Management Senior Living Providers Make Progress in Creating Workforce Housing for Staff

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Aug 13, 2024

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To meet the needs of a workforce seeking affordable housing in some of the highest cost of living parts of the country, senior living providers are taking matters into their own hands.

Two such operators, Naples, Florida-based Moorings Park in Naples and St. Paul, Minnesota-based Presbyterian Homes and Services, have a variety of projects underway to meet these needs.

Moorings Park, in a joint venture with real estate developer K2 Developers, acquired a Super 8 hotel and has been in the process of renovating it since September 2022, according to Mary Morton, chief financial officer of The Moorings Park Institute, Inc.

Part of the reason for doing so was addressing the immediate need expressed by workers who couldn’t afford to live in the area, where the average rent of a one-bedroom apartment is around $2,000 per month.

“We acquired [the] hotel in order to deliver much needed housing in a rapid manner relative to ground up development projects, which often take at least four years to get approved, built and stabilized,” Morton said.

For Presbyterian Homes and Services, the need for housing was found through an employee survey, where 19% of workers expressed an interest in workforce housing if the company could provide it, according to Senior Vice President Jon Fletcher.

“If they couldn’t find affordable housing, they may be forced to relocate elsewhere, potentially impacting their ability to continue working with us,” Fletcher said. “We view that as a very high percentage of our employees, that’s upwards of 1,400 of our employees.”

To address the need, Presbyterian Homes and Services acquired an existing independent living and assisted community and converted a portion of the units for workforce housing purposes. After the acquisition in September 2023, the first employees have already moved in and more are on the way, according to Fletcher.

An immediate need

For Moorings Park, the acquisition of the Super 8 hotel turned out to be immediately beneficial.

“The property was fully leased until just recently, because about two weeks after we acquired the property, our area was directly hit by Hurricane Ian,” Morton said. “We were fortunate to be able to provide much needed housing or immediate housing for those individuals who worked at Moorings Park and other local employers who lost their homes or had their homes badly damaged during the storm.”

While renovations are still underway, Morton added there has been positive feedback from the employees that have been living there so far.

In addition to the hotel, the Moorings Park Foundation collaborates with Habitat for Humanity to provide financial assistance for employees to purchase a Habitat for Humanity home and is helping fund the conversion of an old golf course into housing that will be available for essential workers and seniors through a public/private partnership between the county and two other local foundations. The project is noted to be the first of its kind in Florida.

Through discussions with employees, Fletcher said Presbyterian Homes and Services was able to identify a need of 20 to 40 apartments in the markets of St. Paul and Bloomington, Minnesota, and Stillwater, Minnesota. With its current offerings, the communities are designed to be independent senior living communities, and through the Fair Housing Act’s age exemption, 20% of those apartments can be occupied by individuals younger than 55, allowing for 20 to be used by employees.

Despite Presbyterian Homes still being early in the process for allowing workforce housing, Fletcher said there is a known demand. When the housing opportunity was communicated to employees, he said around 40 responded and said they were interested in living there.

“We know there’s demand,” Fletcher said. “At the same time, we also know employees need to terminate or wait until their current lease is ended, wherever they’re living.”

Another community that has been offering workforce housing, at Lake Minnetonka, consistently houses 30 employees. The net promoter scores from those employees are higher than other employees and their length of stay with the company is about twice as long.

“We find that those employees end up being what we call trees for the organization in terms of their longevity. It really helps to provide them with a stable affordable housing option,” Fletcher said.

With its latest project, Presbyterian Homes and Services charges between $800 and $1,500 for rent for all residents, making it intentionally affordable. The cost was determined by charging 60% of the median area income to keep prices below market rate.

Additionally, having affordable housing readily available has allowed both companies to fill vacant positions with foreign workers, whether they are nurses from the Philippines for Presbyterian Homes and Services or seasonal staff from the hospitality industry for Moorings Park.

Based on the current successes seen through the programs, both Fletcher and Morton said there are plans to add additional workforce housing solutions to their respective companies, though it is dependent on the demand.

Navigating housing challenges

There are challenges associated with providing workforce housing. Despite being faster than developing from the ground up, zoning and permitting can slow a project down, “not in my back yard” pushback from area residents and businesses due to the stigma of affordable housing.

The hotel acquired by Moorings Park, for example, despite being acquired in September 2022, is still obtaining the necessary zoning and permits for the renovations and as such an anticipated completion date for the project can’t be determined at this time.

“It’s just the process. It’s very complicated,” Morton said.

Another challenge, particularly for providers that operate in multiple regions, is determining where to put housing for employees. According to Fletcher, identifying areas with high concentrations of employees who want to live in provided housing is the key.

“It’s probably going to be more challenging to make it work in areas where we don’t have high concentrations of employees,” he said. “The reality is that even if you do provide employee housing, there might not be a huge percentage of your employees that want to live in housing that you provide as well, there’s probably a stigma associated with that.”

Because employers are providing housing for employees, there’s also the chance of blurring the lines between personal and professional life for residents. To avoid this, Morton suggests utilizing a property manager to handle day to day tasks, alongside implementing policies to “promote fairness and transparency” in housing related matters and smooth out the relationship between employer and employee.

Another approach is having a physical separation for the work and tenant experience, as well as providing privacy for tenants, which is what Fletcher said his company has been implementing.

“In the latest building that we acquired, we are targeting to have all the employees live on a certain floor. It’s easier for them to just kind of check out and go to their own floor so they’re not always having to interact with residents if they don’t want to,” he said.

For senior living providers looking to offer workforce housing, Morton suggests bringing on a development partner. Even if the project hadn’t worked out, she said, Moorings Park would have acquired an asset and it wouldn’t have been “an economic drain.”

“Forming a joint venture with our development partner allowed us to leverage their strengths and expertise, mitigate risks and access additional resources, ultimately contributing to a more resilient and sustainable business model,” she said.

Fletcher said he encourages other senior living providers to pursue affordable housing, despite the challenges, as it benefits the greater market.

“I would just encourage folks to try. They don’t necessarily need to try to bite off 100, 200 or 500 units at a time. Just small pockets of affordable units could probably go a long way,” he said.

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transportation to appointments.Residential AssistancePrepared meals and household support can reduce certain daily responsibilities.Long-Term PlanningFamilies should understand the community's care capabilities and referral arrangements.Transportation and Community ParticipationTransportation may be an important factor in maintaining independence.Some older adults no longer drive.Others find regular travel difficult because of mobility challenges.Local Medical AppointmentsThe Meadows advertises transportation to local appointments.Scheduling RequirementsAsk how far in advance rides must be arranged.Geographic LimitsNot every destination is necessarily included.Medical EmergenciesScheduled transportation is not a substitute for emergency medical transportation.Family CoordinationRelatives may still need to assist with certain specialist visits.Confirming CostsAsk whether transportation is included in the monthly rate.Respite Care and Temporary StaysThe Meadows of Jackson also provides respite options.Temporary Residential SupportRespite may be useful when family caregivers need short-term assistance.Individualized AssessmentThe community determines whether a prospective resident's needs can be accommodated.Meals and ActivitiesAsk which residential amenities are included during the stay.Medication ArrangementsA temporary resident may need appropriate documentation and medication instructions.DurationMinimum and maximum stay arrangements should be confirmed.CostsRespite pricing may differ from permanent residential pricing.Assisted Living Costs and Financial PlanningThe Meadows of Jackson's Seniors Blue Book profile lists a starting monthly rate of $2,515.This figure is published listing information, not a guaranteed current price.Confirm What Is IncludedAsk about meals, housekeeping, laundry, and personal assistance.Review Additional Care FeesSome communities charge separately for different assistance levels.Understand DepositsRequest information about initial charges.Ask About IncreasesClarify how monthly charges may change.Review Payment SourcesThe listing identifies private pay, eligible long-term care insurance, and veterans benefits as payment categories.Medicare LimitationsOriginal Medicare generally does not pay for assisted living room and board.Families should request a personalized written estimate before signing an agreement.How to Evaluate Social Engagement During a TourAn attractive activity calendar does not guarantee that every resident will enjoy the same programs.Observe Common AreasAre there comfortable places for conversation?Ask About Resident InterestsHow does staff learn which activities individuals enjoy?Review ParticipationAre activities voluntary?Discuss MobilityCan residents with limitations participate in suitable ways?Consider Family VisitsHow are guests accommodated?Ask About New ResidentsHow does the community help someone become familiar with daily activities?Expert Tip for Choosing an Engaging CommunityExpert Tip: During your tour, ask to see the current activity calendar and identify two programs your loved one might enjoy.Then discuss how the community helps new residents participate without pressure.A thoughtful activity program should offer opportunities for connection while respecting privacy and personal preferences.How to Get Started With The Meadows of JacksonStep 1: Review Personal NeedsConsider daily assistance, medications, meals, and mobility.Step 2: Identify Social PreferencesDiscuss hobbies, religious activities, and preferred routines.Step 3: Call The MeadowsContact 251-246-1915.Step 4: Schedule a TourVisit 517 Commerce Street in Jackson.Step 5: Review ServicesAsk about personal care, recreation, meals, and transportation.Step 6: Request PricingConfirm current rates and additional fees.Step 7: Discuss AdmissionAsk about required assessments and records.Step 8: Include the ResidentWhenever possible, let the prospective resident participate in evaluating the community.Frequently Asked Questions1. Where is The Meadows of Jackson located?The community is at 517 Commerce Street, Jackson, AL 36545. The phone number is 251-246-1915.2. What activities does The Meadows of Jackson offer?Advertised activities include games, arts and crafts, music, exercise, Bible studies, holiday celebrations, and occasional outings.3. Does The Meadows provide private accommodations?Yes. The community offers private bedrooms and bathrooms, subject to availability.4. Are medication assistance and wellness checks available?Yes. The Meadows advertises medication assistance and monthly licensed-nurse wellness checks. These services do not constitute continuous skilled nursing care.5. How much does assisted living cost at The Meadows of Jackson?Seniors Blue Book lists a starting monthly price of $2,515. Contact the community for current pricing and the exact services included.Find Connection and Support in JacksonAssisted living should address more than daily tasks.The right residential setting can also support meaningful relationships, personal interests, and a sense of belonging.The Meadows of Jackson offers personal assistance, private accommodations, meals, recreational activities, and opportunities for family and community involvement.For families throughout Clarke County, exploring the community's daily routines and social environment can help determine whether it is the right fit.Contact The Meadows of Jackson to request information or arrange a tour.Featured Seniors Blue Book ListingThe Meadows of JacksonRecommended Main SBB Category: Assisted LivingOrganization: Crowne Health CareAddress: 517 Commerce Street, Jackson, AL 36545Phone: 251-246-1915Fax: 251-246-1932Website: https://crownehealthcare.com/meadows-jacksonListed Units: 16Published Starting Price: $2,515/month, subject to verificationServices: Private accommodations, meals, personal assistance, medication support, laundry, housekeeping, wellness checks, transportation, recreational activities, respite care, and outside healthcare coordination.Seniors Blue Book Profile: https://seniorsbluebook.com/listings/meadows-of-jackson-the-jackson-alFind The Meadows of Jackson on Seniors Blue BookExplore The Meadows of Jackson's assisted living profile, community services, and contact information.

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