The article makes it sound like someone bought the place and jacked up the monthly maintenance fee by $5000 just because “fuck you.”
Well, given that they bought in under the lump-sum + maintenance model and have somehow been "upgraded" to the rental model, that's exactly what happened. It would be like buying a home and then the old owner coming back and saying, "you know what, I could get more money renting this place - you have to pay rent now." These people likely sold their house and used that money to buy into the community - essentially paying for the right to use the building until they die. It's common in CCRC facilities (continuing care retirement community). You essentially pay for the plant and then pay maintenance, and they guarantee that they will have a spot for you in their care facility as you need more assistance (Independent living -> Assisted Living -> Nursing and/or Memory Care - Hospice). It's much like a reverse mortgage in that you "buy" your "home" and get to live in it until you die, at which point the deed is turned over with your heirs getting nothing. Except that in this case you don't get a monthly payment; instead you pay a fee for the facility services which is free of a rent cost. As you move up in care, the fee gets larger to cover the additional services (additional meals, personal assistance, and ultimately nursing care), but it's just for utilities and services - your payment covers the physical buildings. As you move up, people behind you buy in and that money is used for (CEO bonuses) maintenance and updates to the buildings. Many of these are "non-profits" so the extra money technically isn't for profit, but there are lots of corporate mouths to feed in CCRCs and they find ways to distribute the money.
From the article it sound like there was no maintenance escalation clause limitation - they bought in for, say, $750,000 with a payment of $1000/month in fees, per their contract. Each year the contract maintenance increases (since costs increase) and it had gone up to ~$1300...then, all of a sudden, the owner decided that they weren't getting enough people with $750k to drop up front and added a $6.5k/month option with little or no buy in. When these residents rolled to their annual renewal, instead of the normal 3-6% increase, they were "upgraded" to the new rental-based prices - $6.5k.mo. Their contract is still valid, and they can still stay there, but based on the lawyers these people have gone to about the increase, it's all 100% legal because there is no limit in the contract on how much the fee can increase.