Resident Association President’s Message – July 2015

. Posted in Journey to Healthy Aging Blog

This is a continuing report on the Loving Care Fund and Loving Care Endowment Fund from the June Lake Hunter Herald. The source of the following information is from the Loving Care Fund Report by John Hehn, Executive Director and Patty Fekete, Chief Finance Officer, June 2008, Updated-August 30, 2011:

“The first mention of the Loving Care Fund (LCF) is contained in the Executive Committee Minutes of February 17, 1975 which reported that:

“A separate income account for Loving Care Fund has been established to record gifts for subsidy needs for individuals or differential between Medicaid payments and actual costs and that a gift of $3,000 has been placed in this fund.”

Based on these minutes, from its inception the LCF has paid for that portion of the monthly maintenance fee that could not be paid by residents in houses, apartments and assisted living. Residents with financial needs in long term care have applied for assistance through the Medicaid program, and the LCF has paid the difference between monthly charges and Medicaid reimbursement.

The first mention of the Loving Care Endowment Fund is contained in the Executive Committee Minutes of April 19, 1976 which reported that, “Edwin Bower has made a gift of $10,000 to be a stimulus to the establishment of a Loving Care Endowment Fund, the income to be used for assistance to persons needing help in the cost of their care.”

From its inception through 2004, net appreciation on the donor restricted Loving Care Endowment Fund was considered as additions to the original gift unless the owners specified otherwise. Only the earnings (interest or dividends) were considered to be spendable.”

In June 1998, management and the Board determined that the earnings and gains from the Loving Care Fund exceeded the amount of money needed to support benevolent care. They petitioned the Court to broaden the limited use for which the Loving Care Fund is expended.

On November 29, 2000 a final judgment was entered by the Circuit Court of the Tenth Judicial Circuit Court for Polk County, Florida. This judgment approved the petition by the Homes that under certain conditions the spendable funds of the Loving Care Fund can be used for other than providing relief for residents who no longer have adequate resources to meet their obligations. The Court Order set forth the following principles:

The Board of Directors Executive Committee is declared the trustee and administrator of the Loving Care Fund and the Loving Care Endowment Fund and has full power, authority and discretion to receive, invest, administer and distribute principal and income from the fund.

That the primary purpose of the Loving Care Fund was and shall continue to be to provide a separate income to be distributed to older individuals as a subsidy to compensate for the differential between Medicaid or similar payments and actual costs; and to provide funds to help residents in meeting the cost of care.”

The Court listed some operational and capital expenses the excess funds could be used “…but not limited to…Electric Doors, Recreational areas, Transportation vehicles, New bus, Emergency call system, Closed circuit television.”

In 2005, the Board approved that the appreciation of the investments in the Loving Care Endowment could be transferred to the Loving Care Fund.

Also in 2005, the Board broadened the uses that the excess funds from the Loving Care Fund (special project funds, harvested annually) could be expended. Next month, I’ll try to provide financial data regarding the Loving Care and Loving Care Endowment Funds.

– Robert Bourquein, President

Residents Association

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16 Lake Hunter Drive - Lakeland, FL 33803
Phone: 863-688-5521 or Marketing: 863-577-6001