Many senior citizens want to continue living independently as they grow older, but struggle with the costs of doing so. Once they retire, they may face difficulty paying the rent, and the home they live in may lack the accessible features that they need to ensure mobility and safety. These issues persist for seniors across the country—in fact, cost burdens for older adults are at an all-time high.
Nearly 11.2 million older adult households in 2021 paid 30 percent or more of their income for housing. Among seniors with very low incomes, incidences of “worst case housing needs”—severe rent burdens or severely inadequate housing—increased by 60 percent between 2011 and 2021. According to this year’s GAP Report from the National Low Income Housing Coalition (NLIHC), an ACTION Campaign Steering Committee Member, 33 percent of extremely low-income renters are non-working seniors, and they are likely to struggle to afford housing. This is especially true for seniors in rural areas, where housing that is both affordable and accessible to mobility needs is not always available.
Many seniors must continue to work well past retirement age to afford basic necessities, including housing. They struggle to afford these necessities when they work low-wage jobs, and are often forced to make trade-offs, spending less on food or healthcare to afford their rent. Seniors also struggle with social isolation, with over 14 million living by themselves as of 2021.
Lack of accessibility features in homes is also common. In fact, 87 percent of people aged 65 to 74, and 81 percent of people aged 75 and older, live in homes that lack accessibility features, which can put their health and well-being at risk or force them to move to a care facility. In a 2021 AARP survey of adults, the vast majority reported issues both inside and outside of the home, such as upper-floor bedrooms and bathrooms without grab bars, that would prevent them from living there as an older adult. Over half of households headed by someone older than 50 lack the financial resources to cover the median cost of home safety renovations, and only 10 percent of the nation’s housing units are able to accommodate seniors, with features such as step-free entryways and accessible bathrooms. Meanwhile, more than a quarter of all households aged 65 and up reported trouble using a feature of their home.
The problems described above are becoming more pervasive given demographic shifts, as the number of households headed by people over 80 will more than double between 2021 and 2040. Costs of both in-home care and care facilities can be steep. The American Seniors Housing Association estimated that, at the end of 2023, the average cost of in-home care (4 hours a day, 5 days a week) was $2,640 per month, and the average assisted living facility costs $7,200 per month.
The Housing Credit is the linchpin of all construction and preservation of affordable housing in the country, and senior housing is no exception. Almost 37 percent of Housing Credit properties contain at least one resident over 62 years old, and their access to affordable rent and resident services helps them save money while gaining both independence and social connections.
The Fair Housing Act defines senior housing as either 100% occupied by persons at least 62 years of age, or 80% occupied by at least one person at least 55 years of age. States’ qualified allocation plans (QAPs) establish a standard for distributing Housing Credits to planned affordable housing properties, and many states prioritize affordable senior housing with robust resident services and accessibility features.
There are 38 states that award points to projects that serve seniors, and seven set aside a portion of Housing Credits specifically for affordable senior housing, according to a report from LeadingAge, an ACTION Campaign Steering Committee member. Some states set special restrictions on what counts as “senior” housing, but all either use the age 55 or 62 as a cut-off. States such as California, Florida, Ohio, and New Jersey all reserve Housing Credits for seniors. Other states, such as Colorado, Pennsylvania, and Nevada, provide preference to properties providing amenities that benefit older adults, such as health services and accessible design features. The QAPs in these states mention senior citizens among those who may benefit from these features but may differ on whether these projects are required to serve seniors. Three states specify that they allow the discretionary basis boost for 9 percent Housing Credit developments for senior housing, which can make deals financially feasible if they would not pencil out without the boost. Arizona provides a 5 percent basis boost to single story projects for older adults, Michigan provides a 20 percent basis boost to senior apartments with resident services, and Mississippi gives a 30 percent basis boost to all senior housing.
Affordable communities for seniors, such as the ones operated by Sequoia Living in California, feature an abundance of specialized health and social services. Sequoia operates 3 affordable housing properties that serve approximately 600 senior citizens, all of which were partially financed with Housing Credits. Residents often make just 30 percent of the average median income (AMI) and only contribute 30 percent of their income for rent and utilities.
As California law requires, Sequoia employs resident services coordinators (RSCs) to help their seniors access food, healthcare, and transportation. These RSCs meet with new residents and work with them to conduct an assessment to learn about their daily activities and service needs. They then develop an individual service plan with each resident, collecting their input to give them a voice in how they can best be provided for. Under state laws, resident service coordinators are required in affordable housing properties, and they are instrumental in creating not just homes, but true communities.
Housing Credit properties for seniors often partner with other local organizations (in Sequoia’s case, the Marin Food Bank and Food Runners) to provide free food and groceries to residents, and they work to connect residents with mental and physical health services that work best for them. For older adults with mobility issues or other health concerns, many properties provide housekeeping services and emergency monitoring systems, helping to safeguard residents in case of a medical emergency. Sequoia even provides “isolation intervention” programs, including an Art With Elders class and an intergenerational program where they can have conversations with young people in the community. These programs help seniors find true independence; they have the freedom to thrive and make their own decisions and the support required to do so.
The Housing Credit is uniquely structured and poised to target the needs of older adults. The One Big Beautiful Bill Act, signed in July by President Trump, provides a permanent 12% increase in Housing Credit allocations, the greatest increase since 2000. It also permanently lowers the 50 percent test to 25 percent for bond-financed Housing Credit properties and contains a permanent extension of 100 percent bonus depreciation for qualified properties. These policy changes will lead to more availability of affordable rental homes for America’s seniors.
While many more affordable units will be financed and preserved over the next decade with this increase in Housing Credit resources, there is still more to do. Congress has the opportunity to authorize basis boosts for both extremely low-income and rural communities and make other efficiency improvements to the program by passing the bipartisan, bicameral Affordable Housing Credit Improvement Act (AHCIA, S. 1515/ H.R. 2725), which already has almost 200 cosponsors across both the House and Senate.
This August 21 is National Senior Citizens Day, but it’s always a good time to enact policies and programs that will help seniors do more than just age in place; they will age with pride.
