Oceanic Retirement Communities of America (ORCA) announced that it has started taking reservations for its programs will allow seniors to own a condo on a private residential cruise ship that also provides both the Independent and Assisted Living accommodations typically found in land-based facilities.  The ORCA Lifestyle Cruising Program will provide the healthcare aspects of traditional retirement facilities on private resident-owned cruise ships to be home ported in various coastal Florida cities.

Seniors would enter the program just as they would a typical Continuing Care Retirement Community (CCRC) with a nominal entrance fee and subsequent monthly Residents’ Care fees, but would live aboard the cruise ship until eventually health issues would necessitate their moving into a skilled nursing facility ashore.  Unlike a CCRC, a senior would have ownership of their unit and have the ability to pass it along to their estate.  The first ship will enter service sometime late Summer or early Fall and will take frequent cruises to the Bahamas and Central America.  Enrollment pricing in the ORCA Lifestyle Cruising Program varies from $259-499,000 for 2 people. Monthly Residents’ Care Fees are about the same or a little less than conventional retirement facilities.

"People retire to Florida for three things mainly … warm sunshine, golf, and the water," states Mel Medina, President of ORCA. "This is a unique package that provides for all that plus a wellness capability."

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Standard & Poor’s released its S&P/Case-Shiller Home Price Indices for April 2009 and the data showed the home price values continue to decline in year over year numbers but the pace of the declines has slowed slightly.  The 10-City and 20-City Composites declined 18.0% and 18.1%, respectively, in April compared to the same month in 2008. These are improvements over their returns reported for March, down 18.7% for both indices. For the past three months, the 10-City and 20-City Composites have recorded an improvement in annual returns.  While this may not put a bottom in place on house prices, a slow down in declines provides a positive note in an otherwise dismal housing market. 

In terms of annual declines, the three worst performing areas continue to be the same three from the Sunbelt. Phoenix was down 35.3% in April, Las Vegas declined 32.2% and San Francisco fell 28.0%. Denver, Dallas and Boston continue to fare the best in terms of annual declines down 4.9%, 5.0% and 7.7%, respectively. Charlotte, Chicago, Cleveland, New York, Portland and Seattle posted record annual declines in April. For the month Dallas was the best performer returning +1.7%, while Las Vegas was the worst performer down 3.5%.

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As unemployment figures creep towards double digit numbers, seniors who are now finding themselves unemployed or under-employed are adding fuel to the next wave of foreclosures.  These seniors facing job cuts or reduced hours are putting a further strain on the already tenuous housing market.  While the Obama administration’s efforts to stem the tide of foreclosures may be working for some, seniors that have lost their job are at a higher foreclosure risk as their prospects in the job market are more challenging today as more people compete for fewer jobs.  Combining a uneasy consumer and dicey job market, the economy continues to pose problems for senior living providers who are looking for seniors to move into their communities and facilities.

"Every time you turn on the news there are more stories about job losses," said Sandra McCormick, Community Director of Waterside Retirement Community.

Yet while working seniors may be facing challenges finding new jobs, the senior living market continues to add employees and job opportunities across the United States and Canada.  Some senior living providers are looking for mature adults that have business experience buy may be looking for a new career in the elder care industry.

“Mature workers are a great asset to the senior care industry,” says Britt Nichols co-founder of National Senior Living Providers Network. “They can often transfer skills from other disciplines to find the flexible, enjoyable employment they desire at this stage in their life.”

Skilled Healthcare Group, Inc. (NYSE: SKH) announced the completion of its special investigation relating to the understatements of its accounts receivable reserves in its financial statements for the periods January 1, 2006 through March 31, 2009. Skilled Healthcare has completed the restatement of its consolidated financial statements for the three years ended December 31, 2008 and each of the quarterly periods from January 1, 2007 through March 31, 2009 and today filed an amended Annual Report on Form 10-K/A for the year ended December 31, 2008 and an amended Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2009 . As previously reported, the investigation was initiated and directed by the Audit Committee of the Company’s Board of Directors. The cumulative charges against after-tax earnings for all periods affected between January 1, 2006 and March 31, 2009 were $8.4 million in the aggregate.  After determining that the former employee had acted in a manner inconsistent with the Company’s accounting and disclosure policies and practices, management recommended to the Audit Committee that a restatement was required.The Company’s investigation showed that the former employee intentionally manipulated certain financial information in violation of Company policy and thereby causing the Company to understate its accounts receivable reserves. The investigation found no evidence that anyone else within the Company knew of, or participated in, the improper conduct.

“Over the last few weeks, we have worked vigorously to investigate the matter and submit amended SEC filings,” noted Boyd Hendrickson, Chairman and Chief Executive Officer, “In addition, we have taken remedial action and remain committed to maintaining a strong control environment, high ethical standards and confidence in our financial statements.”

For the revised SEC statements, click here.

Cornelia C. Hodgson, the architect leading the senior living studio of design for national architecture firm Dorsky Hodgson Parrish Yue (DHPY), has been appointed to the International Council on Active Aging’s (ICAA) Visioning Board. Hodgson is a committed advocate for the use of innovative design in improving environments for seniors, with particular thought for how good designs affect quality of life in senior living spaces.  Wellness research is also part of DHPY’s commitment to translating current practices into forward-thinking and progressive designs. Collaborating with Friendship Village and Ziegler Capital Markets on “Defining the Wellness Paradigm," DHPY conducted the first-ever study that tracked the state of wellness in senior living communities.  Hodgson stands by ICAA’s vision to change the way people age by dispelling myths about aging and to help older adults improve their quality of life and maintain dignity is greatly aligned with DHPY’s design philosophies.

“My design philosophy is focused on people – how design affects them and connects them to their community,” said Hodgson. “Designing for senior living is about creating a new definition of senior living that is based on quality of life and rooted in wellness principles – shifting the emphasis from illness to wellness and from disability to ability towards successful active aging.”

HCP (NYSE:HCP) announced today that it has filed complaints Sunrise Senior Living, Inc. (NYSE:SRZ) and its subsidiaries (“Sunrise”) based on Sunrise’s defaults under management and related agreements covering 64 HCP-owned properties operated by Sunrise. The complaints, filed in the Delaware Chancery Court on June 29, 2009, allege, among other things, that Sunrise systematically breached various contractual and fiduciary duties, including operating the properties in a manner that impermissibly favored the interests of Sunrise and its affiliates at the expense of HCP and its tenants. In addition to equitable relief and money damages relating to the defaults, HCP and its tenants are seeking judicial confirmation of rights to terminate the agreements on the 64 properties.

According to HCP, Sunrise responded to HCP’s default notices by denying that it was in violation of its agreements in any material respect.  Sunrise Senior Living responded to the lawsuit today with the following statement:

"HCP purchased these communities under long-term management contracts with many years remaining. The communities have steadily improved their performance yet HCP has continually expressed their desire to terminate their agreements," said Mark Ordan, Sunrise’s chief executive officer. "We see today’s announcement as just another attempt to unlawfully terminate our agreements and we will enforce our rights vigorously on behalf of all Sunrise stakeholders. We are proud of the care and service we deliver to all of our residents and families, and we look forward to continuing to serve these communities."

With the flurry of activity surrounding the termination of the management agreements on 15 additional Sunrise-managed communities were terminated effective October 1, 2009, HCP appears to be distancing itself from Sunrise through its recent actions.

For the full HCP press release, click here.

For the full Sunrise press release, click here.

The UCLA Center for Health Policy Research and the Insight Center for Community Economic Development released new data last week that showed that a senior living along in Los Angeles would need twice the media income (based upon $17,029) to survive.  In all 58 California counties, long-term health care is far out of reach for the state’s seniors living alone who are disabled. Yet even as costs soar, Gov. Arnold Schwarzenegger has proposed the elimination of Medi-Cal-funded in-home supportive services for up to 400,000 seniors as a means of closing the state’s budget gap.

In 33 counties (57 percent of all California counties), the cost of long-term health care for elderly single women - who are more likely than men to use long-term care - exceeds the median income for single Californians aged 65 or older. In 38 counties (65.5 percent of all counties), the cost of long-term care combined with basic living expenses is at least two times the median income for this group. And in all 58 California counties, long-term care paired with basic living expenses far exceeds median income.

"When getting help at home costs a year’s income, something’s wrong," said Steven P. Wallace, associate director of the Center for Health Policy Research. "It means that extended families will be stretched thin to provide care or that the elderly will bankrupt themselves to pay for a service provider."

For the full data and statistics, click here.

Many seniors are looking for advice on what to do and where to go and are looking for people that they can trust most importantly.  In response to this need, Emeritus Senior Living (NYSE: ESC) recently announced a partnership with the Financial Planning Association (FPA®) that will allow its more than 26,500 residents and prospective residents to make an easy connection with CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals within the FPA community who are specially trained and educated in financial planning and many go through an extensive certification process to earn their CFP credentials. The partnership was formed in order to give Emeritus residents, and seniors considering a move to assisted living, qualified financial counsel and peace of mind during this challenging economic environment.

Emeritus Senior Living’s 309 communities will individually schedule local educational seminars based on the feedback and demand from community residents. Each seminar will be hosted by a FPA member and will provide objective, unbiased information, covering issues ranging from retirement planning, budgeting and how to choose a financial planner.

“The economic environment has created concern among Americans of all ages, and our residents are no exception,” commented Granger Cobb, co-chief executive officer, Emeritus Senior Living. “We formed this partnership with the Financial Planning Association to ensure that our residents and prospective residents can obtain reputable financial planning advice from a trusted expert. We want our residents, and those seniors considering joining the Emeritus family, to feel informed and prepared for their financial future and this partnership offers them an avenue for counsel from the top personal financial planners in the industry.”

The Senior Housing Investment Survey – Spring 2009 Edition, was provided by Senior Living Valuation Services Inc. and confirms trends that our readers are seeing in the marketplace nationwide.  The highlights of the Senior Housing Investment Survey include:

• A material uptrend in overall capitalization rates for all senior housing categories from 2007 to 2009
• The decline in actual sales transactions has made gauging overall capitalization rates more tenuous
• Sharp increase in discount rates for all senior housing property types, ranging from 160 to 300 basis points

For the full report, click here.

Ashford Landing, a 117-unit mid-rise affordable apartment development for independent seniors, celebrated its grand opening last week in Atlanta, Georgia.  The opening represents the second phase of a multi-phase redevelopment of a new mixed-use community, Brookleigh, on the site of the former Johnson Ferry East public housing project in north DeKalb County.  When the entire campus is fully completed, it will have a total of residential units and 70,000 square feet of retail space.

The apartments at Ashford Landing will be one and two bedroom units for seniors 62 years and older. All units are priced to be affordable to lower-income seniors, with rents beginning at $720/month.  A range of wellness, educational and other services will be provided to residents by Senior Connections.

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New Sheriff in town at Brookdale?  Not really, the old Sheriff (W.E. Sheriff) had his employment agreement amendend last week as Brookdale Senior Living announced an extension and modification.  The agreement calls for Sheriff to serve as Brookdale’s Chief Executive Officer for the next 5 years.  Mr. Sheriff will continue to be employed as Chief Executive Officer of the Company during the five year term of the agreement but at any time during the term, Mr. Sheriff may elect to resign as Chief Executive Officer and serve the Company as a consultant for the balance of the term by providing the Company with at least six months’ prior notice.  During the period that Mr. Sheriff serves as Chief Executive Officer, he will continue to receive an annual base salary of $600,000 per year. He will receive a consulting fee of $300,000 per year during the period that he serves as a consultant.

For the full details on the terms of the agreement, click here.

Thinking about attending one of the many senior housing conference during the rest of the year?  Senior Housing News is going to be attending a few and is starting a page (soon) that will be listing senior housing / senior living conference and meeting information.  Have one that you think is worthy?  Email us at info@seniorhousingnews.com and we will probably add it to the list (especially if we get an invite).

NIC - September 23-25, 2009 – Chicago, Illinois

AARC - November 4th - 6th at the Marriot at the Convention Center in Chattanooga, TN

AMAR – September 10 – 13th, Mexico City – Senior Living and Care Industry in Mexico

European Ambient Assisted Living Joint Programme - 29 September - 1 October 2009, Vienna, Austria