Wednesday, November 21, 2007

Assisted Living Concepts got help to build Victoria House...How will they help low income residents?

Back in 1996 when Assisted Living Concepts (ALC) was building Victoria House, they received help from the Washington State Housing Finance Commission (WSHFC) to the tune of $8,500,000 in revenue bonds to acquire a mortgage to provide long-term tax-exempt financing. So, what did Assisted Living Concepts promise to do in return for this generous assistance? They have 36 units and are required to set aside 15% (6 units) for residents at 50% of median income for the county and 5% (2 units) at 35% of the median income for the county. Until now they have met some or all of this requirement with residents receiving Medicaid.

How will they meet this requirement after the Medicaid residents are gone? We don't know. John Estes, LTC Volunteer Ombudsman for Victoria House contacted Terry Raiso, Western Divisional Vice President of Operations and posed that question to him. Mr. Raiso responded that at this time they would not offer discounted rates to qualified low income housing residents; if they can't find someone who can pay the current market value, they will hold the units vacant. However, a representative from the WSHFC tells us that the facility must be making a good faith effort to fill the low income units or they will be out of compliance with their regulatory agreement. Looks like ALC has a dilemma. One wonders what consideration they gave this commitment before deciding to evict the Medicaid residents.

No comments: