The Terraces of Los Gatos: A Life Plan Community Guide

If you’ve been in your home 20 or 30 years and you’ve started thinking about where the next 20 will happen, a Life Plan community like The Terraces of Los Gatos is probably on your radar. It’s a different animal from a rental assisted living building, because you’re choosing a place to live while you’re still independent and, at the same time, locking in a plan for care you may need later. That makes it as much a financial and real estate decision as a lifestyle one, and that’s the lens I’d like to bring to it here.

In my tour video above you’ll see the campus, the common spaces and a sense of how residents spend their days. Below, I’ll cover what the community offers, how the entrance fee model works, and how the home you’ve owned for decades usually fits into the plan. I’ll also share the timing issue that catches more families off guard than anything else.

The campus at 800 Blossom Hill Road

The Terraces sits at 800 Blossom Hill Road, on a tree-lined stretch of Los Gatos, with the entrance marked by a low monument sign and a small stone cat perched on one corner, which feels about right for a town whose name means “the cats.” The campus covers roughly nine acres of landscaped gardens and courtyards, with housing that includes apartments and patio homes. Vasona Lake County Park, downtown shops and restaurants are close by, so residents can keep the routines they’ve built in this town for years.

It’s operated by HumanGood, a California nonprofit public benefit corporation that’s been serving older adults since 1955. Nonprofit ownership doesn’t guarantee anything on its own, but it does shape how a community reinvests and how it approaches residents who run into financial trouble later in life, so it’s a fair question to ask about on a visit. The community’s site also notes recognition from U.S. News & World Report as a 2026 Best Continuing Care Retirement Community.

How the levels of care fit together

A continuing care retirement community (CCRC), which the industry now often calls a Life Plan community, is built so that residents can move through several levels of care without leaving campus. At The Terraces that continuum looks like this:

Independent living in apartments and patio homes, with maintenance, housekeeping and many services handled for you
Assisted living for help with daily activities like bathing, dressing, medications and mobility
Memory care for residents living with Alzheimer’s or other dementia (the community has described its newer memory care residences as The Grove)
Skilled nursing and short-stay rehabilitation at The Health Center, for recovery after a hospital stay or longer-term nursing care

The value of this setup shows up in the hard moments. If one spouse needs rehab after a fall or a move into memory care, the other can stay in the same community, still eat in the same dining room and walk over to visit, instead of driving across the county. That’s a big deal for couples, and it’s often the single reason people choose a CCRC over a series of rentals.

What daily life offers

The amenity list is long, and it leans toward people who want to stay active and keep learning. Based on the community’s materials, highlights include multiple dining venues with chef-prepared meals ranging from casual to fine dining, a fitness center with classes and personal training, a heated outdoor pool and hot tub, pickleball courts and a putting green. There’s also a spa and salon, a wellness center, an auditorium with a stage and movie screen, and a long list of resident-run groups, from book clubs and card games to choral groups and a resident literary magazine called The Rag.

On the practical side, housekeeping is included, utilities typically cover basic cable and high-speed internet, scheduled local transportation handles shopping and some medical appointments, and there’s 24-hour emergency response and security. The community is pet-friendly, and gardeners can claim space in the rose gardens and raised planters. For someone who’s spent years keeping up a yard and a roof, trading those chores for a clubhouse and a pool is usually the part that sells itself.

The entrance fee, and why the house matters so much

Like most CCRCs, The Terraces uses an entrance fee (sometimes called a buy-in) plus an ongoing monthly service fee. The entrance fee secures your place and access to the continuum of care, and the monthly fee covers housing, dining, services and amenities. HumanGood doesn’t publish a fee schedule on its main page, so ask for current entrance fee options, monthly fees and what, if any, portion of the entrance fee is refundable, as of September 2026 and in writing.

This is where my world and the senior living world overlap. For most local buyers, the entrance fee comes from the sale of the family home, and in Los Gatos, Saratoga or Willow Glen that home is often the largest asset by a wide margin. Compared with a monthly rental community where the house proceeds slowly fund rent over time, a CCRC needs a meaningful chunk of that equity up front, so the sale price and the timing of the closing matter a great deal.

Getting this right is mostly about sequencing and taxes, and small decisions early on can make a big difference in what you net. Every family’s situation is a little different, so treat these as conversation starters with your CPA and with me. Here’s what I’d put on your planning list:

Section 121. If you’ve owned and lived in your home for at least two of the last five years, the IRS primary residence exclusion shelters up to $250,000 of gain for a single owner or $500,000 for a married couple. Long-held Silicon Valley homes often carry gains well beyond that, so bring your CPA in before you list.
Sequencing. Some CCRCs let you reserve a residence with a deposit and close on the rest of the entrance fee later, which can line up nicely with a home sale. Ask The Terraces what its deposit and move-in timeline allow, and whether a bridge loan or other short-term financing makes sense for you.
Prep costs. Compass Concierge can front the cost of paint, flooring, landscaping and other prep so the house shows its best, with the cost repaid at closing. Selling as-is is also a reasonable choice when you’d rather not take on a project.
Prop 19. California lets homeowners 55 and older transfer their property tax base to a replacement home, but moving into a CCRC generally isn’t buying a replacement home, so this usually won’t apply unless you’re also purchasing somewhere else.

If you want a sense of how I prepare and market a longtime family home for this kind of move, my selling process page walks through it. The short version is that we start with your move-in date and work backward, so the sale supports the plan instead of the other way around.

Read the contract before you sign

Continuing care contracts in California are regulated by the Department of Social Services, and the CDSS Continuing Care Contracts Branch has consumer information on how these agreements and entrance fees work. Communities are required to give prospective residents a disclosure statement and the contract itself before signing, and California law also provides a window after signing when a resident can cancel. Read both documents carefully with an attorney or financial advisor, paying close attention to refund terms, how monthly fees have increased historically, and what happens if you outlive your resources.

Don’t wait too long

Here’s the timing issue I mentioned. Most Life Plan communities ask new residents to meet health criteria for independent living at the time they move in, which means the door to the full continuum is widest while you’re still healthy and active. Families sometimes put off the conversation until a health event forces it, and by then the options can narrow to assisted living or a rental community instead.

That’s why I encourage adult children and their parents to talk about this earlier rather than later, ideally over a couple of relaxed conversations instead of one tense one. Touring together, looking at a floor plan and imagining which pieces of furniture would fit tends to make the idea feel less abstract and more like a choice you’re making for yourselves. You can request a visit through The Terraces of Los Gatos’ official website.

Frequently Asked Questions

Is The Terraces of Los Gatos a CCRC?

Yes, it’s a Life Plan community, also known as a continuing care retirement community, operated by the nonprofit HumanGood. It offers independent living, assisted living, memory care, skilled nursing and short-stay rehabilitation on one campus. Confirm which contract types are currently available directly with the community.

How much does it cost to live at The Terraces?

The Terraces uses an entrance fee plus a monthly service fee, and the amounts depend on the residence and contract you choose. Pricing isn’t published on the community’s main page, so request the current fee schedule in writing. Ask what portion of the entrance fee, if any, is refundable and how monthly fees have changed over recent years.

Can I use the sale of my home to pay the entrance fee?

That’s how most local residents fund it. The key is timing the sale so the proceeds are available when the entrance fee is due, which may involve a reservation deposit, a bridge loan or moving before closing. Talk with a CPA about the Section 121 capital gains exclusion before you list, since long-held homes often have large gains.

Do I have to be healthy to move into a CCRC?

Most Life Plan communities ask new independent living residents to meet certain health and financial criteria at entry. That’s the main reason planning ahead matters, because waiting until after a health event can limit your options. Ask The Terraces what its current admission requirements are.

Who regulates continuing care contracts in California?

The California Department of Social Services oversees continuing care contracts through its Continuing Care Contracts Branch. Its website explains how these contracts, disclosures and entrance fees work. Reviewing that information before you sign is a smart step, along with having an attorney or advisor read the contract.

If The Terraces is on your short list and you’re trying to figure out how and when to sell the house to make it happen, I’d love to help you map it out. Give me a call or text at 408-596-1623, or set up a call with me at a time that’s easy for you, and we’ll build a plan around your move-in date.

This article is for general education only; please confirm pricing, availability and care details directly with the community, and keep in mind I’m not an attorney or CPA.