Federal Agencies on Aging

The Office of Multifamily Housing (OMH), in the Department of Housing and Urban Development (HUD), administers two major housing programs directed largely to older people: Section 202 of the Housing Act of 1959 and Section 231 of the National Housing Act, originally passed in 1934. Section 202 provides capital advances to nonprofit organizations for financing the construction and rehabilitation of housing that will support very low-income older people, and providing rent subsidies to make the housing affordable. The program grew rapidly in the 1960s, was phased out in the early 1970s, and was reinstated in 1976. Funding support has ranged between $400 million and $700 million in recent years. Through OMH the federal government provides federal loans directly to private nonprofit sponsors (Gelfand). Section 231 insures mortgage loans for construction or rehabilitation of rental housing for elderly persons. Potential sponsors confer with OMH about their project and submit a preliminary application, including an application for financing through a HUD-approved lender (www.hud.gov/progdesc/231).

Older people constitute roughly 40 percent of the residents of the 1.3 million units of public housing operated by local governments and funded through HUD. Older people also benefit from smaller grant programs HUD oversees for service coordinators and congregate housing services. Low-income individuals, including elderly people, are eligible for Section 8 rental subsidies—individuals are required to pay no more than 30 percent of their income in rent, with the Section 8 subsidy making up the difference to the landlord.