2009 annual report - sitemason · opened in 2009. pre-construction sales activities in 2009...

60 Years of Pioneering Leadership

2009 ANNUAL REPORT

Mission Statement

Table of Contents

American Baptist Homes of the West, as an expression of Christian mission, seeks to enhance the independence, well-being and security of older people through the provision of housing, health care and supportive services.

A Message from the Chief Governance Officer . . . . . . . . . . . . . . 2A Message from the President and CEO . . . . . . . . . . . . . . . . . . . 3Cornerstone Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Continuing Care Retirement Communities . . . . . . . . . . . . . . . . 5Affordable Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Seniority, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Social Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-11Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Revenue and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Community Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15ABHOW Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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First the vision oF ministry. then the breaking of ground. then the building to meet human need. this is the way of the pioneer, a trail blazed by American Baptist homes of the West since 1949.

First the dream of opportunity. then the crossing of boundaries. then the stretching to match human possibility. this is the way of the pioneer, a path taken by ABhoW residents across their lives.

in this 60th year, we rejoice in the resolve, we celebrate the innovation, and we salute the spirit of all who live and labor here – in the company of pioneers.

For several years now, the Board has used the policy governance model to guide us. The model clearly distinguishes between the Board’s role and the chief executive officer’s role. The Board identifies the results ABHOW seeks, and we define the parameters to achieve these results. Then we hold the CEO account-able to manage in this direction.

ABHOW’s “ends statement” – the big goal we are pushing toward – is as follows: “Living in community, a steadily increasing number of seniors and disabled persons will experience optimal health, safety and well-being appro-priate to their life stage and circumstances, to an extent that justifies the expenditure of resources.” We made significant progress toward that goal in 2009, even amid the worst economic downturn since the Great Depression.

We secured funding to meet the growing demand for affordable housing. We advanced plans to redevelop our older campuses. We pushed successful pilot programs out to more communities, award-winning programs that deliver on our mission to “enhance the inde-pendence, well-being and security of older people.” With prudent fiscal management, we were able to avoid drastic cost-saving measures while continuing to invest in the development of our employees.

These accomplishments energize the Board. Looking back, we see how far the company has come in the journey toward a goal that is truly about a fuller life for all older Americans. Looking ahead, we see continuing economic challenges while an aging population requires greater services and demands new options. Those dual realities call for creativity and innovation, as well as spirit. ABHOW’s pioneering leadership is needed now more than ever.

Randall L. Stamper Chief Governance Officer

A MeSSAge froM The Chief governAnCe offiCer“Pioneers! o pioneers!” exclaimed the poet Walt Whitman in 1865. he rejoiced in the spirit of Americans, their big dreams and their fierce determination to venture West. here at American Baptist homes of the West, we partake of this pioneer spirit. it has marked our company since 1949 when a group of church leaders resolved to create a retirement community to meet the needs of older adults.

Today that pioneer spirit is alive and well in ABHOW. Indeed, the primary task of our Board of Directors is to nurture this passion. We do so by articulating a vision of ABHOW’s future and by defining the values that shape our actions as we venture toward this goal.

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W Annual report | Page 2

A MeSSAge froM The PreSidenT And Ceoin February 2009, at ABhoW’s annual meeting in seattle, Wash., i had the privilege of sharing the stage with my predecessor, Dr. richard e. ice, and the rev. Gordon Bottemiller, son of ABhoW’s first executive, the rev. harold e. Bottemiller. We had a conversation about the company’s 60-year history.

I spoke of meeting Harold Bottemiller just after I joined ABHOW in 1993. I visited him at Pilgrim Haven in Los Altos, Calif., ABHOW’s first community and Bottemiller’s home at the end of his life. He told me his story. Woven through his personal and corporate memories, he explained, was a “golden thread,” a sign of common purpose and a gift of divine providence. Listening to him, I recognized the character of a servant leader – his humility – for I also heard him tell, without self-congratulation, the remark-able history of an organization built by pioneers. I was inspired.

I know this golden thread endures, as does that pioneering heritage. I see it as we reposition our campuses to meet the needs of present and future seniors. For instance, in Fresno, Calif., The Terraces at San Joaquin Gardens demonstrates how a 43-year-old campus can be reinvented through state-of-the-art design and leading-edge programs.

Our pioneering spirit is evident in the creation of new affordable housing com-munities. Our 21st community, Kelly Ridge, opened in 2009 in South Lake Tahoe, Calif. Since the late 1980s when ABHOW initiated one of the nation’s first tax-credit developments at Pacific Meadows in Carmel, Calif., we have been resourceful in financing new communities. Even in the midst of a recession, we advanced our mission to serve seniors with limited incomes by partnering with other developers and assembling financing from multiple sources.

This recession has challenged all of us to be resourceful. Thankfully, we finished the fiscal year without having to implement drastic cost-saving measures. That would not have been possible without the creativity and cooperation of many hands, including employees who found ways to do more with less and residents who contributed important ideas to our budget process. That our company rallied in difficult days was yet more evidence of the “golden thread” and another reminder of the pioneering heritage we are blessed to share.

David B. Ferguson President and CEO

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Following the successful development of campuses in Phoenix and Las Vegas, a new Cornerstone affiliate is taking shape in Boise, Idaho. Here, The Terraces at Harris Ranch is on track to open in 2013. The Terraces is Idaho’s first full-service life care community. It continues the tradition of exceptional service represented by “The Terraces” brand, started by ABHOW in 1992 at The Terraces of Los Gatos in Los Gatos, Calif., and continued by Cornerstone with The Terraces of Phoenix, which welcomed residents in 2005, and The Terraces at San Joaquin Gardens, where the first phase opened in 2009.

Pre-construction sales activities in 2009 generated great interest in The Terraces at Harris Ranch. More than 400 “Pioneer Members” have joined the priority club to secure special pricing and benefits. Once constructed, the community will provide residential living, assisted living, skilled nursing and memory

support on a beautiful 12-acre campus with stunning views of the Boise foothills and only minutes away from the great fishing and whitewater rafting of the Boise River. The commu-nity will showcase ABHOW’s new cottage design approach to skilled nursing, featuring a small

number of resident rooms clustered around a central common area with a homelike dining space, living area, an open kitchen, and abundant natural light.

The community’s five-member board of directors took shape in 2009. Comprised of leaders well known in the Boise area, the board conducted orientation and visited The Terraces of Phoenix to see how a sister community operates. Irving, Texas-based Greystone Communities is developing The Terraces at Harris Ranch. The firm also developed The Terraces of Phoenix and Las Ventanas in Las Vegas. The campus designer is the award-winning AG Architecture of Wauwatosa, Wis.

“Pioneer members” (above), who have staked their claim at the terraces at harris ranch, enjoy one of several community events in 2009.

CornerSTone AffiliATeSCornerstone Affiliates represents a new chapter in ABhoW’s pioneering history. As ABhoW’s parent organization, Cornerstone enables ABhoW to share its mission with other organizations and new markets by providing a structure that facilitates acquisition, development and affiliation of communities while protecting ABhoW financially.

2009 ABho


eading down a Texas highway

after World War II, drivers might have spotted something unusual – a small Air Force plane landing on the road then taxiing up to a gas station for a pit stop.

Even more unusual was the pilot who got out: not a strong-jawed combat flyer but a petite, fresh-faced brunette.

Barbara Searles, a resident of The Terraces of Los Gatos, was one of the first women to fly for the U.S. Armed Forces – one of only 1,078 members of the Women Airforce Service Pilots (WASP). Searles (who later took her husband’s name, Squire) and her peers kept planes moving through the U.S. when men were flying combat missions overseas.

“Sometimes I think, ‘Why were we so special?’ But we were sort of pioneers,” she says. “Now when I get on a commercial flight, I ask if there are any female pilots. If there are, I talk to them and say, ‘You’re here because we were here.’”

HConTinUing CAre reTireMenT CoMMUniTieSin the years following the 1949 opening of Pilgrim haven, ABhoW pioneered a novel concept: a retirement community that offers residents multiple levels of care for the rest of their lives. thanks to ABhoW’s leadership, continuing care retirement communities have become a staple of senior living.

But ABHOW never contented itself with this major innova-tion. Instead, the company’s CCRCs kept pushing forward, developing new products and services to meet the needs of older adults and their families. That pioneering tradition continued in 2009.

ABHOW expanded leading-edge services in the CCRCs. Eight com-munities have rolled out the Masterpiece Living program, a holistic approach to health and wellness that includes annual assessments by the world-renowned Mayo Clinic. Five hundred residents have completed assessments since the program began. Eight communities also now offer My Choice, a dining program that provides residents the flexibility to freely choose when and where they dine. These and other services were supported by new online learning systems that keep employees abreast of best practices and regulatory changes.

ABHOW’s pioneering spirit continued to shine in the person-centered care of The Grove, the company’s memory support program. Four communities operate this acclaimed program, and a fifth, Judson Park in Des Moines, Wash., started construction of The Grove in 2009. ABHOW became the first multisite organization in the country to receive CARF-CCAC accreditation for dementia care. All 10 CCRCs celebrated the achievement of five-year CARF-CCAC accreditation.

Redevelopment plans progressed for older campuses. The first phase of The Terraces at San Joaquin Gardens opened in 2009, offering 47 new apartments plus a bistro, spa, fitness center, swimming pool and clubhouse. Also, the 43-year-old community completed significant remodeling of four residential buildings. Finally, in its 60th year, Pilgrim Haven secured city approval to embark upon a major redevelopment, which will include new residential and assisted living apartments, skilled nursing suites, and a memory support program.

in the midst of a multiyear redevelopment, the terraces at san Joaquin Gardens (above) celebrated completion of the first phase in 2009.

2009 ABho


AffordAble hoUSingWhile ABhoW began as an operator of continuing care retirement communities, the company has built a solid reputation as a pioneering developer and manager of quality affordable housing. Known for its innovative financing, ABhoW has raised more than $80 million and grown from eight to 21 affordable housing communities in the past decade alone.

That growth continued in 2009, even as the recession slowed the flow of public and private financing nationwide. ABHOW celebrated the opening of Kelly Ridge in South Lake Tahoe. The 33-apartment community, ABHOW’s second in South Lake Tahoe, is named after David Kelly, president of the Tahoe Area Coordinating Council for the Disabled and a driving force behind Kelly Ridge.

ABHOW partners with other mission-driven developers when appropriate. In Washington state, for example, ABHOW is working with Seattle-based developer Beacon Development Group to build two communities. Construction on the 40-apartment Shepherd’s Garden in Lynnwood is well under way, and construction will soon start on the 55-apartment Salishan Gardens in Tacoma. The city of Modesto, selected ABHOW and Berkeley-based Satellite Housing to jointly develop a 47-apartment community. ABHOW and Satellite continued pre-construction work on Valley Vista, a 105-apartment community in San Ramon, Calif. Whether leveraging the strength of partners or relying mainly on its own considerable resources, ABHOW is positioned to meet the growing need for affordable housing.

Regional, state and national affordable housing groups look to ABHOW for leadership because of the company’s proven record in development and management. ABHOW sustains this record through frequent training and by centralizing regulatory compliance. The National Affordable Housing Management Association celebrated ABHOW’s excellence in 2009 by bestowing the highly regarded Communities of Quality designation on Casa de Redwood in Redwood City, Calif.

Kelly ridge opened in south Lake tahoe with a ribbon-cutting ceremony (above) that included (from left) community leader David Kelly, south Lake tahoe mayor Jerry Birdwell, City manager David Jinkens, resident Florence roach, ABhoW President David Ferguson, and mayor Pro tem Kathay Lovell.

ioneers often overcome

obstacles through a series of bold steps. For

JeanDahlinger,

those were dance steps.

When she was 15 her dancing became a lifeline for her family. It was 1929, the Great Depression had just hit, and her father, stricken with osteomyelitis, couldn’t work. The family lived in Los Angeles, where vaudeville producers Fanchon and Marco put out a call for dancers.

“I wasn’t even driving,” recalls Dahlinger, who lives at ABHOW’s Tahoe Senior Plaza in South Lake Tahoe. “My father took me down. There must have been 200 girls waiting for a chance at a job.”

Beautiful and accomplished after 10 years of lessons, Dahlinger landed a spot in a traveling show. For two years, she would support her family on the $60 a week she earned. “I was happy I could help my folks when I did,” she says.

P

2009 ABho


One of the nation’s leading senior living management, sales and consulting firms, Seniority serves communities through an approach that grounds future-oriented thinking in proven systems and practices. That approach led to significant success in 2009, despite the fact that the troubled real estate market slowed sales and devel-opment industry-wide.

Longtime client Christian Living Communities (CLC) enlisted Seniority to manage sales and marketing for the redevelopment of Clermont Park in Denver, Colo. The 37-year-old community constructed a new health services campus in 2009, offering assisted living and memory support. Within seven months of opening, Seniority achieved 90 percent occupancy. Seniority continues to lead the sales efforts for 74 residential apartments slated for construction in 2011.

The firm continued its successful work with nearby CLC community Holly Creek, reaching budgeted occupancy levels for new assisted living, memory support and skilled nursing.

In Tulsa, Okla., Seniority managed the startup of Cypress Springs, a memory support community that will serve 66 residents upon completion. In Arleta, Calif., Seniority opened the Japanese-focused Nikkei Senior Gardens. Alongside this emphasis on new campuses, Seniority helped turn

around existing communities with compliance and occupancy challenges. For instance, Seniority’s manage-ment of Cottonwood Court in Fresno, Calif., improved occupancy and re-established the community’s reputation for quality care.

Throughout 2009, Seniority’s leadership team invested considerable energy in researching and developing a unique hospitality program – Seniority Spirit. The program will provide an unprecedented approach to service excellence and culture formation. After partnering with Ritz-Carlton to learn details regarding hospitality systems, Seniority designed a program specifically for the senior living industry, with more than 50 supporting products. As the fiscal year closed, Seniority prepared to roll out a comprehensive training initiative that will empower team members to offer exceptional service and positive experiences to residents, clients and family members.

to learn more about seniority and the firm’s hospitality and culture formation program, go to www.seniorityinc.com.

SenioriTy, inC.For 60 years ABhoW has embraced the belief that the company fulfills its mission by extending its mission – by scouting for new opportunities, by developing new products and services, and by reaching new markets. since 1997 ABhoW subsidiary seniority, inc. has championed that pioneering work.

2009 ABho


Casa de Redwood and its sister ABHOW communities have a covenant with the towns and cities they serve. ABHOW receives a tax-exemption as a nonprofit corporation in exchange for charitable services, many of which the government would otherwise have to supply. ABHOW honors this covenant with the wider community by pursuing its mission and by making its

charitable activities transparent, a practice called “social accountability.”

This practice puts ABHOW in the forefront of senior living organizations that measure their benefit to the wider community. Besides the volunteer activities of staff and residents like those at Casa de Redwood,

SoCiAl ACCoUnTAbiliTyBags of groceries are a sign of community at Casa de redwood in redwood City, Calif. twice a month a group of residents receives donations from the second harvest Food Bank. then they distribute the groceries to about 50 of their neighbors. it’s a powerful exchange: the gifts of the wider community for the benefit of this affordable housing community; the volunteer activity of residents for the good of their neighborhood.

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ABHOW tracks benevolent care to residents who have outlived their financial resources; community health and supportive services; education for health professionals and employees; subsidized health services; research with organizations such as universities; religious and other services for non-residents; use of ABHOW meeting spaces by nonprofit groups; and other community-building activities.

ABHOW provided $14.1 million in community benefits in 2009, while the tax benefits the company received totaled approximately $4.6 million. When counting just “pure charity” – which ABHOW defines as direct contributions to residents and employees for care and services and direct contributions to other nonprofits in the wider community – ABHOW provided $7.6 million in 2009.

To fulfill the company’s commitment to transparency, community executive directors and administrators keep records of their charitable care and community service programs. Those activities considered pure charity are captured in the following categories:

Contractual allowances: ABHOW participates in the Medicaid program, which does not fully reimburse the company for the cost of services pro-vided to residents. So ABHOW covers the difference. These allowances totaled $3.7 million in 2009.

Subsidized allowances: ABHOW supports private-pay residents by offering discounts from full contractual rates. These discounts include such items as permanent level of care transfer discounts, below-market discounts on certain apartments, SurePay program participation credits, Health Center free-day credits, and basic medical credits for doctor and hospital Medicare deductibles. These allowances totaled $1.6 million in 2009.

benevolent care: ABHOW provides benevolent support when residents outlive their resources. More than $1.2 million was distributed to the CCRCs in 2009.

free services to residents: ABHOW makes direct contributions to residents in the form of free services, such as health screenings, transportation and food. These contributions totaled $670,678 in 2009. (continued next page)

(Previous page) Casa de redwood residents (from left) mona Lollar, reyes Benjamin, Carol Baccaro, Augusto Ledesma, Dorothy Blatt, and mary Jane souderes pack groceries donated by the second harvest Food Bank.

A t this age, if you don’t enjoy

something, you don’t have to do it,” says June nielson-Cademartori.

A resident of Pilgrim haven, nielson-Cademartori worked for 20 years as a speech therapist and reading specialist

in the mountain view Whisman school District south of san Francisco. now that she doesn’t have to do anything she doesn’t enjoy, what does she choose to do?

she volunteers teaching phonics in the same school district.

nielson-Cademartori works with second-graders, spending a half-hour with each child helping to build his or her skills through games. most volunteers in her program offer an hour at a time, but she loves the experience so much that she puts in twice that. “For me, it’s a real thrill to be able to share what i know,” she says.

she is one of a striking number of ABhoW residents who contribute their skills to local schools near their communities.

two residents of Grand Lake Gardens in oakland, Calif., edmund and sandra Bussey, volunteer as middle and high school writing coaches with the Community Alliance for Learning. edmund Bussey, who spent his career as an electrical engineer, learned about the program six years ago through his church.

“i joined because i wanted to help the kids learn how to express themselves,” he says, adding, “i’m doing something where i can see a need.”

2009 ABho


(continued from previous page)

educational assistance for employees: Each year ABHOW supports employees with educational grants for tuition, fees and books. That assistance totaled $33,653 in 2009.

grants to retirement communities: Through the ABHOW Foundation, grants are awarded annually to ABHOW communities to enhance the quality of resident life. The Foundation awarded $64,931 in grants in 2009.

volunteer hours: Every year staff and residents donate hundreds of hours to other nonprofit organiza-tions. Volunteer hours were valued at $9,223 in 2009.

direct contributions to other nonprofits: ABHOW communities donate cash, food, goods and services to other

charitable organizations. These contributions totaled $876,318 in 2009.

In addition to this pure charity, ABHOW provided other significant benefits to residents. Each year the company makes adjustments to Medicare and third-party managed care contracts when these government and insurance entities do not fully reimburse ABHOW for the published price of services provided to residents. In 2009, Medicare and managed care adjustments totaled $2.5 million and $2.8 million, respectively.

ABHOW’s social accountability reporting demon-strates that the company meets a charitable purpose and thus merits its status as a tax-exempt organization. But social accountability is about more than numbers. It is a promise kept with the wider community. It is the continuation of ABHOW’s pioneering heritage. It is the embrace of a bold philosophy that envisions ABHOW’s work going beyond the provision of services within the company’s communities to effect changes in society that will lead to a fuller life for everyone.

Ave and Felixberto racadag Jr. (above), residents of Broadmoor Plaza in san Leandro, Calif., enjoy grow-ing vegetables in a garden made possible by a grant from the ABhoW Foundation.

hen envi-

ronmental activist Wally Longshore sought to sell his Seniors Giving the Gift of Green movement to his peers, he knew what their soft spot would be: their grandchildren and great-grandchildren.

“I think there’s almost a universal fear among seniors that we’re leaving them a world that is unconscionable,” he says.

A resident of Mount Rubidoux Manor in River-side, Calif., Longshore emphasizes, however, that through small actions older adults can do their part to slow – and hopefully end – the human contributions to climate change.

His pioneering initiative to “green” his retire-ment community and mobilize his neighbors culminated in a community-wide conference in September 2009 in Riverside’s White Park, next door to Mount Rubidoux Manor. Experts gave talks on sustainability, and manufacturers showcased a variety of green products.

Mount Rubidoux Manor, which uses low-energy lights in hallways and greener bathroom fixtures, joins other ABHOW communities that are actively addressing environmental concerns. Among them is Valle Verde in Santa Barbara, Calif., which has won a number of awards for its renewable energy programs. There, recycling, green building, solar power, and using energy-efficient appliances all contribute to a significant reduction in carbon dioxide output and utility costs.

Longshore hopes the residents of Mount Rubidoux Manor will set an example for River-side and seniors across the country. “We think that we’re headed toward a senior revolution in going green,” he says.

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One day when valle verde resident marian Chuan went to visit a close

friend at the santa Barbara community’s health Center, a woman in a wheelchair saw her and reached out her hand.

“i said, ‘What can i do for you?’” Chuan recalls. “she said, ‘i want a friend.’ that got me thinking that we needed more people to provide one-to-one friendship to long-term residents of the health Center.”

Chuan had been a social worker and a professor at Boston University. Because she already volunteered every day at the health Center, she knew the residents and the staff very well. she talked with her valle verde neighbors and recruited 20 volunteers.

By the end of 2009, more than 40 volun-teers were regularly visiting residents in the health Center, going to lunch with them, taking a walk outside, or just talking and sharing concerns.

“it’s not so much the activity, it’s how you do it,” says Chuan, one of six santa Barbarans named senior Citizen of the year for 2009 by the Area Agency on Aging. “you have to

take the time to sit down, to reach out. if you open your heart,

you can reach them. it’s that person-to- person emotional

connection that gives people a sense of peace.”

Charitable benefits to residents and employees – 2009

Medicaid Adjustments 51%

Other Charitable Benefits to Residents and Employees 15%

Direct Benevolence to Residents 9%

Resident Discounts 21%

Research and Education Benefits to Residents and Employees 4%

Charitable benefits to the broader Community – 2009

Community Health & Supportive Services 41%

Community-Building & Leadership 4%

Community Benefit Operations Activities 1%

Volunteer Service 15%

Other Benefits to the Community at Large 19%

Use of Retirement Community By Outside Groups 20%

Community benefits Provided and received

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Community BenefitsProvided

Pure CharityBenefits Provided

Tax BenefitsReceived

2009

2008

2009

2008

2009

2008

2009 ABho


finAnCiAl overviewAmerican Baptist homes of the West and Combined Affiliates

COmbined bAlAnCe Sheet

Assets sept. 30, 2009 sept. 30, 2008

(in thousands)

Cash and marketable securities $103,666 $110,203

restricted cash and marketable securities 46,057 68,313

Accounts and notes receivable 11,242 9,614

Prepaid expenses, deposits and other current assets 3,007 1,478

other assets 13,824 15,427

Land, buildings and equipment, net 238,323 203,805

total $416,119 $408,840

LiABiLities AnD net Assets

(in thousands)

Accounts payable and accrued expenses $ 18,772 $ 21,675

Deferred revenue from entrance fees 133,859 126,061

Deferred revenue from investment contract 3,840 4,053

trusts and annuities 4,106 3,605

notes and bonds payable 220,781 221,301

retirement liabilities 6,878 5,234

other liabilities 3,680 3,477

net assets 24,203 23,434

total $416,119 $408,840

2009 ABho


revenUe And eXPenSeSAmerican Baptist homes of the West and Combined Affiliates

CCrC oPerAtinG resULts

(in thousands)

Operating Revenue FY 2009 FY 2008 Monthly fees $112,133 $106,254 Ancillary and other services 8,193 7,813 $120,326 $114,067 Operating Expenses Employee costs $ 62,080 $ 58,787 Supplies and purchased services 15,850 14,984 Ancillary services 7,734 6,822 Mortgage interest 5,381 4,818 Other operating expenses 22,981 22,349 $114,026 $107,760 Division Margin $ 6,300 $ 6,307

home oFFiCe (exCLUDinG AFForDABLe hoUsinG) oPerAtinG resULts

(in thousands)

Operating Revenue FY 2009 FY 2008 Management fees & other revenue $2,022 $1,855 CA CCRC management fees 8,574 8,688 $10,596 $10,543 Operating Expenses Employee costs $8,075 $7,559 Supplies and purchased services 1,636 1,659 Mortgage interest 89 607 Other operating expenses 2,591 2,645 $12,391 $12,470 Division Margin ($1,795) ($1,927)

seniority oPerAtinG resULts

(in thousands)

Operating Revenue FY 2009 FY 2008 ABHOW and affiliates $3,386 $3,047 Third-party revenue 1,159 928 $4,545 $3,975 Operating Expenses Employee costs $2,537 $2,140 Supplies and purchased services 140 66 Other operating expenses 1,688 1,635 $4,365 $3,841 Division Margin $ 180 $ 134

AFForDABLe hoUsinG oPerAtinG resULts

(in thousands)

Operating Revenue FY 2009 FY 2008 Monthly community revenue $3,917 $3,224 Management & development fees 1,320 1,340 $5,237 $4,564 Operating Expenses Employee costs $2,282 $1,982 Supplies and purchased services 1,038 978 Mortgage interest 688 597 Other operating expenses 1,096 998 $5,104 $4,555 Division Margin $ 133 $ 9

CCRC OpeRAting Revenue And ReOCCupAnCy FeeS by yeAR

(in thousands)

0

30

60

90

120

150

2005 2006 2007 2008 2009

$23,004$21,718

$20,739 $17,730$17,488$120,219

$125,355$130,427 $131,797

$137,814

$97,215$103,637

$109,688 $114,067$120,326

net reoccupancy feesoperating revenues exclusive of entry fee amortization, all CCrCs

2009 ABho


CoMMUniTy ProfileS

Continuing Care Retirement Communities Residents Employees*

Grand Lake Gardens, Oakland, CA 94 28 Judson Park, Des Moines, WA 311 183 Piedmont Gardens, Oakland, CA 299 175Pilgrim Haven, Los Altos, CA 156 107Plymouth Village, Redlands, CA 273 156Rosewood, Bakersfield, CA 221 142The Terraces at San Joaquin Gardens, Fresno, CA 310 210The Terraces of Los Gatos, Los Gatos, CA 298 159Valle Verde, Santa Barbara, CA 375 187Total 2,337 1,347

Owned Affordable Housing Communities Residents Employees*

Broadmoor Plaza, San Leandro, CA 78 3 Casa de la Vista, Redlands, CA 75 6 Fern Lodge, Redlands, CA 63 2Harbor View Manor, Tacoma, WA 177 8Hillcrest Gardens, Daly City, CA 56 2Judson Terrace Lodge, San Luis Obispo, CA 32 1Oak Knolls Haven, Santa Maria, CA 43 2Tahoe Senior Plaza, South Lake Tahoe, CA 47 2Total 571 26

Managed Affordable Housing Communities Residents Employees*

Allen Temple Arms I, Oakland, CA 80 6Allen Temple Arms II, Oakland, CA 53 1Allen Temple Gardens III, Oakland, CA 53 2Allen Temple Manor IV, Oakland, CA 27 2Bellflower Friendship Manor, Bellflower, CA 176 10Bellflower Oak Street Manor, Bellflower, CA 36 1Casa de Redwood, Redwood City, CA 157 5E.E. Cleveland Manor, Oakland, CA 57 2Judson Terrace Homes, San Luis Obispo, CA 112 10Kelly Ridge, South Lake Tahoe, CA 34 1 Manila Terrace, Los Angeles, CA 52 2Mount Rubidoux Manor, Riverside, CA 191 12Pacific Meadows, Carmel, CA 221 9Total 1,249 63

Management Contracts Residents Employees*

Las Ventanas, Las Vegas, NV 285 145The Terraces, Phoenix, AZ 342 189Subtotal (ABHOW) 627 334Cedar Creek, Madera, CA (Seniority) 82 51Cottonwood Court, Fresno, CA (Seniority) 110 86Courtside Cottages, Vacaville, CA (Seniority) 75 50Cypress Springs, Tulsa, OK (Seniority) 25 16Kokoro Assisted Living, San Francisco, CA (Seniority) 56 29Nikkei Senior Gardens, Arleta, CA (Seniority) 51 44Sun Grove Resort Village, Peoria, AZ (Seniority) 99 31Subtotal (Seniority) 498 307 Total 1,125 641

Totals Residents Employees*

Continuing Care and Life Care 2,337 1,347Affordable Housing (including Home Office) 1,820 98ABHOW Home Office and Foundation 0 57Contract CCRCs (ABHOW) 627 334Seniority, Inc. 498 307Total 5,282 2,143

Number of Community Housing Apartments/Suites

Residential Living 1,912 Assisted Living 626 Health Center 722 Memory Support 300 Affordable Housing 1,641Total 5,201

New Community Development Apartments/Suites

Salishan Gardens, Tacoma, WA (Affordable Housing) 55Shepherd’s Garden, Lynnwood, WA (Affordable Housing) 40The Terraces at Harris Ranch, Boise, ID (Cornerstone) 256 Valley Vista, San Ramon, CA (Affordable Housing) 105Total 456

* Employee numbers expressed as full-time equivalents (FTE).

2009 ABho


boArd of direCTorS

Mr. Randall L. Stamper Chief Governance Officer

Mr. Arthur C. Christman, Jr. Mr. Stephen A. Elliott Mr. Hector M. Gonzalez Mr. Douglas W. Holmes

Ms. James Ella James Mr. Donald N. Jones Mrs. Gloria P. Marshall Ms. Julie B. Michaels

Dr. Joel P. Martin Dr. Marcia J. Patton Ms. Phyllis J. Stuewig

Mr. Bruce LaycookVice Chairman

Mr. Leon L. GeanSecretary

Dr. Samuel S. Chetti

2009 ABho


Abhow foUndATionthe ABhoW Foundation is committed to sustaining ABhoW’s pioneering work. When residents of the CCrCs outlive their own resources, the Foundation is there to provide benevolent support. As the CCrCs and affordable housing communities seek to improve the quality of life on their campuses, the Foundation assists with grants and special fundraising programs. the Foundation provides various planned giving options that help donors support their communities and their neighbors.

FOundAtiOn FinAnCiAl StAtement

balance Sheet (in thousands)

ASSETS SEpT. 30, 2009 SEpT. 30, 2008 Cash and marketable securities $39,623 $39,923 Other assets (458) 541 Total assets $39,165 $40,464

LiABiLiTiES AND NET ASSETS Accounts payable and other liabilities $ 128 $ 203 Due to trust beneficiaries 4,106 3,605 Total liabilities 4,234 3,808 Total net assets 34,931 36,656 Total liabilities and net assets $39,165 $40,464

Statement of operations and Changes in net Assets

SEpT. 30, 2009 SEpT. 30, 2008Contributions and bequests $ 1,280 $ 1,241Investment income & realized losses on investment (2,683) 856 Total (1,403) 2,097

Distribution to beneficiaries 1,295 1,291Contractual payments to beneficiaries 1,063 568Administrative and general 707 744 Total 3,065 2,603Change in unrealized gains and losses on marketable securities 2,743 (7,614)Decrease in net assets (1,725) (8,119)Net assets beginning of year 36,656 44,775Net assets end of year $34,931 $36,656

foundation net Assets (in millions)

This tradition of giving continued in 2009. The Foundation distributed more than $1.2 million to the CCRCs for benevolent care. More than $64,000 in grants went to affordable housing communities to enhance resident life. Those grants are funded through proceeds from the Annual ABHOW Foundation Golf Classic. The 12th tournament, held in October 2008, netted more than $100,000 for the third straight year.

The Foundation offered donors more ways to give through the creation of an endowment fund for Harbor View Manor in Tacoma, Wash. Similar

endowments will be established in the future at other affordable housing communities. The Foundation honored donors by installing the first donor recogni-tion wall at Grand Lake Gardens in Oakland, Calif.

board Members: Frank Jennings, Board Chair; David B. Ferguson, CEO/Ex Officio; Enitan Adesanya, Stephen M. Annis, Louis Binick, and Linda Zale

Staff: Joe Anderson, President; Leonard Kelly, Vice President; Suzette Luer, Development Coordinator

$44.8 $36.7 $34.9$40.7

2007 2009200820062005

$38.2

0

10

20

30

40

50

(in thousands)2009 ABh

oW

Annual report | Page 16

CorPorATe inforMATion

mAnAgement teAm

David B. Ferguson President and Chief Executive Officer

Pamela S. Claassen Senior Vice President, Finance Chief Financial Officer

Jeff Glaze Senior Vice President, Chief Operations Manager, Continuing Care Retirement Communities

Joseph E. Anderson President, ABHOW Foundation

M. Sloan Bentley Senior Vice President, Sales and Marketing; President, Seniority, Inc.

Terese Farkas Senior Vice President, Human Resources

David A. Grant Senior Vice President and General Counsel

Kay Kallander Senior Vice President, Strategic Planning

Ancel Romero Senior Vice President, Affordable Housing

ACCReditAtiOn And SpeCiAl deSignAtiOn

All nine of ABHOW’s continuing care retirement com-munities and one managed community are accredited by the Commission on Accreditation of Rehabilitation Facilities-Continuing Care Accreditation Commission.

Seven of ABHOW’s California affordable housing communities have earned the Communities of Quality designation from the National Affordable Housing Management Association.

ASSOCiAtiOnS

ABHOW is a founding member of the American Association of Homes and Services for the Aging and state associations of homes and services for the aging in California, Arizona and Washington. Seniority, Inc. is a member of the American Seniors Housing Association and the Assisted Living Federation of America.

2009 AwARdS

AAHSA Award of Honor: David B. Ferguson, President and CEO

Aging Services of California Trustee of the Year: Randall L. Stamper, Chief Governance Officer

AAHSA Leading Edge Care and Services Award: Valle Verde, Santa Barbara, Calif.

Aging Services of California Volunteer Service Award: Plymouth Associates, Plymouth Village, Redlands, Calif.

NuStep Pinnacle Award: The Terraces at San Joaquin Gardens, Fresno, Calif.

pReSident emeRituS

Dr. Richard E. Ice

AuditORS

Moss Adams LLP, San Francisco

2009 ABho


60 Years of Pioneering Leadership

2009 ANNUAL REPORT

American Baptist homes of the West

American Baptist homes Foundation of the West

Cornerstone Affiliates

seniority, inc.

6120 stoneridge mall road, suite 300 Pleasanton, CA 94588 800.222.2469 www.abhow.com

2009 annual report - sitemason · opened in 2009. pre-construction sales activities in 2009...

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