What Housing for Seniors on Social Security is Available?

Every day, over 10,000 Americans turn 65, entering an exciting stage of their life: retirement. For many, it’s an exciting prospect, one that conjures up images of kicking back their feet and enjoying the spoils of years of toil. For others, the victims of inflation, financial crises, or excessive spending, it’s a struggle to survive. Increasingly, elders are relying more and more on Social Security for their income, with SSA benefits representing around 33% of their income. Clearly, Social Security is becoming a walking cane for seniors—no pun intended—who now use a salient majority of this income for housing (SSA).

For those whose Social Security benefits, 401k retirement plans, or savings do not meet their needs for a comfortable life, the U.S. Department of Housing and Urban Development offers three forms of subsidized housing: multifamily subsidized housing, public housing, and housing vouchers.

Subsidized housing targets specific populations, like the low-income elderly, and grants rent at subsidized rates. Public housing provides government-subsidized housing to low-income populations, people disabilities, and the elderly. Housing vouchers target low-income families who have already found units that satisfy health regulations and that comply with cost standards, providing rent assistance as needed.

Since Social Security benefits depend on earnings throughout a retiree’s work career, a wealthy American may receive more than one with a low-paying job. To earn a minimum Social Security retirement benefit, one must have worked for a minimum of 10 years, and to receive the maximum benefit, one must have worked for 35 years with an income of $127,200 or above. The latter number is the maximum taxable amount.

Surprisingly, not all wealthy retired Americans receive this maximum benefit as Social Security benefits are based on earned income rather than passive business activities or investment income. Regardless, the wealthy population is certainly not what the SSA or HUD view as a priority (“Retirement Benefits”).

Before we dive further into these HUD housing options, it might be helpful to define the very concept of senior living. There are two major forms of senior living in America today: retirement communities and senior long-term care facilities. These two housing options are contingent on age, with senior long-term facilities typically attracting older populations and those 65+.

Retirement communities

Though this is often used as a blanket term to describe a range of housing options, these communities are typically designed for active seniors who require less assistance and supervision in their day-to-day routines. Residents live individually but are set up in a community of seniors to provide them with routine social interaction. These communities offer security and amenities, which are often tailored to the needs of residents.

Depending on the resident, these communities can be subsequently divided into four categories: assisted living retirement communities, independent living retirement communities, age-restricted retirement communities, and lifestyle retirement communities.

What are assisted living retirement communities?

These are designed for residents who require a moderate level of care. Seniors live in their own homes, but can receive assistance with getting dressed, prepping meals, taking medication, transportation, etc. In many cases, these communities work with health care providers—e.g. dentists, hospice nurses, podiatrists, counselors, physical therapists—to provide support for conditions like dementia, diabetes, depression, and cardiovascular disease.

What are independent living retirement communities?

For the active and healthy, Independent Living Retirement Communities offer independent living spaces—homes, townhouses, condos—within a larger community of residents or solo. These communities are restricted by age, and generally only serve those 55 and up. Though no medical services are provided, basic amenities and services like laundry, yard maintenance, housekeeping, gyms, and clubhouses are also included.

What are the age-restricted retirement communities?

These communities are sponsored by the HUD and are markedly different from retirement communities. They do not discriminate based on age, but their quotas require that at least 80% of occupied residents be 55. As such, the community’s amenities are tailored to seniors but invite anyone to stay as long as they are over 19.

Long-term care facilities

Unlike retirement communities, which are typically tailored to the self-functioning senior, these facilities offer an advanced form of assistance and medical care to residents. Grouped under this category are a number of options for residents, catered to a slew of circumstances.

What are assisted living centers?

These are often referred to as personal care homes and are designed for the individual who requires help with basic personal care tasks, such as brushing teeth and showering. Memory care, or specialized caregiving, for residents with dementia, is sometimes provided. Often, these centers are combined with nursing homes to satisfy the medical needs of their residents. With no age restrictions, these centers can serve those as young as 18 (although these centers are run by the VA).

What are nursing homes?

This is an advanced form of Assisted Living Centers for seniors requiring registered nurses and/or occupational therapists. Residents are typically in medical recovery or with chronic conditions that require consistent check-ups. Many nursing home residents have serious conditions like Alzheimer’s disease. Costs for nursing homes can add up to $90,000 a year on average.

What is in-home senior care?

For families seeking to retain their senior member(s) for as long as possible, this service offers a range of options from routine health checks to 24/7 in-home nurses. There are two issues with this system: cost and commitment.

More involved in-home service provisions can rake up serious prices for families who could be better off moving their senior to a full time senior living facility. The caregivers providing in-home service can often feel exhausted due to the high-demand nature of the job. Replacement options for this program include adult daycare and respite care services.

Adult daycare

Seniors in need of minimal care during the day, such as at work, might look into this option. A more affordable option, costs range from $25 to $100 per day and are fully covered by Medicaid.

What is an active senior housing?

This housing option offers a more relaxed service and caters to the self-sufficient senior (over 55). Amenities like full-sized gyms, swimming pools, and cafeterias with dining plans are provided, as well as transportation to offsite activities like shopping, hiking, and visits to museums. Because of the all-inclusive nature of this housing, residents can pay upwards of the mid-six figures just to buy into the facility, let alone the $3,000 monthly expenses for rent. Because this housing appeals to active seniors, bedridden residents may be required to seek other housing options.

What are independent living facilities?

These facilities offer low to medium care for residents and provide full privacy within a community. Maintenance and general upkeep are provided at a cost generally on par with religious communities and active living communities.

What are continuing care retirement communities (CCRCs)?

Catered toward the middle to upper-income households, CCRCs offer transitional senior care and move patients to different retirement/senior living situations based on their developing needs. For example, a 55-year-old entering retirement would likely go into an active senior apartment. However, upon developing medical issues, they would be transferred to a nursing home. Once their condition betters, they might be moved again to an assisted living facility. CCRC entry fees can cost anywhere from $100,000 to $500,000, with additional monthly fees.

What are congregational retirement communities?

Religious seniors might want to select a religious community for seniors, which offer regular church services, religious counseling, and meal-time prayers. Entry fees depend on whether the community is supported by a sponsoring church.

Affordable senior housing

Many seniors with limited means have difficulty finding programs that fit their budget. Luckily, there are several options that fit the bill for reduced costs: low-income senior apartments/condos, cooperative housing for seniors, virtual retirement communities, and adult family homes. Government-sponsored programs, such as the HUD senior housing under Section 8—government-controlled low-income housing—provide apartments, condos, single-family homes, and townhouses to seniors struggling financially. Unfortunately, eligibility restrictions are tight and waiting lists can be long. In the next section, we will examine HUD housing options in greater detail.

HUD-sponsored senior housing

According to a study by the Kaiser Family Foundation, 7.1 million adults aged 65 and older (14.5% of the senior population) lived in poverty in 2016. An additional 4.6 million seniors lived under the official poverty measure (Orgera).

With senior housing prices going for as high as six-figures, these options certainly aren’t close to feasible for a good quarter of American seniors. Thankfully, government-sponsored programs offer subsidized housing for families who pay more than 30% of their income on housing. This population is considered cost-burdened and generally struggles to afford necessities like food, clothing, and transportation. The HUD offers three rental assistance programs: privately owned subsidized housing, public housing, and the housing choice voucher program (HUD).

What is multifamily subsidized housing?

HUD provides rent assistance to certain populations to make housing affordable. Section 202 opens up a range of affordable housing options to low-income elderly persons and the frail. With subsidies, elderly recipients are able to live independently at minimal cost and with service support, like cooking, cleaning, and transportation. HUD financially supports private, nonprofit sponsors who dedicate themselves to serving the low-income elderly for at least forty years. Rental assistance funds through Section 202 go toward covering the operating costs of these projects and a portion of the tenants’ rent (HUD Multifamily Program Description).

Eligibility

In contrast to other HUD programs, Section 202 funding is only offered to nonprofit organizations that meet eligibility requirements expounded on in the Notice of Funding Availability. Customers wishing to occupy Section 202 housing must belong to a low-income household with at least one member 62 years or older.

What is public housing?

Public housing provides safe rental housing for low-income families, persons with disabilities, and the elderly. HUD provides federal aid to local housing agencies, which manage to house for residents at prices they can afford (Public Housing Program).

Eligibility

Has determined eligibility based on annual gross income, age/disability/family, and U.S. citizenship/immigration eligibility. Public housing agencies do not grant housing to those who could cause disruptions to local tenants. Income limits are set by the state but run under these categories: lower-income (80% of median national/metropolitan income) and very low income (50% of median national/metropolitan income).

Role of the Housing Agency (HA)

HAs manage the local public housing program and ensure that its on-going functions are running smoothly. They assure that resident parties are complying with their leases (or terminate leases, if necessary), set charges, reexamine family’s income once every 12 months, or transfer families in case of emergency or request (Public Housing Program).

Cost

Rent is determined by Total Tenant Payment, based on a family’s anticipated gross annual income (total income from members of the household over 18), excluding exemptions. These include $480 for a dependent and $400 for an elder or disabled individual. An HA reserves the right to allow and manage exemptions. TTP is determined by taking the 30% of monthly adjusted income (or annual income), 10% of monthly income, and welfare rent (or $25-$50 rent as set by the HA). These values are all rounded up to the nearest dollar.

Application process

HAs must collect:

1. Names, sex, DOB, and relationship to familial head of all individuals living in a unit
2. Current address and telephone number
3. Family status (disabled, elderly, veteran, etc.) or circumstance (sub-standard living)
4. Names and addresses of previous landlords
5. Estimated family income for succeeding twelve months
6. Names and addresses of employers, banks, and other means of verifying income/deductions
7. A potential home interview with HAs to determine the general upkeep of an applicant’s home. Applicants who are determined eligible will be put on a waiting list. Those who are not may request an informal hearing (Public Housing Fact Sheet).

Lease

Those granted housing, must sign a lease with the HA and pay a security deposit.

What are the housing vouchers?

Formerly known as Section 8, the housing choice voucher program specializes in assisting very low-income families, the elderly, and the disabled, all of whom have found housing that meets the requirements of the program. These vouchers are offered by public housing agencies to families who have found suitable housing units, which meet minimum standards of health and safety. These units can include the family’s current residence (“About the Housing Choice Vouchers”).

Eligibility

The family’s income should not exceed 50% of the median national/metropolitan income. However, preference will be given to those whose incomes do not exceed 30% (75% of vouchers are legally required to be offered to this population). Income limits can be found by visiting the Office of Policy Development and Research at https://www.huduser.gov/portal/datasets/il.html (Housing Choice Vouchers Fact Sheet).

Preferences

The waiting list for housing vouchers is long, with far greater demand than the supply can sustain. As such, HAs to prioritize homeless families, families paying more than 50% of income for rent, and involuntarily displaced families.

Cost

HAs will use a payment standard—a typical rent set on a moderately-priced dwelling unit in the local housing market—used to determine how much housing assistance a family receives. Families with housing vouchers pay 30% of their monthly adjusted gross income for rent and utilities. They are not required to choose units that meet the payment standard, but will be required to pay additional rent should their chosen unit exceed the standard. If a unit’s rent exceeds 40% of a family’s adjusted monthly income, it will be ineligible for a voucher.

Are there non-HUD housing options?

While government-subsidized housing options are the most trusted source for low-income independent retirees, seniors can also look into cheap apartments on ForRent.com or After55.com for senior communities. These tools can help identify affordable apartments that fit any budget, location, or amenity requirement. Downsizing is always a good rule of thumb for seniors on a tight budget.

For seniors with families, living in a household of relatives is also a popular option as they can still receive Social Security benefits.