That $2 million base rent estimate does not even include the cost of services in each group home, nor does it include such things as water and sewer, real estate taxes, insurance, and utilities, all of which will be passed through to DMR and state taxpayers.
It is unclear whether the DMR intends for the homes to be used to house residents of the Fernald Developmental Center if the Patrick administration wins its legal battle to close the facility. Fernald continues to house roughly 160 residents. As we've repeatedly said, we've never seen a comprehensive plan for this. The administration has not said where all of the new beds would come from for the current facility residents, nor has it indicated its plans for the future of five other remaining state facilities for persons with mental retardation.
The fact is that the DMR's group-home leasing plan will result in millions of dollars in wasted taxpayer money. It would be much more cost-effective for the state to build these homes itself and own them outright. It would also make sense to build the homes on existing state-owned land, such as the campuses at Fernald and the other state facilities. That way, DMR and its clients and families could take advantage of centralized medical, dental, and other services.
The irony is that DMR went into federal court falsely asserting that more than $100,000 per year per person could be saved by closing Fernald. Now the state reveals its shell game by robbing the future assets of the system though leasing rather than owning, and all for the dubious goal of dislocating fragile and dependent people from their homes of 50 years. Moreover, the governor, in cutting $8 million from the budgets for existing facilities and state-operated nursing homes, is risking the progress and safety of the most disabled DMR clients.
The group home leasing move is not new. In July 2005, DCAM conditionally selected two nonprofit firms, Toward Independent Living and Learning, Inc. (TILL), and CIL Realty, Inc., to develop up to 80 new beds in the Greater Boston and Northeast regions and lease them back to DMR. COFAR discovered serious flaws in TILL's proposals under that RFP process and DCAM later reissued their RFP in July 2006 and reportedly knocked TILL out of the process.
COFAR also reported in 2006 that CIL had proposed a total base rent to DMR over a 20-year period of $2.2 million for each of its proposed duplex homes. The DMR's lease-back development approach, moreover, was characterized by extensive delays and has resulted in development of only a very small number of homes.
But DMR isn't changing its game plan. The latest DMR RFP calls for the development of 21 4-and 5-bedroom group homes and duplexes in the Greater Boston, northeast, souteast, and central/west regions of the state.
The Patrick administration should begin to think about new, workable approaches to the critical need for housing for DMR clients, rather than continuing to repeat the same mistakes made during the Romney administration.