Keith Dickson went from operating a high-end auto business to living in his car.
He worked on Bentleys, Jaguars, and other luxury vehicles before the economy soured, his mother’s assisted-living costs soared, and the COVID-19 pandemic slammed shut his opportunities.
Dickson ended up sleeping in the back of his El Camino for nearly two years before recently moving into a one-bedroom apartment in Pasadena, California.
“I like the fact that I’m not living in my car anymore,” he says. “I had a really nice business going. It just goes to show you that it doesn’t matter what kind of money you make, you can end up in the toilet overnight.”
The 72-year-old is one of the residents at Heritage Square South, a new affordable housing community for seniors who previously experienced homelessness.
Developed by BRIDGE Housing, the property features 69 units of permanent supportive housing (PSH) for the area’s most vulnerable older adults.
A Surging Problem
Dickson is not alone. Individuals 55 or older make up one of the fastest-growing groups of people experiencing homelessness in America, and their numbers are projected to continue to surge.
The latest national data shows that 1 in every 5 people experiencing homelessness on a single night in 2024 was 55 or older. There were more than 104,000 people between 55 and 64 experiencing homelessness, and another 42,150 people older than 64. Nearly half of the adults 55 or older, 46%, were experiencing unsheltered homelessness in places not meant for human habitation.
Overall, that’s a significant 6% jump from the prior year, reports Linda Couch, senior vice president of policy and advocacy at LeadingAge, an association of 5,400 nonprofit and mission-driven providers serving older adults and their families.
In many cases, the unhoused seniors are experiencing homelessness for the first time after age 50, according to Couch, who has assisted with recent homeless tallies.
LeadingAge is among the advocates calling for more resources to go toward solving the crisis.
“If we are going to such lengths to have volunteers walk miles in the middle of the night to count people, what on earth are we doing with the data?” Couch says. “Why are the dollars in our public funding not going to match the needs that are identified?”
She attributes the rise in seniors experiencing homelessness to a severe shortage of affordable housing across the country and the widening gap between people’s incomes, especially older adults dependent on Social Security, and rising rents.
There’s a myth in this country that we take care of older adults, with Social Security and Medicare serving as a safety net, according to the longtime housing policy leader.
“The reality is there’s not enough affordable housing, and federal housing programs are not an entitlement so only 1 of every 3 older adult households eligible for housing assistance receive it,” says Couch.
As the overall population ages, there’s concern even more seniors will be living on the street in the years to come. For example, in Los Angeles County, the number of homeless adults 65 and older is projected to grow from roughly 4,700 in 2015 to 13,900 in 2030, according to a study led by Dennis Culhane, an expert on homelessness and a social science researcher at the University of Pennsylvania.
Older adults struggling with homelessness also often have health needs that pose additional challenges to finding and holding onto permanent housing.
Advocates point to several policy solutions that could help ease the burden on older Americans and other households struggling with homelessness. One is to expand rental assistance programs like the federal Housing Choice Voucher. Another is to increase the low-income housing tax credit
(LIHTC) program, the nation’s main financing tool to develop and preserve affordable housing.
LeadingAge’s two big goals are to preserve existing affordable housing and expand the supply with new affordable units. Critical to this will be Congress’ appropriations process, which determines the Department of Housing and Urban Development (HUD) budget.
A striking 41% of households assisted by HUD programs, including public housing and rental housing, are headed by a person or a spouse 62 or older, according to Couch.
“HUD is a senior housing agency and will only become more so as the nation ages,” she says.
With a new Trump administration and Congress in office this year, there’s fear that critical federal housing programs will be slashed.
Instead, LeadingAge is calling for a significant expansion of HUD’s Section 202 senior housing initiative, which helps finance the development of new housing, provides critical operating subsidies, and supports service coordination.
It may seem far-fetched to seek an increase in today’s budget-conscious economy, but Couch says, “At the end of the day, it’s going to be an investment that saves money on the health care side and on the homelessness side.”
Her argument is supported by research that shows supportive housing saves communities and taxpayers money. One study out of Florida found that each person while homeless costs $31,065 per year in emergency room visits, in-patient hospitalizations, incarceration, and other services. In comparison, supportive housing costs just $10,051 per person per year.
“Talk about meeting the needs of someone who has been living on the streets for three years, that’s expensive,” Couch says.
LeadingAge also supports creating a new rental assistance voucher for older adults. After all, special-purpose vouchers exist for other groups, including veterans, individuals with disabilities, and family unification. “Those programs have all proved successful, targeting an emergent and immediate need,” Couch says. “We think older adults meet that level of threshold of needing their own voucher type.”
For the past several years, supporters have been fighting for the passage of the Affordable Housing Credit Improvement Act (AHCIA), which seeks to expand and bolster the LIHTC so it can help build more housing.
Developers used housing credits to help finance Heritage Square South for vulnerable seniors. It’s just one example of a recent development aimed at older adults who have struggled with homeless.
In addition to the affordable apartments, residents have access to intensive case management and programs provided by Pasadena-based Union Station Homeless Services, including counseling, assistance with health care, and independent living support.
“When we saw that we had this opportunity to help homeless seniors, we felt that it was best for the community to do that,” says Sierra Atilano, chief real estate officer at BRIDGE Housing.
Located on a site once occupied by a fried chicken restaurant, Heritage Square South is adjacent to Heritage Square, a 70-unit affordable housing community that BRIDGE Housing built for low-income seniors in 2016.
To fund the latest $43 million development, the nonprofit assembled multiple sources of financing, primarily LIHTCs and a loan from the city. The California Tax Credit Allocation Committee awarded the LIHTCs, which were used to raise equity from Wells Fargo.
Other financing included a permanent loan from JLL Real Estate Capital and Affordable Housing Program funds from the Federal Home Loan Bank of San Francisco.
Heritage Square South is supported by project-based housing vouchers, so residents pay no more than 30% of any income toward rent.
The project, which celebrated its opening in August, was designed by KTGY, and R.D. Olson Construction was the general contractor.
The property leased up within the first two months, with much of that time spent on the required verifications and paperwork.
“Affordable housing is on the forefront for everyone, but understanding how it impacts seniors is especially important given that we have a whole onslaught of new seniors that are going to come,” Atilano says.
Finding Stability
Across the country in New York City, Myriam Morales, 74, was unhoused for five long years before moving into Garden Towers Apartments, an affordable housing development in the Bronx, last April.
“I feel great, best thing that happened to me,” says Morales, who had previously been staying in a shelter. “I love everything about the building, very best decision ever.”
The new 150-unit community is home to residents 62 and older with incomes at or below 50% of the area median income. Forty-five units are dedicated to formerly homeless seniors who receive on-site social services.
Garden Towers was developed by HANAC, Foxy Management, and JLD Advisory.
“New York City is very well aware of the continuing worsening condition of homelessness of seniors,” says Jeff Fox, principal of Foxy Management, an affordable housing development firm with a focus on seniors housing. “… The population of unhoused seniors in New York City, which is where we operate, has been growing steadily.”
He’s on the board of LiveOn NY, a nonprofit senior advocacy organization that recently determined that the city has almost three times as many older New Yorkers experiencing homelessness than it did a decade ago, with the number of seniors in shelters higher than it has ever been. More specifically, in fiscal 2023, an average of 1,857 single adults 65 and older were in city shelters each night compared with about 700 in 2014.
The development team wanted to help the city’s most vulnerable seniors, but it was also part of the project’s funding requirements.
The $93 million development was financed with several different sources of funding, including $9.3 million from New York City Department of Housing Preservation and Development’s Senior Affordable Rental Apartments program, known as SARA. Communities built under SARA must reserve at least 30% of their units for residents who were homeless.
Additionally, New York State Homes and Community Renewal (HCR) provided LIHTCs that generated approximately $42.3 million in equity and $23.7 million in housing finance agency permanent tax-exempt bonds. Boston Financial was the housing credit syndicator. HCR’s Office of Resilient Homes and Communities also provided a $9.3 million loan under a program designed to increase the supply of affordable housing in areas less prone to flooding.
Garden Towers is designed to meet passive house standards to ensure the buildings are energy efficient. Key features include a rooftop solar array, low-flow plumbing, and Energy Star appliances.
The team also worked to ensure the building is safe for its aging residents by installing nonslip floors, handrails in the halls, and good lighting, says Fox.
Officials point out that residents who were formerly unhoused are integrated throughout the development, and there’s nothing in the building to indicate who used to be homeless.
“They are part of one community,” says Andrea Jerves, director of programs and development at HANAC, a nonprofit housing and social services provider.
To help the residents, HANAC offers a range of support, including food assistance, health care services, and help with Medicare and other entitlements.
“Our job is to help them to go back to society and to provide all that they might need,” Jerves says.
The two-building complex is connected by a glass greenhouse corridor and features three large multipurpose rooms and a social services suite with program offices and a conference room.
The buildings are within walking distance to shopping, medical services, and nearby parks.
Home in Los Angeles
Emma didn’t have a place of her own to call home for about 15 years. She spent time staying in a shelter prior to recently moving into SagePointe in the Wilmington neighborhood of Los Angeles. She was one of the first residents to move into the new community.
“It was so great to get my keys, go to my apartment, and get to stay right away,” says the 61-year-old. “I slept so good that first night.”
Having her home has also meant being able to spend time with her family. Shortly after moving into her apartment in 2023, her granddaughter said they needed to go to Emma’s apartment to bake a cake. Emma replied, “We sure do, baby.”
Developed by Linc Housing, SagePointe is home to residents 55 and older who have been unhoused and need a stable home and supportive services.
The three-story building has 55 one-bedroom apartments, all of which are PSH units, plus an additional manager’s unit. The development also includes meeting and office spaces to support case management and supportive services.
Working with the local community, the Linc Housing team decided the development should help fill the needs of older adults who have struggled with homelessness, says Ben Winter, executive vice president overseeing the nonprofit’s housing development activities.
In 1990, about 11% of California’s homeless population was 50 and older. Today, that number is closer to 50%, he says.
“We’re seeing an increase in older adults experiencing homelessness in California, and that’s partly because of our really tight housing market,” Winter says. “Seniors are on a fixed budget, so big life events like an expensive health issue or an increase in rent can drive older adults into living in their cars or on the street.”
A key to developing SagePointe was the city’s Proposition HHH homelessness initiative, a $1.2 billion general obligation bond passed by voters in 2016. It has allowed developers to triple the production of supportive housing throughout the city, with the goal of creating at least 10,000 PSH units over 10 years.
SagePointe was supported by approximately $10.9 million in Proposition HHH funds through the Los Angeles Housing Department, approximately one-third of the project’s $33.6 million development cost, according to Winter.
Additional funding includes $1.8 million from the Los Angeles County Development Authority, about $10.3 million in 4% tax credit equity from RBC Community Investments, and construction and permanent loans from U.S. Bank. The Housing Authority of the City of Los Angeles provides important rental subsidies for residents, and the California Endowment gave Linc additional predevelopment support.
Winter also points out that SagePointe is benefiting from Measure H, a quarter-cent sales tax that city voters approved to fund homeless services in 2017. This funding helps support intensive case management for residents, who have been referred by the Los Angeles County Department of Health Services through the county’s Coordinated Entry System.
It also made sense to target older adults at this community because it is near a senior center, where residents can enjoy a meal service, a food bank, and other services.
Designed by D33 Design & Planning, the development is a gold-rated GreenPoint building. It includes sustainable building features like low-flow plumbing fixtures, native drought-tolerant plants, Energy Star appliances, and low-emitting flooring and finishes. With support from the Wells Fargo Foundation, a greywater system connects the central laundry facility to the landscape system, reducing water usage by 33% annually and saving approximately 50,000 gallons of water a year. The building’s energy efficiency is at least 7% or better than the requirements of the California building code.
Multigenerational Need
In Oregon, a key development is under construction in Portland’s Central Eastside neighborhood. Scheduled to open this summer, the 159-unit Alder 9 will be home to low-income seniors and multigenerational households earning up to 60% of the area median income, including 25 PSH units dedicated to older adults who have experienced or are at risk of homelessness.
When the development was being funded, about 23% of people experiencing homelessness in Multnomah County were seniors, and Portland’s point-in-time count showed that the population of homeless seniors was up a striking 75% from the prior count. Developer Related Northwest will help address the growing need with Alder 9, say officials, noting that the PSH will be supported by project-based Section 8 vouchers.
Alder 9 is also unique because it recognizes the needs of multigenerational households, with many seniors living with family members who provide critical social, physical, and emotional support. In areas that face rapidly rising rents, like Central Eastside, seniors with fixed incomes are increasingly at risk of displacement. For multigenerational households, the risk may be even higher due to the shortage and cost of larger units.
Alder 9 will include 42 two- and three-bedroom units to accommodate larger families.
The nine-story building will also feature a senior wellness center that will provide holistic care to the building’s older residents. There will also be other programming space for the residents and larger community.
To further assist residents, Related Northwest plans to partner with several service partners, including Centro Cultural, EngAGE Northwest, and Impact Northwest.
“Our work in Portland is focused on making a true positive impact, and we intentionally work to cultivate a sense of belonging at each of our projects,” says Stefanie Kondor, senior vice president of development at Related Northwest. “Alder 9 is an excellent example of how we can do this in a way that creates a holistic support structure for our most vulnerable resident populations.”
Multiple layers of financing were assembled to develop the approximately $86 million community, including 4% LIHTC equity from Bank of America, general obligation bond proceeds from the Portland Housing Bureau, and a permanent loan from Citi Community Capital. Local Metro authorities also provided transit-
oriented development grants.
“Alder 9 is an excellent example of the work that we do at Related. It showcases our ability to structure and execute a complex project that also prioritizes and meets the needs of residents who face challenges to obtaining housing security,” says Ann Silverberg, CEO of Related’s Northern California affordable and Northwest divisions.
It won’t be long before the development opens its doors and the new residents have a home of their own just like Keith Dickson, Myriam Morales, and Emma.
