Press Release

For Immediate Release: December 5, 2007

Mahoney’s Senior Housing Bill
 Passes House of Representatives Legislation Would Expand Affordable Housing for Seniors

Washington, DC - Congressman Tim Mahoney’s legislation, the Section 202 Supportive Housing for the Elderly Act of 2007 (H.R. 2930), passed the House of Representatives today by a unanimous voice vote. This legislation will help expand the supply of affordable housing for the elderly.

“As a result of high taxes and skyrocketing healthcare, gasoline and food prices, Florida’s seniors on fixed income are losing their homes because they can’t pay their bills. This legislation stabilizes the market for subsidized housing for low income seniors by providing incentives for Section 202 operators to expand the number of units, upgrade existing facilities, and expand services available to their residents,” said Congressman Mahoney. “I would like to thank my all colleagues, Republicans and Democrats alike, for passing this important legislation unanimously.”

The Section 202 Supportive Housing for the Elderly Program is the only U.S. Department of Housing and Urban Development (HUD) program that provides housing exclusively for seniors.  The Section 202 program, established in 1959, provides loans for construction of housing for very low-income seniors.  The units allow the elderly to live independently with supportive services such as cleaning, cooking, and transportation assistavnce.  There are currently 297,070 Section 202 assisted living units for seniors in the United States, including 15,949 in Florida.

 
The Section 202 Supportive Housing for the Elderly Act of 2007 will:

• Help preserve the existing supply of affordable housing for seniors, while facilitating the development of new homes to meet increasing demand;
• Allow for adjustment to Project Rental Assistance contracts to accommodate fluctuations in project costs and emergencies, such as utility cost spikes;
• Maintain and upgrade existing Section 202 housing by allowing property owners to seek financing for the rehabilitation and improvement of current housing, while keeping costs low for their residents.

This bi-partisan legislation, which has 15 cosponsors, unanimously passed the Financial Services Committee on September 25, 2007.

Congressman Tim Mahoney, Floor Statement on H.R. 2930:

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today, the House of Representatives has the ability to improve the lives of thousands of seniors across the country with the passage of H.R. 2930, the Section 202 Supportive Housing for the Elderly Act of 2007. 

As our elderly population grows, the need for affordable housing will also increase.  In 2005, there were approximately 37 million Americans over the age of 65. According to the U.S. Census bureau, the number of seniors is expected to grow rapidly during the next few decades. 

In addition, today’s seniors are facing an uncertain economy.  In my home state of Florida, the toxic cocktail of rising gas prices, skyrocketing property taxes, and exorbitant homeowners insurance has forced seniors to make difficult choices between paying their mortgage, putting food on the table, or purchasing life saving medication.

Despite this increase in demand, the number of affordable housing units is shrinking.  According to the Joint Center for Housing, for every unit of affordable housing constructed, two are lost either by the conversion of affordable housing to market-rate housing or by sponsors of Section 202 housing opting out of the program when their contracts expire.

In 2002, Congress created a bi-partisan commission to study the need for affordable housing and supportive services for the elderly. In the Commission’s report to Congress, entitled A Quiet Crisis in America, they stated that “this Nation, despite competing demands for national resources, must respond to the critical need for affordable housing and home- and community- based supportive services, with a substantial financial commitment and effective policies.”  The report also concluded that “all seniors, no matter what their individual circumstances and resources, should be able to continue to live where they prefer regardless of their income, with the services they need to maintain personal dignity and quality of life.”  

One of the most important responsibilities we have as a society is to ensure that our seniors, who have done everything our nation has asked them to do, have a safe and affordable place to live.  The Section 202 Supportive Housing for the Elderly Act is a first step in achieving this goal. 

This important piece of legislation will give the owners’ of 202 facilities the ability to leverage the property’s equity, access much needed capital and benefit from low interest rates from private lenders.  By doing so, this legislation will ensure that these facilities are preserved and improved to meet the changing needs of seniors.  In addition, the bill allows for funding to be used to increase the services that Section 202 communities provide for their residents, allowing them to live a more independent life.  Finally, this bill will assist seniors living in older Section 202 facilities by extending them rental assistance.  This provision will allow owners to preserve these properties without the risk of displacing poor residents. 

I’ve seen first hand how important these facilities are to our communities.  I’ve visited Villa Assumpta in Jensen Beach, FL a Section 202 facility run by Catholic Charities and Presbyterian Homes of Port Charlotte, FL operated by the Presbyterian Association of Homes and Services for the Aging.  I’ve met with the residents and heard their life stories.  Residents like, Ruth Justice.  Mrs. Justice lived in a mobile home in Stuart, FL for almost 40 years – until Hurricane Wilma ripped the roof off of her home.  Fortunately, Ruth was able to escape from the Hurricane with her piano, trumpets and other instruments she and her husband had collected over the years.  However, no matter how much she loved her music and her musical instruments, it couldn’t ease the financial burden that she faced with a new place which ate up her entire monthly Social Security check.  Ruth felt like she had no place to turn.  Thank God for Catholic Charities and Villa Assumpta.

Unfortunately, Ruth is one of the lucky ones.  For seniors in need of low-income housing who qualify for one of Villa Assumpta's 99 units, waits can last more than two years.

I was moved by stories like Ruth’s and how much this housing means to our seniors.  After years of working to live the American dream, many of these seniors find themselves with monthly incomes of $800 or less.  Without the Section 202 housing, where would Ruth and her friends be?  Where are the seniors living tonight that are on Villa Assumpta’s two year waiting list?  On our streets?  We have a responsibility to make sure that we provide affordable housing to our seniors and we can start by passing this legislation.

Mr. Speaker, the Section 202 Supportive Housing for the Elderly Act is an example of what this Congress can achieve when it works together in a bi-partisan fashion.  First, the bill was reported out of the Financial Services Committee by a unanimous vote.  Secondly, following the Committee’s consideration of H.R. 2930, we worked closely with my colleague from West Virginia, Ms. Capito, to ensure that the bill meets the needs of rural communities. 

Under current law, HUD is required to reserve 15 percent of program funds for the development of units in non-metropolitan areas.  Unfortunately, the small number of units that are reserved do not provide an adequate incentive for developers to undertake such projects.  As a result, rural communities often face a severe shortage of Section 202 units. 

The new provision, added by Ms. Capito, will provide HUD with greater flexibility by allowing the Department to allocate funding for non-metropolitan units on a regional or national scale.  I would like to thank Representative Capito for her work to further strengthen the bill and to ensure that all communities, whether they are urban or rural, have access to the program. 

Mr. Speaker, the Section 202 program is a great example of how the federal government can work with religious institutions to provide needed services to our communities.  Many of the Section 202 facilities are run by religious organizations.  I am proud that this legislation is being supported by more than 30 organizations that provide housing to the elderly, including Catholic Charities, Lutheran Services in America, and United Jewish Communities.  Mr. Speaker, I would ask unanimous consent to insert into the record a letter from these groups expressing their strong support for H.R. 2930.

In closing, I would like to thank Chairman Frank and Representative Maxine Waters for their leadership in the area of affordable housing.  I would also like to thank their staffs - Meredith Connelly, Scott Olson, and Jonathan Harwitz for their hard work and commitment to this legislation.  Their efforts will help thousands of seniors live their lives with the dignity they deserve.

Mr. Speaker, I would ask my colleagues to stand up for our seniors by voting YES for H.R. 2930, the Section 202 Supportive Housing for the Elderly Act of 2007.

I reserve the balance of my time.