Motaini,
It sounds like you have gotten some great comments here. Especially the comments about financials, liquidity issues, and affinity fraud.
You said that the retirement complex is run by a provincial religious group (you called it a "conference" - not sure what that means other than a group of people - so this may or may not be a registered society) is "backed" by a national religious group. I think that what you are referring to (correct me if I am wrong) is that religious groups raise money and engage in business in a way that is not legally enforceable against the group (which may or may not even exist as a legal entity), and yet is, at the same time, reliable in the practical sense... so reliable that the members of the group may not even consider their obligations to be voluntary.
What the other posters are saying is that if that group somehow falls victim to bad luck or fraud, then you and all of the other investors will technically be left holding the tab. There may well be fundraising efforts or other measures taken by the religious group to make up for the loss, but those will not relieve the heart-stopping period where you stop earning interest, the strain on relationships, and the possibility that the loss may not be made up at all. The risk of that last possibility arising may only be low or moderate (I don't think that anyone, after witnessing the recent madness that unfolded in the USA, the ripples in the financial market, and the global recession that all of that triggered, would dare to say that any such risk is "remote"
), but you can reduce that risk by investing in other things.
The 2-3 week lag in removing your funds indicates a serious liquidity issue, if you ask me. If things go south, and you get wind of it, and you try to protect your family by pulling your money out... just how much do you think you are going to be pulling out after a 2-3 week lag time? I don't mean to sound harsh -- just remember that a business can encounter difficulties that don't necessarily have to be caused by Enron-level deceit. Running a business is difficult, and cash flow is an ongoing challenge.
I appreciate the personal relationship with the fellow who is running the complex -- that is certainly of value. There is still some risk, however. Even accepting that he is an honest man, there is no guarantee that he himself will not fall victim to fraud, poor planning, bad luck, inept employees, etc. Maybe your personal relationship with him is close enough that you have an in-depth conversation about the business every month or so. Maybe it isn't. That's up to you. Please also consider what will happen if he leaves.
I haven't yet heard a reason not to invest some money in this complex, assuming that they aren't carrying huge debt or paying grossly inflated operating expenses. But I would caution you against investing all of your savings in any single enterprise, when you aren't intimately familiar with the practical and financial concerns of the business.
Other than that, it sounds promising. Good luck with everything and please keep up posted.
