Church Loans and Senior Housing Development

SENIOR HOUSING DEVELOPMENT ON CHURCH PROPERTY

Why Must The Evangelical Christian Community Embrace Senior Housing As An Ongoing Ministry Strategy?

There are historic demographic and financial shifts occurring today that threaten to fundamentally alter the very social, political and economic landscape upon which America operates. Never before in our country’s history has the 65 and older population been such a significant percentage of our total population; and it is growing.

Historical Shifts and New Issues

The Baby Boomer generation is aging… each day over ten thousand people are turning 65 and will grow to total over 20 million… for the next 20 years. In less than 6 years, the number of Americans aged 85 or older will increase by 33%, which is 3 times faster than any other age group. And of those over 75, 40% must contend with some form of dementia. In short, seniors are living longer, physically healthier lives.

1) A Moral Crisis… A new report by the Center for Housing Policy titled “Housing an Aging Population” puts facts to the instincts all of us working on senior issues have, “We know we are not adequately preparing for this demographic tsunami”. It presents a moral crisis for this country as it demonstrates that we will leave our elders without decent and caring places to live.

The dramatic growth of seniors will have important consequences for the church as it prepares for ministry in the twenty-first century.

The Church must not let the tsunami of senior adults catch it unprepared. The wise pastor and congregation will begin praying; planning and putting people and projects into place that can address the physical, spiritual and emotional needs of their senior adults. Only then will we be ready to care for, minister and reap the great harvest of senior souls.

2) A Financial Crisis… There is a “New Normal” in church finance. For most churches in America, the economy has had a profound impact on church collections and programs. Income is down, budgets are strained and ministry programs and opportunities have been restricted or abandoned all together. Creating additional or alternative revenue streams without a significant investment to plant and programs is virtually impossible. Adding insult to injury, credit markets once eager to fund church expansion have all but vanished. Excess church land, once a valuable asset to church health and expansion, now sits idle with diminished value and little prospect of ever being developed for its intended purpose.

WHY IS SENIOR HOUSING A GOOD STRATEGY FOR THE CHURCH TO EXPLORE?

DIRECT BENEFITS FOR THE CHURCH:

New ministry opportunities and a direct outreach to the seniors in your church and community.
Ownership equity in exchange for unused or un-utilized, relatively low value unencumbered raw land asset.
New alternative revenue stream for participating church partner.
No upfront consulting, due diligence or entrance fees of any kind.
No ongoing capital cost or financial liability to the church partner.
No operational or reporting responsibilities.
Potential Increase in overall property values.

SO HOW DOES IT WORK?

FAQ's - Frequently Asked Questions

WATCH OUR SENIOR HOUSING PRESENTATION

WHAT IS REQUIRED OF THE CHURCH SPONSOR?

WHAT IS REQUIRED OF

COREQUITY & IT'S PARTNERS?

The Senior Living Development Program is only available to organizations that are interested in providing housing, independent living, assisted living or memory care for the elderly members of their church and community.

Key requirements for church participation include:

A sincere commitment by the leadership of the organization to this type of project. The Church will formally engage CorEquity (at no cost to the church) to conduct it's required due diligence and market studies to determine project viability.

A congregational size of at least 500 active members.

Market data demonstrating a need for a facility of this type, which we will gather and determine.

The availability of unencumbered land suitable for the development of senior living facilities. (In certain instances we may be able to use encumbered land if known in advance).

Prelease market information and data from the church.

Once market viability is determined and the church and CorEquity agree to move forward, a single purpose LLC will be created to hold both the land and the newly formed senior housing project for the benefit of both the sponsoring church, CorEquity and it's development partners.

The creation of a special committee within the organization to work cooperatively with the CorEquity team.

PLEASE NOTE:

In reality, not every community is a candidate for a senior living facility. This may be the result of demographic patterns, lack of commitment on the part of the church sponsor, difficult zoning laws, existing troubled projects in the area or problems in securing permanent financing.

To address these uncertainties, the Senior Living Development Program is specifically designed in incremental steps. This strategy limits our financial investment; particularly early in the process in the event that market conditions indicate that a project is simply not feasible. This Senior Living Development Program includes a series of “go” – “no go” decision points at which time the process can end with no further obligations from either the church or CorEquity.

The Senior Living Development Program provides a “turnkey” approach for senior housing, independent living, assisted living and memory care that includes: market analysis, planning and design, construction and development, financing, licensure, and ongoing management. These facilities would be jointly owned by CorEquity and it's development partners and the sponsoring church and constructed on land that it makes available for the project.

Key responsibilities and requirements of CorEquity and it's development partners include:

Market Feasibility and Analysis - A critical first step for a project of this type is determining if there are a sufficient number of “age and income qualified” individuals within the community who are likely to become residents of a senior housing. independent living, assisted living or memory care facility.

Development Services - With the involvement of development partners contracted with CorEquity, each project will receive a high level of guidance and oversight insuring that the entire development process flows in an efficient and successful manner.

Planning and Design - Senior housing and assisted living facilities are very different from traditional multifamily housing and must address the unique needs of older residents. For that reason, it is important to have an experienced firm designing both the exterior and interior of the facility. The CorEquity development team will use regionally based firms with extensive senior living experience to provide the planning, architecture and interior design disciplines resulting in distinctive and functional facilities.

Construction Experience - In order to maintain the affordability of the project, it will be imperative to ensure that the facility is built within budget, which is why CorEquity utilizes one of the largest health care facility developers and contractors in the country.

Financing - The program uses experienced mortgage bankers, investment bankers and private equity to finance the project resulting in the very lowest capital costs available.

Facility Management - A well conceived and properly designed facility is only as successful as the management component. Projects completed under the Senior Living Development Program will be managed by regional or national organizations to insure that they will be operated in a financially prudent and caring manner.