Snapshot of N^^ I. Began in 1961 with purchase of 400 unit - - PDF document

▶
snapshot of n
SMART_READER_LITE
LIVE PREVIEW

Snapshot of N^^ I. Began in 1961 with purchase of 400 unit - - PDF document

Dec 27, 2023 27 likes •104 views

Snapshot of N^^ I. Began in 1961 with purchase of 400 unit housing development = Bristol Village II. Largest nonprofit affordable housing = 20,000 apartments, 27

slide-1
SLIDE 1

WhyConsiderAffordableSeniorHousing MichiganCenterforRuralHealth

November11,2016

SnapshotofN^^

I. Beganin1961withpurchaseof400unithousingdevelopment=Bristol Village II. Largestnonprofitaffordablehousing=20,000apartments,27states& PuertoRico

  • III. ResidentialSeniorLiving:Ohio&Florida

I. 1,800units II. 4CCRCcampuses

  • III. 2SNFs,4IL/ALcampuses
  • IV. Home&CommunityBasedServices

I. 3Hospice,HomeHealth&PrivateDutyAgencies II. EnhancedServiceCoordinators400in28states

  • V. $315milliongrossrevenue/$288millionoperatingexpenses
  • VI. TotalLTDebt=$983million($326millionHUDinsured)
  • VII. TotalCash&Investments=$263million

TidalWaveofSeniors

  • 10,000peopleadayforthenext15years

turning65(inUS)

  • Today,just13%ofAmericansareages65and
  • lder…
  • By2030,whenallBabyBoomerswillhave

turned65,fully 18%ofthenation’spopulation willbeatleastthatage,accordingtoPew ResearchCenterpopulationprojections.

slide-2
SLIDE 2

AnnualCostsofCare

FACILITYTYPE U.S. Michigan Midland NH:Private $92,376 $98,184 $94,896 NH:Semiprivate $82,128 $91,248 $91,248 AssistedLiving $43,536 $42,756 $43,536 AdultDayCare $17,676 $20,796 $17,676 Homehealthaide $46,332 $48,048 $46,332 Homehealthcare $45,756 $46,332 $43,476

https://www.genworth.com/dam/Americas/US/PDFs/Consumer/corporate/cost-of- care/179702_CofC_Monthly_060916.pdf

UnderstandingtheCosts

“Mostpeopledon’trealize howexpensivethiscarecan beuntilaparentorfamily memberneedsit…Andthen it’sarealshock.”

– JoeCaldwell,DirectorofLongTerm Services,NationalCouncilonAging, ColumbusDispatch4/10/15

HousingisaMajorDeterminantof BetterHealth

  • Aginginplace=Leastexpensive
  • Ashealthcareneedsgrow,servicesbroughtto

theSeniorathome(servicecoordination, homehealth,primarycareonsite)

  • Quality,safe,affordablehousingleadsto

healthcaresavings

WhatisAffordableHousing?

  • Targetindividualswithlowtoverylow

incomes(ex:HuronCounty,MI)

– Median:$52,600 – Extremelylow:$24,250(30%) – Verylow:$27,100(50%) – Low:$43,350(80%)

  • Rentissetat30,50,or60%ofannualincome
slide-3
SLIDE 3

LimitedNewHousing

  • NoincreaseinSection8Vouchersforlow

incomeseniors

  • 9%TaxCreditprogram,competitive,limited
  • 4%TaxCredits– lessequity
  • WhataboutHUD202program?
  • USDARuralDevelopmentFunding

HUD202UnitsAllocatedSince1975

Source: LeadingAge

TheCriticalNeedfor SeniorAffordableHousing

  • Majorityoflowincomehouseholdsaged65+currentlylivein

housingthatisconsideredunaffordable. – 73%ofSeniorswithannualincomes<$15,000,and – 48%ofSeniorswithincomes$15,000$30,000were housingcostburdenedin2013.

  • Inthenextdecade,households65+earninglessthan$15,000

ayearareestimatedtoincreaseby37%to6.5million.

  • Increaseinhomelessseniors– CorporationforSupportive

Housing,September2016

Source:AmericanCommunitySurvey

TheTimetoActisNow!

NumberofLowIncome Seniorsrisingfasterthan everbefore Affordable Housing,a healthcare solution, dwindling

slide-4
SLIDE 4

TheSolutionisSimple

  • Preserveexistingseniorshousing
  • Buildnewwithavailableprograms
  • Combinewithhomehealthcareto

seniors

  • ExploreHomeChoiceProgram
  • Advocatefornewprograms:CMS&HUD

partner

Preservation

  • Manyagingbuildings&owners
  • Needrecapitalized
  • Poorlymanaged
  • RetainSection8vouchersorsubsidy

–Projectbased –Tenantbased

  • N^^hasfundsforacquisition

NewConstruction/Rehab9%TaxCredits

Project State Authority Equity/ Investor Lender

Compete for credit allocation based on State criteria Operate project in accordance with the tax credit requirements to rent to people at certain income Levels; ongoing compliance with tax credit program Pay distributions to investors each year File limited partnership tax return Awards tax credits to project based on 10 year allocation ~70% of eligible cost of the project Sell tax credits to for-profit Investors (banks, insurance cos.) They provide equity upfront based on tax credits to be received over 10 years Depending on amount of tax credits May need a construction lender/perm lender to finance balance due to pay in schedule

  • f the Equity at key trigger points

https://www.novoco.com/resource-centers/affordable-housing-tax-credits/lihtc- basics/about-lihtc

NewConstruction/Rehab4%TaxCredits

Project StateVolume Cap Equity/ Investor TaxExempt Bonds

Limitation on amount of projects That can be financed each year Based on federal allocation to each state Sell tax credits to for profit Investors (banks, insurance cos.) They provide equity based on tax credits to be received over 10 years Issue tax exempt bonds under Section 42 of the IRS tax code that qualify for Low Income Housing Tax Bonds – automatically Get the tax credits ~ 30% of the eligible costs Operate project in accordance with the tax credit requirements to rent to people at certain income levels; ongoing compliance with tax credit program Pay distributions to investors each year File limited partnership tax return

slide-5
SLIDE 5

PartneringwithHealthcare

  • CAHsbenefitbyservinggrowingseniorpopulation
  • Enhancedservicecoordinationbridgeshousing&

healthcare

– N^^CareGuide:evaluateseniors’healthstatus – HUDrequiresservicecoordination:residentempowerment – Healthcare&geriatricexperience – Healthassessments;vulnerableelderlysurvey – Interventions – Wellness – Collaboration:PreferredProviders!

HomeChoice

  • Programtomoveindividualsfromnursinghome

settingtosomethingmorehomelike

  • OnlyinSNFduetopaymentmethod
  • Eachstatefundsordoesnotfundthisprogramwell
  • OhioisveryproactiveinmovingindividualsfromSNF

tohomesetting

FederalFundingPrograms

  • USDA515HousingProgram– lowinterest

loansforruralfocusedprojects

– Higherincomelevelsthantaxcredits – Moredifficulttomaneuverregulations

  • FHA/HUD221Dloanprogram

– Nonrecourse,fixedratedebt – Canpartnerwithtaxcredits – Verylowcostofcapitaltoday– for40years – Upfrontcosts

CampaignforHealthyAging:SEAL

  • SEAL:ServiceEnrichedAffordableSeniorHousing
  • NewprogramcombinesCMS&HUD

– CMSpaysforhealthcare – HUDpaysforhousing

  • 7millionseniorsincomes<$14,353;74%goesto

housing

  • Expandtaxcreditsallocatedtostates
  • Expandprojectbasedsubsidy
  • Evidence:housing+services=betteroutcomes,

smarterspending,increasedaccesstocare

slide-6
SLIDE 6

CommonsatThirdOutcomes

  • HousingFirst
  • MoneyFollowsthePerson(HOMEChoice)
  • PrimaryCare&BehavioralHealthServices
  • OhioDepartmentofMedicaidGrant– 3year

– PrimaryCare&Psychiatrist&MedicalCoordinator – Served277HOMECHOICEclients

  • TheKresge Foundation– 3year

– Expandedtoserve200PermanentSupportive HousingClients

BenefitsofHomeChoice

51 35 28 9 10 20 30 40 50 60 Sept13Feb14 Sept14Feb15 ERVisits HospStays 31% Decrease 68% Decrease

ProceedingwithoutaPartner

  • Nouncertaintytotheproject
  • Feeforservicecontract
  • Justtosavecosts
  • ThepartnerCANNOTtakerisks/addsnovalue
  • Competitor
  • Retaincontrol
  • Untrustworthy
  • Poorculture

David Smith, “How to Partner”, The Tax Credit Advisor August 2012

slide-7
SLIDE 7

ProceedingWITHaPartner

  • Organizationhasenviableattribute
  • Willingnesstobeboth“and”and“or”
  • Considersizeofeachorganization– likekind
  • Complementarydomainsof

knowledge/characteristics

David Smith, “How to Partner”, The Tax Credit Advisor August 2012

WhyConsiderAffordableHousing

  • Retainseniorsinyourcommunity
  • Increasewellnessforseniorsinyour

community

  • Increaseuseofyourmedicalservicesby

seniors=highercostbasedreimbursement

  • Ifyouownit,diversifyyourrevenuestream

Thanks&Questions?

TanyaK.Hahn,CPA,MBA SeniorVicePresident/CFO NationalChurchResidences Columbus,OH 6142733640 thahn@nationalchurchresidences.org