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Affordability in senior living remains a key challenge for senior living operators, and for those who navigate the affordable housing and middle-market space, doing so requires a lean and efficient operating playbook. The affordable space within senior living includes a range of models, from Medicaid waivers for assisted living to tax-credit programs provided by states. It’s no secret that more affordable senior housing projects carry narrow margins and a smaller investment return compared to the risks associated with pursuing the development of income-restricted housing. But the pool of potential customers in the low- and mid-income space is large and widening, meaning that there is plenty of demand for companies that can reach those prospective residents. Senior living operators such as Innovation Senior Living, Priority Life Care and Silver Birch have taken steps to maintain and grow affordable senior housing options.
To succeed in this key area of affordable senior housing, operators must maintain stringent expense control measures, provide cross-training for staff, and be familiar with the risks of undertaking this type of senior living growth. Building a more affordable model for assisted living Senior living operators that thrive in middle-market and affordable settings are able to execute in two key areas: Maintaining operations with staff able to fill multiple roles and having the technical know-how to adapt to things like Medicaid waivers. However, much of whether or not an operator can suc…
Going forward, Carvajal said now could be a prime time for well-capitalized operators to acquire distressed communities and seek to create an affordable senior housing portfolio, repositioning them to serve the growing demographic of older adults unable to afford traditional private-pay senior living options. “Thinking creatively about where we can create congregate settings, where people can live together and serve them more effectively, is absolutely on the table for the middle market,” Carvajal said.
In recent years, some private-pay senior living operators like Fort Wayne, Indiana-based Priority Life Care have built a small-but-growing affordable assisted living portfolio of communities supported by Medicaid waivers. The unwillingness of some private equity and lending partners to stomach risks associated with governmental concerns is a barrier to more affordable and mid…
With demographics trending positively for organizations looking to grow affordable senior housing options, operators must have strong capital relationships to help projects become a reality. Take the relationship between Evergreen Real Estate Group and Gardant Management Solutions, in which Evergreen serves as the affordable housing developer and capital provider of over 13,000 units in 14 states through low-income housing tax credits and Medicaid reimbursement. States with Medicaid programs that have adequate assisted living reimbursement rates are the “secret …
