MISHAWAKA, IN—As baby boomers age, healthcare and housing are becoming critical needs, but the costs continue to soar out of reach of many retirees. A cost-of-care study by Genworth Insurance puts the annual cost of an assisted living facility around $48,000, but Census figures suggest that as much as 10 percent of the over-60 population is living below the poverty line.

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

You can hear the complete audio interview with Lee Delaveris of KeyBank and Joseph P. Mulligan of Cain Brothers in the audio 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 traditional affordable housing, even age-restricted senior apartments, says Lee Delaveris, vice president, seniors housing & healthcare, KeyBank Real Estate Capital. “But it's less prevalent although growing, to be used for licensed assisted living facilities that not only provide senior housing, but also care services that are paid through the Medicaid program. So bringing that together is unique, but a growing opportunity in the market. We've certainly seen a lot of these done in Indiana, thanks to a strong Medicaid waiver program in that state, but the development side of this transaction is pretty unique.”