Triple income streams, diversified risk

Traditional senior care facilities rely on a single revenue source. KinRoots generates revenue from three separate, stable markets — each with strong demand, limited local supply, and dedicated public funding streams.

Revenue Stream Unit Pricing Capacity Annual Revenue
Wing 1: Assisted Living
Private rooms, 24/7 care
$6,500/mo per resident 40 beds $3.12M
Wing 2: Daycare & Pre-K
Infants through age 5
$1,400/mo per child 60 children $1.01M
Wing 3: Family Stabilization
Mothers + children residential; recovery, transition, stabilization
State/federal reimbursement + grants 20–30 families $400–600K
Supplementary
Respite care, adult day programs, events
Varies As available $180K
Total at Full Occupancy $4.7–5.0M
$6,500
Monthly assisted living fee
Alaska median: $6,315/mo (Genworth 2024)
$1,400
Monthly childcare fee
Anchorage average: $1,200-1,600/mo
5
Simultaneous funding categories
Elder, childcare, maternal, family, cultural

Phase 2: Workforce Development as a Sixth Funding Stream

Beginning in Year 1, KinRoots activates a resident-to-employee workforce pipeline — one that unlocks a sixth funding category unavailable to any standard care facility.

WIOA Workforce Innovation & Opportunity Act — career training for adults with barriers to employment
DOL REO Reentry Employment Opportunities — targeted at residents with substance use history
IHS + HRSA Scholarships & Nurse Corps funding for Alaska Native residents pursuing medical careers
NHSC National Health Service Corps loan repayment for graduates who serve in Alaska HPSAs

Workforce development grants don't appear in the revenue table above because they fund training and education rather than operations. But they directly reduce staffing costs: residents who complete the pipeline are hired at market rate with externally funded training, and retention rates for staff who stabilized at KinRoots are structurally higher than market. See the full grants breakdown →

Profitable at <50% occupancy

West Virginia University's research on intergenerational care facilities found that dual-revenue models achieve break-even at significantly lower occupancy than traditional single-program facilities.

The Triple-Revenue Advantage

Traditional assisted living facilities need 75-85% occupancy to break even. By combining three revenue-generating programs under one roof, KinRoots shares fixed costs (building, utilities, admin, kitchen) across all three wings — dramatically lowering the break-even threshold while accessing five separate public funding categories simultaneously.

<50% Break-even occupancy
(WVU research)
75-85% Traditional facility
break-even
30-40% Shared cost savings
vs. separate buildings

Shared Infrastructure Savings

A single building with two wings shares HVAC, plumbing, electrical, kitchen facilities, laundry, administrative offices, parking, and exterior maintenance. Conservative estimates put shared infrastructure savings at 30-40% compared to operating two separate facilities.

The common room — the heart of the intergenerational model — is also the facility's greatest operational efficiency. One space serves both programs, requiring no additional construction beyond what either wing would need independently.

Operating Cost Structure

Expense CategoryAnnual Est.
Staff (nursing, childcare, admin)$1.9M
Facility operations$420K
Food service$310K
Insurance & compliance$180K
Programming & supplies$90K
Total operating costs$2.9M

Year-by-year growth path

Conservative projections assuming gradual ramp-up. Assisted living fills slower (6-12 month waitlists are common in Alaska); daycare fills faster due to extreme local demand.

Metric Year 1 Year 2 Year 3 Year 5
Assisted Living Occupancy 45% 65% 80% 92%
Daycare Enrollment 70% 85% 95% 100%
Total Revenue $2.3M $3.2M $3.9M $4.3M
Operating Costs $2.5M $2.8M $2.9M $3.1M
Net Operating Income ($200K) $400K $1.0M $1.2M
18 mo
Projected time to break-even
Daycare revenue stabilizes first
$1.0M
Year 3 net operating income
At 80% AL / 95% daycare
25%
Mature operating margin
Year 3+, consistent with peers

Demand is not a question — supply is

Both assisted living and childcare in Alaska face severe supply shortages. KinRoots enters a market where demand already exceeds capacity.

1 in 4
Alaska children have no childcare access
Alaska ranks among the worst states for childcare availability. Parents in Anchorage face 6-12 month waitlists. In rural areas, formal childcare simply doesn't exist.
Alaska Childcare Policy Research Partnership
12,000+
Alaskans aged 65+ needing care by 2030
Alaska's senior population is growing faster than national average. The state has fewer assisted living beds per capita than any comparable state.
Alaska Commission on Aging
$87K
Average annual cost of nursing home care in Alaska
Alaska has the highest long-term care costs in the nation. Assisted living at $6,500/mo is a significantly more affordable alternative for families.
Genworth Cost of Care Survey 2024
0
Intergenerational facilities in Alaska
Despite 105+ shared-site programs operating successfully across the Lower 48, zero exist in Alaska. KinRoots would be the first.
Generations United, 2024

A $8-12M investment in community infrastructure

Construction costs for a 25,000-35,000 sq ft facility in Anchorage, including both wings, common areas, outdoor space, and specialized medical/childcare infrastructure.

Funding Strategy

KinRoots is positioned to access multiple funding streams across five categories simultaneously — an unprecedented combination for a single facility in Alaska. Three wings means three separate grant-eligible programs, each qualifying for distinct federal and state funding.

NMTC New Markets Tax Credits
for underserved areas
USDA Community Facilities
Direct Loans & Grants
SAMHSA Substance abuse &
maternal health grants
Title IV-E Family preservation &
foster care prevention

Additional funding categories: CCDBG (childcare block grant), AK DHSS maternal health programs, HUD transitional housing, IHS Native health infrastructure, WIOA + DOL workforce development grants (Phase 2). See the Grants page for the full funding landscape.

Phase 1: Pre-Development (Months 1-6)

Site selection, feasibility study, community engagement with local organizations, community partners, and mission-aligned funders. Secure letters of support and initial funding commitments.

Phase 2: Design & Permitting (Months 6-14)

Architectural design with dual-wing layout, licensing compliance for both assisted living and childcare. State and local permitting. Construction bid process.

Phase 3: Construction (Months 14-26)

Ground-up construction of the facility. Phased approach allows early occupancy of the daycare wing while assisted living wing completes final fit-out.

Phase 4: Operations Launch (Month 26+)

Staff hiring and training. Daycare opens first (faster fill rate). Assisted living begins accepting residents. Full intergenerational programming launches within 90 days of both wings operating.

Phase 5: Workforce Pipeline (Year 1–2)

Residents begin informal facility contributions at Month 6. By Year 1, a formalized workforce training program launches — CNA, childcare aide, kitchen, admin, and front desk tracks. Wing 2 provides free childcare so residents can train without barrier. Funded through WIOA, DOL Reentry Employment Opportunities, and state workforce grants. By Year 2, the scholarship pathway opens: LPN/RN nursing, Behavioral Health Aide, and Substance Abuse Counselor tracks, funded through IHS scholarships, HRSA Nurse Corps, and ANC shareholder education programs. The facility builds its own workforce — the highest-retention staffing model in healthcare.

Ready to see why Alaska is the right market?

State-specific data on elder care gaps, childcare deserts, and why Alaska is the ideal first market for this model.