The primary document governing investment decision making by fiduciaries is the investment policy statement (IPS). The fiduciaries are the board and finance committee members, as well as senior management.
Every product or community goes through a life cycle that includes these stages: Development, Growth, Maturity, Saturation and Death. At Maturity, a product/community begins to become irrelevant, outdated and no longer competitive due to changing consumer demands.
The HUD 202 program had a major policy change in 2012 that will permit numerous not-for-profit providers to take capital from their existing HUD 202 properties, deploy this capital for a wide range of uses, and generate meaningful development fees.
As we look ahead into 2013 for senior living finances, a very brief review of donations to nonprofits might prove helpful.
There is some good news about the state of the senior living business: Senior living providers are operating with more strength financially than in recent years.