Seniors' Housing E-Review 07/31/02   Volume 20 - 7/31/2002 - Real Estate Home House Condo

In This Issue...

PROJECTS AND PRODUCTS

• National Center for Seniors' Housing Research Launches Third Design Competition
• Cities Granted Funding to Study NORC Programs
• Virginia Facility First to Receive Award
• Means of Home Security Expand to Include Cable TV

ATTITUDES AND TRENDS

• Real Estate Gleams Amid Stock Gloom
• New Report Challenges Current Assumptions About Boomers
• Projected Worker Shortages Threaten Skilled Labor Market
• Savers Use Real Estate to Fill Retirement Portfolios
• Retirement Boom Heads to the Mid-Atlantic

ORGANIZATIONS, EVENTS AND PROGRAMS

• HUD Implements Changes to Increase Number of Reverse Mortgages
• Lawmakers Seek Funds for At-Home Care for Seniors

NATIONAL CENTER FOR SENIORS' HOUSING RESEARCH LAUNCHES THIRD DESIGN COMPETITION

The National Center for Seniors' Housing Research is launching Aging in Place: An Open Design Competition for Students for the fall semester of 2002. This year's competition is an open, criteria-based design competition, the goal of which is to solicit innovative ideas on smart-aging residential design. Aging in Place challenges students to design creative, buildable, and livable communities and homes to facilitate graceful aging in place for residents. Post-secondary students nationwide are invited to design a community on a ten-acre urban site carefully considering such things as the proximity of transportation and other amenities.

This is the third national student design competition sponsored by the National Center for Seniors' Housing Research in cooperation with the Administration on Aging and the Association of Collegiate Schools of Architecture. Results from prior competitions have been examined by residential housing professionals, architects, homebuilders, and others who testify that future generations of homeowners will benefit from this important competition. To view results from the 2000 and 2001 competition and for more information go to http://www.nahbrc.org/awardsseniors.asp?CategoryID=1699

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CITIES GRANTED FUNDING TO STUDY NORC PROGRAMS

In an effort to assist communities and to avoid unnecessary nursing home placement, pilot projects funded by grants from the U.S. Department of Aging will support an array of small "naturally occurring retirement communities" (NORCs) programs nationally. NORCs are substantial pockets of people who have remained in their homes as they aged and are preferred to institutions because they are less costly. Pilot projects will begin in Pittsburgh, Philadelphia, Cleveland, Baltimore, and St. Louis where NORCs are prevalent. The programs will provide in-home housekeeping and help with chores, as well as other services, which may include a medical center, pharmacy, meals, recreation activities, and transportation.

The grants are for one year, but U.S. Rep. Mike Doyle has introduced legislation that would create a constant funding stream for NORC programs nationally.

For more information go to http://www.post-gazette.com/healthscience/20020715norc0715p5.asp

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VIRGINIA FACILITY FIRST TO RECEIVE AWARD

The Exemplary Elderly/Disabled Property Award was recently presented to Dominion Place, the first senior housing facility to receive this award. Dominion Place is a 25 year-old, 249-unit, Section-8 subsidized high-rise apartment building located in Richmond's Fan District.

Resident Mae Parker says, "I call it a touch-tone building because everything is so convenient." Transportation, housekeeping, food service, twenty-four hour security, and supportive services are conveniently and affordably provided in response to the needs of the senior residents. In addition to assuring personal safety and affordable housing, the facility creates a nurturing and warm environment. Residents can have and tend to their own garden and the staff organizes special lunches and dinners including a monthly birthday party for its residents.

For more information go to http://www.timesdispatch.com and search the archives using the keywords "senior housing". The full article must be purchased.

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MEANS OF HOME SECURITY EXPAND TO INCLUDE CABLE TV

The security industry is looking at the recent efforts of a group of cable providers who have collaborated to create SafeVillage, according to the Chicago Tribune. SafeVillage is a monitored, two-way security system, bundled with a cable modem. Cable operators in Las Vegas and Sarasota, Florida have begun to offer SafeVillage, right along with the Cartoon Network and "Iron Chef". The product will be rolled out nationally as individual cable companies decide to offer it.

Older adults often prefer to live alone and can be reluctant to move from their homes. The new technology of SafeVillage can provide peace of mind for the loved ones of those who are determined to live alone. In addition to home security, it provides a means to see and talk to children or grandparents, check on pets, or a vacation home.

For more information go to http://www.chicagotribune.com and search the archives using the keyword "SafeVillage". The full article must be purchased.

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REAL ESTATE GLEAMS AMID STOCK GLOOM

The Baby Boom generation has been credited with creating a demand for everything from Sports Utility Vehicles to Botox. Most recently Boomers have been accredited with fueling the real estate rampage and driving the rate of home ownership to record highs. Accordingly, the number of second homes in the U.S. has grown from 1.7 million in 1980 to 4.1 million in 2001.

"I'm expecting a tremendous surge in the second home market, " said John Burns, a California real estate consultant. "The typical second-home buyer is 53 years old, and with the aging of the population, those numbers will grow significantly over the next 10 to 15 years." The National Association of Home Builders projects that in the U.S. 100,000 to 150,000 second homes will be built annually through 2010.

For more information go to http://www.chicagotribune.com and search the archives using the title of the article. The full article must be purchased.

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NEW REPORT CHALLENGES CURRENT ASSUMPTIONS ABOUT BOOMERS

In "The 75% Factor: Uncovering Hidden Boomer Values," authors James Gambone, Ph.D. and Erica Whittlinger reveal that nearly 75% of Boomers come from economically poor, working class or small family-owned business roots. The report states that because years of research and media coverage have focused almost exclusively on the experiences of only a quarter of the population of Baby Boomers - those whose parents had a college education or were considered "white collar professionals" - a distorted view of this generation has emerged. According to the report, millions of Boomers are aging professionals or career-minded individuals who struggle, or will struggle, with the psychological effects of having crossed class lines. The report involved years of conducting discussions nationally and internationally with a range of men and women from the Baby Boom generation, as well as the reinterpretation of existing census data.

The Executive Summary of the report is available at http://www.refirement.com/Pages/75NewsReleasePage.html.

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PROJECTED WORKER SHORTAGES THREATEN SKILLED LABOR MARKET

The recession, retiring Baby Boomers and high standards of living are combining to create a formidable shortage of workers - and placing employers at a critical crossroads according to a recent article in Electric Perspectives. Manpower shortages are hitting industries that rely on skilled labor (like construction) the hardest.

Retiring Baby Boomers will change the state of the labor market. They have had a significant impact on demographics as they account for almost one-quarter of the population. When Boomers begin rushing into retirement they will have the opposite effect on labor markets as when they entered and labor shortages will result.

For more information go to http://www.eei.org/ep/editorial/May_02/index.htm.

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SAVERS USE REAL ESTATE TO FILL RETIREMENT PORTFOLIOS

At a time when home prices continue to levitate and the stock market remains leaden, investors are tapping real estate holdings in a variety of ways to help them sustain their retirement savings. Downsizing and refinancing are common strategies of "soon-to-be" retirees.

This trend is not limited to "soon-to-be" retirees, USA Today reports. People in their 30's and 40's are taking advantage of low mortgage rates and purchasing homes in a popular vacation spot to rent out until retirement. Their decisions are encouraged by the current conditions in the real estate market and federal tax laws, enacted in 1997, which allow married homeowners to skip paying taxes on gains of up to $500,000 when a primary residence is sold.

For more information go to http://www.usatoday.com.

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RETIREMENT BOOM HEADS TO THE MID-ATLANTIC

According to Builder Online, a new trend is moving active adults back to the East. The Mid-Atlantic region is now competing with Florida sunshine and desert landscapes. Experts began to take note of the trend when Del Webb commanded attention with Falls Run in Stafford, Virginia.

Chris Ryan, Vice President for Del Webb, estimates that there are 535,000 residents in the region between the ages of 55 and 74, which is higher than Phoenix, which claims 143,000 residents. Area demand is high and has companies like Toll Brothers and K. Hovnanian investing accordingly in suburban Washington locations.

For more information go to http://builderonline.com/pages/builderonline/.

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HUD IMPLEMENTS CHANGES TO INCREASE NUMBER OF REVERSE MORTGAGES

The reverse mortgage sector is beginning to show the growth experts predicted would accompany a boom in the U.S. elderly population. According to HUD, reverse mortgage originations were up 70% through June. This increase can be attributed to HUD's implementation of changes that increase demand and provide better access to reverse mortgages. Changes include: allowing reverse mortgages on co-ops, which is currently barred; waiving fees for the refinancing of reverse mortgages; and waiving the up-front 2% fee for the HUD mortgage insurance program if the borrower uses the reverse mortgage to buy long-term-care insurance.

Reverse mortgages offer a reversed payment system where lenders give borrowers monthly checks, a line of credit, or both in return for an equity stake in their homes. The product has traditionally targeted seniors who might need to subsidize their normal monthly living expenses or buy long-term-care health insurance not covered by Medicare.

For more information go to http://www.americanbanker.com and search the archives using the keywords "reverse mortgage". The full article must be purchased.

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LAWMAKERS SEEK FUNDS FOR AT-HOME CARE FOR SENIORS

U.S. Senator John Breaux has begun an attack on what he calls "the nursing-home bias" in federal and state programs for the elderly. Currently, in Louisiana government-subsidized care is available only for residents of nursing homes, with few exceptions. The issue is whether seniors will be able to use government assistance for long-term care delivered in their homes, in adult day-care programs or in assisted-living facilities. Supporters say it is less expensive to provide care outside of nursing homes, but also consider that nursing home operators stand to lose financial support. Breaux feels that the federal government should loosen the rules so that states can save money while also giving seniors more choices in long-term care.

Louisiana Legislature has approved $41.2 million in new funds to serve Medicaid supported seniors in alternative settings, and when that money is spent, roughly 3,000 low-income seniors in the state will be receiving care outside of nursing homes.

For more information go to http://aging.senate.gov/.

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