By DAN TOMASELLO
LYNNFIELD — The price tag for buying a Lynnfield Initiatives for Elders, Inc. (L.I.F.E.) property is going up similar to housing costs across the state.
L.I.F.E. Board of Directors President Sal Yerardi recalled during the Select Board’s May 8 meeting that the nonprofit organization’s Articles of Organization require the board to approve unit price changes at the three L.I.F.E. villages.
“The L.I.F.E. Board was here four-and-a-half years ago in September 2018 to request price increases,” said Yerardi. “We received your approval at that time.”
Yerardi said selling and reselling units is the main source of revenue for L.I.F.E.’s Replacement Fund.
“That is the fund we use to replace equipment and property when we refurbish a unit when a resident leaves,” said Yerardi. “The sale and resale of units is our main source of revenue, where the difference between the current and original price is shared equally between L.I.F.E. and the resident.”
Yerardi recalled that the L.I.F.E. Board of Directors recently voted to increase prices for units at the three villages. He said units at Colonial Village, which is located at MarketStreet Lynnfield, will be increasing 7.5 percent. He said the units at Center Village and Essex Village will each be increasing 9.5 percent.
“This is the second increase in price for the Colonial Village units since the price was first established in 2013,” said Yerardi. “With the addition of Colonial Village, there is now a mix of garden-style units as well as well as townhouse-style units among the three villages.”
Yerardi said the L.I.F.E. Board of Directors conducted research on area garden and townhouse units to develop the proposed price increases. He said the board reviewed garden and townhouse unit costs in Lynnfield, Peabody, North Reading, Reading and Wakefield.
“We feel that the new prices still remain below their comparable or median value,” said Yerardi.
Yerardi said the L.I.F.E. Board of Directors proposed increasing the cost of one-bedroom Center Village units from $168,800 to $184,800. He said the directors recommended increasing the price for two-bedroom Center Village units from $211,200 to $231,300. He said the board proposed that the cost for Essex Village two-bedroom units increase from $274,900 to $301,000.
Additionally, Yerardi said the L.I.F.E. Board of Directors recommended increasing the price for Colonial Village apartment end units from $413,900 to $444,900. He said the board supported increasing the cost for Colonial Village two-bedroom interior apartment-style units from $347,000 to $373,000. He noted that the board proposed increasing the price for Colonial Village one-bedroom units from $277,500 to $298,300.
Yerardi said the board recommended that the cost for Colonial Village Building 5 end units increase from $445,700 to $479,100. He said the board proposed increasing the price for Colonial Village Building 5 middle units from $429,800 to $462,000. Yerardi said the board recommended that the price for Colonial Village Buildings 1-4 end units increase from $435,100 to $467,700. He said the board proposed increasing the cost for Colonial Village Building 3 townhouse middle units from $49,200 to $450,600.
In addition to selling and reselling units, Yerardi said L.I.F.E. charges a reserve fee that ranges between $30 and $50 per month in order to raise revenue for L.I.F.E.’s Replacement Fund.
“It’s about 5 percent of the maintenance fee that they pay,” said Yerardi. “We also have some equity in our investment portfolio, and we hope that continues to climb.”
Select Board member Phil Crawford expressed his support for increasing the costs for L.I.F.E. units.
“It has been much needed over the years,” said Crawford. “From 2018 to now, the increased value of real estate in this area has gone up considerably. We haven’t done anything to compensate L.I.F.E. for doing that or the owners. I think it’s needed and a good time to do it.”
Select Board member Dick Dalton agreed.
“It’s very much needed,” said Dalton. “Partridge Lane has 24 condominium units. From 2018 through this past month, the average selling price for a unit at Partridge Lane has gone up 40 percent. What is being proposed for L.I.F.E. is a very, very modest increase compared to what is happening in the marketplace.”
Select Board Chairman Joe Connell also said he supported the recommended L.I.F.E. unit price increases.
After the discussion, the Select Board unanimously approved the price hikes.