In an industry like financial services, which is constantly under the microscope from regulators, staying compliant with regulations and avoiding reputational risk is critical and can often serve as a barrier to adopting new products.

HECM changes in the last few years such as the Financial Assessment, the elimination of the fixed-rate HECM Standard and limiting the amount of proceeds borrowers can draw in the first year of the loan, have improved the reputational risk that several of the industry’s biggest banks cited in their reasoning for leaving the reverse market in the past.

“The reputational risk is significantly less after the implementation of Financial Assessment, the HECM product is being seen differently now,” said Wendy Peel, vice president of sales and marketing at ReverseVision.

And this newfound sentiment toward reverse mortgages has translated into greater interest for the product from a wholesale standpoint.

In 2014, Peel notes that ReverseVision Exchange (RVX) added over 800 new broker companies to the system with 2015 showing similar growth patterns—this push has led to approximately 60-plus different banks and credit unions that have entered into the space as brokers and/or lenders. The company’s inquiries from regulated institutions have also taken a sharp increase as well in 2015, Peel noted.

The heightened interest is being driven by a need to not only expand product offerings, but also to retain clients who are interested in getting a reverse mortgage without forcing them to have to look elsewhere.

“As we’re talking with banks, they are interested in the entire aspect of how this works with lending and serving their customers in the same umbrella, and not letting their customers leave that umbrella,” Peel said.

From a technology standpoint, ReverseVision aims to further ease the transition of banks and credit unions into the reverse market through its data security component to help institutions eliminates barriers to staying compliant.

“ReverseVision is investing in this concept and strategy by bringing the reverse mortgage to a market that is not specifically looking for this product,” Kelly Kelleher, marketing manager at ReverseVision. “We are making a concerted effort to help banks change their minds and make them familiar with the HECM product.”

There is a huge opportunity in growing the reverse mortgage market by extending HECM reach into the traditional “forward” mortgage world as a whole, says Kim Smith, senior vice president of wholesale lending at American Advisors Group (AAG), which along with ReverseVision has partnered on increasing education efforts aimed at attracting outside institutions to the reverse market.

“It’s a strategy we’ve committed to and one that we’ve put resources behind,” Smith said.

This includes targeted marketing efforts to speak with banks, including prospecting and viewing regional bank conferences as an opportunity to connect with key decision makers who can move the ball forward on product adoption, Smith said.

But talking to other banks and providing education to them is lengthy process too, especially as of late. With the long-heralded TRID (TILA-RESPA Integrated Disclosure) rules taking effect October 3, preparations for the upcoming rules have consumed much of the time, energy and resources of many lending institutions—leaving little growth for rolling out new products.

Nonetheless, an interest remains. The Financial Assessment may even be enough to simply pique interest in the HECM product. In fact, minutes before this interview, Smith had been on the phone with a bank in North Carolina who wanted to understand, what they referred to as, the “safeguards” now in place with reverse mortgages.

“Banks especially want to offer products they feel are safe, and I think the reverse mortgage changes have made this a product they are going to be more comfortable with,” Smith said.

But while some banks might be starting to come around to reverse mortgages, talking with the right people so they can truly understand the HECM product is still a critical process that needs to take place.

“People aren’t just on the reverse mortgage bandwagon now,” Smith said. “They are willing to talk about it, but it still takes a tremendous amount of conversation and education.”

Written by Jason Oliva

The newest additions include Patricia Whitlock (N.Y.), Sue Durdock (Pa.), Wayne Bodow Esq. (N.Y.), Al Jones (Texas) and Mike Ravotta (Pa.).

Pat Whitlock maintains a Certified Reverse Mortgage Professional (CRMP) designation from the National Reverse Mortgage Lenders Association; while Sue Durdock is approved in Pa. to issue Continuing Education credits to Realtors and Wayne Bodow is an attorney whose former area of concentration was bankruptcy law.

“All saw that the opportunity to join FirstBank was a perfect fit for them and have been welcomed to the FirstBank Mortgage Partners team,” the company stated in a release. “FirstBank HECM Division is extremely excited to continue to add qualified, experienced and enthusiastic loan originators to our growing team.”

FirstBank is a wholly owned subsidiary of First South Bancorp, Inc., the third largest Tenn.-based bank with 45 banking locations across Tenn. and Ala., along with mortgage locations across the Southeast. 

A top-20 reverse mortgage lender, FirstBank reported a volume of 353 loans year-to-date through August, an increase of 33% year-over-year, according to industry data tracked by Reverse Market Insight.

Written by Jason Oliva

NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 1.4% to 109.4 in August, compared to 110.9 in July—but is still 6.1% higher than its August 2014 level.

Even with the modest decline in contract signings, NAR Chief Economist Lawrence Yun says demand continues to outpace housing supply and elevate price growth in numerous markets.

“Pending sales have levels off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget,” Yun said in a written statement. “Even with existing-housing supply barely budging all summer and no relief coming from new construction, contract activity is still higher than earlier this year and a year ago.”

While Yun believes that sales in the coming months should be able to maintain their current pace, he warns of several looming speed bumps that have the potential to impact housing. 

“The possibility of a government shutdown and any ongoing instability in the equity markets could cause some households to put off buying for the time being,” he said. “Furthermore, adapting to the changes being implemented next month in the mortgage closing process could delay some sales.”

On a national level, the median existing-home price is expected to increase 5.8% in 2015 to $220,300, according to NAR projections. For the year, Yun forests total existing-home sales to increase 7% to around 5.28 million, about 25% below the prior peak set in 2005 of 7.08 million.

Written by Jason Oliva

John Levin of Levin Capital Strategies, a New York-based hedge fund, sent a public letter to the Chairman of the Board and members of the Board of Directors of SNR, noting that the share price of the REIT has declined 46.1% since the date the company became a spin off from Newcastle Investment Corp (NYSE: NCT).

With a 5.18% stake in New Senior, Levin compared this decline to the MSCI US REIT Index drop of just 1.2% and the S&P 500 decline of 5.5% and noted that the issue with the stock valuation was related to management structure.

In his letter, Levin specifically voiced there is a conflict of interest between the external management company, which is an affiliate of Fortress Investment Group, a private equity investment firm. Wesley Edens is Chairman of the Board of New Senior and Fortress Investment Group.

“The external management structure is one that can lead to serious conflicts of interest,” Levin wrote. “While we have no issue with management at any company succeeding alongside of shareholders, we believe the structure currently in place between New Senior and Fortress leaves the interests of shareholders and management significantly misaligned.”

The management structure is such that Fortress receives a 1.5% gross equity management fee and a quarterly incentive compensation of nearly 25% of excess return above 10% on equity, according to a recently released note from Stifel, upon initiating coverage of the REIT. SNR also reimburses Fortress for non-mangement related costs, such as stock issuance costs and certain transaction costs, according to Stifel.

Levin also took issue with second quarter 2015 New Senior equity offerings underwritten by Bank of America Merril Lynch, Citigroup and Morgan Stanley to purchase properties from Holiday Retirement, which is a privately-held Fortress affiliate. Subsequently, the New Senior stock price dropped, and it had already been trading well below Levin’s estimated Net Asset Value (NAV) when the transaction was executed.

Levin wrote this equity offering was “mistimed and inopportune,” as well as “ extremely troubling.”

New Senior purchased 28 properties from Holiday for $640 million in August. Its three largest transactions since inception have been from Fortress affiliated entities, Stifel reports.

Levin argued that the two positions create a conflict that does not play out well for public shareholders.

“As the Chairman of each of these companies, you have a fiduciary duty to their public shareholders, and that duty conflicts with your role at Fortress and specifically with Fortress’ desire to raise capital in these vehicles to increase its fee streams,” Levin penned in the letter. “Setting targets for capital raising may or may not be helpful in getting Fortress’ stock price up, but it sends a terrible message to the shareholders of companies that are externally managed by Fortress.”

Levin emphasized that his firm holds New Senior CEO Susan Givens and her management team in “high regard.” He called for a meeting with Fortress to discuss the issues raised in his letter, and potential remedies or paths forward, including re-aligning Fortress’ compensation to stock price performance, a path toward internalizing New Senior management, Board composition and independence.

If the gap between market price and NAV persists, Levin floated stock buyback and potential liquidation as options to be discussed.

Written by Amy Baxter

The post Shareholder Puts Fortress, New Senior Under Fire appeared first on Senior Housing News.

Increases in SNF billing accounted for $1.1 billion in Medicare payments in fiscal years 2012 and 2013, and this was driven in particular by billing for the highest level of therapy, according to the report.  In addition to the fact that these reimbursements exceeded the costs to SNFs for providing this therapy, skilled facilities increasingly billed for the highest level even though key characteristics of the beneficiaries under their care remained the same.

The study was based on a variety of data, including Medicare claims and cost reports and beneficiary assessments, according to the OIG.

The OIG has previously investigated SNFs’ therapy billing patterns and turned up the same findings. Specifically, the agency found that the facilities increasingly billed for higher levels of therapy between 2006 and 2008, even though patient characteristics remained steady. Another previous finding was that $1.5 billion in SNF Medicare reimbursements in 2009 were inappropriate, largely due to SNFs billing for therapy at higher levels than they provided or was reasonably necessary.

The media also has delved into the issue of skilled nursing facilities pursuing aggressive therapy programs and what is behind this—including the need to subsidize inadequate Medicaid margins. Medicaid is the primary payor for the long-term, custodial care that SNFs historically have provided. As nursing homes that were not designed for post-acute rehabilitation have taken on more of these patients, stories have surfaced of inadequate care as well as fraudulent billing.

It’s an issue hovering over the post-acute sector as private-pay senior housing owners and operators increasingly are eyeing opportunities. Analysts with Green Street flagged the potential problems related with billing a recent research note examining the overall skilled nursing sector. Analysts identified the skilled nursing space as a $100 billion opportunity for real estate investment trusts and other entities that could drive consolidation in the sector.

Just weeks after the Green Street note was issued, Trilogy Health Services LLC was acquired in a $1.125 billion joint venture by Griffin American Healthcare REIT III and NorthStar Healthcare Income Inc. The high valuation was informed in part by the fact that Trilogy’s portfolio was about 10% skilled nursing and rehab assets, which are currently seen as highly desirable, analysts stated.

In the report issued Wednesday, the OIG made four recommendations: (1) evaluate the extent to which Medicare payment rates for therapy should be reduced, (2) change the method for paying for therapy, (3) adjust Medicare payments to eliminate any increases that are unrelated to beneficiary characteristics, and (4) strengthen oversight of SNF billing.

CMS concurred with all the recommendations.

Written by Tim Mullaney

The post Feds Call for Revamp of Post-Acute Rehab Payments appeared first on Senior Housing News.

Though 58% of seniors over 80 believe technology can improve communication with family and friends, 27% can be considered “virtual shut-ins,” as they do not use any technological devices, programs or apps.

These and other findings were reported in the survey titled “Rewiring Aging.”

“I would have thought more older adults were using social media,” Brookdale Chief Medical Officer Kevin O’Neil told Senior Housing News of the findings, adding that he found it surprising that “only 5% said they were opposed to technology.”

The low uptake may be partially explained by what seniors reported as barriers to technology adoption: 47% of participants surveyed said new technologies take too much time to figure out, 46% said it is too difficult to keep up with the most recent trends and 41% said new technologies are too complicated.

The survey also found that 16% of older seniors use texting services and 7% of older seniors use video chat, despite interest in using the technologies being measured at two- and five-times higher, respectively.

According to O’Neil, things like fonts and the way colors are used are key when it comes to adapting technology for seniors. Contrast sensitivity diminishes as people age, he explained.

“Making the devices that are available easier to use is going to be important,” O’Neil added.

Brookdale’s technology-related long-term goals from an operational perspective include increasing the visit-to-move-in percentage and decreasing the number of move outs due to dissatisfaction, Sara Terry, Brookdale’s vice president of resident and family engagement, told Senior Housing News.

“We’re looking to improve program quality and variety,” Terry added, noting that Brookdale is already seeing this occurring. The company is currently developing an iPad mentor program, and has been helping seniors learn Skype and social networking technology with the InTouch computer system, according to a press release.

When asked about Brookdale’s technology program return on investment, Terry said Brookdale has invested multi-millions of dollars making its communities wireless — though she shifted the focus away from the literal price of technology programs.

“We had a resident see her new great-granddaughter within 15 minutes of her birth the other day with FaceTime,” Terry said. “It’s priceless.”

The “Rewiring Aging” survey was conducted by Kelton among 445 nationally representative adults 80 years old and older between May 21 and June 5. The Stanford Center of Longevity provided guidance on the design of the survey, in addition to analysis of the findings.

Written by Mary Kate Nelson

The post Brookdale Survey Pinpoints Barriers to Seniors’ Tech Use appeared first on Senior Housing News.

Maryland-based Sabra Health Care REIT (Nasdaq: SBRA) announced the acquisition of a portfolio of four senior housing facilities in Washington and Oregon, as well as the acquisition of a portfolio of five senior housing facilities in Illinois.

On Sept. 1, Sabra acquired the Life’s Journey Senior Living portfolio, which consists of five senior housing facilities with 149 memory care beds/units in Illinois for $19.7 million.

On Sept. 17, Sabra acquired the Radiant Senior Living portfolio, which consists of four senior housing facilities with 196 assisted living units and 18 independent living units in Washington and Oregon for $65 million.

The acquisitions bring Sabra’s year-to-date investments to $443 million, with an average weighted yield of 7.7%, Sabra Health Care REIT CEO Rick Matros said, adding that the acquisitions represent new markets for Sabra.

South Carolina Agapé Senior Living Portfolio Sells for $153.9 Million

Evans Senior Investments (ESI) facilitated the sale of the Agapé Senior Living portfolio in South Carolina for $153.9 million.

The Agapé portfolio, representing 10 facilities with 856 units of senior housing and three facilities of 294 skilled nursing beds, is anticipated to be one of the largest asset portfolios available for sale in the Southeastern U.S. in 2015.

An undisclosed private equity firm emerged as the winner in a competitive bidding process. The final purchase price amounted to $156,424 per unit for assisted living/memory care units and $68,027 per bed for the skilled nursing beds.

“The portfolio’s assets are relatively young and large in size, making this a turn-key portfolio for a national operator to grow NOI through economies of sale,” ESI CEO Jeremy Stroiman said in a press release. The oldest building in Agapé’s portfolio was built in 1990, and the smallest facility has 58 units.

Sentio Healthcare Properties Completes Investments in Nine Next-Generation Senior Assets

Orlando, Florida-based Sentio Healthcare Properties, a real estate investment trust concentrated on health care-related real estate, announced growth in its senior housing portfolio, investing in the development and acquisition of nine state-of-the-art projects in late 2014 and 2015.

Sentio entered the Missouri market with The Parkway, located just outside Kansas City. The community opened in July with 100% occupancy in its independent living community. The memory care and assisted living communities are slated to open this fall.

The Delaney at Georgetown Village broke ground in May in Georgetown, Texas. Sentio’s investment is structured as a participating development loan with purchase rights for the 207-unit assisted living, independent living and memory care community.

Sentio expanded its footprint in the Denver market with Accel at Golden Ridge, located in Golden, Colorado. This development features a 120-unit, transitional rehab and care facility, and is scheduled to open in August 2016.

Buffalo Crossing celebrated its opening in May. This property is a 108-unit, assisted living community located in The Villages, the country’s premier active adult retirement community.

In addition to new development, Sentio has also acquired multiple new properties that include independent living, assisted living, and memory care communities in Florida, Massachusetts, Ohio and Maryland. Encompassing 549 units, several of these acquisitions can be attributed to repeat business with Sentio’s operating relationships.

“While we continue to acquire stabilized properties, one of our main initiatives has been ground-up development and lease-up opportunities, many of which have been completed with existing partners,” said John Mark Ramsey, Sentio’s President and CEO.

Blueprint Announces $64 Million Sale of 186-Unit Senior Housing Community in Richmond, Virginia

Blueprint announced the successful sale of a 186-unit, Class-A senior housing community in Richmond, Virginia. The community was built in 1999 and houses independent living, memory care and assisted living services.

At the time of sale, the community had revenues greater than $9.5 million and had over 96% overall occupancy.

The transaction yielded $64 million, representing premium pricing of $344,000 per unit.

Hawthorne Gardens Assisted Living in Portland, Oregon, Sells for $10.8 Million

Marcus & Millichap has arranged the sale of Hawthorne Gardens Assisted Living, an 84-bed, 58-unit memory care and assisted living facility in Portland, Oregon, for $10.8 million.

Hawthorne Gardens, which was constructed in 2007, was 88% occupied at the time of the sale.

Skylark Assisted Living in Ashland, Oregon, Sells for $10.8 Million

An undisclosed buyer has purchased Skylark Assisted Living, a 34-bed memory care and 75-unit assisted living facility in Ashland, Oregon, for $10.8 million.

Skylark Assisted Living, which opened in 1997, was 90% occupied at the time of the sale. Skylark Assisted Living is located within the age-restricted community of Mountain Meadows.

Presbyterian SeniorCare and Shenango Presbyterian SeniorCare Sign Affiliation Agreement

Presbyterian SeniorCare — the largest aging services provider in Western Pennsylvania — and Pennsylvania-based Shenango Presbyterian SeniorCare signed an affiliation agreement intended to cement their longstanding business relationship.

The affiliation has to be reviewed by the Commonwealth Attorney General’s office, a process that could take as many as three months or longer.

The pending agreement between Presbyterian SeniorCare and Shenango Presbyterian SeniorCare will not involve any exchange of charitable assets or money, and it will have no effect on the existing collective bargaining agreement.

Presbyterian SeniorCare has been planning to build an aging services network that is best-positioned for success in the current dynamic health care environment, according to a press release.

Presbyterian SeniorCare, which delivers a continuum of living and care options across 53 communities in 44 locations in 10 Western Pennsylvania counties, has been providing management consulting services to Shenango Presbyterian SeniorCare for over 25 years.

Shenango Presbyterian SeniorCare offers personal care, independent living and skilled nursing services as well as memory care and short-term rehabilitation services. Its staff of 110 serves over 200 older adults per year.

Blueprint Announces Sale of Assisted Living Community in Oneonta, New York

Blueprint announced the successful sale of an Oneonta, New York, assisted living community. The sale included both an adult home and an assisted living program license designation. Blueprint did not disclose the sales price.

Blueprint Managing Director Tim Cobb and Vice President Steve Thomes served as lead advisors on the transaction.

The seller, a private investor group, was looking to exit the New York market. The buyer, a regional owner operator with an increasing presence in the region, bought the asset without a financing contingency.

Written by Mary Kate Nelson

The post Senior Housing Investments & Transactions: Sabra, Sentio, Blueprint appeared first on Senior Housing News.

Clocking in at just under two hours, the webcast (which can be accessed here) provided an in-depth discussion on originating and underwriting Home Equity Conversion Mortgages (HECMs) in compliance with the guidelines set forth via the Financial Assessment (FA).

“As we all know, the implementation of the Financial Assessment and Property Charge Set-Aside requirements have a significant impact on the origination process,” said Phillip Caulfield, housing policy analyst for HUD’s Office of Single Family Program Development. “While mortgagees have put a lot of effort into operationalizing new policy, question and feedback we’ve received indicates the need for additional training.”

Particularly, HUD has been hearing confusion with regard to evaluating a borrower’s record in paying property charges, especially in the event that a mortgagor has multiple properties, said Dorian Humphrey, chief – Insuring and Office Underwriting Branch at the Atlanta Homeownership Center.

“When evaluating credit history and property charge payment history, analysis is not limited to principal residence only,” Humphrey said, adding that if a person has multiple properties, lenders must document their paying of property charges on all of them.

The HUD webinar also served to dispel rumors regarding the ability to enter a negative value for residual income in FHA Connection.

“We are hearing rumors that our action in this regard represents a major change in our policy,” Humphrey said. “FHA is permitting the entry of a negative number for residual income only under individual circumstances. This cannot be construed to think that negative residual income is ok now.”

The training session also provided a review of the FA basis, including calculating residual income, compensating factors, making sustainable HECM decisions, formulas for set-aside calculations as well as case studies.

Interactive scenarios were also included in the training session, enabling viewers to judge whether or not certain HECMs should be approved, after taking into account the specific circumstances of borrowers such as their residual income, extenuating circumstances, credit and property charge history.

Through August 31, 2015, HUD issued 23,246 HECM case numbers that are subject to the Financial Assessment requirements, according to data provided during the webinar. Of these case numbers, 3,918 loans have closed and 1,749 have been endorsed.

“As more HECMs are endorsed and we begin to review actual loan files, we’ll have the opportunity to more thoroughly assess the documentation and mortgagee support for loan decisions,” Caulfield said.

Written by Jason Oliva

The central focus of the AARP article offers insight on what to consider when making the decision to sell one’s home in retirement, with the option of using a reverse mortgage framed toward the end of the piece as another possible avenue for older homeowners looking to stay in their homes.

As people age, their homes may no longer suit their lifestyles. And while this could motivate the decision to sell and relocate to a more maintenance-free residence, there is a sentimental value that may be hard to overcome for some homeowners.

“The tie to one’s home is the hardest thing to understand from the outside. It’s a very personal decision,” says Rodney Harrell, a housing expert with the AARP Public Policy Institute, in the article. “Some people may be reluctant to move from a house where they raised children and created decades of memories. On the other hand, the cul-de-sac that provided a safe place for kids may be isolating if driving becomes a challenge.”

For homeowners who are adamant about remaining in their homes, AARP suggests a reverse mortgage is one option that can accommodate the desire to age in place.

While reverse mortgages allow people age 62 and older stay in their homes while drawing on the equity they have built over the years, AARP lists several cautions for these products.

“But be aware that a reverse mortgage is a complicated loan that can be expensive, and today fewer homeowners may be able to take advantage of this option,” AARP writes.

That could be because older homeowners today are carrying more mortgage and home equity loan debt than in the past, and they may not have enough equity to qualify for a reverse mortgage, said Lori Trawinski, director of banking and finance with the AARP Public Policy Institute, in the article.

Read the AARP article.

Written by Jason Oliva

SHN recently spoke with Gregory Scott, partner at RLPS Architects, which was awarded the 2014 SHN Design & Architecture Award for Stand Alone Memory Care for its work on The Osborn in Rye, New York.

SHN: What are the biggest trends you expect to see in senior housing design and architecture in the next 5 years?

GS: The crash in 2007 to 2008 was really an eye opener in the senior housing industry. This was the end of the mega communities where companies would instinctively build 60 to 100 apartment communities in one shot, because the economy was able to support big initiatives.

Prospective residents weren’t able to sell their homes, so they didn’t have the resources to buy apartments in senior living communities. Communities needed income to help support the capital needs they had with aging campuses. Companies needed to figure out a way to still do new construction, but with lower risks.

Providers began developing “bite-sized” initiatives, where a community could build 12 to 24 apartments at one time instead of 60 to 80. This was relatively low-risk, because it wasn’t a big financial investment. This idea took off like wildfire. Providers found revenue coming in, and they were no longer exposed to high risk capital investments and were also able to attract a younger audience.

These small structures were three to four stories tall and often equipped with parking underneath. They have the same behavior as a cottage, with outdoor living spaces and corner balconies, and they’re nimble and can flex and change with the market at the snap of a finger, because they do not have the cumbersome inertia of the mega communities that came before them.

I’ve been practicing 40 years in senior living, and I’m looking at the senior living industry through a new lens. Throughout my career, I’ve been telling audiences about how designers need to be sensitive to the effects of aging, and now I’m one of them. I ask myself if I would be interested in living in the communities I’ve been preaching, and the answer is yes and no.

An additional trend I expect in the next five years is more urban options that respond to an increased interest in downtown living. The floor plans of existing communities are spectacular, but I don’t want to live in the traditional cornfield setting. Most communities are isolated and insulated from the mainstream, located out in suburban settings, or on the edges of downtown. There are very few communities located in downtown, urban environments.

The retirement models that the industry has been working with call themselves “retirement communities,” which is not an attractive term to front-wave boomers. As an architect who works in senior living, I see the world internally as a young person, although my chassis is 66. Retirement models are going to have to adapt to the front-wave of boomers and what they want out of a living setting. The industry is still writing that script. This generation wasn’t sitting back being quiet; we were part of a social movement, always restless, and that has carried through to our senior years. Communities need to stay nimble, flexible, and agile to respect their needs.

SHN: What design element are today’s communities lacking that they need to have?

GS: There need to be affordable solutions that are also highly attractive. The outcome of the 2008 downturn was a wake-up call that more is not always better. Before 2008, we kept putting air in the tires; square footage of apartments just got bigger and bigger. Once the air went out of the tire, it forced design professionals and owners to get real and be creative about providing floor plans and solutions that looked bigger than they actually were.

In order to make senior living affordable, every square foot has to be managed. Each square foot costs money and should work hard toward achieving affordability. Give residents the option of providing upgrades with the finishes and materials. Give me quality and value, and I will be much happier about living in a smaller space.

There is also a need for creative floor plan solutions that take advantage of outdoor connections, such as smart use of windows, so that these apartments feel bigger than they actually are. There is an actual science based on our DNA connection to nature. We desire to be connected to the outside. Before electricity, we had to depend on our natural connection to nature, because we couldn’t artificially infuse light. At that time, we were more in tune with circadian rhythms, but since then, we have completely screwed it up. There needs to be a movement to get that adjusted and corrected.

SHN: What are the top three changes you have seen in senior housing design and architecture in the last year?

1. The recession is over and now providers are very eager to get back in the game.
2. Incremental growth versus mega expansion has received a lot of traction since 2008.
3. Everyone in the industry is trying to figure out what the first wave of boomers want.

SHN: What kind of recognition did your company receive after accepting the award for Best of Stand Alone Memory Care Design in 2014?

GS: First and foremost, the owner was thrilled by the recognition! For RLPS, it was an endorsement that we are on the right track.

SHN: Why apply for the 2015 SHN Awards?

GS: Sharing information and ideas with colleagues in the industry is critical! It’s the old adage: All boats rise with the rising tide!

The post SHN Awards: Bite-Sized Senior Housing Spreads Like Wildfire appeared first on Senior Housing News.

In an MBA column last week, Stevens aired out his most recent concerns with the CFPB’s complaint database, specifically emphasizing that the Bureau permits unverified consumer complaint narratives without allowing the accused parties the ability to respond.

“I firmly believe this database continues to fail the transparency test, and without real reforms its so-called growing pains will ultimately be its undoing,” he said.

While Stevens acknowledged that the premise of the database is noble in allowing consumers the ability to voice their experiences with a lender, or other financial institution, he says that the CFPB has failed to install a mechanism to substantiate the complaints submitted to the database.

These shortcomings can have serious consequences not only for the financial services industry, but for the CFPB and consumers as well, Stevens suggests.

“Equally concerning, the database could be putting the consumer’s privacy in jeopardy,” Stevens said. “Misinformation can, and has, infected the entire system and CFPB has yet to take real steps to correct it.”

Stevens’ comments arrive just days following the CFPB’s most recent Monthly Complaint Report, which provided a snapshot into the mortgage complaints filed by consumers with the Bureau. Reverse mortgages were not explicitly mentioned in the report. 

Included in the monthly report were notations of the lenders with the most complaints. And to not much surprise, the largest lenders dominated the list, including Wells Fargo (NYSE WFC), Bank of America (NYSE: BAC) and Ocwen (NYSE: OCN), to name just a few. 

“Is this surprising?” Stevens asked in the column. “The companies that issue the most loans have the most complaints? That’s like saying California has the most delinquent loans. Of course it does. California may have more loans past due than any other state, but its delinquency rate is much lower than that of other states, due to its relative size.”

Stevens is not the only one calling for improved management controls for how the CFPB governs consumer complaints in its database. 

Several weeks ago, an audit from the Office of the Inspector General (OIG) raised concerns after it found “noticeable inaccuracies” in its analysis of more than 250,000 complaints as of June 30, 2014. As a result, the OIG listed several recommendations for the CFPB to assess the accuracy of its complaint database.

In his column, Stevens offered similar recommendations; the first and foremost being that the CFPB must verify all of the complaints before they are published. 

“This includes validating the authenticity of not only the complaint, but also the person making the complaint,” he said. “It also means talking to the financial institutions and seeing what is being done to correct any problems.”

Second, Stevens recommends the CFPB has to stop releasing its monthly results until the Bureau can scale these complaints to the size of the loan provider. 

“It’s quite possible that the lenders mentioned in these monthly snapshots have a low complaint rate compared to the total number of loans they issue,” he said. “However, without normalizing the data, the reader is left to draw incorrect conclusions about the financial situation.” 

“There is a lot of good being done by the CFPB,” Stevens said. “But this database continues to provide a disservice to lenders and consumers alike. It is of the upmost importance that they fix the glitches in their system as quickly as possible.”

Written by Jason Oliva

The board of directors voted to approve the name change and new logo for the association on Monday. ALFA will officially transition to the Argentum name and brand on Dec. 1 at its Chief Executive Summit in Scottsdale, Arizona.

“Since ALFA’s formation 25 years ago, the senior living industry has undergone many changes, and is primed for many more as baby boomers begin to use our services,” ALFA President and CEO James Balda said in a prepared statement. “Our brand transformation better represents where the industry is today as well as our vision for the future.”

Argentum’s new tagline is “Expanding senior living,” which the association says enforces its mission to increase the visibility and acceptance of senior living as a choice, rather than a necessity.

“It has never been a more exciting time to be working in the senior living industry,” Argentum Board Chair Brenda Bacon said in a release. “Argentum represents everything we are as an organization, as well as everything we want to be.”

The new name, “derived from the Latin word for silver, conveys strength and a sense of gravitas while giving a nod to the ‘silver generation,’” according to the association.

The group says the new brand conveys the diversity of the industry, and specifically the association’s members. The organization also believes the name should resonate both with industry members and consumers, and that it is “forward looking.”

Despite its new brand, the association maintains the same mission for its members to “exemplify the principles of choice, dignity and independence for seniors.”

Argentum also plans to increase its advocacy and influence in public policy, promote business excellence and ensure an informed public, according to a statement.

The association was founded in 1990 and has held the name ALFA for 25 years.

The rebrand and new name comes just a day after news broke that one of the “Big Three” REITs in the senior housing space, Health Care REIT (NYSE: HCN), would change its name to Welltower Inc.

Written by Amy Baxter

The post ALFA Rebrands as Argentum appeared first on Senior Housing News.

Brookdale Senior Living (NYSE: BKD), the largest senior living operator in the U.S., announced that its Board of Directors has appointed Daniel Decker as Class I director and the non-executive chairman of the board in replacement of the late Granger Cobb, effective Oct. 1.

“Dan is a wonderful addition to the Board, and we are excited to welcome him to lead our Board and to advise and counsel Brookdale’s management team as we continue to refine and execute our strategy to create shareholder value,” Jeffrey Leeds, non-executive chairman of the board of directors of Brookdale, said in a prepared statement.

Decker is president and owner of CoastWood Senior Housing Partners, LLC, an investment firm that specializes in seniors housing and related services. The company acquired the operations of Sunrise Senior Living, a leading national operator of assisted living facilities, in partnership with KKR and Beckon Petty O’Keefe & Company before selling its interest in 2014.

Decker has more than 20 years of investment experience in the senior housing industry and has been involved in the investment, through five companies, of approximately $2.5 billion of assets. Decker has served on the boards of several REITs and senior housing companies, including Sentio Healthcare Properties, Health Care REIT, Forum Group and Omega Healthcare Investors, Inc., where he served as executive chairman and chairman of the board.

Ventas Appoints New Chief Accounting Officer

Ventas, Inc. (NYSE: VTR), one of the “Big Three” health care REITs, has promoted Gregory Liebbe to senior vice president, chief accounting officer (CAO) and controller, effective immediately, the company announced.

Liebbe will lead all aspects of Ventas’ accounting functions, including internal and external reporting. He was vice president of accounting with Ventas since 2011 and worked within the company’s accounting functions since 2007. Prior to working at Ventas, Liebbe held accounting leadership positions at Brown-Forman, Accenture, Aon Corporation and Northern Trust.

Liebbe will continue to report to Robert Probst, executive vice president and chief financial officer of Ventas. Probst has held the interim position of CAO since he joined Ventas in 2014.

“During his eight years at Ventas, Greg has demonstrated his leadership, accounting expertise and integrity; we are delighted to promote him to CAO,” Probst said in a prepared statement.

Seniors Housing Properties Trust Welcomes New Independent Trustees

Seniors Housing Properties Trust (NYSE: SNH), a real estate investment trust that owns 428 senior living and healthcare related properties in 43 states and Washington, D.C., has appointed Lisa Harris Jones as a new independent trustee and Jeffrey Somers as lead independent trustee, the company announced.

Harris Jones is the founder and a member of the Maryland law firm, Harris, Jones & Malone, one of the most successful female and minority-owned professional firms in the United States. She replaces Fred Zeytoonjian, who retired from SNH’s board. She will serve as an independent trustee and will also chair SNH’s Nominating and Governance Committee.

Somers, who has already served on the SNH board since 2009, will serve as the first lead independent trustee of the board. He will also chair SNH’s Compensation Committee. Somers previously served as managing member of Morse, Barnes-Brown & Pendleton, PC, of Waltham, Massachusetts.

Lancaster Pollard’s Kevin Laidlaw Joins Mergers and Acquisitions Group

Kevin Laidlaw, currently a vice president with Lancaster Pollard—a senior living and health care financial solutions company—will be joining the firm’s mergers and acquisitions (M&A) group, the company announced. Laidlaw’s transition to the M&A group reflects Lancaster Pollard’s national efforts to expand its sell-side and buy-side advisory services in senior housing and care properties, according to the firm.

“We are thrilled to have Kevin as part of our team,” Chad Elliot, managing director of Lancaster Pollard’s M&A rout, said in a prepared statement. “For over eight years, he has been an instrumental part of Lancaster Pollard’s success and has developed a keen understand of the factors that drive valuation, such as key financial and operational metrics as well as the regulatory and reimbursement environment.”

Lancaster Pollard’s M&A group aims to provide sellers with the access to qualified buyers who can complete transactions with minimal disruption to operations. Laidlaw joined Lancaster Pollard in 2007 and has been responsible for all detail involved in the underwriting and closing processes for over 160 transactions totaling more than $1.2 billon.

EPOCH Senior Living on Blackstone Boulevard Names New Director of Sales and Marketing

Jill Bazar-Khoury has been named director of sales and marketing for EPOCH Senior Living on Blackstone Boulevard, a senior housing community in Rhode Island that offers short-term rehabilitation care, assisted living, skilled nursing and a memory care program called BRIDGES.

Bazar-Khoury, of Lincoln, Rhode Island, joins EPOCH with more than 17 years of experience working in admissions and marketing for assisted living communities throughout the state. In her new position, Bazar-Khoury will provide guidance and support to seniors and their families making the transition to senior living, the company announced.

The community is part of EPOCH Senior Living, a regional provider of senior living and health care options.

Memory Care of Westover Hills Names Executive Director

Linda Carrasco has been named executive director of Memory Care of Westover Hills, a San Antonio-based memory care community with 64 beds.

Carrasco joins the community from Emeritus Senior Living in San Antonio, a community with a 27-unit memory care division. She served as executive director with Emeritus since 2011 and led the facility’s healthcare delivery, admissions, operations, training and marketing efforts.

“We’re excited to have Linda’s experience on our team, and know she will do an outstanding job helping us deliver the best and most advanced resident care for those suffering from dementia or Alzheimer’s, as well as supporting their families,” Mike Gould, CEO of Memory Care America, said in a prepared statement.

Memory Care of Westover Hills will open on Nov. 18, 2015. The community is owned by Memory Care America, a Nashville, Tennessee-based group with five memory care facilities in four states.

Integral Senior Living Announces Divisional Vice Presidents of Sales and Marketing

Integral Senior Living (ISL), a California-based senior living management company that manages 58 properties in the state, announced the promotions of Jeffrey Smith and Carrie Delaney to divisional vice presidents of sales and marketing.

“Jeffrey and Carrie have consistently brought creativity, commitment and professionalism as regionals marketing directors for ISL,” Collette Valentine, CEO/COO of ISL, said in a prepared statement. “We fully recognize their talent and felt each would be a perfect fit for the newly created positions.”

Smith joined ISL in 2012 as a regional marketing director and has over 22 years of divisional and regional management experience, with nine years in the senior housing industry. In his previous position with ISL, Smith oversaw up to 36 business units in multiple states for HQ Global Workplaces and Regus Offices. He has also held sales roles with Atria Senior Living and Merrill Gardens.

Delaney has more than 12 years of experience in the senior living industry, after beginning her career with Brookdale Senior Living and Atria. Delaney has been with ISL since 2009, when she joined as a regional marketing director.

The Goodman Group Appoints Director of Platinum Passport Services

The Goodman Group, a national developer and manager of senior living and health care communities, announced the hire of Amanda Sue Watson, as director of platinum passport services.

In her new role, Watson will develop a new community-based program that will be launched later this year at The Commons on Marice in Eagan, Minnesota. This is the first position of its kind at the company, and Watson will be based at the company’s headquarters in Chaska, Minnesota. Watson was most recently a project coordinator for University of Minnesota Physicians.

The new program aims to bridge the company’s properties with the local community by providing members with a full spectrum of programs and support for overall health. Watson will provide and oversee individualized health coaching sessions, personal wellbeing plans, educational opportunities and support for families and caregivers.

Written by Amy Baxter

The post Movers & Shakers: Brookdale’s New Board Chairman appeared first on Senior Housing News.

Home prices, credit availability, as well as other socioeconomic factors, all impact a senior’s propensity to access home equity via Home Equity Conversion Mortgages (HECMs), says the report, “How House Price Dynamics and Credit Constraints Affect the Equity Extraction of Senior Homeowners,” released this month.

Produced by researchers from both the Federal Reserve Board and Ohio State University, the report uses data from the New York Federal Reserve/Equifax Consumer Credit Panel, the U.S. Department of Housing and Urban Development (HUD), and other sources to estimate the decision to extract equity through channels like reverse mortgages, home equity lines of credit (HELOCs), second liens and cash-out refinancing.

Using credit panel data from the housing boom and bust periods, as well as data on HECM originations during the same period, the report is the first known study to model the choice of reverse mortgages alongside other modes of equity extraction.

For reverse mortgages, researchers used HUD data on HECM loan originations from 2004 to 2012, combined with consumer credit data from the Fed New York/Equifax and house price index data from CoreLogic.

While previous research has found that credit constrained households were more responsive to home price gains than non-constrained households, the Fed-Ohio State study suggest that this response varies depending on the borrowing channel.

For example, as home prices increased, researchers found that cash-out refinancing increased in credit-constrained areas, but HELOCs rose in less credit-constrained areas; furthermore, when home prices fell, reverse mortgage originations increased, particularly in credit-constrained areas.

The research also analyzed differences in responses to credit constraints and house price changes in minority versus non-minority neighborhoods.

“As house prices decrease, households in non-minority neighborhoods are more likely to borrow through HECMs, presumably as a hedge against further house price declines,” researchers write. “By contrast, HECM originations in minority neighborhoods are not as responsive to house price declines.”

With regards to HECMs, previous studies have found higher rates of originations in ZIP codes with higher percentages of African-American and Hispanic homeowners. Meanwhile, other research of HECM originations between 1989 and 2010 have confirmed the positive relationship between minority share in a neighborhood and HECM originations, even after controlling for house price dynamics.

Neither study, however, explained the use of HECMs relative to other equity extraction levels.

Households’ decisions for extracting home equity also take into consideration borrowing costs. The interest rate on the loan, as well as upfront fees and transaction costs, differ between financial products, thus influencing households’ desired channel for equity extraction in different ways.

“The perception of high upfront costs for reverse mortgages has been cited as a primary factor contributing to a lack of demand,” researchers stated. “Despite higher upfront costs, HECMs may be preferable for households constrained by the credit standards for other channel options.”

In their conclusion, researchers found “there are no uniform responses” to changes in home values or credit constraints “applicable to all areas or all extraction types.” In other words, the preferred method of accessing home equity differs depending on a variety of factors.

“Equity extraction is the result of a more complicated decision process that responds to the interplay between house price dynamics, racial makeup, credit availability, financial understanding, and institutional policy,” researchers concluded.

View the report.

Written by Jason Oliva

Although Americans are increasingly upbeat about their personal finances, optimism for one’s financial situation diminishes with age, according to the September reading of Bankrate’s Financial Security Index.

In September, the Index hit its strongest reading since June at 102.6. While the measure showed improvement in all five components (job security, savings, debt, net worth and overall financial situation), more than a quarter (26%) of those nearing retirement age (50-64) said their situation is worse now than it was last year.

This could largely be due to emergency expenses cutting into retirement savings, which 17% of 50-64 year-olds said happened over the past year.

This is a “troubling” development for those over age 50, as these years are the home stretch in preparing for retirement, says Bankrate.com Chief Financial Analyst Greg McBride.

“Using retirement savings to cover an emergency is a permanent setback to retirement planning, with the possibility of taxable distributions, early withdrawal penalties, loss of tax efficiency, and the inability to replace withdrawn funds in future years,” McBride said in a written statement.

People with higher incomes were less likely to dip into their nest egg, with more than 90% of people earning $75,000 or more saying they haven’t touched their retirement savings. 

Another key highlight of the survey revealed that people living in the South were more than twice as likely than people in the West to have used their retirement savings for an emergency.

The Bankrate.com survey was conducted by Princeton Survey Research Associates International, which obtained phone interviews with 1,004 adults living in the continental U.S. between September 3-6.

Written by Jason Oliva

From July 8 to Aug. 10, Caring.com conducted a survey of 2,098 people aimed at examining the caregiver journey. All those surveyed had searched online for senior care assistance, though specific search terms varied.

About 58% of adult children who participated in the survey indicated that a medical diagnosis prompted them to seek out senior housing for a parent, while 27% said their own needs led them to make such a move. Only 8% mentioned loneliness as significant in their decision-making, according to the survey.

“Clearly if its a medical situation or a change in family needs, you have to move right now,” Katie Roper, Caring.com’s vice president of sales, tells SHN. “But what about the 92% who say loneliness is not a factor to move parents into a community? Is it because they don’t know?”

Socialization has become increasingly important in the senior housing space, as providers look for innovative ways to engage their residents and new solutions to attract younger residents. But Roper says the social aspect of senior living isn’t being effectively portrayed or entirely understood.

“It may be that loneliness doesn’t resonate with this population, or that the senior housing industry isn’t doing a good job of communicating what an issue that is,” Roper says. “And it might be more of a decision point if the [children] knew more about it.”

The survey also suggests that older adults who live with their adult children are there for the long-term, rarely moving to senior housing following a stint with a family member. In fact, just 10% of those who moved to a senior living community had previously lived at a family member’s home, according to the survey.

Further, more people rely on online consumer reviews than recommendations from professionals when choosing senior housing, and few had local knowledge of the communities in their area, according to the survey. Only 12% took the advice of a doctor or hospital in selecting a community, while 30% used an online directory and 21% used online consumer reviews. Meanwhile, 40% knew of nearby senior housing and used that background as a decision point.

“A lot of providers say they’re not going to do any marketing either online or offline, because they believe their space is well-known in the area,” Roper says. “This clearly says that is not the case.”

The survey revealed a variety of other findings, including:

• Paid Caregiving: More than one-third of those surveyed said paid caregiving help was beneficial, including seniors living independently or with a loved one.
• Satisfaction: Respondents with loved ones who had moved to a senior living community were twice as likely to be satisfied with their care situation, as compared to those whose loved ones still lived independently.
• Length of Stay: Of the 24% of participants who are living in a community themselves, 62% had lived there longer than a year, while just 20% had lived there longer than three years.

Written by Kourtney Liepelt

The post What Does—and Does Not—Trigger a Senior Living Move-In appeared first on Senior Housing News.

The renamed company will continue to trade its common and preferred stock under the New York Stock Exchange ticker symbol “HCN,” according to information the Toledo, Ohio-based REIT furnished Monday to Senior Housing News.

The company filed for the Welltower trademark name in early June.

The renaming announcement was made in a letter to employees and will be made official on Wednesday, according to The Toledo Blade.

“With the launch of our new name, we are rededicating ourselves to the platforms, investment opportunities and partner relationships that have made us a recognized leader in our industry,” DeRosa wrote. “We believe that we are just beginning to tap into the opportunities for transforming health care infrastructure to drive innovation and value across the care continuum.”

DeRosa also explained the name change is a “commitment to environments that promote wellness,” and that the re-naming does not represent a shift in the company’s values or commitment to its senior housing and health system partners.

The company that now will be known as Welltower has assets totaling more than $26 billion and owns 1,411 properties throughout the U.S., UK and Canada. The company primarily owns assisted living facilities and has made major investments in the post-acute space recently.

HCN boasted record earnings last year and completed $3.7 billion of new investments. The company has completed or announced more than $3.8 billion of investments this year and is on track to exceed $30 billion of gross real estate investments. Since 2010, the company has announced more than $26 billion of investments while its enterprise value has increased more than 300% to $36 billion. It is the third-largest senior housing owner nationally, according to recently released rankings from the American Seniors Housing Association.

The REIT’s growth has been achieved largely with existing operating partners, the company noted in the materials sent to SHN. It looks forward to continued expansion driven by demographic trends and changing market conditions, including a shift away from “hospital-centric or nursing home based models to networked care options that can provide better care at lower cost.”

This transition toward “consumer friendly” settings such as post-acute and senior housing will require capital to support innovations and investment in infrastructure, De Rosa noted in a prepared statement. He said that Welltower will seek to “answer that challenge.”

Written by Amy Baxter

The post [Updated] Health Care REIT’s New Name: Welltower appeared first on Senior Housing News.

RED Mortgage Capital, the proprietary mortgage banking arm of RED Capital Group, LLC, has closed an $11.1 million refinance loan for Chancellor Gardens of Clearfield, an MBK Senior Living-owned and operated community located in Clearfield, Utah.

“MBK was seeking a customized product for this project, and we are very happy with how smoothly the process went,” said Dan Hill, director of senior housing at RED, said in a news release. “We are particularly excited that we were able to close this complicated deal in the span of 43 days.”

The facility consists of 130 units and offers assisted living and memory care. MBK owns and operates 13 assisted living and memory care communities across California, Utah, Arizona, Colorado and Washington.

Fannie Mae provided the capital for the loan.

Grandbridge, BB&T Fund $13.7 Million Refinance for Yorktown, Virginia Community

Grandbridge Real Estate Capital’s Atlanta-based Seniors Housing and Healthcare Finance Group, along with BB&T’s Lexington, Virginia-based commercial real estate department, have funded a $13.72 million loan for Smith/Packett Med-Com, LLC to construct The Crossings on the Peninsula in Yorktown, Virginia.

“In addition to their extensive senior living real estate experience, the lenders at BB&T and Grandbridge were excellent at keeping open communications channels between both construction (BB&T) and permanent (Grandbridge) lending and with the clients,” said Hunter D. Smith, Smith/Packett president and principal, in a prepared statement. “This enabled a smooth transaction and has prepared The Crossings on the Peninsula for success by executing on the construction/mini perm loan and by laying the ground work for the permanent financing.”

The facility is slated to consist of 68 assisted living residences and a 38-bed memory care neighborhood, which will be called Harmony Square Town Center. Like other Harmony Senior Services communities, The Crossings on the Peninsula will contain a library, a pub, a beauty shop and more.

Grandbridge’s Seniors Housing and Healthcare Finance Group provides construction, non recourse acquisition and permanent financing options to seniors housing owners across the country.

Berkadia Arranges 2 Loans Totaling $366.7 Million for 39 Seniors Housing Properties

Berkadia Commercial Mortgage LLC’s Seniors Housing and Healthcare Group has closed on two loans totaling $366.7 million for two portfolios consisting of 39 seniors housing properties for Brookdale Senior Living (NYSE: BKD), which will use the loans to refinance existing debt on the properties. The portfolios’ 39 properties are located in 17 states.

A $226.4 million, 10-year loan was secured through Berkadia’s Fannie Mae program for a 21-property portfolio, which has an average occupancy of 90.6%. Of the properties’ 1,924 units, 5.7% is independent living, 15.9% is memory care and 78.4% is assisted living.

An additional $140.3 million, seven-year loan through Berkadia’s Freddie Mac program was also arranged for an 18-property portfolio, which had an average occupancy of 87.8% at the time of closing. It consists of 1,190 units, including 22.9% memory care and 77.1% assisted living.

“Our team’s extensive experience working with seniors housing assets across the country allowed us to secure competitive loan terms for these expansive portfolios,” Berkadia managing director Heidi Brunet said in a news release. “We have a long-standing relationship with Brookdale Senior Living, and we leveraged our close insights into their long-term strategic goals, our strong ties with the GSEs and our experience in the sector to smoothly and effectively manage these transactions.”

Blue Moon Capital Partners Forms $55.9 Million Development Joint Venture

Blue Moon Capital Partners, a senior housing private equity investor, has closed on a $55.9 million development joint venture with affiliates Gerald H. Phipps, Inc. and Ascent Living Communities, a Rocky Mountain regional contractor and a senior living developer and operator, respectively.

The joint venture is meant to fund the development of The Village at Belmar, a 156-unit independent living, assisted living and memory care campus in Lakewood, Colorado. It is the second in a series of Blue Moon’s investments from its $175 million fund, Blue Moon Senior Housing I LP, which aims to provide capital to operators who will reopen existing communities and invest in the development of new facilities in joint ventures.

“We appreciate the partnership with the Blue Moon team,” said Tom Finley, founder and principal of Ascent Living Communities, in a news release. “In addition to the capital, Blue Moon brings extensive senior housing experience and a commitment to working with us to grow the Ascent platform.”

Ziegler Closes $44.5 Million Financing for Orchard Park, New York Facility

Ziegler Capital Markets, a specialty investment bank, has closed on $44.49 million in series 2015 bonds for Fox Run at Orchard Park, a not-for-profit located in Orchard Park, New York.

Fox Run is a life care community open to people age 62 and older and consists of 180 independent living units, 50 skilled nursing beds and 52 assisted living suites, including 18 dedicated to memory care.

The bonds have been issued to refinance outstanding debt that funded the construction of the original facility, finance or reimburse the costs of the 2015 equipment and pay all or a portion of costs related to the issuance of the bonds, including any reserve funds that might be necessary to secure the series 2015 bonds.

“With an improving bond market, Fox Run’s bonds were sold to more than 15 investment funds, providing Fox Run with significant net present value savings and annual debt service savings, strongly positioning the community for the future,” said Keith Robertson, managing director of Ziegler’s senior living practice, in a prepared statement. “It has been an honor to work so closely with Fox Run over the years, witnessing first-hand how they’ve addressed their challenges. I’m glad we were able to deliver such a positive result for the community with this refinancing.”

Senior Quality Lifestyles Corp. Secures $109.4 Million for Expansion of The Buckingham in Houston, Texas

Senior Quality Lifestyles Corp., a Texas-based nonprofit developer of senior living communities, has secured $109.38 million through the sale of series 2015 bonds for the expansion and renovation of The Buckingham in Houston, Texas.

The Buckingham is a continuing care retirement community (CCRC). The project is slated to provide resort-style living for nearly 200 additional residents.

Ziegler Capital Markets served as bond underwriter for the transaction.

CBRE National Senior Housing Completes $27.9 Million Loan for The Summit of Uptown in Park Ridge, Illinois

CBRE National Senior Housing, a subsidiary of CBRE Capital Markets, has arranged $27.9 million in acquisition financing on behalf of investment company Capitol Seniors Housing for The Summit of Uptown in Park Ridge, Illinois.

The financing entails a non-recourse floating rate bridge loan, including a five-year term with three years of interest only from a regional bank. Total loan proceeds include a loan of $21.7 million for the acquisition of the property, along with $4.2 million for planned capital improvements and a $2 million earnest feature.

The Summit of Uptown is a 147-unit independent and assisted living community. As part of the acquisition, CSH plans to convert about 28 independent living units to assisted living and renovate to include 16 memory care units. CSH will also retain The Arbor Company, an Atlanta-based owner/operator of independent living, to manage the property.

CBRE completed over $2 billion in combined senior housing investment sales and loan originations in 2014.

Lancaster Pollard Arranges Financing for Skilled Nursing in Atlanta, Seniors Housing in Bartlesville, Oklahoma

Lancaster Pollard, a financial advice and financing solutions company, has arranged $5.2 million in funding for the acquisition of Reliable Health & Rehab at Lakewood in Atlanta and $6.7 million in refinancing for Green Country Village in Bartlesville, Oklahoma.

Reliable Health & Rehab is a 100-bed skilled nursing facility that offers a full range of rehabilitation therapies. It was owned by a partnership and had an agreement to sell the facility to a predetermined buyer. The transaction was made possible through a taxable, fixed-rate loan insured by the Federal Housing Administration Sec. 232/223(f) program, allowing its current operator to stay in place. The loan carries a 35-year term.

Green Country Village is an unaffiliated 501(c)(3) seniors housing community consisting of 97 independent living units, 30 assisted living units and 28 memory care beds. Lancaster Pollard privately placed the $6.7 million tax-exempt loan with a regional bank to help the community refinance its debt more cost-effectively. The refinancing entails a fixed interest rate below 3.75%, making for more than $70,000 in annual savings.

Written by Kourtney Liepelt

The post Senior Housing Finance Activity: Berkadia, RED Capital appeared first on Senior Housing News.

The preventive benefit is covered by Medicare free of charge when obtained by a participating health care professional because of the Affordable Care Act.  As of January 1, 2011, Medicare beneficiaries no longer have to pay a deductible, co-insurance, or copayment for many preventive services covered by Medicare as well as recommended services newly covered by the program.

The report also shows that this enhanced preventive benefits coverage will lower costs, including lowering Medigap premiums for employers, states and people with Medicare. Many more people with Medicare are expected to receive annual wellness visits and other recommended preventive services thanks to the Affordable Care Act.

“The Affordable Care Act is bringing new preventive benefits and savings to millions of Medicare beneficiaries this year,” said Secretary Sebelius. “Seniors and others with Medicare are already taking advantage of these important preventive services and wellness visits, which can help lower costs, prevent illness, and save lives.”

The report also shows that an average of 2,800 people with Medicare have received an annual wellness visit per day between January 1 and February 23, 2011. Because Congress has eliminated the part B coinsurance and deductibles for the annual wellness visit and many other preventive services, the report says that the use of these services should increase.

View a copy of the report here.

At least six states made major changes including Idaho, Kentucky, Oregon, Pennsylvania, South Carolina, and Texas.

Focal points of state assisted living policy development include life safety, disclosure of information, Alzheimer’s/dementia standards, medication management, background checks, and regulatory enforcement.  Other areas of change include move-in/move-out requirements, resident assessment, protection from exploitation, staff training, and tuberculosis testing standards.

Pursuant to legislation enacted in 2007, Pennsylvania implemented new assisted living regulations on January 18, 2011, thereby creating a second level of licensure alongside personal care homes. Oregon developed new rules for the endorsement of Memory Care Communities. Endorsement rules focus on person-centered care, consumer protection, staff training specific to caring for people with dementia, and enhanced physical plant and environmental requirements. Rhode Island passed legislation that, once implemented, will expand the types of assisted living residents that may receive skilled nursing care or therapy and the length of time they may receive such services.

Washington state clarified that boarding homes must fully disclose to residents a facility’s policy on accepting Medicaid as a payment source. New Jersey passed legislation requiring an assisted living residence or comprehensive personal care home that surrenders its license and promised not to discharge Medicaid residents to escrow funds to pay for care in an alternate facility.

To view the report, see here.

With the investment, the company will continue to expand the company’s software-as-a-service (SaaS) product offerings and advance its market leadership through organic and inorganic growth.

PointClickCare’s web-based products and services are uniquely designed to help long-term care providers manage the complete lifecycle of resident care. The company serves over 5,000 facilities throughout North America, from single-home independent facilities to seven of the ten largest operators. PointClickCare’s SaaS offering seamlessly integrates clinical, billing and administrative processes to maximize reimbursements, enhance quality of care, improve operating efficiencies and increase staff productivity and satisfaction.

“We are excited to have JMI Equity as an investor in PointClickCare due to their long track record of helping SaaS companies manage their growth and expand their customer offerings,” said CEO Mike Wessinger. “This investment reinforces our commitment to customer success by enabling us to expand the breadth of our solution suite to meet the evolving needs of long-term care providers. We look forward to building upon the market leadership momentum we have experienced over the last few years and are pleased to have JMI Equity on board for our next stage of growth.”

As part of the transaction, JMI Equity Founder and Managing General Partner Harry Gruner will join PointClickCare’s board of directors. “Mike and the rest of the PointClickCare team have done an excellent job positioning the company for continued success,” said Mr. Gruner. “The company’s SaaS offering provides customers with an affordable platform to manage the complete lifecycle of resident care, and its offerings align well with the market’s demand for tools that yield greater efficiency while improving patient care. We look forward to working with Mike and his team to build on the company’s success, further develop the company’s offerings and realize the many growth opportunities in front of the company over the long term.”

RBC Capital Markets served as placement agent to PointClickCare. Harris + Harris LLP served as legal advisor to PointClickCare, while Goodwin Procter, LLP and Stikeman Elliott LLP served as legal advisors to JMI Equity.

The big change has caught the eye of U.S. senior-housing developers like Emeritus Corp., Life Care Services LLC, hedge-fund giant Fortress Investment Group LLC and even John C. Erickson, an industry pioneer whose empire of retirement communities toppled in the wake of the financial crisis to head to China in search of an opportunity.

According to the article:

In January, about 30 Chinese business representatives toured retirement communities in Arizona and Maryland and attended a lunch held for them at the annual meeting of the American Seniors Housing Association in Phoenix.

At the lunch, the Chinese group presented U.S. senior-housing operators with some stark demographic trends: China already is home to 167 million people over the age of 60, more than the total population of France and Germany, while nearly half of older adults live alone. The number of Chinese senior citizens will increase by about eight million a year over the next five years, while their share of the total population will rise to 15% in 2015 from 12.5% in 2009, according to real-estate consultant DTZ.

Read the rest at the link below.

Housing Operators Put Focus on China

In a first-of-its-kind study, nearly 100 paid, non-family caregivers were recruited in the Chicago area and their health literacy levels and the health-related responsibilities were assessed, said Lee Lindquist, MD, assistant professor of geriatrics at Northwestern University Feinberg School of Medicine and physician at Northwestern Memorial Hospital.

“We found that nearly 86 percent of the caregivers perform health-related tasks,” said Lindquist, lead author of the study. “Most of the caregivers are women, about 50 years old. Many are foreign born or have a limited education. The jobs typically pay just under $9 per hour, but nearly one-third of the caregivers earn less than minimum wage.”

Lindquist found that despite pay, country of birth, or education level, 60 percent of all the caregivers made errors when doling medication into a pillbox. This is an alarming statistic because patients who don’t take certain medications as prescribed could end up in the hospital, Lindquist said.

“Many of these caregivers are good people who don’t want to disappoint and don’t want to lose their jobs,” Lindquist said. “So they take on health-related responsibilities, such as giving out medications and accompanying clients to the doctor for appointments. Most physicians and family members do not realize that while the caregiver is nodding and saying ‘yes’, she might not really understand what is being said.”

Right now there isn’t a standard test family members or employment agencies can use to gauge a caregiver’s ability to understand and follow health-related information, Lindquist said.

“Currently we are developing tests consumers can use to evaluate caregiver skills as well as studying the screening processes caregiver agencies use,” Lindquist said. “But, if you really want to know if the caregiver is doing a good job and is taking care of the health needs of your senior, start by going into the home, observing them doing the tasks, and asking more questions.”

Elder Care Concerns from Northwestern News on Vimeo.

The company announced that Bethesda Health Group, a leading senior care and services organization in St. Louis, Mo., selected Cerner’s technology for skilled nursing facilities.

Realizing the growing need for healthcare information technology (HIT) in long-term care environments, this conversion marks the company’s initial deployment of the Cerner BeyondNow® software architecture, on which Cerner’s SNF solution is built, into a skilled nursing facility.

The Cerner BeyondNow architecture enables providers to coordinate and manage care across the post-acute continuum, including long-term, home health, private duty and hospice.

At the core of Cerner’s solution is a person-centric, integrated electronic health record (EHR), which serves as the single source of truth for resident health information. The EHR and associated resident care plan are fully integrated into the federal MDS 3.0 assessments that drive revenue cycle management and quality reporting systems. This system empowers providers to improve care by increasing safety, while enhancing operational efficiency by holistically managing the clinical and logistical needs of the resident.

“Providing superior quality of care to our residents will always be our highest priority,” said Larry Hickman, corporate vice president and chief information officer with Bethesda. “Not only will Cerner’s innovative solution streamline the ease in which we are able to share information with our hospital and physician partners about their patients – our residents – but will ultimately allow our caregivers to spend less time managing and disseminating data and more time taking care of our residents.”

“We are very excited to be ‘the first’ to begin using a system that we believe will prove to be an industry–changing solution in the area of senior care data management,” Hickman added.

Two Bethesda facilities are currently utilizing Cerner® solutions, with plans to expand to the other seven facilities. The first two facilities are utilizing Cerner to handle operations, from back-office functions to resident care encounters. This includes:

• A single, integrated EHR for residents
• Development and tracking of resident care plans
• MDS 3.0 assessment tools for scheduling, completing and submitting MDS reports
• Revenue cycle management for billing/accounts receivable, that supports unique skilled nursing facility capabilities for Medicare 100-day tracking and therapy minutes tracking for Medicare Part A and Part B
• Support for facility operations through complete census and bed management, dining logistics and referral processes

Later this year, Bethesda will begin utilizing Cerner’s solution for home health, private duty and hospice care, providing a fully integrated system for managing their business and a single EHR for their residents. Utilizing these solutions will position Bethesda to easily exchange health information with physician’s offices and hospitals, empowering better coordination of resident care and allowing the continuum of post-acute care to connect with acute care environments.

Phillips, owned and managed nursing homes, provided nursing home staff, and provided in-home care services and failed to pay $4.7 million in payroll taxes he did not tender to the Internal Revenue Service

He pleaded guilty previously to one count of failure to pay employment taxes from 2001 to 2005. He admitted his companies withheld the tax payments from workers’ checks, including federal income taxes and social security taxes but failed to make about $4 million in payments to the IRS, prosecutors said.

The companies Phillips owned included:

JP Holdings, LLC, formed in Shawnee, Kan., in 2002, which was the sole or primary shareholder for other entities.

Citadel Holdings, LLC, which operated a nursing home in St. Joseph, Mo.

Citadel Partners, LLC, which provided employees to a nursing home in St. Joseph, Mo.

Rainmakers, LLC, a management company.

Elk Manor, LLC, which provided management services for a nursing home in Moline, Kan.

LTC-ES, a payroll company providing services to nursing homes.

LVCO, LLC, which provided employees and management services to a nursing home in Leavenworth, Kan.

Bladen Foods, LLC, a meat processing plant in El Dorado.

Lush Farms, LLC, which purchased, bred and raised show cattle on 80 acres near McLouth, Kan.

ViaCare Home Health, LLC, a home health care company.

Elf Support Services, LLC, an in-home nursing service in Emporia.

Midwest Nursing Home Investors, LLC, which provided employees to in-home nursing services.

Jewell Healthcare, LLC, which provided employees to nursing facilities.

“The problematic quality of direct-care jobs continues to undermine America’s capacity to produce a caregiving workforce that can deliver the basic hands-on services and supports demanded by millions of elders and persons with disabilities needing assistance with basic daily activities and tasks,” said PHI Director of Policy Research Dorie Seavey, Ph.D.

In 2008, there were more than 3.2 million direct-care workers. By 2018, this workforce is projected to increase to over 4.3 million, making direct-care workers the nation’s second largest occupational grouping.

A few interesting facts are:

• The majority of the workforce is female (89 percent), over half (53 percent) is non-White, and nearly a quarter (23 percent) is foreign born. The average age of direct-care workers is 42 years old.
• Almost half (45 percent) of direct-care workers live in households earning below 200 percent of the federal poverty income level.
• Nearly half (46 percent) of direct-care workers depend on public assistance, such as food stamps; Medicaid; or housing, child care, or energy assistance — up from 41 percent the year before.
• In 2009, an estimated 900,000 direct-care workers did not have any health coverage.
• The median hourly wages for home health aides have declined over the past nine years to under $8, while personal care aides’ hourly wages have remained stagnant at $7.50 (both adjusted for inflation).

To view a copy of the full report, see here.

The report, written by Stephen A. Moses, suggests that New York’s Medicaid program could ultimately save up to $2.9 billion in combined federal, state and local funds by tightening eligibility criteria, enforcing federally mandated recovery of paid benefits, promoting home equity conversion prior to Medicaid eligibility, and encouraging the purchase of private long-term care insurance.

“Access to Medicaid funding for LTC in New York State has been too easy for too long” the report says. “The combination of an aging population with greater care needs, a flagging economy, and dwindling federal support will soon bring Medicaid LTC spending up short. Instead of trying to provide a full range of LTC services to nearly everyone in the state, New York Medicaid will have to prioritize.”

“The preferable course is to funnel scarce Medicaid resources to the neediest people and encourage wealthier individuals to plan early and save, invest, or insure against the risks and costs of LTC,” it concludes.

Entitled “Long-Term Care Financing in New York: How to Save Money While Serving the Needy,” the exhaustive 28-page report is a joint product of the Empire Center and the Seattle-based Center for Long-Term Care Reform, of which Moses is president. In the course of his research, Moses interviewed 58 people directly involved in the long-term care field in New York, including senior state and local Medicaid administrators, social workers and policy analysts; insurance industry executives and consultants; and representatives of organizations representing practitioners and providers.

Several of the report’s key recommendations have been adopted by Governor Andrew Cuomo’s Medicaid Redesign Team.  These include:

Close the “spousal refusal” loophole, through which the assets of a chronically ill elderly person can be shifted to his or her spouse, who can then refuse to take responsibility for paying for that person’s long-term care;

more aggressive efforts to pursue estate recoveries on a statewide basis; and

stronger incentives to promote the purchase of private long-term care insurance.

Adoption of the governor’s amended Medicaid proposals would equate to “important steps in the right direction, but much remains to be done to put long-term care policy in New York on an economically and financially sustainable footing,” the report says.

Founded in 1994 and headquartered in Easley, South Carolina, HMR provides post-operative therapy to long-term skilled nursing. The company has 21 centers located in South Carolina, North Carolina and Georgia.

Behrman Capital established Memphis, TN-based Ark Holdings in July 2007 through its acquisition of Covenant Dove Holding Company, LLC for approximately $250 million. Since that time, Ark has continued to execute a build-up strategy in the post-acute care sector with several smaller scale acquisitions, including the operations of 7 facilities formerly managed by Mariner in January 2008 and 3 Texas-based facilities owned by Sulik Healthcare Services in June 2008.

Following its acquisition of HMR, Ark will own and operate one of the largest privately held platforms of skilled nursing facilities in the country, with 59 homes and more than 6,000 patient beds.

Larry Deering, Chairman of Ark Holdings, is a Behrman Capital Operating Partner. He previously served as Chairman and CEO of Tandem Healthcare, a former Behrman Capital portfolio company. During Behrman’s 8-year ownership, Tandem’s revenues and profitability grew from $25 million and $3 million, respectively, to more than $550 million and $84 million.

Ark’s acquisition of HMR was primarily financed by Walker & Dunlop, utilizing the U.S. Department of Housing and Urban Development’s 232/223(f) loan program, which provides low-interest-rate, long-term financing with flexible prepayment options and no financial covenants. In addition to the HUD financing of $104.7 million, Capital Source also provided a 5-year $35 million revolving credit facility.  The loans were underwritten to a 2.60 debt service coverage with occupancy greater than 90%.Walker & Dunlop, a Bethesda real estate finance firm that recently went public, closed on a $104.7 million loan allowing the Ark Holding Co. to acquire a portfolio of 18 skilled nursing homes in South Carolina, North Carolina and Georgia. The financing was Dunlop’s second for more than $100 million for nursing homes. In August, Walker & Dunlop financed a deal for 16 facilities in Florida.  In August 2010, the company funded a 16 facility refinance of the IBHSAR facilities in Florida for $162.2 million.