The Boards of Directors for Front Porch and Covia, two leading California-based not-for-profit senior living and affordable housing providers, voted on June 1 to affiliate.
The new affiliation will create one of the nation’s top not-for-profit organizations providing senior living, affordable housing and community services for more than 10,000 people. The combined organization will ensure long-term stability, achieve economic benefits, manage costs, and scale and access resources across 54 communities.
“Our affiliation with Front Porch creates a strong organization going forward that will support the changing needs of our residents,” said Vincent Forte, Chairman of the Covia Communities Board of Directors.
“Aligning our leadership, experience and expertise creates an opportunity to better meet the evolving expectations of a growing population of older adults,” said Oliver Wesson, Chairman of the Front Porch Board of Directors.
Covia CEO and President Kevin Gerber and Front Porch CEO John Woodward will remain in their positions during the transition. The boards agreed to retain the Front Porch name initially and appoint John Woodward as CEO of the combined entity. Kevin Gerber will leave upon the close of the affiliation, expected in early 2021.
“Combining with Covia strengthens our long-held goal of building strong and engaging communities, connecting people with the services and relationships they need to thrive,” Woodward said. “Under Kevin’s leadership, Covia has raised the bar for our industry and is the ideal partner to provide even greater service to all of our communities.”
“Our collective geographic footprints and service offerings will maximize Front Porch’s capacity to grow and diversify our reach and impact,” Gerber said. “I’m confident that under John’s guidance our affiliation will be a success.”
The affiliation is subject to the receipt of regulatory approvals and is expected to close in early 2021. Front Porch and Covia will continue to operate their organizations and their respective communities separately until the affiliation is approved.
For more information, please visit our webpage at covia.org/affiliation.
Inspired by their passion for protecting the environment for future generations, members of St. Paul’s Towers’ Green Action Committee created CoviaGreen, a program focused on sustainable living and environmental responsibility.
The program is centered around the CoviaGreen pledge, which offers residents a number of ways that they can reduce their negative impact on the environment. Pledge items fall into four categories: Waste & Energy Reduction, Materials & Products, Culture & Community, and Water & Food. The choice options allow pledge signers to choose which items are the most relevant to their particular situation. The most popular action items among residents included turning off lights and appliances when not in use, eating more seasonal fruits and vegetables, and learning how to recycle in their community.
CoviaGreen extends beyond the residents and into the St. Paul’s Community with changes in dining and environmental services. In the dining room, Impossible Burgers are now available at every meal and staff are introducing new vegetarian and plant-based proteins. Elsewhere in the community, housekeeping has adopted a program where residents can put out laminated cards to indicate that for that week, linens don’t need to be changed or showers don’t need to be cleaned.
Staff are also encouraged to sign the pledge. Resident Service Manager Jaclyn Carenbauer who, along with the Green Action Committee, has been a driving force for the program, has integrated the pledge into her daily life by biking to and from work. “The program is a great way to bring our community together and to help the environment,” she notes.
Beyond the pledge, Carenbauer commented that CoviaGreen’s main goal is education, explaining that it’s often easy to understand that composting or recycling is important without fully realizing how to go about it. “I didn’t compost before I started this. It’s not popular where I’m from and I thought that if you just put food in the garbage, it would compost,” she says. CoviaGreen provides more information on how everyone can reduce their impact, which can be especially helpful for “people who thought recycling was enough.”
Along with encouraging the St. Paul’s Towers community to sign the pledge, the Green Action Committee is updating signage within the community, including posted reminders for residents to bring their own coffee mugs to the coffee bar and signs to highlight what is in season in the dining area. Future goals for the program include trips to tour a waste management facility and showing relevant documentaries on movie nights.
Although St. Paul’s Towers is currently the only community implementing CoviaGreen, the hope is that other Covia communities will be inspired to adopt the program in the future and make a similar commitment to environmental responsibility.
On July 2nd, Fitch Ratings affirmed the A- rating on Covia’s revenue bonds, with a rating outlook of “Stable.” Covia first received an A- rating in 2017.
“Covia benefits from its size and scale with five full service retirement communities located in desirable locations throughout Northern California, with a total operating revenue base of nearly $150 million,” Fitch reports. “Along with a sophisticated and centralized management structure, Covia’s revenue diversity offsets credit risks relating to operating volatility, competitive pressures and actuarial risk.”
After the February decision by the Covia Communities Board to proceed with the closure of Los Gatos Meadows, Diana Jamison, Covia’s Chief Financial Officer, immediately reached out to Fitch to provide them with details. “They appreciated our transparency and proactive response and requested specific information. Fitch then scheduled a formal surveillance process to review our rating given the impact of the closure,” reports Kevin Gerber, CEO.
During the surveillance meeting, which takes place every two years, “We demonstrated that we are a strong, healthy organization, even given this temporary closure of Los Gatos Meadows,” says Jamison. The Fitch report demonstrates that “they had faith in management and had faith in the strength of our financial performance.”
“Fitch understands our industry better than any other rating agency,” says Jamison. To be able to maintain Covia’s A- rating feels “Awesome. I don’t even know how to explain it any other way.”
“I’m proud of the fact that we’ve been able to maintain our financial strength. It says a lot about the organization.”