The Friendship Manor facility was originally built as a private student dorm in <em>1967</em>, called The College Inn. Friendship Manor came into being in <em>1973 </em>thanks to the vision of Dr. Kenneth P. Berg, a Presbyterian minister who at that time had already established and operated 30 life care retirement centers in different parts of the country. His goal was to offer an affordable, dignified environment to seniors living on fixed income.

During the turbulent Vietnam Era, The College Inn saw a drop in student enrollment and could no longer afford to keep its doors open. After they declared bankruptcy, Dr. Berg stepped in and purchased the property, and soon began converting it to a retirement community.

The first resident, Pauline Barrar, was welcomed on <em>June 20, 1973</em>. In <em>March of 1973</em>, just prior to Mrs. Barrar's arrival, Dr. Berg assembled a seven member Board of Directors composed of local community laymen and pastors. On <em>July 25, 1973</em>, despite a feasibility study listing 26 reasons why it could not succeed, Friendship Manor was incorporated under the laws of the State of California, with the first official Board meeting being held on <em>July 27, 1973</em>.

Friendship Manor’s economic history is riddled with unexpected demands on its cash flow.  In <em>1976</em>, the State of California took a big chunk for unemployment taxes and the County of Santa Barbara insisted on $25,000 in sewer use taxes. In <em>1978</em>, major remodeling was required and when the earthquake hit in the summer of <em>1978</em>, a $55,000 three percent loan had to be obtained from the Small Business Administration to cover the cost of repairs.

To make ends meet, the Manor has had to raise fees for food, rent and services at regular intervals.  In keeping with its mission to provide affordable services to seniors, price increases have been moderate and have always remained within the limits of Social Security cost of living adjustments.  In 1973, the Manor’s average size apartment, including food, rented for $193 per month.  Today that same unit rents for $862 per month. This compared to the local rental market represents a very moderate increase over 36 years, considering the increases in food, utilities, wages and insurance.

In <em>December of 1974</em>, Friendship Manor attained 100% occupancy for the first time and a waiting list was established. From that time on the Manor enjoyed a near 100% occupancy with an approximate 5% vacancy/turnover rate.  With occupancy running so high, the financial picture improved yearly with the fiscal <em>1976-1977</em> year showing the first positive cash flow.
<h2>Our Future is Bright</h2>
Friendship Manor continues to be a vibrant and healthy organization serving the independent needs of its residents.  As the organization moves forward, the focus of the current Board is on building a new Friendship Manor in the Santa Barbara area to replace the aging dorm-like buildings, providing a mixed-income property that allows residents with low incomes to live with seniors on higher incomes, and creating a more diverse community of seniors. 
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