Bella Vida FAQs and Answers from the CFO

Forefront Living’s CFO, Steven Ailey, answers some of the most frequently asked questions from future Bella Vida (BV) residents and their family members. Covering topics from the community’s financial strength to potential tax benefits, these insights can help guide informed decisions about life at a continuing care retirement community (CCRC) like BV.

As a brand-new community, how financially strong is BV?
At BV, your future is supported by more than just a vibrant lifestyle and beautiful surroundings. Our strength is rooted in Forefront Living’s proven history, responsible governance and mission-driven leadership. As part of a nonprofit organization with decades of experience in senior living, BV is backed by the kind of financial stability that brings peace of mind.

We carefully track key performance indicators, including maintaining 885 days of cash on hand at stabilized occupancy, a debt service coverage ratio of 1.75, and $41.6 million in cash reserves. Choosing BV means your investment is supported by a legacy of excellence, expert partners and a long-term commitment to resident-centered care.  Read more about our dedication to financial stability here.

Which contract type is the most common at BV? 
The Legacy Plan, which is 80% (couples)/85% (singles) refundable, is our most popular contract. BV offers the opportunity for any future residents who do not have the Legacy plan to switch to this plan at any time prior to move-in. We expect that approximately 70% of residents will choose the Legacy Plan by the time of move-in, which provides estate protection by allowing them to gift assets to adult children, other family members or a preferred charity. VIPs who wish to reduce the entrance fee or monthly service fee amount paid may choose the Choice Plan (50% or 55% refundable) or the Traditional Plan (0% refundable). BV’s financial model includes a limited number of these alternate contracts.

Why choose a nonprofit entrance fee community over a for-profit rental community? 
At BV, there is no profit motive to raise monthly service fees. The community reinvests excess revenues to benefit its residents. With the payment of the entrance fee, typically, the ongoing monthly service fees are lower than those of a for-profit rental community. There is also less likelihood of a change in ownership. Additionally, Forefront Living believes in financial transparency and maintains open communication with its residents. Once approved for residency, residents will not be asked to leave should they outlive their financial resources.

How does the entrance fee work, and under what circumstances is it refunded? 
The terms of the entrance fee refund are outlined in the Residency Agreement. The refunds are paid to residents or their estates in the order they are in the queue upon the next resale of a like residence. BV’s sister community in Dallas, Presbyterian Village North, has a lengthy waiting list. Their refunds are typically paid within about 60 days. Forefront Living has never failed to pay a refund due to a resident.

Are there any tax benefits from living at BV? 
For those who itemize for medical deductions, there can be a deduction in the year you pay your entrance fee and ongoing thereafter for the payment of monthly service fees. Each January, an independent third-party auditor will provide BV with the percentage of deductions based on contract type. We recommend that residents consult with a tax advisor once the auditor’s statement is available.