Agenda - Council Work Session - 11/24/2009

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INDEPENDENT SENIOR HOUSING MARKET CONDITIONS · Congregate housing serves independent seniors who need some services such as limited meals and housekeeping but who do not need assistance with personal care and other activi- ties of daily living. There are three communities offering congregate housing in the Primary Market Area, of which one is located on the Presbyterian Homes' Farmstead campus men- tioned above. The three communities combine for a total of 207 congregate housing units. Currently, there are twelve vacant units for a vacancy rate of 5.8%. . Congregate rents are, on average, about $1,100 for a one-bedroom unit and $1,800 for a two- bedroom unit. Lower income senior households who desire congregate housing often reside in their single-family homes or income-restricted housing and contract for services through home health or other community-based resources. · There is only one community that offers income-restricted units, as both Oaks of Lake George and Savannah Oaks are affordable projects without income restrictions. Including only half of the units at Oaks of Lake George and Savannah Oaks as well as the income- restricted units at Presbyterian Homes' Farmstead campus, we estimate there are approxi- mately 77 units of affordable housing serving the market. Only one unit was vacant at the time of our survey for a vacancy rate of 1.3%, which is below market equilibrium (5%) for affordable active adult rental housing. Rents for affordable active adult rental housing aver- age about $730 for one-bedroom unit and $1,030 for a two-bedroom unit. · We identified four senior housing communities that offer subsidized senior housing with a total of241 units. These projects restrict residency to senior households who earn less than 30% AMI and charge rent based on income (30% of the household's adjusted gross income). Due to the depth of demand for subsidized housing, there are no vacant units and the waiting lists are about one-year long. Managers at these facilities expressed a need for more housing units that serve extremely low-income seniors. Existing Independent Senior Housing - Features and Amenities · Nearly all market rate independent senior housing communities feature a community room, craftlhobby room, storage locker and covered parking. Units feature air conditioning and some also include an in-unit washer and dryer, walk-in closet and patio or balcony. Gener- ally, higher service levels (i.e. congregate living compared to active adult) will offer a greater array of common areas, as will housing that is located on a large campus where amenities are shared between residents ofthe various service levels (i.e. Farmstead). · There are generally fewer unit features and building amenities incorporated into subsidized senior housing projects. The core amenities, such as a community room and small library, are available at Primary Market Area communities but they generally do not include higher- end amenities such as an exercise room, guest suite or underground parking. Unit finishing varies from project to project but typically includes a wall sleeve for an optional air condi- tioning unit and a fully-equipped kitchen. MAXFIELD RESEARCH INC.