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Senior Housing Bill Subject of Banking Committee Hearing
By
Stephen J. Baetge
Staff Writer
During
the last week of October, the U.S. Senate Banking Subcommittee on
Housing, Transportation, and Community Development held a hearing
on the merits of S.118 — a bill to increase the availability
of affordable housing with support services for older Americans.
The Committee heard from a number of witnesses who spoke out in support of the
legislation which seeks to expand and improve the Department of Housing and Urban
Development’s (HUD) section 202 Supportive Housing for the Elderly Program.
The program provides capital grants to nonprofit community organizations for
the development of supportive housing and provision of rental assistance exclusively
for low-income seniors to allow them to remain safely in their homes.
The bill was re-introduced in January by Sen. Chuck Schumer, D-New York, and
Sen. Herb Kohl, D-Wis. An earlier measure had expired during the last session
of Congress.
“This is a common-sense proposal that will help seniors in New York and
across the nation live with dignity in a home they can call their own,” Sen.
Schumer advocated.
“Right now, the housing programs in place for seniors are inadequate compared
with the demand,” Schumer continued. “By making a few changes to
the current law, we can greatly expand and improve housing options for seniors.”
Nearly 300,000 seniors live in 6,000 Section 202 developments across the country.
Whenever a unit becomes available, 10 seniors apply for the vacancy.
It is projected that 730,000 additional senior housing units will be needed by
2020 in order to address the housing needs of low-income seniors. The program
is not expected to meet the future demand.
To compound the problem, many older Section 202 properties are being converted
by developers of higher-priced condominiums and apartments with the result that
seniors currently participating in the program become at risk for homelessness.
“Over one-third of the Section 202 population is considered disabled enough
to be at risk for being put in a nursing home,” explained Sen. Kohl. “By
reducing the need for costly nursing home stays, access to supportive services
saves both seniors and the government money.”
Also known as the Section 202 Supportive Housing for the Elderly Act of 2009,
the bill is designed to promote the construction of new senior housing facilities,
as well as preserve and improve upon existing facilities.
Provisions of S.118 also support the conversion of existing facilities into assisted-living
facilities that provide a wide variety of additional supportive health and social
services by cutting through red tape for homeless seniors seeking a place to
call their own.
“Under the current Section 202 law, the development and preservation of
existing communities can be time consuming and administratively complex,” testified
Toby Halliday, vice president of National Housing Trust.
“S.118 would simplify, streamline and modernize procedures to improve and
preserve these properties, encourage broader participation by not-for-profit
developers, private lenders, investors, and state and local funding agencies,
and result in the creation of needed construction jobs,” he added.
Specifically, the bill will address the affordable senior housing shortage by
streamlining mixed financing deals to reduce the development time for new Section
202 developments and make it easier to refinance Section 202 developments in
need of rehabilitation.
Other improvements include providing greater flexibility for building owners
to transform unmarketable efficiencies into rentable one-bedroom units and expanded
streams of funding that can further the home’s mission of providing housing
and supportive services.
Provisions for establishing a new project-based rental assistance program for
seniors at risk of losing their homes due to possible rent increases are also
included as are programs for owners to convert properties into assisted-living
facilities that make health and supportive services available to residents.
The legislation has drawn widespread support including endorsement by the American
Association of Services for the Aging, America Association of Service Coordinators,
Alliance for Retired Americans, National Council on Aging, National Association
of Area Agencies on Aging, Elderly Housing Development and Operations Corporation,
Association of Jewish Family & Children’s Agencies, Catholic Charities,
Lutheran Services in America, National Affordable Housing Management Association,
National Church Residences, National Housing Trust, National Low Income Housing
Coalition, Stewards of Affordable Housing for the Future, United Jewish Communities,
and Volunteers of America.
Further Committee action is expected as a result of the hearing.
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Metropolitan News Company, Inc.
