SWOT Analysis for IAM of Greenwood Project

Strengths

Comprehensive Community Impact: This project integrates senior housing, adult day care, health services, and food security programs, addressing housing and healthcare needs.

Job Creation & Economic Growth: Projected 32 direct jobs and 30 additional community jobs, generating an estimated annual income of $4.67 million, contributing significantly to Greenwood County’s economy.

Experienced Leadership and Partnerships: Led by Reinvest Carolina Inc. and Anointed Connect Church, with cooperative partnerships that enhance service delivery and expertise.

Alignment with HUD and LISC Objectives: Focused on sustainable development with LEED certification initiatives and senior housing aligned with HUD 202 programs, making it a favorable candidate for funding.

Faith-Based Support: Established network of community support and partnerships with local and regional faith-based organizations ensures trust, engagement, and outreach.

Weaknesses

Site Control Issues: The Anointed Connect Church does not currently own the property at 100 Highland Forest, Greenwood, SC, which poses a significant challenge. Securing the necessary acquisition loan will be the first critical step in the project, creating uncertainty and risk for investors. Without site control, timelines and budget forecasts may be affected, as there is a dependency on loan approval and property negotiations.

Complex Financing Requirements: The project requires multiple funding streams, including LISC acquisition loans, pre-development loans, construction loans, and working capital. Securing all these loans introduces financial and operational risks.

Operational and Regulatory Risks: Senior adult day care facilities and HUD housing involve strict compliance requirements, with challenges related to licensing, Medicaid reimbursements, and HUD certifications.

Dependence on Cooperative Model: The success of the project relies heavily on partnerships and the effective operation of the IAM cooperative model, which is still under development. Delays in cooperative formation could impact service delivery and investor confidence.

Resource-Intensive Rehabilitation: Retrofitting the property to meet ADA and LEED standards may result in unexpected costs or delays, adding to the financial burden if issues arise during construction.

Opportunities

Growing Senior Population: The increasing demand for affordable senior housing presents long-term community engagement and occupancy opportunities.

Expanding Health and Wellness Services: Establishing partnerships with healthcare providers for specialized services can enhance program offerings and attract more residents.
Alignment with Sustainability Initiatives: Pursuing LEED certification can reduce operational costs and attract eco-conscious investors, setting the stage for sustainable growth.
Future Expansion: The successful execution of IAM of Greenwood lays the foundation for the IAM of Spartanburg project, which will offer additional housing units, healthcare facilities, and a transportation hub.
Strengthened Community Partnerships: Increased collaboration with local organizations and faith-based networks will further embed the project within the Greenwood community.

Threats

Property Negotiation Risks: The owner’s reluctance to allow site access without a cash offer creates uncertainty. If the acquisition loan is delayed or denied, the project may stall.
Market and Regulatory Risks: Changes in Medicaid reimbursement rates or HUD funding structures could affect the long-term financial viability of the senior day care and housing components.
Economic Uncertainty: Inflation, rising construction costs, or changes in interest rates may increase project costs and affect investor interest.
Competition from Other Housing Projects: Other affordable housing developments in the region may compete for the same tenants, affecting occupancy rates and income projections.
Project Execution Delays: Delays in construction or regulatory approvals could impact the timeline, delaying loan disbursements and negatively affecting cash flow projections.

Adult Day Care Program Overview

Medicaid Payments & Participant Confidence

IAM of Greenwood includes a comprehensive Senior Adult Day Care facility serving 32 participants. This facility is critical to the project, providing seniors access to healthcare, wellness programs, meals, social activities, and emotional support throughout the day. Here’s an overview of how Medicaid payments will fund the program and address investor confidence regarding the facility's success.

Medicaid Reimbursements: Ensuring Sustainable Cash Flow

The Adult Day Care program is designed to offer eligible services for Medicaid reimbursement, providing a steady stream of income for IAM of Greenwood.

Daily Reimbursement Rate: Medicaid reimburses up to $64 per participant per day for eligible adult day care services, which typically cover health monitoring, personal care, meals, and social activities.
Maximum Participation Capacity: The facility can serve 32 participants per day. With each participant attending Monday through Friday, the program can generate up to $51,200 monthly in Medicaid revenue, assuming full attendance.
- Calculation:
  - 32 participants x $64 per day x 20 days per month = $40,960 monthly revenue
  - Additional participants, beyond residents, could push revenue closer to $51,200 monthly at full enrollment.

Why Every Tenant Can Qualify for Adult Day Care Participation

Every senior tenant residing in the 32 HUD 202 units will automatically meet the Medicaid eligibility criteria based on their income and health requirements, as HUD tenants typically meet the thresholds for low-income status and long-term care support. This guarantees that each resident is eligible to participate in the Adult Day Care program without additional qualification hurdles.

This integration provides dual benefits:

Improves Occupancy and Engagement: Every tenant can participate in the day care, enhancing quality of life and fostering community engagement.
Ensures Revenue Stability: With consistent attendance from residents, the program maintains predictable Medicaid reimbursement flows, reducing financial uncertainty.

Mitigating Confidence Issues: Program Success and Oversight

We understand potential investors may be concerned about achieving full participation and sustaining cash flow. Here are the strategies in place to ensure success:

Guaranteed Participant Base:
- The senior housing units are filled with tenants who qualify for Medicaid, providing a stable, built-in participant base.
- Even if residents are unable to attend every day, vacancies will be filled with eligible seniors from the broader Greenwood community, ensuring capacity utilization.

Experienced Program Management:
- COD Med Inc. will oversee staff recruitment and management to ensure high-quality care.
- Reinvest Carolina Inc. will handle operational oversight and quality control, ensuring compliance with Medicaid billing requirements to maintain smooth cash flow.

Monitoring & Adjustments:
- Attendance will be monitored daily, and any fluctuations will trigger immediate outreach to potential community participants to fill available spots.
- Retention strategies will be implemented to maintain engagement and attendance, minimizing risk to program income.

Supportive Network:
- Partnerships with local healthcare providers and community organizations will promote the program and refer eligible participants, expanding the network of day care clients.

Summary for Investment

The Senior Adult Day Care program at IAM of Greenwood is a financially sound and sustainable component of the project. With 32 Medicaid-eligible participants attending regularly, the program will generate predictable revenue, mitigating financial risks. The integration of senior housing with the day care ensures a steady participant base and full utilization of services, providing both social impact and financial stability.

Investors can feel confident that the adult day care program will not only enhance the well-being of residents but also serve as a reliable income stream, helping IAM of Greenwood maintain operational viability and meet its financial obligations.