5/99 - NY BUILDER JEFF LEVINE ON SENIOR HOUSING

Seated: Ted Yates, Associate Board Member; Vince Callagy, Treasurer; Jeff Levine, Levine Builders; Rochelle Captan, Executive Vice-President; Otis Jones, Manager Board Member and Donna Klein, Executive Director. Standing: Ben Jacobson and Tom Maniuszko, Associate Board Members; Michael Wegielski, Sergeant-at-Arms; Stephen Elbaz, Secretary; Greg Carlson and Joan Saberito, Manager Board Members and Wayne Reed, Associate Board Member.

According to Mr. Levine, as they age, many senior citizens find that they are physically incapable of maintaining an apartment, they have difficulties performing common daily activities such as dressing and preparing meals. Similarly, they do not require the level of care provided at a nursing home or institution. What fills the needs of these seniors is called "assisted living facilities" and more seniors are discovering the benefits of these projects.

Assisted living, states Mr. Levine, is one of the fastest growing sectors in residential real estate. Currently more than one million seniors live in 30,000 facilities nationwide. The industry is valued between $12 and $15 billion per year and is expected to double in the next two years.

In New York City alone, according to the 1990 census, there were more than 900,000 people age 65 or older and over 100,000 over the age of 85. By 2020, the number of people in the 85 or over category is expected to double. This is a key demographic, since 50% of this group require the services which assisted living facilities provide. In contrast, only 20% of those between 65 and 75 need these services.

LEVELS OF CARE

When seniors finally decide that they can no longer live on their own there are a number of care options from which they can choose:

Age restricted housing and retirement communities (collectively known as independent living);
Assisted living facilities;
Assisted living for special needs populations (such as Alzheimer patients)’
Skilled nursing homes; and
Acute care facilities.

The most basic option is Independent Living. This type of facility is usually an age-restricted development designed for the physical needs and limitations of the elderly. Necessary built in features include handicapped accessible bars in bathrooms and emergency pull cords in bathrooms and bedrooms. Kitchens are designed to accommodate tenants who are mobility-impaired. There are no personal or medical services provided in independent living and the tenants are expected to be able to handle normal daily activities. These facilities can be market rate or subsidized. Retirement communities can be categorized as independent living projects with the addition of organized social activities and recreational facilities.

The New York Association of Realty Managers (NYARM) held its monthly membership meeting on Wednesday, April 21, 1999. The dinner meeting was held at Frank’s and the guest speaker was Jeffrey Levine, president of Levine Builders. Since 1979, Mr. Levine has directed the new construction or rehabilitation of thousands of residential units and built or renovated in excess of one million square feet of commercial space.

Mr. Levine was asked to speak on the development of senior citizen assisted living facilities, a topic he is well versed in. Levine Builders has developed a number of these facilities in New York City. Many NYARM managers face "aging in place" senior residents, their unique problems and the problems they manifest for the buildings, on a daily basis.

Scott Lucas, William R. Lucas, Inc.; Pearl Dennis, NYARM Administrative Assistant; Michael Wegielski, Clearview Gardens Corp; Anita Sapirman, Saparn Realty, Ben Jacobson, Jacobson Painting and Ron Goldman, Edmar Corp.

Greg Carlson, Carlson Realty; Delbert Moore, St. Phillips on the Park; Scott Lucas; Stephen Elbaz, Esquire Management and Steven Gold, Hudson View Associates

Wayne Reed, Northeast Hardware & Plumbing Specialties; Barbara Lipari, Diversified Property Management at Hollis Court; Lori Simon, Kay Waterproofing; Renee Paterson, HPD; Ben Jacobson and Vince Callagy, Knickerbocker Village.

Alan Gorelick, Saparn Realty; Barbara Sullivan, Lefrak Organization; Don Levy, Lawrence Properties; Anita Sapirman; Ron Goldman and Donna Klein, NYARM Executive Director.

Assisted Living facilities have different services and licensing requirements. These projects are designed for seniors who can no longer perform the activities of daily living but who do not yet require 24 hour care. Tenant services vary from facility to facility but almost all projects offer three meals per day, special diets, snacks, social activities, emergency call systems, 24 hour security, wellness activities, transportation, maid and linen services. Licensed facilities include nursing services, incontinence care and physical therapy.

Some assisted living facilities set aside space for special needs populations, the most common being Dementia which include sufferers of Alzheimer’s, Parkinson’s and Huntington’s diseases.

While managing an assisted living facility may seem similar to managing other residential properties, stated Mr. Levine, it is quite different. The residents in such a facility rely on management for more than just a roof over their heads. The operation is a mixture of property and asset management, including building maintenance and fiscal operations. Additionally there is the added complexity of operating dining facilities and housekeeping services. The manager must insure that the residents have access to a balanced diet, stimulating recreational activities as well as a clean and safe environment, all of which must be delivered within a set budget to insure a profit. Managing a licensed facility has the additional component of healthcare management.

In conclusion, Mr. Levine stated, "Senior housing, and especially assisted living, will be one of the largest growth segments of the residential property market in the next few years. While there will be many good business opportunities in this sector there are also many complex issues associated with operating these facilities. Since operating an assisted living facility is more complex than managing other residential property a management company should consider whether it has the capacity to handle the hospitality and healthcare components before moving into the assisted living industry."