ROANOKE CO., Va. – A local retirement community, Friendship Retirement Community, has filed a lawsuit against Roanoke County. The nonprofit organization claims that the county has unfairly revoked the tax-exempt status of some of its properties.
Friendship Retirement Community acquired Richfield Living in 2023.
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“Both Friendship and Richfield Living have a 50+ year history of operating as nonprofit, senior living communities used exclusively for charitable and benevolent purposes. The purchase allowed Richfield to remain locally owned and operated rather than being sold in pieces to for-profit, out-of-town companies. Friendship has been able to maintain the same level of care, service and housing for approximately 550 Richfield Living residents without significantly increasing rates or making substantive changes to the services across the campus,” said a news release.
The organization now alleges that Roanoke County plans to increase the property’s value by more than 40% and remove its tax-exempt status. This change would result in a tax increase of more than 470%.
The CEO of Friendship Retirement Community expressed concern that the tax hike would force seniors on fixed incomes to pay more each month. The lawsuit seeks to restore the tax-exempt status under Virginia law.
“We are deeply disappointed that Roanoke County has taken this position,” said Friendship President and CEO, Joe Hoff in a news release. “We are a responsible corporate citizen and one of the largest employers in our region. Our organization provides critical services to more than 1,500 seniors, and these taxes will ultimately impact our ability to keep housing affordable for many of our residents with fixed budgets. An increase of more than half-million dollars in our taxes each year could result in our retired residents on fixed incomes having to pay more each month,” said Hoff.
Roanoke County has declined to comment on the lawsuit.
Friendship Retirement Community operates skilled nursing and healthcare centers, assisted living facilities, memory care facilities, and independent living apartments/cottages for the elderly and/or disabled in Roanoke County.