Why Affordable Assisted Living Facilities (AALF) are So Important
When we first heard about Affordable Assisted Living Facilities (AALF), our gut reaction was “no way, not us.” We’ve been in the affordable housing business for a quarter of a century, but our portfolio is comprised of independent multifamily and senior apartments. We’ve never offered extensive health services and, at the time, we had no intention of starting.
Then we stopped and really listened, and our minds changed quickly.
AALF is a blend of tax credit housing (which we’ve done for decades) and the Medicaid Waiver Program for assisted living services. The deals are complex, but the value-added outcome is worth the hard work. Here’s why:
- The Silver Tsunami: 10,000 baby boomers turn 65 every day! The demand for high quality affordable senior housing is already immense and it’s only getting bigger.
- Assisted Living Is Expensive: Countless seniors would benefit from Assisted Living communities, but they simply can’t afford them. This new twist on tax credit housing will open up affordable AL options for frail elderly residents who desperately need them.
- Home-Based vs. Institutional Living: Many seniors who can’t afford expensive, market-rate assisted living services end up moving in with relatives who are not properly equipped to care for them. If family isn’t an option, they are often forced into institutional nursing facilities because that’s the only Medicaid option available. AALF helps frail seniors keep their dignity and independence in home-based living environments while still providing them with the vital healthcare services they need.
- It Saves Medicaid Money: AALF actually saves the State’s Medicaid budget lots of money by keeping seniors out of high-cost, institutional nursing facilities. Not only is AALF a more dignified and independent living environment, it’s also cheaper!
AALF is a perfect fit for CRF’s charitable housing vision. Our first development is scheduled to open mid-late 2018 in Lafayette, IN with two more projects currently in the works. We hope other states continue to take notice of what’s happening with AALF in Indiana because we believe these projects have the potential to positively change the housing landscape for seniors nationwide. Stay tuned!