Holland Home’s Chief Financial Officer, Adam Kinder, testified before the Michigan House Finance Committee on April 21 as it considered addressing property tax policies for nonprofit registered Continuing Care Retirement Communities (CCRCs).
Currently, there are 28 nonprofit registered CCRCs across the state, and each are assessed for property taxes differently based on location and services. Kinder maintains that these inconsistent property tax assessments place financial strain on residents, many of whom live on fixed incomes, as well as many of the nonprofit CCRCs that provide and promise care for them. The inconsistencies have created an unlevel cost structure for similar nonprofit CCRCs, despite that many serve within the same broader geographic area, but happen to be located in separate municipalities. Additionally, this makes it more difficult for CCRCs like Holland Home to expand services, invest in communities, and provide affordable care options.
At a time when our state and country’s population is rapidly aging, and the demand for quality senior living and health services is growing, the decisions lawmakers make could significantly affect our ability to care for older adults across our state.
“We’re going to need to serve more people than we’ve ever served in our state’s history. Yet we’re having to pause and think about: ’Is this really the most cost-effective place for us to expand, knowing that we might be subjecting ourselves and then, also our residents, to significant costs as it pertains to property taxes?”
The proposed legislation would ensure consistent property tax treatment across all municipalities and across all levels of care for nonprofit registered CCRCs throughout Michigan. Kinder calls the bills “critical for older adults in Michigan.”
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