What is affordable housing?

Affordable housing might have various meanings for different people. Thus, the government defines affordable housing as accommodation for which one spends no more than 30% of their income.

Tips for Finding the Best Senior Housing Options

If spending exceeds that, it becomes a "housing cost burden."

Tips

Look for senior apartments
Today, seniors can find low-income independent living apartments through different government programs, social groups, and non-profit organizations that help subsidize housing costs. Some non-profits that provide these options include Mercy Housing, HumanGood, Good Samaritan Society, and Volunteers of America. Contacting these organizations can assist individuals in exploring available options. These apartments also feature amenities for seniors, such as elevators and shower bars. However, seniors must meet eligibility criteria, often being over 55 or 62 years of age, to qualify for this type of housing. Moreover, these apartments are designed to foster interaction among seniors to prevent feelings of isolation and loneliness.

Consider cooperative housing
A less expensive option than moving into a retirement community or living alone is cooperative housing. In this setup, the builder (a company) owns the land and the houses, and seniors can invest in the company's shares. As shareholders, they are allowed to lease housing units. The deal may include access to facilities like community kitchens, laundry rooms, outdoor areas, and fitness centers.

Seniors can enjoy common areas and cultivate an active and socially rich lifestyle. Many seniors prefer this housing option as it acts as an investment, although returns are modest. Members also influence building management, providing a sense of empowerment and community. If a senior decides to leave the cooperative housing, they can sell their shares and regain their invested funds along with any accrued equity. According to the non-profit Senior Cooperative Foundation's website, there are over 125 cooperatives nationwide worth considering.

Explore government-run housing programs
The Department of Housing and Urban Development offers two programs for low-income seniors seeking independent living options: the Section 8 Housing Choice Vouchers and Section 202 Supportive Housing for the Elderly.

Section 8 Housing Choice Vouchers: Low-income seniors may qualify for housing choice vouchers distributed by local public housing agencies (PHA). Participants can select from a range of independent living options, such as an apartment, condo, townhouse, or single-family home. However, the landlord must agree to participate in this program. Vouchers cover a predetermined rent portion that the PHA pays directly to the landlord. If there is a difference between the actual rent and the subsidy, seniors are responsible for paying it. While there's generally a waiting list for this government program, it can often provide immediate solutions for homeless seniors.
Section 202 Supportive Housing for the Elderly: This program targets the rehabilitation of multifamily properties for very low-income seniors aged 62 and older. If no suitable properties are available for rehabilitation, the program aids in funding the creation of appropriate homes for these seniors. While intended for independent living, facilities such as cooking, cleaning, and transportation may be available. To qualify, income must be below 50% of the area's Average Median Income. Moreover, if it's a family household, at least one member should be over 62 years old. Through this HUD housing program, tenants pay 30% of their income towards rent, with the government covering the remainder.

Consider virtual retirement communities
For homeowners, a virtual retirement community program can enhance accessibility and ease of independent living. Non-profit organizations run this program, offering seniors assistance with daily tasks, such as tree removal, grocery shopping, doctor visits, and transportation needs. The average cost for these services is $450 annually; however, in smaller areas or villages, fees might be as low as $125. This is one of the most affordable assisted living services available in the country. By choosing this option, seniors can enjoy the benefits of a retirement community without relocating.