Insufficient funds for housing assistance for low-income seniors highlight pressing need

Insufficient funds for housing assistance for low-income seniors have brought attention to the pressing need for more support in this area. Recently, the U.S. Department of Housing and Urban Development (HUD) announced a grant funding of $115 million to aid the development and improvement of affordable rental housing for low-income seniors. Out of this funding, $35 million is specifically allocated for intergenerational housing, aimed at households headed by seniors who are raising children under the age of 18.

HUD Deputy Secretary Adrianne Todman emphasized the importance of creating homes that enable older adults to live independently. Providing opportunities for seniors with modest means to age with grace and dignity in a supportive environment is crucial. The funds will assist non-profit organizations in creating new energy-efficient homes or rehabilitating existing ones for low-income adults aged 62 and above. The funding covers capital costs as well as ongoing project rental assistance. This recent funding builds upon a previous tranche of $161.1 million in Section 202 housing grants that were awarded to 25 grantees across 14 states, which will result in the creation of nearly 1,300 units for eligible households.

Lisa McCracken, head of research and analytics at the National Investment Center for Seniors Housing & Care, expressed that while the $115 million funding from HUD acknowledges the need for additional housing support for low-income older adults, there is still a necessity for even greater funds. This applies not only to low-income seniors but also to those just above the income threshold for government support, referred to as the middle market. Nonetheless, this funding is seen as a step in the right direction.

This funding comes at a time when many individuals desire to age in place but struggle to find age-friendly housing options. According to AARP, as many as 77% of people aged 50 and older want to remain in their own homes as they age, but only 49% believe they will be able to do so. The availability of homes that are accessible to older adults or those with disabilities is limited. For instance, Harvard University’s Joint Center for Housing Studies found that less than 4% of all U.S. homes offer the necessary features such as single-floor living, no-step entries, wide hallways, and doorways.

Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon noted that these funds, allocated for both rental assistance and development costs, offer a solution to address the persistent housing needs of seniors nationwide. The grants provide adults aged 62 and older the opportunity to live independently with tailored support services encompassing nutrition, transportation, education, and health services. Eligible seniors typically have incomes below 50% of the area median income, with most households earning less than 30% of the median for their locality.

Rodney Harrell, vice president of family, home, and community at the AARP Public Policy Institute, emphasized the need to expand Section 202 housing to provide more affordable and accessible options for older adults across the country. In 2021, a staggering 2.35 million older adult renters experienced “worst case housing needs.” This category includes renters with very low incomes who do not receive government housing assistance and are severely burdened by housing costs or living in inadequate housing conditions.

According to the 2023 Harvard JCHS Housing America’s Older Adults Report, nearly 11.2 million older adult households were burdened by housing costs in 2021, with over half of them being severely burdened. Amidst these challenges, the funds designated for intergenerational housing will address the specific needs of grandparents raising their grandchildren. Approximately 2.3 million grandparents in the U.S. are responsible for their grandchildren, which often leads to increased financial strain. This targeted funding aims to alleviate their needs.

In conclusion, the recent announcement of $115 million in grant funding from HUD for affordable rental housing for low-income seniors is a positive step towards addressing the pressing need for housing assistance. However, there is still a need for additional funding to support low-income seniors and those in the middle market. The desire to age in place is strong among older adults, but accessible and affordable housing options remain limited. The grants provided by HUD offer a solution to address the housing needs of seniors while also considering the unique circumstances of grandparents raising grandchildren. Moving forward, it is crucial to continue prioritizing and investing in affordable and age-friendly housing options for older adults across the nation.