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Petitioner operates the Highland Farms Retirement Community
(Highland Farms), a continuing-care residential retirement
community located in the Swannanoa Valley in western North
Carolina, approximately 1 mile west of the town of Black Mountain
and approximately 13 miles east of Asheville. During 1988,
Highland Farms included five different types of accommodations:
cluster homes or condominiums,4 apartments, a lodge, a rest home,
and a health-care center. This full-service community allowed
residents to proceed through different levels of independent
and/or assisted living accommodations, if they so chose, as their
needs changed.
Highland Farms had numerous facilities for leisure
activities and hobbies. These facilities included lounges for
social functions, a woodworking shop, arts and crafts rooms, a
library, a music room, pianos, organs, a greenhouse, vegetable
gardens, a billiard room, shuffleboard, horseshoes, croquet, a
whirlpool, and a photography darkroom. The recreational
facilities were generally available without charge for most
Highland Farms residents,5 but petitioner charged for instruction
or materials. Also located on the premises were a beauty salon,
a barber shop, and a commissary. Petitioner made available two
guest rooms at reasonable rates.
4 All references to cluster homes hereafter will also
include condominiums. References to condominiums, however, will
be to the condominiums only.
5 Cluster home residents were charged a monthly fee for the
recreational facilities; during 1988, this fee was $15 per
occupant, not including materials.
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