Senior Affordable Housing Need By Avelina Martinez
The senior population is currently experiencing various issues that are affecting their lively hood and housing stability. Their struggles consist of the following: Shortage of Low-income housing Aging in the home/challenge of retrofitting homes Financial crisis/inability to support themselves during retirement years Competing for housing subsidies/with low-income families The combinations of the issues have devastated the low-income senior and baby boomer populations. Many low-income seniors are living in unfit homes. They are also being subject to compete for low-income housing subsides with other low-income families. Some of baby boomers have lost most of their retirement funding due to the downfall of the 2008 market crash.
Starting in 2006 the early baby boomers, out of seventy-nine million reached the age of sixty. In 2011 the early baby boomer cohorts reached the age of 65 (SeniorMoblies 2010). This new wave of newly age retirees has drastically changed the United States aging population. In the course of 19 years, ten thousand baby boomers will turn sixty-five every day (The End of American Dream 2010). The side effects of increased poverty rates in the aging population have imposed a high demand on low-income housing. In the current senior Section 202, there are 263, 000 units available. By the year 2020, the low-income housing demand for the aging population will need 730,000 additional units (Congressional Research Service 2010). A greater portion of the senior population has resorted to low-income rental properties. Fifty-five percent of the senior population is more likely to spend thirty percent of their income on rent (Bright 2005, 2). Furthermore, seniors are having difficulties finding affordable rentable homes (Bright 2005, 2). The need of senior low-income housing continues to grow at a rapid pace. In 2009, senior renters had the worst-case housing need. There were 1.33 million seniors in need of low-income housing an increase of 120,000 from 2007 (Steffen et al. 2011, 5). As a result, the percentage of senior worst case housing need increased from 34.6 percent to 36.5 percent in a three-year period (Steffen et al. 2011, 5). The low-income housing stock has fluctuated between the very low-income and extremely low-income. From the period, 2007 through 2009 the extremely low-income category had a significant decrease. The rate of available homes decreased from 76 to 61 units per 100 renters (Steffen et al. 2011, 5). The available housing units for the very low-income bracket fell from eight units to seven units per 100 renters (Steffen et al. 2011, 14). Low-income renters have a higher rate of affordable housing, although some of the available homes have physical damage (Steffen et al. 2011, 14). Most of the low-income senior population has acquired housing assistance through public services. The effects 2008 and 2009 housing market crisis has highly affected the baby boomers financially. As a result, 47.2 percent of early baby boomers are at risk of insufficient funds to accommodate health care and retirement expenses, while late bloomers are at 43.7 percent risk of insufficient funds. (VanDerhei 2011). Another income source for older Americans is Social Security pension. The Social Security pension has become a main retirement source for many low-income individuals (Butrica, Smith, and Iams* 2012, 45). More specifically, social security is an important financial factor in many seniors’ lives. Many seniors are constrained to a fix budget, which creates higher a demand for affordable housing (Salkin 2009). Starting in 2000, amendments to Social Security pension have allowed for an increase contribution rate. By increasing the rate of contribution, Social Security has been able to build up its reserves (Roberts 2009, 622). Beginning in 2016, Social Security pensions will begin to decrease reserves. Furthermore, by 2037, Social Security pension fund will be depleted, if government does not enforce cutbacks (Roberts 2009, 622).
Federal and State Low-Income Housing Tax Credit At the federal level, the Low-Income Housing Tax Credit was developed. The tax credits deduction main objective is to entice private housing developers to partake in the development of low-income housing (Rathgeb-Smith 2006, 230-231). A goal of the tax credit program is to increase tax saving, which will reduce the expenditure of developers (McClure 2000, 92-93). The State of California has collaborated with the federal level to oversee the distribution of the tax credit funding allocation (California Tax Credit Allocation Committee 2011, 1). In addition, the State of California has implemented a supplementary tax credit program. California’s low-income tax credit allocates additional funding to low-income project owners. (California Tax Credit Allocation Committee 2011, 2-3). State and Local Level Bonus Density and Incentives The State of California has taken further steps to increase the stock of low-income housing. In the State of California, Density and Incentive Program Section Code 65915-65918 was enacted. The main goal of this mandate is for local governments to fulfill the affordable housing need of their city (Blackwell 2011, 13). The bill includes the obligation of providing concessions and incentives to housing developers (Los Gatos Planning Commission 2012, 2-3). Over the enactment of Section Code 65915-65918, the bill has been amended in two different occasions. The amendment of legislation has included increased density incentives, and the deletion of waiver language (San Jose Rules Committee 2005, 2). Section 8- Housing Choice Voucher To help combat the low-income housing shortage, The Housing and Urban Department of Housing enacted Section 8 Housing Choice Voucher program. Section 8 Housing Choice Voucher is a rental assistance program. The Section 8 Housing Choice Voucher is a federal program that collaborates with low-income tax credit project owners and bonus density project owners. Section 8 Housing Choice Voucher provides rental public housing funding to states (Owner Briefing Packet 2012). Then the states distributed the funding to local Public Housing Agencies (See Figure 1). Section 8 has become one of the largest rental housing programs in the United States (HUD 2001a). A senior Housing Project in Chico Walker Commmons is not a conventional public housing project; it does, however, utilize some public funds. It is the result of a joint venture between the Housing Authoity of the County of Butte, the City of Chico, and other investors. It is controlled by a 7-member board of Directors under the title of Butte County Affordable Housing Development Corporation (BCAHDC), a non-profit organization. The Walker Commons project was centered on a sustainable collaborative community approach. The structure of the community management included various people coming together to tackle a community issue (Root and Schmidt 2006, 1). By including the various stakeholders, the project became managed by communication, budgeting, and institutionalization. This particular project was awarded funding through the Low-Income Housing Tax Credit program (Chico Housing Authority of the County of Butte 2012b). As a result, various community support systems were developed. For example, the project developers were subject to various types of collaboration networks and partnerships. Monitoring agencies were developed to regulate Walker Commons project owners. The monitoring agencies consisted of the three levels of government and the private sector (Chico Housing Authority of the County of Butte 2012a). Wachovia Bank (Chico CA branch) City of Chico California Tax Credit Allocation Committee State Home Federal Home Loan Bank In addition, the Walker Commons senior housing project consists of a seven member Board of Directors. The Board of Directors is governed by a nonprofit organization, which is Butte County Affordable Housing Development Corporation (Chico Housing Authority of the County of Butte 2012b). This project the federal and state funding regulations required the housing project to incorporate other housing subsidized programs. The effectiveness of incorporating vertical, horizontal, and community approaches, helped the seniors of Chico California. The coordination of community leaders coming Applicants who also have a one-bedroom Housing Choice Voucher (Section 8 voucher) may be eligible to apply that voucher toward their rent at Walker Commons.
For the last few years, the Department, in collaboration with Congress and a wide range of stakeholders, has explored strategies both to preserve a number of the nation`s core affordable rental housing programs including public housing and the privately owned and managed assisted housing inventory and to safeguard the significant taxpayer investment that has gone into this stock each year. And I appreciate this opportunity to discuss these strategies today and to comment on the recent action taken by appropriators. We meet at an important moment. Today the need for affordable housing is greater than ever. According to HUD`s most recent Worst Case Housing Needs report, 7 million very low - income renter households pay more than half their income for housing , live in substandard housing or both. Essential to meeting the needs of these families is public and assisted housing - which provides 2.5 million quality, affordable homes in communities across the country, nearly 20% of which are located in rural and small towns. In all, 4.5 million households a third of whom include an elderly or disabled family member depend on help from HUD to pay the rent -whether in public housing or private subsidized housing . Key Goals of the Rental Assistance Demonstration The Demonstration differs from our TRA proposal in important ways including strengthening public control and foreclosure protections, while at the same time eliminating proposals that would have regionalized public housing administration. It builds on the basics of what we know already works to preserve affordable housing and has five key goals: Long-Term Stability. The Demonstration puts public housing on a stable funding platform that will allow owners to plan for the future and maintain their properties. Specifically, it would allow PHAs and owners of Moderate Rehabilitation (Mod Rehab), Rent Supplement, and Rental Assistance Payment (RAP) properties the option to convert their current or expiring form of rental assistance to either a Section 8 Project Based Voucher (PBV) contract or a Section 8 Project Based Rental Assistance (PBRA) contract.
This slide contains the name of the stakeholder and their position titles City of Lincoln-Development Services Amanda Norton-Housing & Special Projects Coordinator Chico State University-Interdisciplinary Center on Aging Seema Sehrawat, MSW, Ph.D Community Housing Improvement Program Roberto Rojas-Program Specialist
The information is in a table The Orientation Phase consisted of the project creator researching website ideas, and Important public, private, and non-profit organizations. Resources need Chico State IT Support Services regarding HTML Codes/ layout advice The Creation Phase is on a on going process. The project creator has met with Seema Sechrawat from the department of Social Work/Interdisciplinary Center on Aging/ Amanda Norton from the City of Lincoln Department of Development Services/ Roberto Rojas from Community Housing Improvement Program. Each stakeholder discussed what he or she wanted on the website, and what housing topics need to be discussed The Evaluation Phase Will consist of Roberto Rojas from Community Housing Improvement Program senior residences. I will provide an website navigation feedback seminar. I will go over on how to navigate the website, and they will provide rate the website. User-friendliness Information Content Appearance The Resources need will be laptops and a meeting room to conduct the website navigation feedback seminar. Community Housing Improvement Program ✽ Roberto Rojas-Program Specialist has offered to hold the seminar @ CHIP Community Center Room.
Conclusion The Senior Housing News Website project will be under development til next year. Once the Senior Housing New Website is done, it will be handed over to the Chico State University-Interdisciplinary Center on Aging. Seema Sehrawat will assign her staff to keep the website updated.
Senior Affordable Housing Needs By Avelina Martinez
SUMMARY OF SENIOR HOUSING ISSUES• Aging population crisis.• shortage of affordable housing.• Affordable housing subsides are competitive.
HISTORICAL CONTEXT OF SENIOR HOUSING ISSUES The Increase of the Loss of Affordable Aging Population Housing Competing For Affordable Housing
HISTORICAL CONTEXT OF SENIOR HOUSING PROGRAMS Federal Level Low-Income Housing Tax Credit State Level Low-Income Housing Tax Credit Bonus Density Section 8 And Housing Incentives Choice Voucher
JUSTIFICATION FOR LOW-INCOME HOUSING PROGRAMS• Senate Banking, Housing and Urban Affairs.• House Financial Services.• House Financial Services
COLLABORATIVE STAKEHOLDERS• City of Lincoln-Development Services ✽Amanda Norton-Housing & Special Projects Coordinator• Chico State University-Interdisciplinary Center on Aging ✽Seema Sehrawat, MSW, Ph.D• Community Housing Improvement Program• ✽Roberto Rojas-Program Specialist
COLLABORATIVE STRATEGY Senior Housing News Webpage Collaborative Project 2012 MONTH: Aug Sep Oct Nov Dec Orientation phase X X X X WebsiteDevelopment Creation Phase X Evaluation Phase X
SENIOR HOUSING NEWS WEBSITE CONCLUSION• Website is under construction.• Navigation feedback seminar will be held next year.• Interdisciplinary Center on Aging will take over the website.