AAHSA expert: Bailout package should provide stability for seniors housing market

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AAHSA expert: Bailout package should provide stability for seniors housing market
AAHSA expert: Bailout package should provide stability for seniors housing market
The controversial $700 billion bailout plan signed by the president last week is likely to have a positive effect on long-term care housing, according to an expert from the American Association of Homes and Services for the Aging.

"The bailout should ease the credit crunch which is currently playing havoc with both the debt and equity markets that are so essential to tax credits," affordable housing expert Nancy Libson from AAHSA, told McKnight's.

"Many deals already in the works to build or renovate senior housing are looking for new equity investors," she said. "Equity investors, if they stay in deals, are adjusting (reducing) their investments. When debt financing is necessary, interest rates are rising, making deals infeasible. The bill should provide relief in the debt and equity markets, providing a more stable financial system for this vital service for seniors."

The legislation, which drew both praise and scorn from members of Congress, passed through the House after two weeks of heated debate and more than one failed vote. Finally, 172 Democrats and 91 Republicans gave their approval. The president signed it on Friday. House Speaker Nancy Pelosi (D-CA) had hoped at least 100 Republicans would vote for the measure in order to portray the bailout as being truly bipartisan.