OLDER AMERICANS AND RESIDENTIAL STABILITY:

Maintaining Livable Communities Through the 21st Century

Produced by: Andrew Carswell, University of GeorgiaUGA Conference on Aging

Cobb Galleria – Atlanta, GAMay 15, 2006

Issues To Be Covered

• Housing Affordability/Lending Issues• Eminent Domain• Mortgage Fraud• Neighborhood Associations• Home/Residential Design• Transportation Issues/Proximity to

Services

Housing Affordability for Older Americans

The Renter Population• Older homeless could

be as high as 80,000 (Burt et al, 2001)

• Rental cost burden prohibitive for older populations

• Additional concerns for MF operators as well

Source: www.architypes.net

Housing AffordabilityRental Cost Burdens

Source: www.nlihc.org

Housing Affordability for Older Americans

The Homeownership Option• >80% of older persons

are considered HOs (Golant, 2003)

• Most HO’s reluctant to “cash out” on existing home (Venti & Wise, 2001)

• Still, a lot of “cash poor, house poor” HO’s (Golant, 2003)

• Growth of RAMs as a housing finance vehicle

Source: research.edm.luc.ac.be

Targeting Older AmericansPredatory Lenders

• Contrasted with “subprime” industry

• Examples of abuses• Implications for older

adults• Methods of

addressing predatory lenders

Source: http://www.occc.state.tx.us

Panacea for Elderly Housing Cost ConcernsThe Housing Counselor

• RAM/HECM counseling

• Predatory lending• Fair housing• Default/delinquency• Other types

Source: www.reversepro.com/3pro.jpg

Housing Costs for Americans 50+

Source: http://www.cmcgc.com/media/handouts/260126/SAT-PDF/680-Kochera.PDF

Source: http://www.cmcgc.com/media/handouts/260126/SAT-PDF/680-Kochera.PDF

Eminent Domain – Implications for the Elderly?

Source: http://redstatepatriot.com/brookins.jpg

Eminent Domain Concerns Regarding Older Americans

• Kelo decision – Summer 2005

• AARP files amicus brief supporting limitations on eminent domain

• Increasing number of cases involving older communities

Source: www.gamepolitics.com

Source: FBI

Economic Consequences of Mortgage Fraud

• Falsely escalated property values

• Increases in property taxes and home owner’s insurance

• Increases in foreclosures

• Neighborhood decline

Source: Sarah Gillespie

Neighborhood Consequences of Mortgage Fraud

The Importance and Evolution of Community Organizations…

• Devolution of government services

• Strengthening of neighborhood orgs.

• Becomes all the more important over time

• Still concerns for older neighborhoods

Source: http://www.gao.gov

…To Counter a Decline In Neighboring Nationwide

• Membership in social orgs. declining over time

• These orgs. are less grass roots in nature

• Activities of neighborhood orgs. have evolved

• These orgs. helpful, but not entirely necessary for building social capital

Source: www.bowlingalone.com

The Tie-In Between Community Strength and Personal Satisfaction

Source: Kochera, Andrew. (2005). A Report to the Nation on Livable Communities: Creating Environments for Successful

Aging. AARP: Washington, DC.

Source: http://www.cmcgc.com/media/handouts/260126/SAT-PDF/680-Kochera.PDF

The Tie-In Between Community Strength and Personal Satisfaction