Real Sage Advice

New appreciation for the sandwich generation

It seems the universe finds ways to remind us of what's important. I've been in serious work mode over the last couple of weeks; attending networking meetings with senior professionals, working with new clients, tackling a couple of new projects, and even considering a couple of new ventures. Yes, I'm a type A.

Well, just as I was getting into full swing, the universe reached out and tapped me on the shoulder, and tagged me "it". You just know when you've been tagged "it" because there's no conscious thought about the repercussions of your actions, you just know you have to act, because you're "it".

This has happened to most of us at one time or another, most likely when you're up to your eyeballs with work or something else that seems very important at the time.  You're usually at work (or asleep in the middle of the night) and you get *THE* phone call-- your aging parent has fallen ill, your child is in the nurse's office, or maybe your neighbor had a heart attack-- and they need you. You likely dropped what ever you were doing, figured out what needed to be done, and just did it. There was no thought of missed business meetings or opportunities, soccer practice, or dinner with your girlfriend. They'll have to wait.  Another human needs you.  You've been tagged "it".

It seems there is a positive correlation between my own age, and the frequency with which I am tagged "it". I am sure there are lots of reasons for this-maturity, more close personal relationships, my chosen profession, etc.

Funny thing about being picked to be the one to be there for someone else. Once the crisis is over, the adrenaline levels have returned to normal, and the daily responsibilities start to pick back up again-it seems I am the one who has really been helped. It seems the gift of being tagged "it" is to have gained proper perspective over one's life...if even for a short while. And it's a good thing too, because catching up on the the things that fell by the wayside while you were "it" is hell.

Today my thoughts are with those sandwiched between aging parents and growing families. You've been tagged to be "it" for the long haul.   

More new senior housing in Plymouth

There's a new Continuing Care Retirement Community (CCRC) being proposed for Plymouth. The Star and Tribune reported on it just this morning.

Trillium Woods would offer a continuum of services from independent senior apartments to assisted living, to memory care to skilled nursing.

There is some risk to the developer with this project since there are very few CCRCs in Minnesota. (See Glossary of Housing Terms)There will be some consumer education required!

With the glut of high end indpedent housing that has been going in the second and third ring suburbs, it's nice to see a CCRC go in. Although, this type of housing isn't necessarily any more affordable than some of the new complexes built by Gramercy Cooperative.

The hefty entrance fee of about $270,000 (acccording to the article in the Strib) will offer you a steady monthly rent whether you're in the independent, assisted, or nursing units. While not inexpensive, it sure offers some security knowing Trillium is responsible for all levels of your care, even if your health declines.

Plymouth may get it's first nursing home
See a list of other senior housing available in Minnesota

Long Term Care Consultation helps low income seniors stay at home

As a real estate agent who works with seniors, I am often contacted by an adult child who wants their parent to move, but (surprise) the parent isn't quite ready. It may be 6 months to 1 year before the senior moves, and in the mean time services may be needed to keep the senior safe at home. Waiting for six months can be the difference in the senior feeling in control of their own life since they get to move at their own pace.

For lower-income seniors there are government and community resources available to help them stay in their home:

• Elderly Waiver
• Alternative Care Program
• Home Care Services
• Personal Care Assistance

Elderly Waiver (EW)

• Eligibility: age 65 and over, current medical assistance recipient, and qualifies for supportive services.
• Includes: homemaker, home health aide, adult day services, respite care, service coordination, personal care, home delivered meals, lifeline, skilled nursing, special supplies and equipment, and help with housing options. Other services may be available.

Alternative Care Program (AC)

• Eligibility: age 65 and over, eligible financially, and qualifies for supportive services.
• May require a monthly premium.
• Includes: homemaker, home health aide, adult day services, respite care, service coordination, personal care, home delivered meals, lifeline, skilled nursing, special supplies and equipment, and help with housing options. Other services may be available.

Home Care Services

• Eligibility: persons with disabilities and special health care needs who qualify for Medical Assistance; some recipients of MinnesotaCare may also qualify.
• Includes: professional nursing services, occupational therapy, physical therapy, and other services

Personal Care Assistance (PCA)

• Eligibility: current medical assistance recipient, and qualifies for supportive services.
• Includes: help with activities of daily living, such as eating, bathing, dressing, and personal hygiene.

To gain access to these programs, it is necessary to have a Long Term Care Consultation.

What is a Long Term Care Consultation?
A Long Term Care Consultation (LTCC) can help people make decisions about long-term care needs. This is a service provided by the County in which the senior lives, usually free of charge. This service helps people stay in their homes and receive help through government and community based services.

• Long-term care consultants help people choose services and supports that meet the needs of the individual and their family. 
• A Long Term Care Consultation incorporates the expertise of both social workers and public health nurses.
• A face-to-face meeting may be required to set up services, but a phone call with one of our Long Term Care staff can help you learn about what is available.

What is included in a Long Term Care Consultation?
The LTCC assesses an individual’s health status and level of independence in key areas of daily living.  The LTCC can also include:

• information about local long-term care options
• information about public and private programs that can provide services
• pre-admission screening prior to nursing home admission
• transition assistance to relocate people currently in nursing facilities
• assessment and support planning for people considering community-based services

For more information about a Long Term Care Consultation, here are the websites of the area counties in Minnesota:

• Ramsey County
• Dakota County
• Carver County
• Anoka County
• Hennepin County
• Washington County

Then, when you are ready to move, here's an article on affordable senior housing

5 tips to finding Affordable-Subsidized Senior Housing in Minnesota

I received a disturbing phone call yesterday. The caller was contacting me to order a Senior Housing Directory, and had lots of questions about how to find affordable housing in the Minneapolis area. I'll call her Sheila.  Sheila told me of her 92 year old mother, who is renting an independent living apartment, and her rent had continued to skyrocket to the point she can no longer afford. Sheila and her mother started this process about a year ago, and thought they had taken all of the appropriate steps by applying through the Housing Authority.  Throughout the year, Sheila checked to see where her mother was on the waiting list, expecting to hear she was getting closer to the top. Instead, she found her mother's name was DROPPING on the list. Then to make matters worse, they had learned a newer senior subsidized housing complex had opened near their home, a friend had gotten right in, but by the time they learned about it, there was a waiting list.

Affordable housing for seniors is a tough market to navigate. I work with seniors every day in the senior housing market and I have hard time wrapping my arms around all of the available programs and the eligibility requirements. Here are some of the basics I hope you'll find helpful.

Public Housing:

• Publicly owned and managed rental units for low-income households
• Units usually cost 30% of the household's adjusted gross income
• Rents are based on your income and are very affordable
• There is a single access point for applying-and this often gets you on the list for a large number of units
• The application point is the public housing authority
• Waiting lists can be long
• A credit and criminal history check will likely be required.

Subsidized Housing - Section 8 housing

• These are privately owned and managed rental units for low-income households
• This subsidy goes with the building and unit
• Units usually cost 30% of the household's adjust gross income
• Some units are a lower, fixed amount
• Some senior buildings may have a combination of "market rate" units and "subsidized" units
• Many different landlords participate in this program
• Each property keeps it's own waiting list, which can be either closed, or long.
• There is NOT a single access point for applying, you have to apply at each property individually.

Housing Voucher - Section 8

• This program helps low-income households pay rent on market-rate rentals
• This subsidy goes with the tenant. A renter finds a unit and the housing authority pays a portion of the rent directly to the property manager.
• The amount the renter contributes is usually 30%-40% of the household's adjusted gross income.
• The application starts with the housing authority to obtain a voucher. Once the voucher is obtained the application process continues with the individual property.
• The property does not have to accept vouchers.

Here are the questions everyone asks "What kind of condition are these subsidized or public housing buildings in?"  "Are they safe?"
Here's the answer. It's no different than any other apartment building-some are nicer than others. To determine if a particular building is appealing to you, go look at it and talk with the property manager and the people that live there.

To make matters even more interesting, there are other programs available to seniors who need services to stay out of nursing homes that some senior housing building accept. I'll cover that in another post.

Here are a few tips on how to use this information:

1. If you've been looking for senior housing and find that you cannot afford to live in anything you've looked at, there's subsidized housing available.
2. Identify a senior subsidized rental building, and talk with the property manager.  The property manager will help you understand the application process and the waiting time.
3. For each property manager you talk to, ask them if it's a problem for you to apply to more than one subsidized senior housing facility. If it's not a problem, then get out there and apply to more than one building. The waiting lists can be long, and if you're on more than one list, you'll have a better chance of getting into a building sooner rather than later.
4. If you're not sure where to find subsidized housing in your area, and you live in the Twin Cities or surrounding areas, order a senior housing directory. I'll send you one for free.
5. Other resources that might be of help include www.Minnesotahelp.info  and the Senior Linkage Line.

Steps #6 and #7 to the senior move plan - Contracts and Financial Advisors

Step #6- Copies of Contracts
While you're touring there will likely be 1 or 2 housing communities that stand out from the others. Those are the ones you'll want to go back to for a second visit.  When you go back for a second visit to inquire about contracts, and move-in-dates be sure to bring someone with you! The person you bring with you should have some experience with senior housing, and someone you trust to help you ask questions. I don't always go with my clients when they purchase their new condo or townhome, but I do give them a list of questions to ask! You'll want to get a copy of the contract and paperwork you'll be asked to sign.  THIS ISN'T THE TIME TO SIGN THAT CONTRACT! This is the time for you to get copies so you can bring them home to look them over.

Step #7- Re-visit with your financial advisor
I know this seems redundant with step #4, but now that you have information on the amount of money you need for: a down payment, taxes, association fees, utilities, garages, meals, etc. your financial planner can help you plan the best way to buy your new home. For some of you, you'll buy your next home outright and avoid a mortgage, for others you'll take a mortgage with a small monthly payment and re-invest the equity you had in your home. There isn't a right or wrong way to do this, but it's something you'll want to decide before your purchase your next home. You don't want to miss out on a key decision that could  a) increase the amount of money you have to spend each month b) decrease the amount of money you'll spend on interest.

I've been slowly adding to the steps an elder takes when making a move. Here are the articles in this series:

• Step #1 and #2 of moving for seniors

• Step #3 to senior move plan - don't procrastinate
• Step #4 - can you afford the home you want?
• Step #5 - Tour Senior Housing

Other Articles:
50 questions for seniors to ask before they move

Senior Condominium or Senior Cooperative-What's the Difference?

The world of senior housing can be pretty confusing.  First, you have to decide if you should own or rent.  Then, if you decide to own, you have to decide if it should be a cooperative, condominium or townhome! Recently, there was a gal who looked at a unit I have listed in a senior cooperative, and she received some advice from friends that she shouldn't buy into a cooperative. She couldn't tell me why, she just knew her friends thought it was a bad idea. Humph. Everybody's a real estate expert.

I thought it might be useful to go through some of the similarities and differences so you have good information to decide which one is right for you, instead of listening to friends who might have an opinion but can't give you reasons to back their opinion. Keep in mind these are general statements, they are not intended for you to have a thorough understanding of the legal mumbo jumbo involved. This is an attempt to help you start to identify the differences between types of senior housing. I guarantee, you'll find exceptions to these. 

Read through these, see if any of them make you uncomfortable.  If the hair on the back of your neck stands up as you're reading, then you know that a particular type of housing may not be for you. But, I'll bet you a dollar that after you read through these, you'll shrug your shoulders and say "Hmmm, I guess it doesn't really matter that much." If you're able to reach that conclusion, you'll likely spend more time comparing senior housing development on the price, location and amenities instead of getting hung up on whether it's a condominium, cooperative or townhome.

Financing Available

Cooperative
The Cooperative holds a master mortgage for the entire building and its grounds: units, common area and land. the members/owners own a share of the Cooperative but do not assume personal liability for the mortgage. When you buy a share of a cooperative, it's similar of buying a share of a corporation. Except, of course, you have the right to occupy a unit on the property once you've purchased a share.

Condominium/Townhome
Owners obtain a mortgage for their Condo/Townhome and have personal liability for the mortgage.

How does one purchase a...

Cooperative
Sometimes cooperatives are sold with the assistance of a real estate agent and the MLS-these are called market rate cooperatives (the free market determines the rate at which the units are sold), and sometimes cooperatives are sold via a waiting list held by the board of directors-these are often called limited-equity cooperatives (see "equity" below).  In both of these cases a cooperative is sold when you sign a purchase agreement (often called a subscription agreement).  Some cooperatives require some additional background and credit checks of the buyer.  A pain when you're the buyer, but a precaution you appreciate once you are a member and live in the cooperative!

Condominium/Townhome
Hire a REALTOR(R), sign a purchase agreement.

Equity

Cooperative
"Limited Equity" cooperatives are are decided by the board of directors. Equity growth is secured (in a market when home prices are depreciating this can be a very good thing!) by the amount of time a member/owner has lived there.  For example, the by-laws may state each unit shall appreciate at a rate of 3% per year, no matter what is happening with the rest of the real estate market. There are some cooperatives that are "market rate" and listed with a real estate agent just as a single family home would be.

Condominium/Townhome
Market Rate. The property is listed for sale with a real estate agent, and the free market determines the price of the property.

Control and Voting

Cooperative
Member/owners elect a Board of Directors from cooperative members (building residents). Each unit/share has one vote. Member/owners maintain control through democratic governance.

Condominium/Townhome
There is an "Owners Association" which may be made up of members of the building/development, or a management company that's been hired by the association.

Day to Day Operations

Cooperative
The Cooperative is operated under the terms of the by-laws that were voted on by the cooperative. The elected Board of Directors may hire a management company to staff the building to oversee the day to day operations and maintenance.

Condominium/Townhome
The "association" may hire a management company to take care of the day to day operations and maintenance.

Maintenance and Upkeep

Cooperative
Monthly Carrying Charges include all maintenance of the interior and exterior of the building and it's grounds. This usually includes maintenance repairs of plumbing, snow removal, lawn care, and repair or replacement of appliances in the unit.

Condominium/Townhome
Association fees usually cover external maintenance of building and grounds. The owner is responsible for internal maintenance and upkeep in their unit.

Common Areas/Comunity

Cooperative
There are often community rooms and social programs. Amenities may include; party room, guest rooms, workshops, billard rooms, libraries or computer rooms, craft room, fitness center, laundry utilities, beauty shop/barber, dining room, walking paths, gardens, transportation,  and a wash bay for your car.

Condominium/Townhome
Condominiums may have the same or other amenities as cooperatives. Townhomes may have some common outdoor grounds, but generally do not have as many amenities.

Re-sale Procedures

Cooperative
With Limited Equity Cooperatives the cooperative has first option to purchase the share and market it to the wait list. There is a transfer/administrative fee (between $100-$600) that may be charged to the seller. Market Rate Cooperativs owners enlist a real estate agent to place the home on the market. The owner pays real estate agent commissions and closing costs just as a single family owner does.  Even in market rate cooperatives, the cooperative still assits in the sale of the home with some marketing and open houses.

Condominium/Townhome
The owner has the sole responsibility of the sale of the property. The owner pays real estate agent commissions and closing costs just as a single family owner does.

You may also like:

Avoid these 5 mistakes when choosing senior housing

Who are renters in senior housing

Types of senior housing in Minnesota

Are you a Client or a Lead?

Because I'm in the real estate business, it means I am also in the referral business. I've written about my golden rolodex of referrals I use to refer other professionals to my senior clients.  I take the business of making referrals to my clients  very seriously. We hear all the time about seniors that are taken advantage of by someone they thought they could trust. Because of this vulnerability,I have some rules I use before I refer a moving company, a financial planner, an estate sale company, a handyman or other professional to the senior clients I work with.

There are rules I live by when I make referrals

• i) it must be someone who is licensed and insured if a license is available,
• ii) it must be someone I've had at least one positive experience with,
• iii) it must be someone who works full-time in their field, and
• iv) it must be someone who never offers me a referral fee. It's illegal. How can I look out for my client's best interest if I get money for referring them to another professional?

The best payment I can receive is someone who does an outstanding job for my client. The referrals I make to my clients reflect on me, and I'm not going to take a chance of tainting my relationship with my clients!

If you're someone who enjoys networking you've probably helped your friends and family find a professional service through an informal network of people. We all know someone like this. It's the person you go to and ask "Hey, do you know anyone who...?"

Referrals are Golden.It's the very best way to find a professional service- including your REALTOR(R)-bar none.

There are services out there to help those that are either networking impaired, or simply have not been able to find a referral to a professional service.  Think Angie's list.  It's a formal network of consumers who pay to see other consumers testimonial's of a particular professional service. The professionals listed on Angie's list do not pay to advertise, and so have no undue influence on the testimonial's you'll find.  This is a great way for consumers to get good information about local businesses. The process and information are transparent to us, the consumer.

Then, there are companies posing as matchmakers between the professional and the consumer. They claim to make "referrals" to the consumer to the most qualified local business to help them with their needs.  ServiceMagic is one of these companies. Let me say I don't have anything against the ServiceMagic company in particular.  What I do have a problem with is lead generation companies in general. You have to ask yourself.  If the consumer doesn't pay for these referrals, how does this company stay in buisiness? Here's a quote direct from ServiceMagic's website:

How does ServiceMagic get paid if this is a free service?
[The Consumers] are not charged for this service because service professionals pay advertising fees to participate in ServiceMagic's network. Service professionals specify the type of work they do and the geography they serve. ServiceMagic provides new customer leads that match these requests and service professionals pay a fee for each lead they receive. These fees do not affect your estimate. You can get other information about ServiceMagic here.

You're kidding yourself if you think the advertising fees plus the referral fees that Service Magic charges to the business aren't charged back to you, the consumer.

Think about this.  If most reputable businesses are making a great business out of referrals they get from happy customers, why would a reputable business PAY for your name and number?!?  Lead generation companies such as ServiceMagic are charging companies to recieve consumer names and numbers. Those companies have to re-coup those business expenses somewhere...and that's where you come in. Prices go up when advertising costs go up.  It's simple economics.  So now, you are paying MORE to use a company that PAID FOR your name and number.

What are the chances that you, who has  now become a purchased name and number are going to have the same experience as your neighbor who get's a personal referral?  You have a choice.  You can be on a list of purchased leads from a lead generation company, or you can be referred to as a person. For example:

Business makes the phone call to you : Hi, I understand you're in the market for a new widget, do I have a deal for you. Act now and I'll throw in a free thing-a-ma-jig.

Or, you receive a personal referral and call the REALTOR referred to you:"Hi, I'm Harold's nephew, John. You sold Harold a house in Minneapolis and he told me to call you." My response: "He told me about you!  I heard you're getting married!" 

Quite a difference in consumer experience, wouldn't you say?

July 4th Crossword Puzzle

Before the day of picnicking, grilling and sunning, enjoy your cup of coffee with this 4th of July Crossword Puzzle.

Blogs about aging that are worth a read

I'm an oddity. I'm a REALTOR who reads blogs about seniors.  If you're in a profession were you have a niche, you straddle two worlds, and get used to people wrinkling up their nose saying "hunh?" after you explain what you do. Today, there are so few senior real estate specialists, we are often looked at like a 2 headed turtle!

Despite the wrinkled up noses, I press on, and spend a LOT of time reading information about elders, aging and senior housing.

If you are looking for a good blog to read about whether it's for fun or information, here are some of my favorite blogs under the category of "elder bloggers" "aging issues blog" or "senior professional":

As time goes by-What it's really like to get older. The standard in elder advocate blogging.
Ecumen - another Minnesota Blog, a great resource for Minnesota Seniors
The Codger's - Elder Bloggers who have won the hearts of REALTORS and have a large fan base. They even have their own coffee mugs!
My Elder Advocate - Great blog on aging issues
The Gilbert Guide - All about senior care issues
The Boomer Chonicles-Written by a 40 something boomer. Fun and enlightening.
Minding Our Elders - a real author and columnist shares insightful comments on aging.

There are literally hundreds more. These are enough to keep you busy for now!

Manufactured homes - an answer to affordable senior housing?

Today is one of those days I'm grateful for blogging. I'm grateful for the new ideas and possbilities that present themselves as a result of this effort. It may very well be the St. Paul Pioneer Press has stumbled across an answer to address the affordable housing crisis for seniors.

In today's paper the article "There's a word for folks living in trailers: solution" presents a shift in the way some are thinking about trailer parks. It seems some communities are realizing the possiblities for them and challenging the old stereotypes that the typical resident is a toothless, toe-bacca chewin, banjo-playin, cousin-marrying greazy mechanic.

The average cost of one of these manufactured homes is about $60,000 with the average lot rental rate of $367 per month. This represents a form of home ownership that is not goverment funded. In fact, Minnesota's Mobile Home Parks exceed the number of HUD subsidized rentals in Minnesota.

I'm going to take a leap and put an idea out to the blogosphere.I know many of you continue to hold the stereotypes of mobile home parks, and wouldn't mind if there were more of them, as long as they aren't in your back yard.  The fact is, we need more affordable housing for our seniors, and need to start getting creative.  This is my stab at creativity (even if you think I'm half-baked).

If I were a developer with an interest in senior housing, I would pay attention to these few numbered points, take action, and help a community while I invested in this business opprotunity:

1) There is a need for affordable senior housing in Minnesota.  We have a lot of very nice subsidized rental communities for our seniors, but there simply aren't enough of them.  There is almost always a waiting list. Perhaps there is an opportunity for seniors to take advantage of affordable-one-level-living-manufactued homes?

2) There are is a small movement in Minnesota that has some potential, just needs to get it's legs and some resources behind it. There are a growing number of seniors in Minnesota that are not interested in large senior communities. They do not want to live with other elders, they want to belong to a community with others that have similar interests. They want to belong to a community with young couples, singles, and children. With this approach, a small cohousing development could be manufactured in a location where there is land available. This would be so much more affordable than retrofitting an old building. The groups dollars could then be allocated to projects the group felt were highest in priority, perhaps such as a community building were the group can gather for meals or celebrations.

3) Today these manufactured homes aren't eligible for mortgages, but higher interest personal loans. There's an opportunity here for one of the cohousing groups in Minnesota to form a cooperative and get financing through a lender, even for a developer to sell some lots on a contract for deed.

For more information:
Manufactured and Mobile Home Parks in Minnesota
All Parks Alliance for Change
The Manufactured Home Parks Handbook