It is found and declared as follows:

(1)  Rhode Island has one of the highest proportions of elderly persons in the nation. Persons age eighty-five (85) years old and over are the fastest growing segment of the state’s population.

(2)  A significant number of Rhode Island elderly have difficulty carrying out basic life activities, and many are at high risk for institutionalization due to chronic illness and disability.

(3)  There is a growing consumer preference for more housing and care alternatives designed specifically for persons who need assistance with basic life activities, but do not need the level of skilled nursing care and therapy that nursing homes provide.

(4)  There exists a lack of private sector initiatives to create assisted living options which are affordable to low and moderate income frail elderly and other frail persons.

(5)  It is imperative for state government and long-term health providers to develop cost effective means of caring for at-risk elderly, and in particular those low and moderate income frail elderly whose needs are appropriate for assisted living placement but who cannot afford the costs of market rate, private pay assisted living facilities.

(6)  An alternative form of housing and care must be developed in Rhode Island for low and moderate income frail elderly and other frail persons to enable them to live in a residential setting as independently as possible while achieving cost savings in the state Medicaid program.

(7)  An assisted living demonstration program, sponsored by the state through the collaboration and cooperation of the Rhode Island housing and mortgage finance corporation, the department of elderly affairs, and the department of human services, will allow the state to provide appropriate housing and care needed by frail elderly and other frail persons in Rhode Island and to evaluate the cost savings and other benefits of assisted living.