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Housing for Special Populations
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOUSING HOUSING FOR SPECIAL POPULATIONS (HOUSING FOR THE ELDERLY OR HANDICAPPED PROGRAM) PROGRAM HIGHLIGHTS
SUMMARY OF BUDGET ESTIMATES An appropriation of $854 million is proposed for the Housing for Special Populations program for fiscal year 2000. This consists of $660 million for the elderly and $194 million for housing for persons with disabilities. Of the funding proposed for the elderly, $100million will be for a new initiative--the Capital Grants for Conversion to Assisted Living program--to address the growing needs (as discussed below) of the Nation's seniors. Also, $50 million of the funds proposed will be for an expanded Service Coordinator program. In addition to the $660 million in discretionary funding, the Budget also proposes $87 million in mandatory spending for 15,000 vouchers for the elderly. These will be used by States to make units developed with low-income tax credits affordable to extremely low-income elderly people (below 30percent of area median income). The remaining $194 million is proposed for persons with disabilities. Up to 50 percent and no less than 25 percent of this amount may be used for tenant-based assistance to provide for program flexibility and more choice in housing for the low-income disabled. A HOUSING SECURITY PLAN FOR OLDER AMERICANS
The United States will go through an unprecedented demographic shift over the next 50 years. By 2050, as many as one in five Americans will be elderly (65 and over), compared with one in every 25 at the turn of the last century. By 2050, the elderly population will more than double to 80 million, with seniors 85 years and older making up almost one quarter of that population. Many of this group will be alone, and many will be facing multiple chronic illnesses and will need to rely upon family, friends or community for support. Too many senior citizens are forced out of their homes because they face catastrophic healthcare costs associated with aging--costs that drain their finances and make owning a home unaffordable. This housing crisis will likely affect millions of seniors in the new century. The latest studies already show that about one million elderly pay more than 50 percent of their income in rent or live in substandard housing. To address this looming crisis, and to meet the needs of today's hard-pressed seniors, the Department proposes a Comprehensive Plan which will enable senior citizens to remain in their homes or the home of their relatives. Moreover, by coordinating housing and health care, this Plan helps seniors avoid more expensive and restrictive health care facilities. This initiative offers a full range of housing options for the elderly--a Continuum of Care. By combining new and existing HUD programs, and improving coordination with other Federal assistance activities, a comprehensive and cost effective senior housing system that preserves security and independence as a senior's healthcare needs and financial resources change will be established. The strategy addresses six stages in the continuum: first, helping seniors stay in their own homes when appropriate; second, helping seniors stay with their own families whenever possible by creating viable options for housing with family members; third, ensuring the availability and quality of Government-assisted senior housing when staying at home or with family is no longer possible; fourth, providing health and other support services in existing housing to avoid the need to move to nursing homes or other medical facilities unless absolutely necessary; fifth, ensuring that our Nation's elderly remain an integral part of our communities; and sixth, making assisted living a housing option for low-income seniors.
Estimates for 1998 in the 1999 Budget assumed that $1.5 billion would be used to support approximately 18,682 capital grants and rental assistance units for the elderly and disabled in 1998. Actual activity totaled $1.4 billion supporting 17,617 units.
EXPLANATION OF INCREASES AND DECREASES For the 2000 Budget, a total of $854 million is requested to fund elderly and disabled activities for 9,400 units under the Housing for Special Populations program. Within this request is $150 million for two new or expanded initiatives: Conversion to Assisted Living Grants, and Service Coordinators for the Elderly. PROGRAM DESCRIPTION The Supportive Housing Programs. The Supportive Housing programs were authorized by Section801 and Section 811 of the Cranston-Gonzalez National Affordable Housing Act to provide eligible private non-profit organizations with capital grants and rental assistance to provide housing for very low-income elderly or disabled individuals. The capital grants will be used to finance the acquisition, acquisition and moderate rehabilitation, construction, reconstruction, or rehabilitation of housing intended for use as supportive housing for elderly people or people with disabilities. Supportive housing is designed to meet the special physical needs of elderly or disabled individuals and to accommodate the provision of supportive services. Capital Grants for Conversion to Assisted Living. These funds will be available to existing HUD elderly subsidized (Section 202) projects that convert some or all units to Assisted Living. These competitive grants would be available to current project owners who agree to several specified conditions. These conditions would include: (1) a tight cap on operating expenses and HUD subsidy; (2) Medicaid home and community-based services or personal care services for Medicaid-eligible residents, and accessible services for non-Medicaid eligible residents through local and community service providers; (3) two meals per day; and (4) 24-hour staff. (A portion of these funds may be used to provide space within elderly housing projects for Intergenerational Learning Centers where the skills and experience of seniors will be harnessed to meet the need for affordable child care and allow seniors and children to learn new skills together.) Preference will be given to grant applicants who demonstrate a strong commitment to: (l) serve extremely low income frail, disabled elderly residents; and (2) promote resident autonomy, independence, choice and control. Service Coordinators. Section 808 of the Cranston-Gonzalez National Affordable Housing Act authorized the use of Service Coordinators within existing projects for the elderly or people with disabilities. Section 674 and 676 of the Housing and Community Development Act of 1992 expanded the universe of projects eligible to receive service coordinator assistance by authorizing funding for service coordinators in Section 8 and sections 221(d)(3) and 236 projects. The purpose of the Service Coordinators program is to enable residents who are elderly, especially those who are frail or disabled, or people with disabilities to live as independently as possible in their own homes. Service Coordinators funds pay the salary and fringe benefits of a Service Coordinator and cover related program administrative costs. The primary responsibility of a Service Coordinator is to help link residents of eligible housing with supportive services provided by community agencies. The Service Coordinator may also perform such activities as providing case management, acting as a advocate or mediator, coordinating group programs, or training housing management staff. Congregate Services. The Congregate Housing Services Program (CHSP) was authorized by the Housing and Community Development Amendments of 1978 to provide 3- to 5-year grants to fund services for eligible residents of Public Housing and Section 202 Housing for the Elderly or Handicapped. The intent was to avoid costly and premature or unnecessary institutionalization of individuals and to reduce Government outlays for institutional care. The program was revised in 1992 to add other assisted housing programs. The CHSP grant from HUD, in conjunction with grantee match and participant fees, subsidizes the cost of supportive services that are provided on-site and in the participant's home. Such services may include congregate meals, housekeeping, personal assistance, transportation, personal emergency response systems, case management, and preventative health programs. HUD requires that each program include a Service Coordinator and that each makes at least one hot congregate meal available every day to participants. Eligible participants are residents of eligible housing who are frail (i.e., have difficulty performing three or more activities of daily living) or are people with disabilities age 18 or older. CHSP funds allow residents of HUD subsidized housing to afford supportive services that enable them to continue living as independently as possible in their homes for as long as possible. Without this program, most of the low- and very low-income participants would have no choice but to relocate to a facility that provides a higher level of care, such as a nursing home, to meet their daily living needs. Renewals for this program are proposed to be funded under the Housing for Special Populations program in 2000. Vouchers. Section 8 tenant-based assistance will be provided with up to 50 percent and no less than 25 percent of the funding made available for supportive housing for the disabled to increase program flexibility. The assistance will allow disabled renters to search for and rent a standard unit in the private market. This is known as "mainstreaming" recipients into the housing market. The Direct Loan Program. The Housing for the Elderly or Handicapped Direct Loan program was authorized by Section 202 of the Housing Act of 1959, as amended. The program is no longer active, although projects developed under it continue to operate. The program provided direct loans to nonprofit organizations sponsoring the construction and management of rental housing for the elderly or handicapped. Projects originally developed under Section 202 also receive Section8 subsidies to enable low-income households to afford the rents in these projects. The 1992 VA-HUD-Independent Agencies Appropriations Act (P.L. 102-139) provided language to enable the conversion of Section 202 direct loan projects to the Supportive Housing program starting January1, 1992. All of the projects were converted in fiscal year 1992. PROGRAM ACTIVITY Any remaining activity for the loan program includes amendments for projects reaching final endorsement, payment of interest and repayment of borrowings to Treasury, and management of the loan portfolio. |
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Content Archived: January 20, 2009 | |
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