The Platinum Group, REALTORS®Weldon HobbsColorado Springs | REALTOR®
Veteran | USAFA
Downsizing & Life Transitions

What's the difference between 55+ communities, independent living, assisted living, and memory care in Colorado Springs?

ByWeldon HobbsTeam Hobbs RealtyPublished Last reviewed

Short answer: The difference is how much care comes with the housing. A 55+ community is usually a home you buy under a federal age rule, with no care included. Independent living is typically a rental with meals, housekeeping, and activities, but no personal care. Assisted living is the first level Colorado licenses as a care setting, with help such as bathing, dressing, and medications. Memory care is assisted living with a secured environment for people living with dementia. Medicare doesn't cover the cost of living in any of them.

The four options at a glance

Option What it is Personal care included? Colorado care license? Usually buy or rent?
55+ community Housing where at least 80% of occupied homes have a resident 55 or older No No (it's a housing rule, not a care setting) Usually buy; some rent
Independent living Apartments or cottages with services such as meals, housekeeping, transportation, and activities No Not as a stand-alone service Usually rent (monthly fee)
Assisted living A residence providing room and board, personal help, and supervision available around the clock Yes Yes, licensed by CDPHE Rent (monthly fee)
Memory care Assisted living in a secured environment for residents who may not be safe on their own Yes, plus dementia-focused care Yes, under the assisted living license Rent (monthly fee)

Marketing language blurs these lines. "Senior living," "retirement community," and "active adult" can describe any of the four. The terms that matter are the legal ones: whether a community is age-restricted, and whether the care it provides is licensed.

55+ communities: an age rule, not a level of care

A 55+ community is defined by federal fair housing law, not by the services it offers. The Fair Housing Act allows "housing for older persons" to limit who lives there only if at least 80% of the occupied homes have at least one resident 55 or older, the community publishes and follows policies showing it intends to operate as 55+ housing, and it verifies residents' ages under HUD's rules.

In practice, you usually buy a home there the same way you'd buy any other home, often with an HOA and its own rules on guests, pets, and use of the amenities. No care comes with it. If someone living there needs help later, they can bring in home care the same way they could in any house.

Two things surprise people. First, a community marketed to older buyers isn't necessarily age-restricted; some are simply designed and advertised with that buyer in mind. Second, the age rules come from the community's own documents, so they're worth reading closely. See what to review before buying a home in an HOA and what to know before buying in a 55+ community.

Independent living: services, not care

Independent living is built for people who can manage their own daily routines but want less to take care of. It's typically a rental: a private apartment or cottage with a monthly fee that may cover meals, housekeeping, transportation, social activities, and maintenance.

What it doesn't include is hands-on personal care. If a resident starts needing regular help with bathing, dressing, or medications, that help usually comes from an outside home care agency at extra cost, or the resident moves to a higher level of care.

On its own, independent living doesn't provide the services that Colorado's assisted living license covers. Many campuses offer independent living, assisted living, and memory care in separate buildings or wings, so ask which parts of the campus hold a license. Some are life plan communities (also called continuing care retirement communities), which usually charge an entrance fee in addition to monthly fees; their contracts deserve a separate, careful review.

Assisted living: the first licensed level of care

In Colorado, assisted living residences are licensed by the Colorado Department of Public Health and Environment (CDPHE). The state defines one as a residence serving three or more unrelated adults that provides room and board plus personal services, protective oversight, social care, and supervision available 24 hours a day, but not to the point of requiring 24-hour medical or nursing care.

That last part is the key line. Assisted living is for someone who needs help with daily activities but not round-the-clock nursing. When needs grow beyond what a residence can provide, it may ask a resident to move. Colorado has a process for appealing an involuntary discharge from assisted living, and the long-term care ombudsman (see below) can help families understand their options.

Memory care: assisted living with a secured environment

Colorado doesn't license memory care as a separate type of facility. It's provided inside a licensed assisted living residence, usually in a secured unit or building. A residence that serves people who might not be safe outside it must provide a secured environment, and the state's assisted living rules add requirements for assessing who needs that setting and for training the staff who work there.

Beyond memory care is a nursing home (a skilled nursing facility), which provides 24-hour nursing care and is also licensed and inspected by the state.

Who pays for what

This is where many families' assumptions break down.

  • Medicare doesn't pay for long-term custodial care, meaning help with everyday activities like bathing and dressing, when that's the only care someone needs. It can cover a short skilled nursing stay after a qualifying hospital stay, but not the ongoing cost of living in any of these settings.
  • Health First Colorado (Medicaid) can pay for assisted living care services through its Elderly, Blind, and Disabled waiver, but only in residences certified as Alternative Care Facilities, and only for people who qualify medically and financially. The resident pays the full cost of room and board. If a family is counting on Medicaid, confirm a residence's certification before choosing it.
  • VA Aid and Attendance adds a monthly payment to a VA pension for eligible veterans and surviving spouses who need help with daily activities. It's pension-based, so not every veteran qualifies.
  • Private funds and long-term care insurance cover most of the rest, and for many homeowners the house is the largest private fund there is.

For a side-by-side way to compare the monthly cost of staying home against moving, see whether downsizing or moving to independent living actually saves money.

What each option means for the house

Which option someone chooses changes the real estate plan more than most people expect.

If it's a 55+ community, you're usually selling one home and buying another, so the question becomes timing: sell first, buy first, or line up both closings. Your lender and the HOA's rules are part of that plan.

If it's independent living, assisted living, or memory care, you're typically trading ownership for a monthly fee, and the home often becomes the money that pays for it. The community's move-in date tends to drive everything else. In some cases, the seller can stay in the home for a while after closing so the move and the sale don't have to happen on the same day. See whether to sell before moving into senior living.

The first thing I ask is where you're going. That answer sets how much comes along, how much has to be cleared out, and when the home can realistically go on the market. An apartment in independent living or a room in assisted living holds far less than a house, so measure the new floor plan early; some communities will help with space planning. From there, I put the move-in date, the clearing out, and the listing on one project schedule and adjust as we go. There's the ideal timeline, and then there's reality.

Selling a longtime home can also raise tax questions. See capital gains when selling a longtime home and what happens to property taxes when you downsize.

Checking a community in Colorado Springs and El Paso County

  • License and inspection history: CDPHE's Find and Compare Facilities tool shows licensed assisted living residences and nursing homes, including inspection and compliance history. It's worth checking before you tour.
  • The long-term care ombudsman: in El Paso, Park, and Teller counties, the ombudsman program is part of the Pikes Peak Area Agency on Aging (719-471-2096). It offers free, unbiased consultation to families looking for a care facility, including residents' rights and how facilities operate, and advocates for residents when problems come up.
  • For a 55+ community: ask for its written age policy and its HOA documents, and review the rules on guests and rentals before you make an offer.
  • Help finding options: the Pikes Peak Area Agency on Aging also offers information and referrals for adults 60 and older and their caregivers. See what help is available for seniors who are moving or downsizing.

Useful questions for any community:

  • Which parts of the campus are licensed, and for what?
  • What's included in the monthly fee, and what costs extra?
  • How have fees increased over the past few years?
  • What happens if care needs increase? When would a resident be asked to move?
  • For assisted living: is the residence certified as an Alternative Care Facility for Medicaid?

How to tell which option fits

  • If someone manages their own daily routines and wants less house, a smaller home, a 55+ community, or independent living may fit, depending on whether they want to own.
  • If they want no home maintenance at all and like having meals and activities built in, independent living is the usual match.
  • If they need regular help with bathing, dressing, or medications, assisted living is the level built for that.
  • If memory changes make it unsafe to live without a secured setting, memory care is the level built for that.
  • If they need 24-hour nursing, a nursing home may be the right setting.
  • If you're not sure, a good first step is a conversation with the person's doctor. Communities also do their own assessments before move-in.

Many people move more than once as needs change, so it helps to think one step ahead: if this move works for now, what happens next, and would it mean another move?

If you're an adult child helping a parent, the parent is still the decision-maker unless someone holds legal authority to act for them. I can't force anybody to move, and I always want to respect the actual owner's wishes. See how to help aging parents decide whether to stay or move and whether you can sell a parent's house with a power of attorney.

What could change the answer

  • Care needs change. A choice that fits today may not fit in two years. Ask each community what happens when needs increase.
  • Contracts vary. Entrance-fee communities, month-to-month rentals, and care-level pricing work very differently. It's worth reading the contract before signing and having an attorney review any entrance-fee agreement.
  • Medicaid eligibility has its own rules. How a home is sold, and what happens to the proceeds, can affect eligibility for long-term care benefits. If Medicaid may be needed, get advice before selling.
  • Rules and programs change. Colorado's assisted living regulations and Medicaid programs are updated from time to time. Check current rules with CDPHE and Health First Colorado.

When to talk with a professional

  • A doctor or geriatric care professional can help assess what level of care someone actually needs.
  • An elder law attorney can review a community's contract, powers of attorney, and how selling the home could affect Medicaid. See how to choose an elder law attorney.
  • A Case Management Agency determines eligibility for Health First Colorado's long-term care waivers.
  • An accredited VA representative can help with an Aid and Attendance claim.
  • A CPA can explain the tax side of selling the home.
  • A real estate professional can help you line up the sale with the move-in date. See who should be on a downsizing team and the steps to downsizing.

If you're weighing one of these moves and aren't sure how the house fits in, including whether to sell first, how the timing lines up with a move-in date, or what the equity could cover, let's map it out together. I can help with the real estate side and point you to the right people for the care, legal, and benefits questions. If the move is to a community near family in another state, I can help you find and personally vet a real estate professional there.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

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