Low-income seniors, including those raising grandchildren, just got a boost in housing assistance, but analysts say more funding is needed.
The U.S. Department of Housing and Urban Development (HUD) recently announced $115 million in funding to support the development and improvement of affordable rental housing for low-income seniors. Of this funding, $35 million is earmarked to create intergenerational housing for families headed by seniors raising children under 18.
“The creation of these homes will allow the elderly to live independently. It is important to provide opportunities for seniors of modest means to age with grace and dignity in a supportive environment,” said HUD Deputy Secretary Adrianne Todman.
The funds will help nonprofit organizations create new energy-efficient homes, or rehabilitate existing ones, for low-income adults age 62 and older. Funding is provided to support capital costs and rental assistance for ongoing projects.
This new batch of funding builds on another similar funding tranche of $161.1 million in Section 202 housing grants awarded to 25 recipients in 14 states. This funding will be used to create nearly 1,300 units for eligible families.
“Having access to affordable housing for all our seniors is critical. This will be even more important in the future, given the significant growth of our senior population,” said Lisa McCracken, director of research and analysis, National Investment Center for Seniors Housing & Care.
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“The $115 million in funding announced by HUD certainly recognizes the need for additional housing to support low-income seniors and is good news. Most would agree that even more funding is needed, not just for low-income seniors, but also for those just above the income threshold for government support, otherwise known as middle market. That said, this funding is a step in the right direction,” McCracken said.
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Funding also comes because people want to age in place, but finding senior-friendly housing is difficult. According to AARP, as many as 77% of people aged 50 and older would like to stay in their home as they age, but only 49% think they will be able to do so.
Finding a home that is accessible to older people or people with disabilities is a challenge. For example, according to analysis of 2011 survey data by Harvard University’s Joint Center for Housing Studies, fewer than 4 percent of all U.S. homes offer single-story accommodations, step-free entryways, and wide hallways and doorways.
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“These funds, earmarked for both rental assistance and development costs, offer a solution to address the persistent housing needs of seniors across the nation,” said Julia Gordon, Assistant Secretary for Housing and federal housing commissioner. “We remain committed to supporting safer, healthier and more energy efficient homes that help address both the climate and housing crises together.”
The grants offer adults age 62 and older the ability to live independently with tailored support services, including nutrition, transportation, education and health services, HUD said.
Eligible seniors typically make less than 50% of the area median income, with most families earning less than 30% of their locality’s median income.
“There are too few affordable housing options for seniors across the country, particularly for those who need support to live on their own as they age. Expanding Section 202 housing is critical to providing more affordable and accessible housing options,” said Rodney Harrell, vice president of Family, Home and Community at the AARP Public Policy Institute.
In 2021, 2.35 million older adult renters had “the worst housing needs.” This category means that these renters have very low incomes (incomes at or below 50% of the area median income) and do not receive government housing assistance, and are severely cost burdened, living in grossly inadequate housing conditions, or both, according to a 2023 HUD Worst Housing Need Report.
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In 2021, nearly 11.2 million older adult households were cost-burdened, and more than half of these households were severely cost-burdened, according to the 2023 Harvard JCHS Housing America’s Older Adults Report.
Meanwhile, funds earmarked for intergenerational housing will help meet the unique needs of grandparents caring for grandchildren.
“Approximately 2.3 million grandparents in the United States are responsible for raising their grandchildren, which can often lead to increased financial burdens. This targeted funding will help address the needs of that segment in particular,” McCracken said.
According to the Census Bureau, approximately 16.2% of grandchildren under the age of 18 living with their grandparents were living in poverty.