Schaumburg’s Encore Village expands Medicaid-funded housing while helping seniors displaced by bankruptcy fallout

The 2023 bankruptcy of Friendship Village of Schaumburg created a cascade of issues still being addressed today.

Not only did the original owner of the then-46-year-old retirement community cease operations, but many residents who’d bought their units under the original ownership model found their own financial stability imperiled.

However, New York-based Encore Healthcare Services’ subsequent $114.8 million purchase of the 60-acre property was accompanied by a commitment of $15 million in capital improvements, $50,000 in annual charitable contributions and $25,000 per year to its employees for educational assistance.

Not only have those original commitments been exceeded, CEO and co-founder Avi Satt said, but the company is now taking another step in its efforts to prevent residents hurt most by the bankruptcy from having to leave the rebranded Encore Village of Schaumburg.

The facility received a state license for a Supportive Living Program, or SLP, to receive reimbursement through Medicaid for what has been an annual $1.5 million loss from not evicting residents who can’t afford the now fully rental housing.

But one of the requirements of the Illinois Department of Healthcare and Family Services is that the program must be contained within a single building in the complex.

As a result, about 40 tenants of the existing Apple building have to move to other units in Encore Village to make way for up to 150 people who qualify for the program.

The company is renovating the building, including creating the dedicated dining room it must have to qualify. The goal is to become fully compliant during July.

While most of the 40 residents being displaced are moving to similar units at the company’s expense, Satt said he’s aware at least one couple is involuntarily leaving a double-unit they customized themselves — while owners — for something smaller.

“Never for one second did we say we didn’t know or care,” he added.

That couple declined a request for comment.

Given the choice that had to be made, Satt said the company looked for the building that would force the least amount of the relocation officials require.

Though the program provides a financial answer to the dilemma that was faced, a company must be in a strong enough position to qualify, Satt said. This is the first SLP license issued in the state in 15 years.

While the initial wave of beneficiaries are current Encore Village residents, the new capacity will allow the state to start taking people off its long waiting list. Satt is anticipating five to seven new residents a month for the foreseeable future.

The office of Democratic state Rep. Michelle Mussman of Schaumburg looked into the effect of the new program, including the situation of those relocated.

“It’s definitely going to be advantageous for the (56th state House) district,” said Christi Wessel, district director for Mussman’s office. “I do think Encore wasn’t trying to manipulate anything. If you look at it as a whole, it’s a good thing.”

Mussman said it’s unfortunate some people in the community have to move to different units, but it’s also unfortunate the area lacks affordable housing for such seniors.

“The affordable housing crisis is real, and can affect us in unexpected ways,” Mussman said.

Unlike some supportive living facilities, those who end up at Encore Village will have private rooms and access to all the community’s amenities, Satt said.

Recreational, fitness and passive amenities have expanded under new ownership, including a coffee bar, convenience store, poker room, golf simulator and podcast studio as well as pickleball and shuffleboard courts.

Wessel said Alden Gardens in Bloomingdale and Asbury Court in Des Plaines are other suburban supportive living facilities with private rooms and nice amenities. But facilities in Chicago often require residents to share a room with one or more other people. The waiting list for any such assistance is long.