With the exception of just a few federally operated facilities, the private market for senior housing is wide open, leaving private development to fill the gaps to serve the community. Because development of such critical senior housing is sensitive to a growing population in need that it will serve, Cambridge Realty Capital provides expertise financial assistance and guidance in order to deliver this development most effectively.
New Congress will Shift Senior Housing Subsidies
The certifications and licensing process of operating senior housing remains to be typically a creature of the state legislatures, but federal compliance remains to be the polestar to secure the most capable and efficient operation of facilities, especially as a new Congress reassesses how senior housing will be subsidized for a growing population of senior citizens. As such, senior facilities must both diligently observe state requirements but must also pay close attention to the shifting federal legislation that will affect not just a good share of the U.S. population but a lion’s share of the U.S. economy through private real estate development.
Although CLASS may not be feasible for seniors through Obamacare, future federal legislation will undoubtedly provide handsome compensation packages to those facilities providing optimum long-term care for residents who may also qualify for supplemental disability compensation.
Resources Remain Underutilized
As a matter of public policy, Supplemental Security Income, or what can be referred to as “SSI,” is likely to increase. Supplemental Security Income provides monthly cash payments to persons or their caretakers based upon uniform national eligibility standards for disability and need. All persons who meet those standards are enrolled. The program is funded from general federal revenues and is administered by the Social Security Administration. Read more about SSI here.
Note that caretakers may receive SSI on behalf of the qualified applicant. This means that there may be an opportunity for guaranteed monthly revenues, where senior housing facilities may enjoy steady returns regardless of one of its resident’s ability to pay out of pocket. The Social Security Administration’s Office of Policy recently announced that Supplemental Security Income for the Aging, Blind, or Disabled will likely increase in the coming years, even if to the detriment of other programs. “We suggest that certain provisions of the new legislation are likely to increase states’ interest in promoting the transfer of TANF recipients to SSI. We conclude with a review of the implications of our results for possible collaboration between the Social Security Administration (responsible for SSI) and the Department of Health and Human Services (responsible for TANF).”
By the same token, the agency also predicts the shift from state funding to increased federal funding where state support would be bolstered to senior citizen providers, especially with increased federal funding to provide for long-term senior housing care to citizens in need.
Now is Key to Position Development
With a nod to the cornucopia of federal agencies involved in care for the elderly, it is time to focus on deal opportunities and delivery of senior housing real estate development. This means that whether through a vision to facilitate premier healthcare in luxury private suites with various types of lifestyles and amenities for seniors, or simply to build a basic facility for private sector retirees, Cambridge Realty Capital can bring new real estate development opportunities in senior housing to life.