = $100,000), and using mortgage terms of 25 years at 4.00% interest, the rental portion would be approximately $528 per month. (Note: that the larger the Entrance Fee paid, the lower the monthly rent portion. If a 100% Entrance Fee were paid the monthly rental portion would be $0.00). A monthly Proportionate Share or Common Fee also applies that cover utility costs, common area housekeeping, maintenance and property taxes etc. These fees would be in the range of $325 per month and $725 per month depending on the size of the suite. When the suite is no longer required, notice is provided that the suite will be vacated and a Buy Back Guarantee would apply. Within 90 days notice, the individual or couple would receive back 95% of their Entrance Fee. 2. EQUITY BASED OPTION In an equity based model, the couple or individual would pay 100% of the value of the suite. No monthly rental amount ($0.00) would apply. Common Fees would still apply and are based on suite size. In an Equity Based model, the individual or couple would take responsibility for the sale of the life lease suite when it is no longer required. They would keep the appreciated value that the suite (less an administration fee) may have gained. However, they also accept the risk that the suite may not appreciate. 2.5% of the selling price of the life lease suite is required to be paid to the sponsor as an administration fee. Buy Back Guarantee would not apply.

6 WHAT DOES HERITAGE LIFE OFFER? Be part of an incredible new retirement living experience in the unique community of Niverville, Manitoba. HERITAGE LIFE - RETIREMENT LIVING OFFERS: A four storey residence with spacious, elegant suite design offering a wide variety of floor plans and purchase options. Each suite has either a Balcony or Sun Room. Most suites have two bathrooms. Underground parking included! Each suite has access to a personal storage locker included! Scooter parking available. Visitor parking available. Optional Meal Service. Optional Housekeeping Service. Optional Personal Laundry Service. Convenient access to Niverville Primary Health Care Centre offering - Homecare and Mental Health Regional Services Laboratory Services - Public Health Nurse Flu Clinics etc. Convenient access to Niverville Medical Clinic (Doctor s Office).

7 WHAT DOES HERITAGE LIFE OFFER? Convenient access to Niverville Heritage Dental Centre (Dentist). Convenient access to Niverville Service to Senior s Adult Day Programs (weekly meals, entertainment, crafts, games etc.). Convenient Access to the Hair Salon. Convenient access to Hespeler s Cookhouse & Tavern. Available grocery delivery service from local grocer Bigway Foods. Available prescription delivery service from Niverville Pharmacy. Outdoor walkways with green space that provide gardening opportunities with local community volunteers. Large common area for social gatherings with available catering services. Access to Heritage Centre Guest Suites. Workshop for hobby enthusiasts. Craft and games area. Lounges on each floor. Recreation and fitness opportunities. Next door to Old Drovers Run Golf Course! Intergenerational activities. Part of an aging in place community campus that includes; Independent Living Assisted Living Supportive Housing Personal Care Home Special Care

8 PURCHASE COST & MONTHLY RATES ACQUISITION COSTS OF LIFE LEASE SUITES (PRE-TAX ESTIMATE) Suites between 741 and 957 square feet (various sizes refer to floor plans) in size will range in price (estimate) between; $195,000 and $240,000 Suites between 1,078 and 1,393 square feet (various sizes refer to floor plans) will range in price (estimate) between; $260,000 and $330,000 Suites between 1,489 and 1,619 square feet (various sizes refer to floor plans) will range in price (estimate) between; $360,000 and $390,000 MONTHLY RENTAL COSTS BASED ON ENTRANCE FEE (ESTIMATED) Using an example of a suite that is 1,078 square feet in size Estimated price of the suite is $275, year term at 4.00% interest 25% entrance fee of $68,750 Monthly rental cost is approximately $1,089 50% entrance fee of $137,500 Monthly rental cost is approximately $726 75% entrance fee of $202,500 Monthly rental cost is approximately $ % entrance fee of $270,000 Monthly rental cost is approximately $0.00

9 PURCHASE COST & MONTHLY RATES MONTHLY COMMON FEES BASED ON SUITE SIZE OF 1,078 SQUARE FEET Includes hydro, water, property tax, maintenance. Common area fees are approximately $5.25 per square foot (yearly) 1,078 X 5.25 = $5,660 per year or approximately $472 per month MONTHLY FEES (RENTAL AND COMMON) BASED ON SUITE SIZE OF 1,078 AND WITH A 50% ENTRANCE FEE Monthly Rental Fee is $726 Monthly Common Fee is $472 Total Monthly Fee (rental and common) is $1,198 per month

10 NEXT STEPS Arrange a meeting with a Heritage Life Retirement Living Representative to discuss next steps in acquiring a life lease unit. 2. Arrange to provide a pre-lease payment (not to be confused with the entrance fee). Heritage Life Retirement Living requires that a $1,000 pre-lease payment be made that will confirm your expression of interest. If you enter into a life lease later, we will either return the pre-lease payment or apply it to the entrance fee. A pre-lease payment is not a deposit. It doesn t guarantee that we will offer you a life lease. The pre-lease payment will be held in trust until such time that a life lease is offered to you. If a life lease is not offered or you change your mind, the pre-lease payment will be returned to you. The date upon which we receive your pre-lease payment will place you in priority sequence for choosing a suite. 3. Right to Cancel As long as you haven t taken possession of the unit, you have seven days to cancel. This is called a cooling-off period. The seven day cooling-off period starts the day after the landlord gives the tenant the Tenant s Right to Cancel statement (typically provided upon the signing of the lease), whether or not the tenant has already signed the life lease. 4. Choose a Suite Size. A calculation will be made for the monthly common fee based on the suite size chosen 5. Choose a Purchase Option. The Guaranteed Buy Back or Equity Based option. 6. Arrange necessary financing. The Niverville Credit Union has indicated that they would be pleased to review financing options with individuals seeking to make a life lease purchase. Please call (204) for more information.

11 NEXT STEPS Have Your Lawyer Review the Life Lease Agreement and all disclosure documents that we will provide to you. 8. Decide on an amount and provide the Entrance Fee payment. A calculation will then be made on the monthly rental payment 9. Decide on any additional amenities such as meal services, housekeeping, laundry service, cable TV, telephone and internet. 10. Arrange insurance for your personal belongings and an amount for personal liability insurance. Heritage Life Retirement Living will carry general liability insurance. 11. Arrange for the Occupancy Date. 12. Complete an Electronic Funds Transfer Agreement with Heritage Life Retirement Living. 13. Take possession of your new life lease home at Heritage Life - Retirement living!

12 FLOOR PLAN OPTIONS SUITE TYPE R 820 SQ. FT.

13 FLOOR PLAN OPTIONS SUITE TYPE G 1078 SQ. FT.

14 FLOOR PLAN OPTIONS SUITE TYPE I 1220 SQ. FT.

15 FLOOR PLAN OPTIONS SUITE TYPE J 1393 SQ. FT.

16 FLOOR PLAN OPTIONS SUITE TYPE L 1489 SQ. FT.

17 FLOOR PLAN OPTIONS SUITE TYPE O 1619 SQ. FT.

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