Retirement Living News

April 2006

HEADLINES  (Click on headline to read story)

• Baby Boomers Giving a Boost to 50+ Housing Market
• Age-Restricted Housing Represents 14% of All Moves by Seniors
• Florida's Flagler County Fastest-Growing Once Again
• Bankers Being Trained to Spot Elder Financial Abuse
• New Medicaid Law Could Put Adult Children on Hook 
  for Parents' Nursing Home Bills
• New Book: RV Retirement
  

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NEWS STORIES

Baby Boomers Giving a Boost to 50+ Housing Market 

The 50+ housing market will receive a rejuvenating lift from baby boomers, who won't be shy about letting builders know what they want and won't be grudging when it comes time to pay for it, according to participants in a National Association of Home Builders (NAHB) teleconference for the news media held last month. 

"Boomers have a strong preference for homeownership," says NAHB Chief Economist David Seiders, and the rising numbers of members of this group heading into the traditional retirement years will boost demand for new housing.

Although many boomers and older Americans say they would prefer sitting tight and aging in place in their current homes, the demand for housing created specifically for graying Americans is strong. According to numbers from the U.S. Census Bureau's American Housing Survey, 6% of all housing starts in 2003 were age-restricted or age-targeted. "As the boomers age, that number will grow," said Seiders. 

Georgia-based builder Norman Cohen reported that he is finding that buyers in his company's active adult communities are demanding more and more options. "Our customers are not looking for cookie-cutter homes," he said. "They want upgrades and options. We have about 300-400 pre-priced options, and we find that buyers come up with options we haven't even considered. And they are willing to pay for them. They've sold their previous home and they have the money to get what they want." 

According to Cohen, who is chairman of NAHB's 50+ Housing Council, "most 50+ buyers are not looking for a new place to live, but for a change in lifestyle." Aging home owners don't want to have to worry about maintaining their homes, says Cohen, whose company, Camelot/Signature Development in Marietta, Ga., builds what he calls "lock it and leave it" communities, where all the painting, gutter cleaning, landscaping and other maintenance are taken care of. 

Although there is a segment of the market looking for "destination communities," most of the 50+ home buyers Cohen has been seeing want to stay within five miles of where they used to live, or near their grandchildren or other family. 

In another trend reported during the teleconference, age-restricted communities are rapidly losing the stigma that used to be associated with them. "When my company began building active adult six years ago, 'age-restricted' had a negative connotation, but now that's changed," said Cohen. "It's a positive because a lot of 50+ buyers want to be in a community with people like themselves. So many people are interested in it that it doesn't concern me about advertising age-restricted as a feature because people are seeking it out." 

Seiders predicted that the demand for age-restricted housing, which is allowed under a 1995 exemption to the Fair Housing Act, will keep growing.
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Age-Restricted Housing Represents 14% of All Moves by Seniors

Of all the households headed by someone 55+ who move each year, one in seven (14 percent) moves to an age-restricted community. Another 20 percent (or one in five) move to communities where the majority of people are 55 and older, but are not age-restricted. 

When we examine just 75+ households who move each year, we find that 30 percent move to age-restricted housing, and another 23 percent move into communities where the majority of people are 55+, but are not age-restricted. Since nursing homes and some assisted living residences are not included in these statistics, the actual percentage of 75+ households who move to age-restricted housing is higher than reported here. 

This research data comes from the biennial "American Housing Survey of the Census Bureau and the Department of Housing and Urban Development," which is the largest and most comprehensive sample of households that move.
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Florida's Flagler County Fastest-Growing Once Again 

Flagler County in Florida, located along the Atlantic Coast between Daytona Beach and Jacksonville, was the fastest-growing county for the second year in a row with a 10.7 percent population increase from July 1, 2004, to July 1, 2005, according to estimates released today by the U.S. Census Bureau.  Flagler, with 76,410 residents, also led the nation with a 53 percent population increase since Census 2000.

According to the estimates, all but one of the top-10 fastest-growing counties between 2004 and 2005 are located in either the South or the West, with Lyon, Nev. (near Carson City), ranking second at 9.6 percent; Kendall, Ill. (in the Chicago area), third at 9.4 percent; Rockwall, Texas (near Dallas), fourth; Washington, Utah (the lone county in the St. George metro area), fifth; Nye, another Nevada county, sixth at 7.4 percent; and Pinal, Ariz. (near Phoenix), seventh at 6.9 percent.

Rounding out the top 10 were three counties in Virginia: Loudoun, near Washington, D.C., ranked eighth with a population increase of 6.8 percent; King George, ninth with 6.7 percent; and Caroline (near Richmond ) 10th at 6.5 percent. Another Chicago-area county — Grundy, Ill., just missed the top 10, ranking 11th.

Maricopa County, Ariz., which includes the cities of Scottsdale and Phoenix, has gained 563,000 residents since Census 2000, the largest numerical increase of the nation’s 3,141 counties. Maricopa’s population grew 137,000 from July 1, 2004, to July 1, 2005, which is also the biggest gain in the country during that time period.

Besides Maricopa, the 10 counties that added the largest number of residents between 2004 and 2005 included three in Florida (Orange, Hillsborough and Lee), three in Texas (Harris, Tarrant and Collin), two in California (Riverside and San Bernardino) and one in Nevada (Clark).

Los Angeles, Calif., continued to be the most populous county in the nation, with 9.9 million residents on July 1, 2005, followed by Cook, Ill. (5.3 million); Harris, Texas (3.7 million); and Maricopa, Ariz. (3.6 million). 

Growth: 2004-2005
Fastest-growing counties with populations over 10,000

• Among the 20 fastest-growing counties over the one-year period, 13 are located in the South, four in the West and three in the Midwest.

•  Florida had 15 counties among the 100 fastest-growing; Georgia had 12 and Texas had 11.

• The fastest-growing county in the Northeast was Pike, Pa., ranking 72nd with a population increase of 4.2 percent over the one-year period. Pike was the only county in that region to make the list of 100 fastest-growing counties.

Top numerical gainers

• More than half of the counties among the top-20 numerical gainers were located in either Texas (six) or Florida (five). All the counties on this top-20 list were in the South or West, with the exception of Will, Ill.

• Twenty-two of the nation’s counties gained more than 20,000 residents between 2004 and 2005.

Growth: 2000-2005
Fastest-growing counties with populations over 10,000

• Flagler County, Fla., grew by 53 percent between April 1, 2000, and July 1, 2005, making it the fastest-growing county over the period. Joining Flagler among the top 10 were four counties in Georgia, all in the Atlanta metro area: Forsyth (fifth), Henry (seventh), Newton (eighth) and Paulding (10th). The remainder were Loudoun, Va. (second); Rockwall, Texas (third); Kendall, Ill. (fourth); Douglas, Colo. (sixth); and Lincoln, S.D. (ninth).

• Overall, 13 of the 20 fastest-growing counties were located in the South, while another five — Kendall, Ill.; Lincoln, S.D.; Delaware, Ohio; Scott, Minn.; and Hamilton, Ind.; — were located in the Midwest. Only two counties on the list — Douglas, Colo., and Lyon, Nev., — were located in the West. 

• The fastest-growing county in the Northeast was Pike, Pa., (84th overall, with a growth rate of 22 percent).

Top numerical gainers

• Besides Maricopa, Ariz., four California counties (Los Angeles, Riverside, San Bernardino and Orange), three in Texas (Harris, Tarrant and Collin), one in Nevada (Clark) and one in Florida (Broward) were also among the top-10 numerical gainers. 

• Between April 1, 2000, and July 1, 2005, 26 counties had population gains of more than 100,000.

Most Populous Counties in 2005

• Of the 20 most populous counties in 2005, nine were located in the West, six in the South, two in the Midwest and three in the Northeast.

• California has the most counties among the 20 most populous (six), followed by Texas (four), New York (three) and Florida (two).

The Census Bureau’s Internet tables show July 1 population estimates for 2000 through 2005, as well as the April 1, 2000, census counts. Also included are rankings and estimates of components of population change (births, deaths, net internal migration and net international migration) for all counties.  Note: The new numbers, which use administrative data and estimates for births, deaths and net migration, are based on Census 2000 population counts updated to reflect any official census corrections. These population estimates are for July 1, 2005, and thus do not include the impact of Hurricane Katrina, which occurred after the July date.
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Bankers Being Trained to Spot Elder Financial Abuse

Cases of elder financial abuse committed by family members and close friends and associates are expected to soar as the population ages. Elder financial abuse currently affects over two million Americans each year and is the number one crime committed against persons age 65 and older, according to the National Center on Elder Abuse. As the Baby Boomer generation ages, this phenomenon will grow into epidemic proportions if it continues to run unreported. 

"Just as doctors are often the first to spot the signs of physical abuse, front line bank personnel have the best perspective from which to spot elder financial abuse," according to Dr. Linda Eagle, President of The Edcomm Group. The New York-based consulting firm, which operates the Banker's Academy, advises banks on the critical role they play in helping to stem elder financial abuse. Eagle says many states have passed legislation requiring bank employees to report all suspected cases of elder financial abuse. 

According to Dr. Eagle, the following are the top ten signs banks be should aware of to detect possible elder financial abuse: 

1. Sudden changes in an elder's bank accounts or banking practices. 
2. Uncharacteristic and unexplained withdrawals of large sums of money by an elder or someone with Power of Attorney for an elder. 
3.  Large credit card transactions or checks written to unusual recipients such as salesmen, telemarketers or "Cash." 
4. Abrupt changes in a will or other financial document; transfer of an elder's assets to a family member or acquaintance without a reasonable explanation. 
5. Complaints of stolen or misplaced credit cards, valuables, checkbooks or checks from Social Security, pensions and annuities. 
6. Elders who appear nervous when accompanied by another individual or give far-fetched explanations of why they need money. 
7. Elders who appear puzzled by increases in incurred debt or credit card transactions. 
8. A person accompanying an elder who bullies him or her into making a withdrawal or does not allow the elder to speak for him or herself. 
9. New signatories added to an elder's account or newly formed joint accounts between an elder and another individual. 
10. Possible forged signatures on financial transactions, documents for transfer of assets or new applications for items such as credit cards. 

Dr. Eagle urges banks across the country to take an active role in training their employees now because more and more states will likely pass legislation in the near future.
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New Medicaid law Could Put Adult Children on 
Hook for Parents' Nursing Home Bills

The adult children of elderly parents in many states could be held liable for their parents' nursing home bills as a result of the new Medicaid long-term care provisions in the Deficit Reduction Act of 2005 signed by President Bush. The children could even be subject to criminal penalties. 

The 750-page legislation includes punitive new restrictions on the ability of the elderly to transfer assets before qualifying for Medicaid coverage of nursing home care. Essentially, the proposed law attempts to save the Medicaid program money by shifting more of the cost of long-term care to families and nursing homes. 

One of the major ways it does this is by changing the start of the penalty period for transferred assets from the date of transfer, as is the case now, to the date when the individual would qualify for Medicaid coverage of nursing home care if not for the transfer. In other words, the penalty period would not begin until the nursing home resident was out of funds, meaning there would be no money to pay the nursing home for however long the penalty period lasts. 

Nursing homes will likely be flooded with residents who need care but have no way to pay for it. In states that have so-called "final responsibility laws," the nursing homes may seek reimbursement from the residents' children. These rarely-enforced laws, which are on the books in 30 states, hold adult children responsible for financial support of indigent parents and, in some cases, medical and nursing home costs. 

The legislation extends Medicaid's "look back" period for all asset transfers from three to five years and changes the start of the penalty period for transferred assets from the date of transfer to the date when the individual transferring the assets enters a nursing home and would otherwise be eligible for Medicaid coverage. In other words, the penalty period does not begin until the nursing home resident is out of funds, meaning he/she cannot afford to pay the nursing home. The bill also makes any individual with home equity above $500,000 ineligible for Medicaid nursing home care, although states may raise this threshold as high as $750,000. 

The legislation also will: 

• Establish new rules for the treatment of annuities, including a requirement that the state be named as the remainder beneficiary. 
• Allow Continuing Care Retirement Communities (CCRCs) to require residents to spend down their declared resources before applying for medical assistance. 
• Set forth rules under which an individual's CCRC entrance fee is considered an available resource. 
• Require all states to apply the so-called "income-first" rule to community spouses who appeal for an increased resource allowance based on their need for more funds invested to meet their minimum income requirements. 
• Extend long-term care partnership programs to any state. 

In addition, the legislation incorporates provisions that close certain asset transfer "loopholes," among them: 

• The purchase of a life estate would be included in the definition of "assets" unless the purchaser resides in the home for at least one year after the date of purchase. 
• Funds to purchase a promissory note, loan or mortgage would be included among assets unless the repayment terms are actuarially sound, provide for equal payments and prohibit the cancellation of the balance upon the death of the lender. 
• States would be barred from "rounding down" fractional periods of ineligibility when determining ineligibility periods resulting from asset transfers. 
• States would be permitted to treat multiple transfers of assets as a single transfer and begin any penalty period on the earliest date that would apply to such transfers.
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New Book: RV Retirement

For those who dream of traveling when they retire, Jane Kenny's new book, RV Retirement, shows how a recreational vehicle can turn that dream into a reality. The book is based on her own experience and the skills she developed while spending here retirement years on the road. 

She currently lives full-time in her RV and in her book she talks about the advantages of traveling in an RV, budgeting and finances, how to supplement your income on the road, how to prepare for trips, and the different types of recreational vehicles that are available. Kenny discusses using technology to stay in touch, including cell phone and a computer. Most RVers today have a computer on board and are able to find Wi-Fi hot spots to check and send e-mail or connect to the Internet. 

She lists several online resources that can help you find Internet access locations. The 200-page book is loaded with a wide range of online resources and checklists that can make for enjoyable travel in an RV. Available from Amazon.com for $16.95. 
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