Low-Income Senior Housing

There are many factors to consider as you prepare for your retirement, including where you’d like to live. For many older adults, housing prices are becoming costly. According to a report from the National Council on Aging, 47 million households with older Americans are financially struggling or at risk for debt as they age.

If you have a low income and feel you need financial assistance for your new living situation, there are programs, vouchers and tax credits to help lower your costs. Knowing there are saving opportunities for each senior housing option can help you ease into retirement.

Before researching each option, first determine what type of retirement lifestyle you want, the level of assistance you’ll require and the housing environment that would best suit your goals. From there, explore your options and find out if you qualify for financial assistance.

According to the Public and Affordable Housing Research Corporation (PAHRC), up to 6.5 million older Americans qualify for housing program assistance, but only 2.9 million actually apply for and use the financial support from the programs. Independent housing programs typically help cover finances for housing or rent costs. If you require health care coverage, nutrition and supervision — other housing options with low-income programs are available.

Some of these programs are available for those who are between the ages of 55 and 61. Typically, these individuals have a disability, general health challenges or low income.

There are also low-income senior housing programs specifically for veterans. If you are a veteran, explore all your options to ensure you’re getting optimum financial assistance.

Each option has an income limit, so make sure you qualify before applying.

If you’re looking into independent living options, you shouldn’t require medical care, help with self-care or additional services. Suggested housing for independent living is an apartment, townhome or single-floor home. The low-income housing programs only help cover finances related to your rental and housing costs. There are two assistance programs and one voucher program available to help cover these expenses.

A Housing Choice Voucher is one of the most popular options for low-income seniors. If approved, you will be responsible for paying 30% of the monthly adjusted income for rent and utilities, and the remaining 70% is covered by the voucher.

There is often a waiting list before getting approved. Those who are homeless and pay more than 50% of their rent through income or are involuntarily displaced will likely be prioritized on the list.

The unit you select must be approved by the public housing agency for a housing choice voucher.

Rural Rental Assistance has more requirements compared to the Housing Choice Voucher. For example, you must live in eligible Rural Rental Housing, Farm Labor Housing or projects financed by the Rural Housing service to qualify.

If approved, you will only need to cover 30% of your monthly income towards rent. The remaining 70% will be covered by the United States Department of Agriculture (USDA).

Not all states have Rural Rental Assistance, and some states have different requirements than others, so it’s recommended to contact your USDA state office to confirm the requirements.

The Housing Improvement Program is offered by the Bureau of Indian Affairs to promote financial stability for Indian families. The amount you receive depends on the level of assistance you require.

There are five categories of assistance for HIP, each with a funding limit.

There is also a wait list for the HIP. A point system determines how urgently you need to be approved for the HIP and there are typically more qualifications required for approval compared to other housing programs.

You should consider assisted living housing if you require a part-time caretaker or access to a professional who can help you with personal hygiene, errands, or transportation. There are senior living communities that typically have assistance available for your everyday needs.

On average, assisted living is more expensive than independent living housing, so knowing your options for low-income housing programs can help you decide what fits in your budget.

The Supportive Housing for the Elderly program provides capital advances from the U.S. Department of Housing and Urban Development (HUD) to provide affordable housing for older Americans. If approved and taken off a waiting list, you will pay 30% of your income for rent each month, and HUD will be responsible for the difference.

The assisted living housing options from this program provide various support, such as social activities, cleaning, cooking and transportation.

According to a recent article from the Congressional Research Service, LIHTC has an annual budget of roughly 10.9 billion, making the program a great federal resource to get affordable housing.

If approved, the LIHTC subsidizes between 30% to 70% of your low-income unit. The 30% subsidiary is paired with the 4% tax credit, which covers new construction to existing buildings. The 70% subsidiary is paired with the 9% tax credit, used for entirely new builds.

If you require medical care, 24-hour supervision or access to memory care services, then you should consider a housing option with nursing home services.

A nursing home is typically the most expensive option due to constant care and specialized treatments. There are two Medicaid options to help lower housing costs.

Medicaid institutional long-term care covers comprehensive inpatient services in federally approved residential facilities. Since states vary in coverage, you will be sent one bill separating what is covered and what is not.

Since eligibility for Medicaid varies, it’s best to confirm regulations for your state before seeking long-term care coverage.

An HCBS waiver offers long-term care services and support within their own community or home, rather than a facility or institution. Coverage may include, medical and non-medical services, homemaker or home health aide, and adult day care.

Majority of states offer services through HCBS, though each state may offer different coverage. There are over 300 HCBS Waiver programs active worldwide — all of which have basic requirements of coverage.

There are specific low-income housing programs for senior Veterans, such as HUD-VASH and VA Long-Term Care Services. Both programs are backed by the U.S. Department of Veterans Affairs (VA). You are only applicable for these options if you are a veteran.

HUD-VASH is a joint program between the Housing Choice Voucher (HVC) rental assistance with Veterans Affairs case management for homeless veterans and their families. HUD-VASH’s main goal is to help Veterans sustain permanent housing.

If you are a homeless veteran, then you qualify for this program. Upon approval, you will receive housing assistance from local Public Housing Agencies to rent a home while receiving clinical and supportive services from the VA.

To qualify for VA long-term care services, you must be a veteran enrolled in VA health care before applying. To be approved, you must have a clinical need for treatment and the service must be available nearby.

If you have a lower income or a disability, moving into a VA nursing home could be covered by VA long-term care services. Know that assisted living facilities are not covered.