Legislative Objective:
Make housing developments that specifically target seniors more competitive in the application process for the state's Multifamily Housing Program (MHP).

Background:
California is facing an affordable senior housing shortage; a shortage that affects people we know - parents, grandparents and friends. Simply, there are more seniors who need affordable housing than there are units available.

On average, seniors in this state wait nearly three years before moving into an apartment that is affordable. The wait in some cases can be as long as six or seven years, further illustrating the severity of the problem.

Nearly 55 percent of renters in this state over the age of 62 earn less than $20,000 a year. That number jumps to more than 60 percent of those 75 and older. Households earning $20,000 per year can afford to pay no more than about $500 per month for rent. The market rent for a one-bedroom apartment in California is $972 - or nearly twice that amount.

According to the state Department of Housing and Community Development, slightly more than one-tenth of the units developed through the Multifamily Housing Program since its creation in 2003 were developed specifically for seniors. These units are simply not enough to meet the growing demand.

There are barriers within the Multifamily Housing Program, however, that make it difficult for senior-specific projects to be competitive. By awarding higher scores for projects that include family oriented units (e.g. two- and three-bedroom) as well as units that are reserved for special needs populations (of which seniors are not necessarily included), the state has unintentionally created a disparity with respect to how housing-related resources are distributed.

Recommendation:
Support AB 927 that will make projects specifically targeting seniors more competitive in the application process for the Multifamily Housing Program. The state should fund senior specific projects in the same proportion as the number of low-income senior renter households in the state (those over the age of 62) bears to the total number of low-income renter households in the state, as reported by the United States Census Bureau.

This effort is co-sponsored by Aging Services of California, Housing California, the Congress of California Seniors, AARP California and the California Commission on Aging.

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