Living Costs Home Vs. Assisted Living

Home Accessibility

as an Alternative to

Retirement Community &

Assisted LivingPresented By:

DMH DESIGN LLC

All Content Contained Herein:Copyright 2002-2011 DMH DESIGN LLC All Rights

Reserved

Purpose

To Inform the Public About the Benefits, Economics,

Facilitation, Design Essentials and Design Examples of

Remaining in the Home Long Term.

Staying in the Home vs. Moving Into Retirement & Assisted Living is Not For Everyone. However, Many

Believe this Provides a Very Attractive Alternative When

Both Options Are Equally Weighed, In Terms of Finances

& Familiarity With One’s Surroundings.

(Updated for 2010 Census Data)

About DMH DESIGN LLC

10th Year as Sole Proprietor Designed Residential Projects in 5

StatesWA/ID/MT/WY/NY

29 Years Total Exp. In Architecture/Design

Extensive Knowledge and Experience in

Accessible and Universal Design

(Worked on Covenant Community &

Emeritus Projects From1998-2000)

MBA Built Green Member

Designed/Built Mother an Accessible

Home in 2005

Designed an Addition to Seattle Home w/

Acc. Baths & Fut. Elev. In 2007

Designed Elevator Addition to Lk. WA

Home

in 2010

Current Projects Include (2) Remodels,

one in Capitol Hill and one in View Ridge

For Clients w/ ALS.

Statement of Intent:To Educate The Public About What

Choices Need to Be Made as Part of Any Comprehensive Retirement

Strategy.

Beginning Early On With a Strong Foundation of Insurance & Diversified Investments, Followed By Timely Real

Estate Purchases and Legal Advice, Most Can Ensure Creating a Sound Financial

Vehicle For Their Retirement.

Many Believe the Ultimate Reward of Life’s Effort is To Build a “Dream Home.” This Should be Defined as a Home They

Will Never Have to Leave, Except By Choice, or Health. This Blueprint is to Assist Those Wishing to Stay in the

Home.

Staying In The Home as an Alternative to

Selling the Home to Enter Assisted

Living

Part 1: Benefits

Stay In Home or Sell

Home/Move into ALF

Pros: Equity Familiarity Family Functions Holidays w/

Family Family Memories Possessions Space Freedom Driving

Cons: Loneliness Maint. $400/Mo. Food $200/PP/Mo. Prop. Taxes/Insur.

$350/Mo. Utilities

$100/PP/Mo. Isolation Housekpg

$300/Mo. Driving Memories No “24-Hr.” Care

Moving to an ALF or

Staying in Home Pros: 2-3

Meals/Day No

Maintenance No Taxes No Utilities Group

Activities Socialization “24-Hr.” Care

Cons: “Buy In” Facilities ($

$) Monthly Rental = No

Equity No Sense of Place 400 s.f. Apt.

(Average) Lonely For Family

Members Few Immediate

Friends Few Can Visit You in

Room at Same Time Relatives Can’t

Stay(Small Apt.) Without Prior Notice & Extra Unused Apts.

Few Personal Possessions

Requires Transport Between Relatives Homes & ALF During Home Visits

Staying In The Home as an Alternative toSelling the

Home to Enter Assisted Living

Part 2: Economics

Target Audience

Primary

Seniors Aged 65+

Empty Nesters

Secondary

Multi-Generational Households

Families w/ Special Needs or w/ Spinal Cord Injured

Case Study: Seattle, WA

Population 608,660 (2010 Census)

Average Age = 38 Yrs. OldAged 65+ = 65,735 (10.8% of

Population)Home Ownership = 49.6% of Total

Pop.

Therefore:

65,735 x .496 (49.6%) = 32,605 (min. est.)

Persons Aged 65+ Living in Homes

Median Home Value = $446,900Closing/Taxes/Commissions= $44690

(10%)

Net Proceeds After Sale = $400,210

Typical Independent/

Assisted Living Facility

Costs (SEATTLE):(According to LTCG

Members/General Research)

$3k- 5k /PP/Month$36k – 60k/PP/Yr.

*Average Stay: 5 yrs. +/-

Therefore, Based Upon Net Proceeds From an Average Seattle Home Sale,

Your Length of Stay in a Private Pay ILF/ ALF Would Be:

$400,210 /1P x $36k/Yr = 10 Yrs +/- (infl.)

2P x $36k/Yr = 5 Yrs*Or

$400,210/1P x $60k/Yr = 6.5 Yrs +/- (infl.)

2P x $60k/Yr = 3.25 Yrs*

Case Study: King County, WAPopulation 1,931,249 (2010

Census)

Aged 65+ = 193,630 (10.6 % of Population)

Home Ownership = 60.9% of Total Pop.

Therefore:

193630 x .609 (60.9%) = 117,921 (min. est.)

Persons Aged 65+ Living in Homes

Median Home Value = $398,600 Closing /Taxes/Commissions= $39860

(10%)

Net Proceeds After Sale = $358,740

Typical Independent/Assisted Living Facility

Costs (King County):

(According to LTCG Members/General Research)

$3k- 5k /PP/Month$36k – 60k/PP/Yr.

*Average Stay: 5 yrs. +/-

Therefore, Based Upon Net Proceeds From an Average King County Home

Sale, Your Length of Stay in a Private Pay ILF/ALF Would Be:

$358,740 /1P x $36k/Yr = 9.8 Yrs +/- (infl.)

2P x $36k/Yr = 4.9Yrs*Or

$358,740 /1P x $60k/Yr = 4.9 Yrs *+/- (infl.)

2P x $60k/Yr = 2.95 Yrs*


Typical Average Costs1 Person: At Home vs. ILF/ALF*

Avg. Monthly Cost /1 Person

1 Stay @ Home

1 Rental Costs

ILF/ALF Rent (avg.)* $ -

$ 4,000.00

Maintenance/HOA Dues

$ 400.00

$ -

Food $ 300.00

$ -

Prop Taxes/Insurance $ 350.00

$ -

Utlities E/Ph/W/S $ 250.00

$ -

Cable/Internet $ 130.00

$ -

Housekeeping $ 300.00

$ -

Monthly Total $ 1,730.00

$ 4,000.00 *

12 Month Total $ 20,760.00

$ 48,000.00* *Assumes No “Buy-In” Fees @ ALF

Assumes No Added Care @ ALF Assumes No Mortgage Balance Assumes No Auto Expense Assumes No CNA/LPN Home Care Assumes No MediCare Suppl. Premium


Typical Average Costs

2 Persons: At Home vs. ILF/ALF*

Avg. Monthly Cost /2 Person

2 Stay @ Home

2 Rental Costs

ILF/ALF Rent (avg.)* $ -

$ 8,000.00

Maintenance/HOA Dues

$ 400.00

$ -

Food $ 600.00

$ -

Prop Taxes/Insurance $ 350.00

$ -

Utlities E/Ph/W/S $ 300.00

$ -

Cable/Internet $ 130.00

$ -

Housekeeping $ 300.00

$ -

Monthly Total $ 2,280.00

$ 8,000.00*

12 Month Total $ 27360.00

$ 96,000.00* *Assumes No “Buy-In” Fees @ ALF

Assumes No Added Care @ ALF Assumes No Mortgage Balance Assumes No Auto Expense Assumes No CNA/LPN Home Care Assumes No MediCare Suppl. Premium

Typical Annual CostComparison

(From Previous Charts) At Home vs. ALF*1 Person/2 Persons

$21,000 -27,000/Yr. To Stay at Home

$48,000 -96,000/Yr. To Rent an ILF/ALF Apartment*

*Not including Any “Buy In” Fees, Adding

as Much as $100k –$700k While in Residence at a Retirement

Community/ALF.

The Result: A Dramatic Cost Difference:

$27,000 – 70,000 LESS PER YEAR*, AT A MINIMUM , TO

REMAIN IN YOUR HOME While Maintaining Equity!

Staying In The Home as an Alternative toSelling the

Home to Enter Assisted Living

Part 3: Facilitation

Essential Financial Components For

Retiring Comfortably

(Allowing Flexibility to Stay In Home,

If You Prefer) Insurance Life (T/W/U) Health (HSA) LTC ($ Pool/$

HomeAccess Modif.)

Financial Sound Investment

Strategy

Legal Will Business Plan

Real Estate Existing Home

Equity Rental Properties?

Retirement (?) Pensions Buyouts

Inheritance (?) Limited Ptshps. Trusts et al

Essential Components of Your

Lifetime Financial Strategy

Real Estate

Health/Insure

Legal/Busines

s

Finance/

Invest

Retirement

Working Life

Relevant Statistics:

80% of US Population Wants To Stay in Their Homes

Throughout Life, Given a choice.

Long Term Care Insurance Is Approx 7-10% Cheaper When a Policy is

Enacted Prior to Age 50.

LTC Policy Benefits Are Typically Paid Out From a Pool of Money, to Those Remaining

in Their Homes &/or Residing in ALFs.

2 Out of 5 People aged 60 are in Adult Homes or Assisted Living Care.

People Who Own Their Present Homes, Aged62

& Over Are Eligible For Reverse Mortgages

on Their Existing Properties, or to Purchase a Different Property, if They

Desire.(Dependant on Available Equity/Liquidity)

Reverse Mortgages:

Given the Current Economy, Investments Have Lost Value, as Have Home Values, Putting Many

Well Laid Plans at Risk.

A RM May Facilitate Your Ability to Keep Your Existing Home and Any Equity You Have, in Order to Fulfill Existing Financial Obligations or to

Purchase a Different Home Which Is More Appropriate For Long Term

Residence.

A RM Can Also Provide Monies for a Long Term Care Policy

A RM Can Provide Money for Partial Accessible Retrofit of an Existing or

New Home

A RM Can Provide Money for In-Home Care, Should You Wish to Stay in

Your Home Long Term


Selling the Home to Enter Assisted Living

Part 4: Design Essentials

Your “RetirementEnvironment”

If 80% of the Population Wants to Spend

Their Lives Living in Their Homes, What Long Term Design Priorities Should Be Considered?:

Accessibility:Building Access & Orientation

Minimize Interior Travel DistancesAll Rooms Close to Core Home Functions

Functionality: Outside Meets Inside

Room FlexibilityComfortable

Practicality:LocationSafetySize

What is AccessibleHome Design?

Design For Long Term Needs--NOT For Ego

Level Building Access; Level Site Access Throughout is Also Desirable!

Eliminate Steps From Outside to Inside of Home & Within Home as Possible

Minimize Need for Vertical Circulation (If 2-Story Leave Room

for Fut. Elev.)

Maintain Short Travel Distances Throughout Main Level of Home

Wider Halls/Larger Doors/ADA Levers

Adaptable Cabinetry/Lower Appliances/Shallow Pantry/Grab

Bars @ Baths

What is Functional Home Design?

Design For Long Term Needs--NOT For Ego

Bauhaus Principles:Form Follows Function=“Design Within Reach”

Miesian Principles:Less IS More—Common Rooms Serve Multiple Uses, Reduces

Home Size

Kitchens are the “Hub” of Home Activity:

Design Your Home Accordingly

Emphasize Property Positives:Orientation, View, Landscaping

What is Practical Home Design?

Location x 4Schools/Work/Shopping/Activities

Design to Client Budget--Not For Ego

“Fits in” With Neighborhood Style

Promotes Family Safety & Outdoor Activity, Whether On the Property or at the Park Down the Block

Not Too large, Not Too Small: Designed to YOUR Needs,

Wants & Furnishings

Schematic Design of an

Accessible Home(Room Relationships Are Very

Important!)

Kitchen

Garage

Nook/Entry

Dining/Living

Bdrms/Utility

North/

Northeast

(Example

Only; Varies

Per Site)

Kitchens are the “Hub” of All Home Activity; All Rooms

Should be in Close Proximity


Selling the Home to Enter Assisted

Living

Part 5: Design Examples

Accessible Home Plan

Typical FeaturesHeat PumpVan Access GarageAccessible Bdrm.Accessible BathAccessible Utility

Level @ Gar/HouseAccessible Kit/Nook

Level Entry @ Foyer

Accessible Dining & Living RoomsPanel in Mstr. Suite w/ Gen. SwitchAccessible WIC/Bath/ Mstr. Suite

Accessible Cov.PorchLevel Entry @ Ext. Porch & GarageGas FireplaceOPTIONAL UPPER FLR (Via Future Elevator)

MAIN FLOOR PLAN

N

DRIVEWAY/PARKING

Accessible Home Design

Flat Site = Easy Access/Before

Flat Site = Easy Access/After


Level Entry

Rambler w/ Upper Story Over Garage


Kitchen/Utility

Kitchens w/ Adaptable Cabinetry & Lower Appliances in Close Proximity Optimizing Functionality.

Utility Room Beyond (Core Functions)


Bedrooms

Bathrooms/En Suite


Guest Suite (Wheelchair Accessible)

Great Room (Wheelchair Accessible)


Modern Home on a Steep Slope:Garage/Entry on Low Side

NORTH

WEST

Home Remodel w/ Accessible

Addition(See “Practical” Floor Plans) Existing Bungalow

Remodeled/Expanded Bungalow

Functional HomeRemodel/Addition

(Part. Accessible) Existing Main Floor Plan

Existing/Remodeled Main Floor Plan New Stair Loc’n

New Acc. BathNew Acc. AlcoveNew Fut. Elev.

Abandon Exist.Bsmt. Stair/Door Loc’n

Acc. Ramp/New Door Loc’n

Practical HomeRemodel/Addition

(Part. Accessible)

New Upper Story Addition

New Acc. Bath

New Acc. HallNew Fut. Elev.New Acc. Bdrm.

Accessible Homes:Regardless of Your Stylistic

Preferences, Homes Can Be Designed to Meet

Your Long Term Needs, While Protecting

Valuable Assets: Home Equity & Marketability.

Duplex/Tri-Plex/Four-Plex Homes: Providing Safe, Level & Open Residences for the Owners w/

Rental or Sales Income, as Needed.

Mid-Century Modern Craftsman

DMH DESIGN:

Home Design For a Lifetime.

Copyright 2002-2011 DMH DESIGN LLC All Rights Reserved