MISHAWAKA, IN—As baby boomers age, healthcareand housing are becoming critical needs, but the costs continue tosoar out of reach of many retirees. A cost-of-care study byGenworth Insurance puts the annual cost of anassisted living facility around $48,000, but Census figures suggestthat as much as 10 percent of the over-60 population is livingbelow the poverty line.

KeyBank Real Estate Capital and CainBrothers recently worked together to secure financing forthe construction of Hellenic Senior Living ofMishawaka, an affordable assisted living facility inMishawaka, IN, targeting seniors who earn 60 percent or less of thearea median income. As previously reported by GlobeSt.com, the project isdesignated as an Affordable Assisted Living Facility, or AALF,which are Low Income Housing Tax Credit (LIHTC) properties thatreceive Medicaid waiver reimbursement payments to pay for theassisted living services provided. Seniors age 62 and older whohave an income at or below 60% of St. Joseph County's area medianincome are eligible for residency.

You can hear the complete audio interview with LeeDelaveris of KeyBank and Joseph P. Mulligan of Cain Brothers in theaudio player below. If you do not see an audio player, click here to listen to the interview.

“The LIHTC program has been widely used for traditionalaffordable housing, even age-restricted senior apartments, saysLee Delaveris, vice president, seniors housing& healthcare, KeyBank Real Estate Capital. “But it's lessprevalent although growing, to be used for licensed assisted livingfacilities that not only provide senior housing, but also careservices that are paid through the Medicaid program. So bringingthat together is unique, but a growing opportunity in the market.We've certainly seen a lot of these done in Indiana, thanks to astrong Medicaid waiver program in that state, but the developmentside of this transaction is pretty unique.”