Affordable Independent Senior HousingA Proposal for DevelopingCommunity-Based Aging-In-Placewith Foreclosed Properties

Jack Powers / December 2, 2010Urban Policy Dynamics and ConstraintsCUNY Graduate Center

New York’s 65+ Population Will Growfrom 13% to 20% over 30 Years

Demographic Pressure

10% Live in Poverty, 26% in Low Income

40% Experience Housing Problems: Cost Burden, Physically Inadequate Housing or Crowded Housing

Aging in Place at HomeHome Care, Visiting Nurses

Retirement CommunityFitness Activities, Support Services

Assisted LivingPersonal Care Services, State Regulated

Nursing HomeLong Term Medical Care, State Regulated

Senior Housing Options

Aging-in-Place at HomeHome Care, Visiting Nurse

Affordable Independent Senior Housing

Room, Optional Board

Retirement CommunityFitness Activities, Support Services

Assisted LivingPersonal Care Services, State Regulated

Nursing HomeLong Term Medical Care, State Regulated

Senior Housing Options

“Family Style” Community Living

Six to Eight Seniors Per Unit

Community-Based

Staff of Two on Premises

Private Pay or Section 8Vouchers

Fees for Meals, Housekeeping,Activities

Pro Forma Income Statement

Foreclosed Housing Stock

Property Cost (est) $275,000Rent per Room $600

MONTHLY YEARLY

Mortgage $1,800 $21,600Taxes, Maintenance 1,000 12,000Staff Salaries, $10/hr 3,200 38,400Expenses 1,000 12,000

$7,000 $84,000

Rental Income, 8 Rooms $4,800 $57,600Fee Income, 8 x $275 2,200 26,400

$7,000 $84,000

Pilot ProjectTen Units, 70 to 80 Seniors, 20 Staff Members

$3,000,000 Property Costs

840,000 One Year Operating Costs

1,000,000 Initiation and Management Costs

$4,840,000 First Year Investment

Clients selected from public housing waiting lists:

Healthy, 50 to 70 years old

~50% married couples

Unit rosters composed by social worker

Effects on Senior Clients

Older Americans 2010 Key Indicators of Well-BeingFederal Interagency Forum on Aging-Related Statistics

Compared to Control Group

Feasibility of “Family-Style” Approach

Proof of Concept

Management Learnings

Return on Investment

Effects on Community

Study Goals

Policy GoalsA Self-Sustaining Senior Housing Model

Affordable, Market Rate, Mixed

Aging-in-Place Options for Poor and Minority Populations

Family, Friends, Church, Healthcare

Make Foreclosed Properties ProductiveRetrofit for Access and Sustainability

Develop Entrepreneurial OpportunitiesLow Barriers to Entry, Not Outsource-able

Anchor At-Risk CommunitiesSupport Neighborhood Rejuvenation