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40 7-1 r SYAF 41I AI7j GCT, 4J ZIUMQ J.)UL:ti ML"'PLL 17 i •-. sr i sufficient annual cash flow tncorttc to pay the proposed monthly service fees in perpetuity - adjusted for reasonable and modest inflation. Liquidation of home Frtru'r�t r+ - Seniors also have another significant financial resource available to them - the equity in their home. Seniors age 754• who live in a single f'trnily home generally have paid the mortgage off and own the home free and clear. This home equity, when liquidated and prudently invested, represents a significant source of additional cash flow income for malty Seniors. it should be noted that MDS evaluates affordability for Senior housing co unities based an cash flow income and also gives consideration to the impact of home equity for those Seniors who do s own a home. irnnact_of-Honij Eq ui • Exhibits 1-43 and 1-4b outline a home equity analysis in which the minimum qualifying income criteria could be reduced (for those Seniors selling their hornes) due to annual cash flow that would result frorn the sale of a horse in the Greater Sebastian area and the reinvestment of the net, after-tax sales proceeds. This analysis estimates the number of additional households (whose actual incomes are k]elo%v $40,000) who would be qualified at this level, assuming they could sell their horse and invest the net equity proceeds at 6%. This would allow a these Seniors to supplement their income, with the interest earnings, while leaving, the principal f oin ¢ the sale of their [ionic intact and in their portfolio of assets for their estate. e C-.'onsid of1on oft}le!COM e(ItIgU r l' MDS typically conducts an analysis in which the estimated required qualifying household income rntei m is calculated for each of the competitive facilities. MDS takes the average monthly service (cc for each ofthc corrtpctrtive assisicd living facilities an:l then applies the appropriate factor r t.