2016-11-15T12:21:45-06:00 2015-12-31 BDO USA LLP 200 OTTAWA AVE NW STE 300 GRAND RAPIDS MI 49503 990 2015-01-01 383087328 HENRY FORD VILLAGE INC % JOE LIPIEC HENR 3135841000 15101 FORD ROAD DEARBORN MI 48126 BRUCE BLALOCK EXECUTIVE DIRECTOR 3135841000 2016-11-15 true Kathleen Guider P00177866 6167747000 2015 2017-02-10 21:41:12Z BRUCE BLALOCK 15101 FORD ROAD DEARBORN MI 48126 37150390 false X N/A X 1992 MI PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY IN DEARBORN, MICH- IGAN WITH RECREATION, SOCIAL, AND RELIGIOUS ACTIVITES FOR RESIDENTS. 7 7 671 315 0 672324 603036 35515962 36278488 241278 99658 0 0 36429564 36981182 0 0 0 0 15441557 16024191 0 0 0 19860179 20709798 35301736 36733989 1127828 247193 99766551 96672006 118975580 115675478 -19209029 -19003472 PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY LOCATED IN DEARBORN, MICHIGAN WITH RECREATIONAL, SOCIAL, AND RELIGIOUS ACTIVITIES FOR RESIDENTS. false false 30028527 36278488 HENRY FORD VILLAGE, INC. IS A MICHIGAN NON-STOCK CORPORATION ESTABLISHED TO OPERATE A NOT-FOR-PROFIT CONTINUING CARE RETIREMENT COMMUNITY LOCATED IN DEARBORN, MICHIGAN. THE PROPERTY IS PRESENTLY ZONED FOR 856 INDEPENDENT LIVING UNITS (INCLUDING TWO GUEST ROOMS AND TWO MODELS), 96 ASSISTED LIVING UNITS, AND 89 SKILLED NURSING BEDS. AS OF DECEMBER 31, 2015 THERE WERE 796 OCCUPIED UNITS, WHICH CONSISTED OF 645 INDEPENDENT LIVING UNITS, 79 ASSISTED LIVING UNITS, AND 72 SKILLED NURSING BEDS. 30028527 true true false false false false false false true true true false false false true true true false false false false false false false false false false false false true true false false false false false false false false false false false false false false false true true true false false true 53 0 true 671 true false false false false true true false false false false false X 7 7 true true false false false false false true true false false false true true true true true true false false MI X JOE LIPIEC 3135841000 15101 FORD ROAD DEARBORN MI 48126 JOHN BYRNE SECRETARY/TREASURER 4.0 1.0 X X 0 0 0 ROBERT MUELLER MEMBER 4.0 0.0 X 0 0 0 GARY GLENN CHAIRPERSON 4.0 0.0 X X 0 0 0 DR KAREN ROSS MEMBER 4.0 1.0 X 0 0 0 DR WALTER TALAMONTI MEMBER 4.0 0.0 X 0 0 0 DONALD JESMORE MEMBER 4.0 1.0 X 0 0 0 RONALD JESMORE MEMBER 4.0 0.0 X 0 0 0 BRUCE BLALOCK EXECUTIVE DIRECTOR 40.0 1.0 X 232185 0 15206 JOE LIPIEC DIRECTOR OF FINANCE 40.0 0.0 X 85775 0 0 ROBERT O DISANTO DIRECTOR, GENERAL SERVICES 40.0 0.0 X 104975 0 0 KARI RENNIE ADMINISTRATOR 40.0 0.0 X 96225 0 12491 WILLIAM COSBY SR DIRECTOR OF SALES 40.0 0.0 X 113318 0 0 632478 0 27697 3 false true false REHABCARE GROUP THERAPY SERVICES 680 SOUTH FOURTH STREET LOUISVILLE KY 40202 PHYSICAL THERAPY 1579649 ALTERNATIVE CONTRACTING INC 7703 DONNA STREET WESTLAND MI 48185 RENOVATION/REPAIR 1080787 SBM MANAGEMENT SERVICES 5241 ARNOLD AVENUE MCCLELLAN CA 95652 HOUSEKEEPING 829637 DRIVEN SOLUTIONS INC 320 WEST NINE MILE ROAD SUITE B FERNDALE MI 48220 ADVERTISING 531504 DYKEMA GOSSETT PLLC 400 renaissance center DETROIT MI 48243 legal services 194180 7 285709 317327 603036 NON-REFUNDABLE DEPOSIT 623000 1245015 1245015 OCCUPANCY REVENUE 623000 29973439 29973439 ANCILLARY FEES 623000 1671545 1671545 RESIDENT FEE AMORTIZATION 623000 2963356 2963356 RENT RELATED TO CLINIC PROGRAMS 623000 120000 120000 305133 305133 36278488 95312 95312 0 0 0 0 0 173554 169208 4346 4346 4346 0 0 0 0 36981182 36278488 99658 0 0 0 0 435133 435133 0 12652137 9339787 3312350 0 1969814 1610242 359572 967107 790570 176537 486585 486585 332259 271608 60651 53424 43672 9752 0 0 67327 55037 12290 2124417 1736624 387793 845190 690908 154282 237376 194045 43331 506980 414435 92545 0 1532103 1532103 44408 36302 8106 0 0 2839774 2839774 0 4147107 4147107 555286 555286 BLDG, GROUNDS & MAINTENANCE 1907435 1559250 348185 RESIDENT RELATIONS 35060 28660 6400 REAL ESTATE TAXES 547027 547027 SUPPLIES 3878722 3170696 708026 569318 465394 103924 36733989 30028527 6705462 0 1084640 510192 1205750 1234324 0 0 2317830 2644952 0 0 0 0 658077 308077 115319 95187 675139 699846 162509330 78121273 86817034 84388057 2542382 2542493 0 0 0 0 0 0 4350380 4248878 99766551 96672006 3533996 4627428 0 0 0 0 40433895 40014650 1689161 606778 0 0 0 0 0 0 73318528 70426622 118975580 115675478 X -19252535 -19032910 43506 29438 0 0 -19209029 -19003472 99766551 96672006 247193 -41636 X false true X true false X 372331 407247 409933 672324 603036 2464871 36721957 36821693 35254514 35515962 36278488 180592614 0 0 0 37094288 37228940 35664447 36188286 36881524 183057485 0 0 0 183057485 475864 358339 146442 104869 95312 1180826 0 475864 358339 146442 104869 95312 1180826 0 -19371 115769 96398 37550781 37703048 35810889 36293155 36976836 184334709 0.99307 0.99140 0.00641 0.00878 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true X 43506 99855 113923 29438 50559 95664 -11783 90934 43506 128072 111760 -76592 112681 50559 233543 116408 -103513 118366 128072 221620 111704 24659 124440 233543 1.00000 false true true 4992523 4992523 147786008 69809663 77976345 269497 269497 0 5236926 4660895 576031 4224376 3381218 843158 84388057 0 RESIDENT DEPOSITS 65415305 FUNDS HELD FOR RESIDENTS 112322 REFUNDS DUE TO RESIDENTS 3452076 ACCOUNTS PAYABLE - RELATED PAR 1446919 70426622 36072827 113923 113923 35958904 1022278 1022278 36981182 35811566 35811566 922423 922423 36733989 PART XI, LINES 2D AND 4B RECONCILATION OF REVENUE: OTHER AMOUNTS INCLUDED IN AUDIT INCOME BUT NOT FORM 990 INCOME INCLUDE ASSETS RELEASED FROM RESTRICTIONS OF $113,923 THAT WERE RECORDED AS CONTRIBUTION INCOME IN PRIOR YEAR(S). OTHER AMOUNTS INCLUDED IN FORM 990 INCOME BUT NOT IN AUDIT INCOME INCLUDE $922,423 OF MARKETING EXPENSES NETTED AGAINST AMORTIZED RESIDENT DEPOSITS IN THE AUDIT, AND $99,855 OF TEMPORARILY RESTRICTED CONTRIBUTIONS. PART XII, LINE 4B RECONCILATION OF EXPENSES: OTHER AMOUNT INCLUDED IN FORM 990 EXPENSES BUT NOT IN AUDIT EXPENSES REPRESENTS $922,423 OF MARKETING EXPENSES. PART V, LINE 4 ENDOWMENT FUNDS: HENRY FORD VILLAGE, INC. ADMINISTERS THREE ENDOWMENT FUNDS WITH THE PURPOSE TO CARRY OUT THE CHARITABLE PURPOSE OF HENRY FORD VILLAGE, INC.: 1) THE BENEVOLENT CARE FUND, 2) THE SCHOLARSHIP FUND, AND 3) THE STAFF APPRECIATION FUND. THE TOTAL ASSETS IN ALL THREE FUNDS AT 12/31/2015 WAS $29,438. PART IV, LINE 2B ESCROW ACCOUNTS: Residents are required to remit entrance deposits, which may vary in amount depending upon the unit to be occupied. Prospective residents are required to make certain installment payments prior to the final settlement of the given unit. These amounts are included in escrow cash and advance deposits in the accompanying balance sheets. Deposit timing differences may cause escrow cash not to be equal to advance deposits. As of 12/31/2015, Escrow cash and advance deposits were $922,564 and $606,778, respectively. X X false false false false false false false false false BRUCE BLALOCK EXECUTIVE DIRECTOR 157976 0 74209 0 0 0 13356 1850 247391 0 LINE 5A, MANAGEMENT AGREEMENT: On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services. The LCS contract was for five years and was extended until August 31, 2016. The executive director and administrator are employees of LCS, but their salaries and related employee benefits are reimbursed by HFV. Reimbursement paid to LCS for LCS employees in 2015 totaled $396,462. Other corporate services that HFV may obtain are not required contractually and are on an as-needed basis. A EDC OF CITY OF DEARBORN 521310485 242563awy 2008-10-01 42535000 REFINANCE A 1998 VAR. RATE BOND true false false A 0 0 41842922 3317550 0 34540625 836858 0 0 3147889 0 3984747 2008 true false true true A false false false false 0 false false false false A true false false 0 false 0 false false A false BONDS PAYABLE: On October 1, 2008, HFV closed on Series 2008 Bonds issued by Economic Development Corporation of the City of Dearborn in the amount of $42,535,000. The 2008 Bonds ARE tax-exempt WITH A fixed interest rate of 7.15% AND final maturity in November 2043. No letter of credit is required for the Series 2008 Bonds. As part of this agreement, HFV is subject to certain financial covenants. Bondholders approved the First Amendment to the Loan Agreement on March 23, 2012, modifying the days cash on hand (liquidity covenant) requirement from 180 days to 150 days for the year ended December 31, 2015. The First Amendment to the Loan Agreement does have a provision that allows the liquidity covenant to be lower than 108 days as of December 31, 2015. However, if the liquidity covenant is less than 108 days, HFV must retain a management consultant to make recommendations with respect to the rates, fees and charges of HFV and HFVs methods of operations and other factors affecting its financial condition in order to increase the days cash on hand to the liquidity requirement for future periods. The consultant must be retained within 30 days of HFV disclosing the deficiency in the liquidity covenant. As of December 31, 2015, the liquidity covenant was less than 108 days. Subsequent to December 31, 2015, HFV obtained a waiver of noncompliance from the bond trustee that waived HFVs noncompliance with the liquidity covenant, modified debt service coverage ratio, and also waived HFVs obligation to retain a management consultant. This waiver also waived all required principal and interest payments for the months of July, August, September and October of 2016. HFV is in the process of refinancing the outstanding bonds and expects to have the refinancing complete in November 2016. PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: JOE LIPIEC (DIRECTOR OF FINANCE) AND A MEMBER OF THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS REVIEW THE 2015 form 990 PRIOR TO FILING. PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING AND COMPLIANCE: COMPLIANCE WITH THE CONFLICT OF INTEREST, WHISTLEBLOWER, AND DOCUMENT RETENTION AND DESTRUCTION POLICIES WAS MONITORED BY THE MANAGEMENT COMPANY, LIFE CARE SERVICES, LLC. BOARD MEMBERS SIGN A CONFLICT OF INTEREST FORM ON AN ANNUAL BASIS. PART VI, SECTION B, LINE 15A COMPENSATION DETERMINATION PROCESS: MANAGEMENT (HENRY FORD VILLAGE, INC. & LIFE CARE SERVICES, LLC) CONDUCTS MARKET SURVEYS ON AN ANNUAL BASIS TO DETERMINE IF A COMPENSATION ADJUSTMENT IS WARRANTED. BASED ON THIS INFORMATION MANAGEMENT RECOMMENDS ANNUAL SALARIES, TYPICALLY A PERCENTAGE INCREASE FROM THE PRIOR YEAR. THE BOARD APPROVES THE BUDGET ON AN ANNUAL BASIS. PART X, LINE 15 BOND AMORTIZATION: Deferred financing costs related to the 2008 issuance of bonds totaled $1,004,757 and are beING amortized over the bond term of 35 years. Amortization of deferred financing costs in the year ended December 31, 2015 was $37,311. Deferred financing fees, net of accumulated amortization, were $707,082 as of December 31, 2015. PART X, LINE 25 RESIDENT REFUNDS PAYABLE: RESIDENTS ARE REQUIRED TO REMIT ENTRANCE DEPOSITS, WHICH VARY IN AMOUNT DEPENDING ON THE UNIT TO BE OCCUPIED. RESIDENT DEPOSITS ARE REFUNDABLE WHEN THE UNIT HAS BEEN VACATED AND RELEASED, ALL OUTSTANDING OBLIGATIONS OF THE RESIDENT HAVE BEEN PAID, AND THE UNIT HAS BEEN RE-SETTLED AND PAID FOR BY A NEW RESIDENT. AMORTIZATION OF RESIDENT DEPOSITS IS RECOGNIZED AS OPERATING REVENUE ON A STRAIGHT-LINE BASIS OVER THE REMAINING USEFUL LIFE OF THE BUILDINGS. THE NET RESIDENT DEPOSITS LIABILITY WAS $65,415,305 AS OF DECEMBER 31, 2015. THE CURRENT YEAR INCOME AMORTIZATION WAS $2,963,356. PART VI, LINE 3 MANAGEMENT COMPANY AND GOVERNANCE: Life Care Services, LLC IS A FOR-PROFIT Iowa LIMITED LIABILITY COMPANY WHICH OPERATES AND MANAGES a variety of CONTINUING CARE RETIREMENT COMMUNITIES nationwide, INCLUDING HENRY FORD VILLAGE, INC. HENRY FORD VILLAGE, INC. IS GOVERNED BY AN INDEPENDENT BOARD OF DIRECTORS AND IS ADVISED BY A RESIDENTS COUNCIL ELECTED BY THE HENRY FORD VILLAGE COMMUNITY. THREE MEMBERS OF THE HENRY FORD VILLAGE, INC. BOARD ALSO SERVE ON THE HENRY FORD VILLAGE FOUNDATION BOARD OF DIRECTORS. On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services. The LCS contract was for five years and was extended until August 31, 2016. The executive director and administrator are employees of LCS, but their salaries and related employee benefits are reimbursed by HFV. Reimbursement paid to LCS for LCS employees in 2015 totaled $396,462. Other corporate services that HFV may obtain are not required contractually and are on an as-needed basis. PART VIII, LINE 2F LEASE REVENUE: HENRY FORD VILLAGE, INC. LEASES SPACE TO VARIOUS ENTITIES FOR THE PROVISION OF SERVICES SUCH AS PHYSICIAN CARE, DENTAL CARE, AND COSMETOLOGY. THESE SERVICES ARE PROVIDED solely FOR THE BENEFIT AND CONVENIENCE OF THE RESIDENTS OF HENRY FORD VILLAGE. THE REVENUE RELATED TO THESE FACILITIES LEASES FOR 2015 WAS $233,207. PART VI, LINE 19 DOCUMENT DISCLOSURE: THE ORGANIZATION'S FORM 990 IS AVAILABLE UPON REQUEST. JOE LIPIEC, HENRY FORD VILLAGE DIRECTOR OF FINANCE, HAS PUBLIC INSPECTION COPIES AVAILABLE AT 15101 FORD ROAD, DEARBORN, MI 48126. PART V, LINE 6A/B CERTAIN CONTRIBUTIONS NOT TAX DEDUCTIBLE: HENRY FORD VILLAGE, INC. HAS AN ANNUAL CAMPAIGN TO RAISE FUNDS FOR THE STAFF APPRECIATION FUND, WHICH PROVIDES END-OF-THE-YEAR BONUS CHECKS TO HENRY FORD VILLAGE, INC. EMPLOYEES. CONTRIBUTORS ARE NOTIFIED THAT DONATIONS TO THIS FUND ARE NOT TAX DEDUCTIBLE. PART VIII OCCUPANCY REVENUE: INCLUDED IN RESIDENT OCCUPANCY REVENUE ARE INDEPENDENT, ASSISTED LIVING, AND SKILLED NURSING MONTHLY FEES. REVENUE ATTRIBUTABLE TO THE SKILLED NURSING FACILITY IS RECEIVED UNDER CONTRACTUAL ARRANGEMENTS WITH THIRD-PARTY PAYERS SUCH AS MEDICARE AND MEDICAID. IN 2015 APPROXIMATELY 17% OF THE REVENUE FROM RESIDENTS WAS RECEIVED FROM THE MEDICARE AND MEDICAID PROGRAMS. HFV HAS AGREEMENTS WITH THE MEDICARE AND MEDICAID PROGRAMS TO PROVIDE REIMBURSEMENT TO HFV AT AMOUNTS DIFFERENT FROM ITS ESTABLISHED RATES FOR PRIVATE PAYERS. CONTRACTUAL ADJUSTMENTS UNDER THIRD-PARTY REIMBURSEMENT PROGRAMS REPRESENT THE DIFFERENCE BETWEEN HFV'S ESTABLISHED RATES FOR SERVICES AND AMOUNTS REIMBURSED BY THIRD-PARTY PAYERS. A SUMMARY OF THE BASIS OF REIMBURSEMENT WITH THESE THIRD-PARTY PAYERS FOLLOWS: MEDICARE: SERVICES RENDERED TO MEDICARE PROGRAM BENEFICIARIES ARE REIMBURSED AT PROSPECTIVELY DETERMINED RATES BASED UPON CLINICAL ASSESSMENTS COMPLETED BY HFV THAT ARE SUBJECT TO REVIEW AND FINAL APPROVAL BY MEDICARE. MEDICAID: SERVICES rendered to Medicaid program beneficiaries are reimbursed on a per diem basis based on a cost reimbursement methodology. PART VI, SECTION A, LINE 2 BOARD MEMBER RELATIONSHIPS: BOARD MEMBERS DONALD (FATHER) AND RONALD JESMORE (SON) ARE RELATED FAMILY MEMBERS. HENRY FORD VILLAGE FOUNDATION 15101 FORD ROAD DEARBORN MI 48126 542159197 SUPPORT MI 501(C)(3) 11 HFV INC true false false true true false false false false false false false false true true true false false false false HENRY FORD VILLAGE FOUNDATION C 285709 FMV (CASH) HENRY FORD VILLAGE FOUNDATION D 308077 FMV (CASH)