Seven years ago, the congressionally appointed Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century (the Senior Commission) reported that by 2008 we would need at least 750,000 affordable housing units for seniors just to meet what was then current demand. Today, however, our country has only 300,000 units of low-income Sec. 202 housing for seniors.
The AFL-CIO, which has long advocated affordable housing for working families and for seniors, again commits our full support for increasing funding for additional affordable housing for seniors through the Department of Housing and Urban Development's Sec. 202 program. The Elderly Housing Development and Operations Corporation (EHDOC) dramatically demonstrated this need when over 1,000 seniors stood in line for days to get an application for EHDOC’s new 110-unit building in Miami, while it was still under construction.
According to the Senior Commission, almost 4.8 million households of people 65 and older have extremely or very urgent housing needs. More than 1.5 million seniors pay more than 50 percent of their income on rent alone and more than 8.4 million have annual incomes of less than $10,500.
The already inadequate supply of affordable housing for seniors is being strained further as the “baby boomers” reach 62 and beyond. By 2030 the senior population is expected to double to nearly 70 million and the need for affordable senior housing will be monumental—in excess of 1.5 million new units.
Not only is our population aging, the Senior Commission pointed out. So is the stock of affordable housing. Without funding for modernization and replacement, we could lose more than 85,000 units over the next two years as contracts expire. In fact, as existing Sec. 202 contracts expire, 33 percent of owners are opting out of the subsidy program and turning these affordable units into high-rent apartments and condominiums.
The Senior Commission recommended that Congress and HUD increase new construction. It also called for funding increased services, including full funding for Service Coordinators, yet this year that funding was cut dramatically. The need clearly exceeds available units. For example, EHDOC alone has over 3,000 people on their wait list in Florida.
Without a major increase in federal support for affordable housing and supportive services program, seniors who otherwise could remain in affordable apartments will be at serious risk of institutionalization or neglect. The nation is providing far less assistance for our most vulnerable people than it does for homeowners through the mortgage interest tax deduction.
It's time to increase funding for additional affordable housing for seniors through the Sec. 202 program—before our current crisis grows even worse.