Older renters often find it difficult to find housing that they can reasonably afford.
Moreover, evidence indicates that the housing situation for older renters may be getting worse.
The problems experienced by older renters are often complicated by age-related factors.
One way to help meet the housing needs of older renters is through federal housing subsidy programs.
For instance, in the 1930’s public housing was the key federal program for rental housing.
In the 1970’s and 1980’s, tenant-based rental assistance became the dominant philosophy.
This patchwork quality sometimes creates problems in coordinating housing policy for developing needs.
Public HousingPublic housing is federally funded, but owned and operated by local public housing authorities.
The program was initially developed in the 1930’s to provide temporary housing for working class families.
Indeed, single older persons were not even eligible until the mid-50’s.
Public housing has since developed into long-term rental housing targeted to low-income households.
However, many units are being rehabilitated or replaced under the HOPE VI program for revitalization.
Approximately one-third of the 1.1 million public housing units are occupied by an older household.
Section 8 New Construction/RehabilitationIn recent years, Section 8 has typically been associated with tenant-based vouchers.
Primarily for budget reasons, Congress ended the Section 8 construction and rehabilitation program in 1983.
Of the existing Section 8 stock of nearly 745,000 units, around 46 percent is occupied by older households.
In both cases, subsidized direct loans were replaced by capital grants.
Around 316,000 older households reside in Section 202 housing.
The program was discontinued in the mid-1960s.
However, Section 236 mortgages typically had a lower interest rate.
Low-Income Housing Tax CreditThe Tax Reform Act of 1986 created the Low-Income Housing Tax Credit (LIHTC).
Under this program, states are allocated tax credits based on their population.
State housing agencies then allocate the credits to private developers who acquire, construct or rehabilitate affordable rental housing.
The tax credit is taken over a ten-year period.
About 25 percent of the 700,000 affordable units built under this program are occupied by older households.
Until recently, the per-capita tax credit allocation for each state was unchanged from year to year.
Consequently, inflation eroded the number of units generated by the program.
This move may help production recover from its gradual decline [Figure 4].
HOMEThe HOME Investment Partnership Program was created by the Cranston-Gonzalez National Affordable Housing Act of 1990.
Generally, local jurisdictions are required to match at least 25 percent of the federal grant.
Older households occupy about 16 percent of the 125,000 rental units completed.
The difference between a certificate and a voucher is the rent level of a qualified unit.
The advantage to a voucher, however, is that the household has a larger selection of apartments.
Older households hold about 15 percent of the 1.4 million certificates and vouchers.
