Senior Living News Wire

It’s that time of year again to take a look back at the most popular stories on SHN this past year.   See what’s in the top 10 and our commentary to make you smile.

1.  10 Senior Housing & Senior Living Trends To Watch In 2010  -  Guess what?  Our 2011 Trends will be hot off the word processor in early January.

2.  Del Webb Survey Previews Boomer Preferences On Retirement Housing – You can’t always get what want, but if you try sometime well you just might find, you get what you need…

3.  MEDCottage ‘Granny Pod’ Getting Attention in Virginia – Lots of interest in putting Granny in the backyard….assuming she didn’t get run over by the reindeer this weekend.

4.  Review Of Senior Technology Products & Silvers Summit @ CES 2010….  – SHN is back to CES this year to cover 2011’s event and moderate a panel.  Lookout for updates form geek heaven in early January. 

5.  Where to Go For Most Affordable Housing? Enjoy the Winter in Detroit  – Affordable housing…where can you get it?  Very popular trend / topic across SHN this year.

6.  Jane Fonda, Oprah Bond on Aging and Senior Fitness  – Who doesn’t love these two media mavens? 

7.  Classic Residence by Hyatt Changes Name to Vi – Hmm.  We got nothing here.

8.  Senior Housing Industry Outlook & Trends For 2009 – Seriously?  In the words of Fergie….that’s so two thousand and late.

9.  Lady Gaga Nursing Home Visit Ignites the Media  – No meat dress at the nursing home but her high heels were enough to bring some shock therapy to residents.

10.  US Bank To Administer $86 Million Low-Income Housing Tax Credit Fund for Google – Google and Low Income Senior Housing.  Who wouldn’t want to see how these two tie together?

Capital Senior Living Corporation (NYSE:CSU) announced last week that one of its joint ventures in which it has a 5% interest has entered into an agreement to sell four senior living communities to Health Care REIT, Inc. (NYSE:HCN).  The four communities, known as the Spring Meadows Communities, have approximately 625 units with a combined resident capacity of 758 and include two independent and assisted living communities in Illinois, one independent and assisted living community in Connecticut and one assisted living community in New Jersey. 

Capital Senior Living believes it will receive approximately $17 million from the sale and will get net proceeds of approximately $11.4 million on the transaction and the sale is expected to be completed during the first quarter of 2011.  Upon closing, CSU will lease the communities from HCN and it currently manages the Spring Meadows Communities under long-term management agreements.

“We are extremely pleased with the returns the Company and its joint venture partner will receive in this transaction,” commented Lawrence A. Cohen, Chief Executive Officer of the Company. “The addition of the Spring Meadows communities to our consolidated operations will provide immediate benefits to our shareholders. Along with a significant increase in our revenues, the lease will be accretive to cash flow and earnings. While we have been earning management fees on these communities, we will now be able to consolidate the results of operations and benefit fully from further improvement in occupancies, margins and cash flow. We plan to use the proceeds from this transaction for acquisitions of senior living communities to strategically enhance the geographic concentration of our existing operating platform. We are pleased to add the Spring Meadows communities to our strong and growing relationship with HCN.”

Eligible bachelors are hot commodities at senior living communities and there are (a few) hearts breaking across America today as the 84 year old founder of Playboy is off the market.  Hugh Hefner announced his engagement to 23 year old Playboy playmate Crystal Harris over the holiday weekend.  In a sign of keeping up with the latest technology trends, Hef broadcast the announcement via Twitter.   Hefner separated from his second wife in 1998 and their divorce became final in March 2010.  Is the third time the charm?

Rev. Larry Snyder, president and CEO of Catholic Charities USA, issued the following statement today following Senate passage of S. 118 and S. 1481 providing for major improvement in Section 202 and Section 811 Housing:

"Catholic Charities USA, which has long advocated for elderly and disability housing, applauds the leadership in Congress for addressing the critical housing needs of our nation’s low-income seniors and disabled citizens with passage of S. 118 and S. 1481. As a nation, we must ensure that our most vulnerable citizens not only have a safe place to live, but are also provided with effective coordination of critically needed services. These policy improvements are positive steps in the right direction.

Congressional approval of the ‘Section 202 Supportive Housing for the Elderly Act of 2009′ and the ‘Frank Melville Supportive Housing Investment Act of 2009′ will improve the development and maintenance of housing for low-income seniors and people with disabilities. The Section 202 improvements include policy changes that will make it easier for seniors to gain access to safe, affordable housing and age in place. At the same time, these changes will expand housing options for seniors by simplifying the development and preservation of 202 Supportive Housing.  Changes to the Section 811-disabled housing will increase the availability of rental units for people with disabilities and improve service integration so individuals can live independently."

CCUSA is committed to working to reduce poverty and advancing innovative solutions so that all can live a life of dignity and respect.  In September of this year—in concert with its Centennial—CCUSA introduced the National Opportunity and Community Renewal Act to lead the way in changing how the nation addresses poverty.

Catholic Charities USA’s members provide help and create hope for more than 9 million people a year regardless of religious, social, or economic backgrounds. For almost 300 years, Catholic Charities agencies have worked to reduce poverty by providing a myriad of vital services in their communities, ranging from health care and job training to food and housing. In 2010, Catholic Charities USA celebrates its centennial anniversary.

SOURCE Catholic Charities USA

This week, the House and Senate passed the Section 202 Supportive Housing for the Elderly Reform Act (S. 118) that makes improvements in the Department of Housing and Urban Development’s (HUD) Section 202 Supportive Housing for the Elderly Program.  The legislation, with broad support of aging advocacy groups throughout the country, will help expand the program that provides capital grants to non-profit community organizations for the development of supportive housing and provision of rental assistance exclusively for low-income seniors.

The bill will provide mechanisms to allow owners to refinance Section 202 developments, which may be in need of rehabilitation and provide a means to transform studio apartments into one-bedroom units.  The bill also establishes a new project-based rental assistance program in the event rent increases force seniors to pay higher costs after refinancing and allows owners to make health and supportive services available to residents through service-enriched housing.

“Not only will this law help aging Americans stay right where they want to be – in their own homes – but it will also help those who want to stay in the business of providing this crucial housing to low-income seniors. And by reducing the need for costly nursing home stays, we are saving the residents and the government money,” U.S. Senator Herb Kohl after the passage Tuesday in the House.

For the full text of the bill, visit http://www.opencongress.org/bill/111-s118/text

The U.S. Senate on Monday approved a bill that would improve the Department of Housing and Urban Development’s Section 202 program, which provides housing to low-income seniors.

“Over one-third of the Section 202 population is considered disabled enough to be at risk for being put in a nursing home,” Sen. Herb Kohl (D-WI), chairman of the Special Committee on Aging, said in a statement. “Access to these types of services saves both seniors and the government money because they reduce the need for costly nursing home stays. “

Among other reforms, the bill lets owners use excess financing proceeds to increase accessibility and expand supportive services. It also establishes a new use of funding under the Section 202 Assisted Living Conversion program for “Service Enriched Housing,” according to the American Association of Homes and Services for the Aging. The House is expected to vote on the legislation today.

http://aging.senate.gov/record.cfm?id=330013

The receiver responsible for the Sunwest Management announced that the first distribution of claim checks is in the mail to investors and other claimants relating to the former Oregon senior living provider’s bankruptcy estate.  The distribution of $228 million represents a 40% distribution before the end of the year and/or additional interests in the new Sunwest Rollover Member LLC, a 13% partner in the joint venture with Blackstone Real Estate Advisors VI LP and Emeritus Senior Living.  The receiver anticipates additional distributions in the next two to three years that may add another eighteen to twenty cents on the dollar to the forty that goes out this week.  The receiver will remain in place until no substantive assets remain to be collected and liquidated, and the receivership closes

“We are thrilled to be getting this distribution out before Christmas,” said Michael Grassmueck the court appointed receiver. “Sunwest stopped paying many of its bills and most of its investor obligations in the summer of 2008, so these people have been waiting a long time for money to flow in their direction from Sunwest. And I’m even more thrilled at the amount of the distribution. I don’t know that I’ve ever seen a forty-percent recovery in a securities fraud case—and this is only our first distribution.”

Those snowbirds are starting to nest in retirement areas rather than just migrating seasonally.  The U.S. Census Bureau released the 2010 Census  that showed the resident population of the United States on April 1, 2010, was 308,745,538, an increase of 9.7% over the 2000 U.S. resident population of 281,421,906.  The census showed that California was the most populist state with over 37 million people.  States with the highest percentage increases between 2000 and 2010 were heavily concentrated in popular retirement areas that include the southern and southwestern areas of the United States.  Some of the increases in areas with high concentrations of retirees were:

Florida – 17.6% increase

California – 10% increase

Colorado – 16.9% increase

Arizona – 24.6% increase

Georgia – 18.3% increase

Nevada – 35% increase

North Carolina – 18.5% increase

Texas – 20.6% increase

Visit the 2010 Census Data

Insurance companies are keeping a close eye on the costs of long term care and a new study from Northwestern Mutual shows that assisted living continues to cost half as much as nursing home care.  The study outlines long-term care costs by state, with data on nursing home daily rates, assisted living monthly rates, and home health care hourly rates.  A separate survey by the company found that only 17 percent of Americans can provide an estimate of long-term care costs within 20 percent of their state’s average.  Some of the findings include:

• Assisted living costs are highest in the East, where six states and Washington DC have average costs above $4,000/month. This compares to North Dakota – the least expensive state in terms of assisted living – with average costs of $1,901/month.
• Nursing home costs in Alaska are the highest at $538/day on average, which is $186 more a day than the next most expensive – Connecticut – at $352/day. Louisiana is the least expensive at $127/day.
• Residents of Missouri and Montana on average spend $19/hour for home health care, whereas West Virginians have average costs of $60/hour. Assuming an 8-hour day, five days a week, this amounts to an additional $328/day, or more than $85,600/year in West Virginia versus Missouri or Montana.

“People are living longer and health care costs continue to rise, making long-term care an increasingly important risk to address," said Steve Sperka, Northwestern Mutual vice president – long-term care. “It will take greater financial resources for residents of some states to protect their assets and lifestyle through retirement than others. Understanding the reality of long-term care costs in your area – and the potential impact to your financial security – is a critical step in developing a sound financial plan that won’t be derailed by a lack of awareness about long-term care risk.”

For the full survey, visit Northwestern Mutual 2010 Cost of Long-Term Care study

HCP (NYSE:HCP) announced Monday it has successfully completed its $1.472 billion public offering of 46 million shares of common stock at a price per share of $32.00.  HCP intends to use the proceeds from the offering in combination with debt offerings, cash on hand and the funds received from repayment of its debt from existing HCR ManorCare debt to finance the previously announced $6.1 billion acquisition of substantially all of the post-acute, skilled nursing and assisted living facilities of HCR ManorCare.

Aging Services of California and the California Association for Health Services at Home (CAHSAH) recently announced the formation of a new strategic partnership called AgeTech California to promote the use of advanced health and wellness technologies by home care providers and aging services providers throughout California.  The partnership will be governed by an advisory committee chaired by Barry Berger of Accredited Nursing and Todd Murch of Eskaton. Council members include home care and aging services providers, foundations, health systems, technology companies and academic institutions.

The new effort will be led by Scott D. Peifer in January 2011 as its executive director.  He will leave his current post at Center for Aging Services Technologies (CAST), based in Washington, DC, where he leads CAST’s state-level policy efforts to educate and advocate for the advancement of aging services technologies. Peifer’s aging policy experience includes serving as policy director for Pennsylvania Governor Ed Rendell, legislative director for the Pennsylvania State Senate and committee consultant for the California Senate Subcommittee on Aging and Long-Term Care. Peifer has a Master’s of Public Policy and Administration and a Master’s of Social Work from California State University, Sacramento (CSUS).

“AgeTech was formed to help break down some of the barriers providers face with the adoption of new technologies,” said Joanne Handy, President & CEO of Aging Services of California. “We want AgeTech to assist providers implement proven, cost-effective technologies that will increase the efficiency of care and the quality of life for our clients receiving care.”

Immanuel Lutheran Communities is embarking an ambitious expansion project that will create a new rehabilitation center and 14 new units at its Buffalo Hills Terrace community in Kalispell, Montana.  The project, funded by $14 million in tax-exempt revenue bonds, will have a 16-bed rehabilitation center, a new commons area for Buffalo Hill Terrace Assisted Living, plus six new assisted living apartments and eight new independent living apartments at Buffalo Hills Terrace.  Preparations are underway to begin construction and the completion of the project is expected in late 2011.

“We have been part of Kalispell for more than 50 years, and these projects are meeting a growing need for senior housing and services, while reaffirming our commitment to the area’s older adults,” said Pastor Kathleen Larson Phillips, Immanuel Lutheran Communities interim CEO. “The rehabilitation center in particular raises the bar in our service offerings for seniors, not only for our residents but for the community-at-large.”

The general contractor for the project is Kalispell-based Hammerquist Casalegno, LLC, with architectural design provided by AG Architecture, Inc.from Wauwatosa, WI. Marco DePalma with The Belaire Group in Irving, TX is serving as development consultant.

Equity LifeStyle Properties, Inc. (NYSE:ELS) announced last week that it will take a non-cash charge for write-off of goodwill in the fourth quarter of 2010 of approximately $3.6 million.  The write-off of the goodwill is from its August 2009 acquisition of a small Florida internet and media based advertising business.  The business operates a call center for advertising and resale of brokerage services for the sale of campground memberships and vacation ownership intervals.  ELS acquired the operation in an effort to consolidate its call center operations and rollout new membership products.  As part of the write-off, it is evaluating the sale of the advertising and resale brokerage services, a possible transfer of the operation to a separate operating division or ceasing certain operations.  The net income from the advertising and resale brokerage services in 2010 is expected to be approximately $0.3 million.

For more details, visit the 8-K

As pessimism among retirees continues to grow, many are looking at ways to make ends meet in retirement and are finding reverse mortgages as a necessary alternative to support themselves.  According to a new study entitled “The Retirement Abyss: America’s Seniors’ Search for Security” , one-in-four seniors believe they will not be able to cover their monthly expenses in retirement, such as housing and utilities, and nearly 20 percent believe that, without additional cash flow, they will have to give up their homes.  The poll, conducted by Marttila Strategies on behalf of the National Reverse Mortgage Lenders Association, surveyed 1,800 seniors and their adult children.

Nearly eight percent of those surveyed preferred to remain in their own homes and seventy four percent of reverse mortgage borrowers in the survey described their use of a reverse mortgage as a positive experience.  Seniors in the survey expressed that they understood the financial terms of the product very well (75%) and ninety percent felt no sales pressure as part of the reverse mortgage process.

“Without increased social security benefits, retirement funding will need to come from seniors’ own personal resources,” said Peter Bell, president of the National Reverse Mortgage Lenders Association (NRMLA). “In light of reduced stock and bond portfolios, seniors will have to consider other asset pools, including the use of home equity, to help fill this financial shortfall.”

Keeping the elderly out of nursing homes for cost reasons is a high priority and finding programs that help facilitate those goals are a high priority with lawmakers and consumers alike.  A new study last month from the Journal of the American Medical Association, examined various models of the long term care that are different than traditional models of nursing or hospice care and found that Programs of All-inclusive Care for the Elderly (PACE) was one of the more cost effective, alternative models to traditional care.  As part of the study, researchers reviewed primary care models for the elderly with multiple conditions over the past 10 years and identified the processes key to the success of cost effective, primary care that include:

• Development of a comprehensive patient assessment that includes a complete review of all medical, psychosocial, lifestyle and values issues
• Creation and implementation of an evidenced-based plan of care that address all of the patient’s health needs.
• Communication and coordination with all who provide care for the patient.
• Promotion of the patient’s engagement in their own health care.

“PACE organizations are proud of our success in keeping older adults with long term care needs living in the community,” said National PACE Association President and CEO Shawn Bloom.   “This study helps to explain some of the reasons why PACE is able to help so many families who are challenged to find the best care possible for their older loved ones.”

PACE currently has 75 sponsors operating in 29 states and is funded through Medicare, Medicaid and private finances.

Who’s been naughty?  Who’s been nice?  SHN got a hold of Santa’s list….and a few of this week’s movers and shakers are on it.  We’d like to thank everyone for their submissions on staffing & people announcements for the year but Movers and Shakers is going on holiday for the rest of 2010.  Don’t worry though… you can keep sending us your announcements and we’ll get them queued up for 2011.  Send them to movers-shakers@seniorhousingnews.com. 

Senior Lifestyle Brings Jon DeLuca Aboard as President and CEO

Jon DeLuca is joining Chicago-based Senior Lifestyle Corporation as president and chief executive officer, effective January 3.  DeLuca, 48, comes from the post of co-president and chief financial officer at Horizon Bay Retirement Living, a seniors housing manager based in Tampa, Fla. In his new role he will oversee the day-to-day management and strategic direction of Senior Lifestyle and its portfolio of more than 80 properties. Chairman and former CEO William B. Kaplan, who founded Senior Lifestyle more than 20 years ago, will work with him on growth initiatives and strategic planning throughout the country.  Under DeLuca’s leadership, Horizon Bay grew from 24 communities and 4,000 units in 2001 to 90 communities and 16,000 units currently. Previously, he served as chief financial officer for Allied Capital Corporation, a specialist in senior debt and mezzanine finance for small and mid-size companies. A graduate of the University of Texas at Arlington and a certified public accountant, he began his career at the accounting firm Coopers & Lybrand. Today he is a member of the Owner/Operator Advisory Board to the National Investment Center’s Board of Directors and a frequent speaker at seniors housing industry conferences.

Englesman Named Executive Director of Park Place of Elmhurst

Park Place of Elmhurst recently announced that Don Engelsman has joined as the new executive director of the Life Care senior living community.  Engelsman is responsible for managing the day-to-day operations of Park Place of Elmhurst, scheduled to open in late 2011.

Prior to joining the Park Place of Elmhurst team, Engelsman spent more than 13 years with the planned community’s faith-based, not-for-profit sponsor Providence Life Services, in which he held multiple positions, including vice president of marketing for new developments, vice president of risk management and general manager of the Victorian Village campus.  Previously, he spent more than 20 years as owner and manager of Engelsman Insurance Agency and founder and partner of Century 21 Home Pros/Home Realty.

Engelsman is a member of American Association of Homes & Services for the Aging, Life Services Network of Illinois and Assisted Living Federation of America. He serves on the board of directors for the Life Services Network Trust, and is certified as a national administrator for Assisted Living Federation of America. In addition, he has served as the elder and president of the council for Lombard Christian Reformed Church in Lombard, Ill., and executive committee board member of the Timothy Christian Schools in Elmhurst.

Engelsman received a bachelor of arts degree in business administration from North Central College in Naperville, Ill.

Integral Senior Living Names Valentine as Vice President

Integral Senior Living  (ISL) announced that Collette Valentine has joined the senior management team as the Vice President of Operations and Marketing, a newly created position at ISL. Collette brings many years of experience in senior living to her position.  Prior to joining ISL, Collette was with Merrill Gardens for four years, serving most recently as Vice President of Operations. Prior to which she was with Atria Senior Living Group  as a Divisional Operations Director.  Throughout her eight year career at Atria, she held a variety of positions including: Vice President and Regional Director of Operations, Regional Sales and Marketing Director, and Executive Director and Community Sales Director at an Atria community.  She began her career with Harrah¹s Entertainment as a Hotel Sales Manager.  She is a graduate of the University
of Nevada, Las Vegas with a degree in Business Management and is RCFE certified.

Isaac Dole Named Director, Acquisitions For Aviv REIT

Aviv REIT has named Isaac Dole to the position of Director, Acquisitions for the firm.  Isaac came to Aviv from Marcus and Millichap where he focused on the sale of senior housing and nursing homes, primarily in the Mid-Atlantic, Midwest and New England.  Isaac will be focused on the firm’s initiative to develop new strategic relationships with senior housing and nursing home operators throughout the country.  He will also be focused on sourcing senior housing and nursing home real estate acquisitions.  Isaac is a graduate of Tufts University and is currently pursuing his MBA at Northwestern University’s Kellogg School of Business.

Redstone Highlands Welcomes New Vice President for Fund Development

Redstone Presbyterian SeniorCare is pleased to welcome Rev. Lisa M. Dormire to its Christian, non-profit senior living communities as the vice president for fund development.  As a member of Redstone’s leadership team, Dormire will plan and execute strategies in the areas of fund development, external public relations, internal resident relations, and donor relationship development, specifically for Redstone Highlands’ benevolent care fund.

Dormire has more than 16 years of experience in fund development, advancement, public relations and marketing, alumni relations, and seminary relations. Most recently Rev. Dormire served as the Pittsburgh Theological Seminary vice president for seminary relations, a position she held since 2007. In this role, Dormire served as the chief communications officer for internal communications and external public relations, foundation relations, and supervising alumni relations and activities. She also focused on building campus community and enhancing the Seminary’s hospitality toward visitors.

Prior to her role as vice president for seminary relations, Dormire was named vice president for Seminary relations and development at the Pittsburgh Theological Seminary. Dormire joined the Seminary in 1994 where she worked in various areas of the administration including public relations, alumni relations and development.  Dormire holds a Bachelor of Arts degree in Communications Arts from Grove City College and a Master of Divinity from Pittsburgh Theological Seminary. She was ordained in the Presbyterian Church (U.S.A.) and is an active member of the Redstone Presbytery.

Executive Director Named for Lutheran Memorial Home in Sandusky

Lutheran Homes Society (LHS) has announced the appointment of Angela Powell as Executive Director of Lutheran Memorial Home in Sandusky, an extended care facility in Erie County providing skilled nursing care, rehabilitation services, and respite care.  Mrs. Powell has been with LHS since 2002. Primarily, she has served as Director of Human Resources at Lutheran Home at Toledo. While completing her Administrator-in-Training Program, she served as Associate Executive Director at Lutheran Memorial Home. As Executive Director, Mrs. Powell will be responsible for the ongoing operations, community relations, and business development of Lutheran Memorial Home.  Mrs. Powell is a Licensed Nursing Home Administrator (LNHA) and a certified Professional in Human Resources (PHR).  She graduated from the University of Toledo with a double major in human resource management and organizational development.

The Legacy at Willow Bend Names Robin Teig Life Enrichment Coordinator for Memory Support

Robin Teig has been named life enrichment coordinator for memory support of The Legacy at Willow Bend, Plano’s first and only life care retirement community. Teig joins The Legacy from North Texas Hillel (UNT and TWU Student Association) where she served as director. Previously, she was the director of business development for René Teig Architect and also served as the executive director for Hadassah, an international, non-profit organization.