This Case is about ENTREPRENEURSHIP
PUBLICATION DATE: June 08, 2012 PRODUCT #: W12433-HCB-ENGUnited Church Housing Corporation Case Solution
This non-profit organization had managed for more than 50 years and had constructed a lot of seniors that were both affordable and offered private freedom lodgings. In the year 2005, the UCHC board approved a new four- assisted living facility, Wascana Wing, which was to be build in retort to long waitlists. With this particular determination, the UCHC board had taken out a $3 million mortgage to fund the undertaking. Since initiating the newest facility, high vacancy rates had blighted UCHC as new for profit competitors entered the market for senior lodgings. The mix of high vacancy rates and the highly leveraged financial position of UCHC were the source of losses from 2006 till now. The board’s breakeven attitude was not working. UCHC was at a major crossroad – the home scenario of over 100 seniors residing in assisted living apartments and bungalows would have to be determined upon at the following congregation. The question was whether or not a retired nurse, June, would urge the board continue with winding up UCHC or make suggestions that will call for important developments to the present business model.