Assisted Living In Illinois 
& A Catalyst for Affordability

Assisted living---a residential setting for seniors that combines apartment living with supportive, personal and healthcare services—allows elders to maintain their independence, privacy and dignity while receiving a high level of care and support.

Affordable assisted living, in Illinois, is made possible by funding the cost of the supplementary services through a State Medicaid waiver program known as the Supportive Living Program. Under this program Medicaid funds are available to supplement the income of lower income elderly to cover the costs of these services.

Medicaid is the primary source of funds for long-term services for low-income elders, and the majority of its funds are used to pay for care in skilled nursing homes. Yet, Illinois, like many states, has in place the required US HHS Center for Medicare and Medicaid approval for a Medicaid Home and Community-based Waiver.

Such a waiver permits the use of Medicaid funds for funding services outside of skilled nursing facilities. This waiver is administered by the Illinois Department of Public Aid (IDPA) under the Supportive Living Program (SLP). In so doing, the state seeks to prevent unnecessary or premature nursing home placement by providing alternative community-based residential settings.

In order to promote affordable assisted living in Illinois for low and moderate income seniors, the Illinois Affordable Assisted Living Initiative (IAALI) was established in 2001 with funding from the Chicago Community Trust, the Retirement Research Foundation, and the Community Memorial Foundation. It was created by Local Initiative Support Corporation (LISC)/Chicago, the National Equity Fund, Inc. (NEF, Inc.), and the NCB Development Services LLC (NCBDS). It operates within the City of Chicago, the Western suburbs, and throughout the State of Illinois. IAALI has been providing technical assistance, grants and loans to non-profit long term care providers, affordable housing sponsors and community development groups interested in developing affordable assisted living and senior housing with enriched services for low and moderate income Illinois seniors.

NCBDS, NEF and LISC are critical partners in IAALI with extensive experience in affordable assisted living and affordable housing.

NCB Development Services LLC (NCBDS) is an affiliate of NCB Development Corporation (NCBDC), a national non-profit organization whose mission is to deliver innovative financial and development services that improve the lives of low-income individuals, families and communities. NCBDC has focused on affordable assisted living since 1993. In collaboration with The Robert Wood Johnson Foundation, NCBDC created the Coming Home Program to assist states in developing the necessary regulatory and reimbursement structures to encourage the development of affordable assisted living. The Coming Home Program has recently made grants to eight states to facilitate the development of affordable assisted housing. NCBC has also provided technical assistance and predevelopment loans to CDCs in developing these facilities, with projects completed in Arkansas, Colorado, Oregon and Illinois. Additional projects are in development in California, Florida, New York and Washington, D.C.

NEF, Inc. was established in 1987 by Local Initiatives support Corporation (LISC) as a way to help community development corporations (CDCs) attract capital via the low-income housing tax credit. NEF has raised more than $3 billion to support the development of 50,000 affordable homes nationwide. In doing so, the organization has provided financial and technical support to nearly 500 urban and rural CDC’s, national nonprofits, faith-based organizations, public housing agencies and others focused on meeting the needs of their communities. Since 1996, NEF, Inc. has invested almost $50 million of equity in seven affordable assisted living facilities in a Rhode Island, Massachuttes and Illinois.

The Ford Foundation helped to create LISC in 1979 in an effort to address the need for resources to revitalize economically distressed urban neighborhoods across the country by channeling private-sector financial resources to community development corporations (CDCs). The LISC/Chicago office, created in 1980, has invested $150 million in 60 community-based organizations as they have built 11,000 units of housing and 2.6 million square feet of commercial and industrial space in neighborhoods throughout the Chicago area.

IAALI has funded four nonprofit community based organizations with start-up feasibility grants - Arthur Nursing Home, Claretian Associates, NHS Redevelopment Corporation, and the Northern Conference of United Methodists. In addition, Bishop Conway Supportive Living Facility (SLF) funded with an IAALI predevelopment loan, closed on financing in September 2002. Sponsored by Catholic Charities Housing Development Corporation, Bishop Conway SLF will house 37 frail elderly residents 65 and older in need of assistance. In addition, IAALI provides technical assistance to over 30 nonprofits either developing affordable assisted living or in the initial stages of planning. The next round of funding applications is due October 7^th.

For more information on IAALI, please contact Sara Lindholm or Matthew Haas, IAALI Program Managers at (312) 697-6473 or 6117 or email us at linhdolm@nefinc.org or mhaas@nefinc.org. Our weblink is http://www.liscnet.org/whatwedo/newinitiatives/CFF/chicago.shtml