Posts Tagged ‘affordable housing’

Vulnerable Groups Linked by Need for Affordable Housing

Friday, May 23rd, 2014

Vulnerable Groups Linked by Need for Affordable Housing

The NJ Foundation for Aging (NJFA) recognizes that aging friendly and age sensitive issues are in reality ageless. In this spirit NJFA works with many partners including the Anti Poverty Network (APN).  This organization represents a wide array of groups and concerns. The intersection or cross tracking of concerns creates a dynamic profile impacting people of all ages. Across the board access to nutrition & health services, employment and affordable housing are essential quality of life ingredients.

Among the vulnerable populations whose lives are deeply impacted by these intersecting concerns are our state’s elders. A simple examination of income data makes this reality painfully clear. The NJ Foundation for Aging’s NJ Elder Index and Data Report indicates that 25 % of all seniors living in NJ rely on their Social Security benefit as their sole source of their annual income. The average annual cost of living for a single elder renting a one bedroom apartment reported in the index is slightly below $28,000 and the cost of living is even higher in Bergen and Passaic counties. This level is a significant challenge when we know the average Social Security for a woman in NJ is $14,848 (and this is the average meaning many women receive significantly less). More than 252,000 single elders and elder couples face the daily crisis of covering their basic expenses with inadequate income.

Public benefits can improve the quality of life for the elder receiving the average SS benefit of $14,848 (as their sole source of income) as well as those with even lower incomes. This elder would be eligible for SNAP, for congregate meal programs, for Farmers market coupons, for energy and utility assistance, for PAAD, and a low income subsidy for their Medicare premium. Even with all of these existing programs, however, they would still fall short in the ability to cover their basic costs.

Here is where the needs and the solutions collide. Affordable housing is the only benefit that helps this elder really narrow the gap between their costs and their income. As declared by the headline for a recent NJ Spotlight article, “Affordable housing remains out of reach for a majority of NJ Renters”. This is not new news, but the article cites data from the National Low Income Housing Coalition’s annual “Out of Reach” report. The NJ Foundation for Aging recognizes that affordable housing is needed for people of all ages so people do not age into poverty. Housing policy across NJ is sorely lacking and we need to offer a full portrait of those who would benefit from this important resource: children, low income families, adults, health care workers, seniors, and residents with special needs. Let’s make housing for all a priority.

Affordable housing is more important than ever for low income seniors and low income families.

Monday, July 1st, 2013

Affordable housing is more important than ever for low income seniors and low income families.

A recent Appellate Division’s decision provides an important opportunity for municipalities to utilize much-needed housing trust funds to address the chronic shortage of affordable housing for low-income seniors across the state in the aftermath of Hurricane Sandy. Many of these funds were specifically designated for the development of senior housing in the nine counties hardest hit by the storm. This includes 131 senior units in Monmouth County, 6 special needs unit for the elderly by Cerebral Palsy of North Jersey in Livingston, Essex County; and 5 senior rental by Catholic Charities in Harrison, Hudson County.

The court’s decision comes at a critical time in this state’s history with the high demand for affordable senior housing and the rising cost of living. In just three short years, the cost of living for seniors living in a one bedroom apartment on a fixed income in New Jersey has increased 8 percent, according to data released in 2012 by the New Jersey Foundation for Aging (NJFA).

The cost of living for a single renter over the age of 65 was $25,941 in 2009. That same renter, living in the same one-bedroom apartment, saw her cost of living quickly climb more than $2,000 to $27,960, by 2012. However, there was not a comparable rise in income or Social Security.  Seniors on fixed incomes have been plagued in recent years with rising expenses for housing, transportation and health care. In many cases this has resulted in a rise in senior hunger and even homelessness. Their highest cost is their housing expenses.

Twenty five percent of all seniors in our state rely on Social Security as their only income. So NJ seniors can least afford the trend in rising expenses. The result is a widening of the gap between basic living expenses and their income. The NJ Elder Economic Index details these costs for seniors in each of the 21 NJ counties. These details indicate how seniors are faring in the slow economy. The latest data shows that 250,000 seniors over the age of 65 in New Jersey – representing 42 percent of single and elderly couples living in the community – do not have the money to cover their basic costs. Sixty-four percent of people in this group are women.

The report, known as the NJ Elder Economic Index, indicates that the average Social Security for a woman being $14,848. But average living expenses for a one-bedroom apartment in New Jersey has reached the $27,960 mark. So how can we expect to call these the golden years if elders must choose between food, heat, shelter or prescriptions? Even if a person worked and saved for retirement this rise in costs are unprecedented and these elders are one step from their own ‘fiscal cliff’. The New Jersey Foundation for Aging wants to alert and connect elders to resources in their community that might ease the financial strain they may be feeling each day. 

A woman receiving $14,848 from Social Security as her sole income with the average costs of a one bedroom apartment at $27,960 is only 53% economically secure.  At this income level she would be eligible for several food and nutrition programs, as well utility assistance programs. These programs would improve her quality of life and enable her to use her income to cover more of her basic living costs, but she would still fall short of meeting her costs by 21%. The only public benefit program that would help her to close the gap is affordable housing. 

The most costly portion of an elder’s monthly expenses is their housing. More than 46 percent of their income must go towards their housing, taxes and utilities.  This highlights the need for more affordable housing. The state’s housing shortage has been documented for several decades. And the need for affordable housing in the community for people of all ages has only been further stressed by the recent storms and floods across the state. Public awareness is a key component to help local advocates, state policy makers, municipal leaders and planners address current and future needs. Where you live at age 65 or 70?  Persons over age 75 and older have even fewer income assets. Where will your parents live at age 85?

If these funds are not protected and utilized, Otherwise low-income seniors and low-income families will continue to be displaced by Sandy and homeless for many years to come. Each municipality’s affordable housing trust funds are needed now more than ever for the development of new housing because of the impact of hurricane Sandy. We cannot afford to be silent on this issue. Elders who have been active in their community who want to downsize need affordable housing options; working families who want good schools and safe streets need affordable housing; health care workers who want to be close to their work and patients need affordable housing. A healthy blend of housing types is crucial to nurture a community’s cultural and social vitality as well as its economic base. “NJ Strong” must include affordable housing options to serve it residents and to build back the local economy.

*this was submitted and printed as an op-ed in the Asbury Park Press on 6/19/13 by Grace Egan, Executive Director, NJFA