Affordable Housing Options for Low-Income Older Adults

Takeaways

• For seniors struggling to cover their housing costs, federal and independent programs are available that may prove helpful.

• Other possible solutions exist for those with more immediate needs.

Safe housing that meets older adults’ needs is essential to healthy aging in communities. Many seniors with low, fixed incomes struggle to balance housing expenses with the costs of health care, transportation, and groceries. According to one report, more than 11 million seniors nationwide are spending 30 percent or more of their income on housing alone.

Finding inexpensive, safe, and accessible housing can be challenging. However, several affordable housing options are available for older people with low incomes.

Section 202 Supportive Housing for the Elderly

The Section 202 Supportive Housing for the Elderly Program provides affordable housing and supportive services for older people with limited means. Through this federally funded program, seniors can maintain their independence while receiving benefits such as transportation and assistance with activities of daily living (ADLs). This support allows them to continue living safely on their own.

The United States Department of Housing and Urban Development (HUD) requires Section 202 facility owners to maintain the buildings and regularly inspect them to ensure the tenants have a safe environment. Rent typically comprises 30 percent of the tenant’s income.

Older adults who meet specific thresholds may enroll in Section 202 Supportive Housing for the Elderly Program.

• The head of the household must be 62 years old or older.
• This program also has income requirements, which vary depending on location. Seniors must meet HUD’s income limits criteria. Generally, it is less than 50 percent or less of the area’s median family income.

The program has several benefits for those who qualify:

• Low housing costs provide peace of mind and stability.
• Units designed for older adults are more accessible, including features such as wheelchair ramps, wider doors, and bathroom grab bars.
• Senior communities ease loneliness and foster social connections.

Section 8 Vouchers

Housing vouchers are another potential option for seniors living on a fixed income. Through the Section 8 Housing Choice Voucher Program, local housing agencies provide housing vouchers to low-income households that help cover rent. These vouchers are available to families living below 50 percent to 80 percent of the poverty level.

Keep in mind that income thresholds vary by area and agency. Dwellings must satisfy housing quality standards, and owners must maintain the units.

While families can obtain vouchers regardless of age, elders and those with disabilities can receive an additional deduction.

Although housing vouchers can help some older adults and their families, limited availability and long waiting lists characterize housing voucher programs. Per the Center on Budget and Policy Priorities, only one in four qualifying households receive vouchers.

Home Sharing

Home-sharing programs can help older adults who are living alone stay in their homes while providing an affordable housing option. In addition to helping with costs, home-sharing can prevent loneliness and provide a sense of safety. This arrangement may be particularly beneficial to older adults whose spouses have passed away or children have moved away. It may also be a welcome alternative to having to relocate to a nursing home or assisted living facility.

Through these types of programs, older adults with homes can find housemates who are also elderly, helping to lessen the cost of living. Older adults with spare rooms in their homes may wish pair up with those on fixed incomes who are searching for safe, affordable housing.

The National Shared Housing Resource Center is one organization that offers an online directory of independent home-sharing programs currently operating across the country.

Additional Options

Most affordable housing programs, such as Section 202 and housing vouchers, have waiting lists as demand exceeds availability. Additional options exist for older adults who need more immediate help with housing costs.

• Older adults who own their homes can apply for a reverse mortgage, allowing them to continue living at home. Reverse mortgages draw upon existing equity in a home to supply regular payments, which can supplement retirement income. The federal government insures the Home Equity Conversion Mortgage (HECM).
• 995HOPE is a free hotline that provides counseling to seniors with concerns about being able to afford their housing. Certified counselors available at 888-995-4673 can help assess your situation, identify potential rental assistance programs near you, and provide other educational resources and support.
• For those with health care needs who have low incomes and few assets, Medicaid could cover the cost of nursing home care.
• Medicare pays for certain in-home health services for homebound older adults. Although Medicare does not cover rent or mortgage payments, in-home care covered by Medicare can lessen total expenses.
• Individuals might consider moving in with family or friends to share living expenses and benefit from support.

For older adults struggling to afford housing costs, several options exist. The best choice depends on your unique circumstances.

For assistance obtaining more affordable housing as you age, consider consulting with an elder law attorney in your area. These professionals can help you identify affordable housing options tailored to your financial situation. In addition, they have the expertise to advocate for your rights, assist you in navigating legal requirements, and ensure you are eligible for different programs.

For further reading on housing for seniors, you may be interested in the following articles:

• Innovative Long-Term Care Housing Solutions for Seniors
• HUD Housing Programs That Support Aging in Place