Industry Applauds HUD for Awarding Affordable Assisted Living Grants

WASHINGTON, Dec 6, 2000 -- The Assisted Living Federation of America (ALFA) today praised  the U.S. Department of Housing and Urban Development (HUD) and Secretary Andrew Cuomo for awarding nearly $20 million in the first grants under a new program to convert senior housing to direly needed affordable assisted living. 

The federation said it was "an important step toward expanding home and community-based services for low-income seniors."

``ALFA views this important new grant program as a next and necessary step in helping providers fulfill their promise to seniors -- particularly very- low-income seniors,'' said Gerard Holder, Executive Director of ALFA's Senior Housing Council, during a HUD press briefing teleconference today with Secretary Cuomo. ``As senior housing providers, we know that the overwhelming choice of seniors is to live in a residential, community-based setting, with dignity and independence for as long as possible. In other words, whenever possible most seniors prefer to remain in their own home. This program will enable many to do just that.''

Specifically, the Assisted Living Conversion Program will provide owners of HUD section 202 senior housing with a grant to modify or convert facilities or portions of facilities into assisted living by physically rehabilitating the apartment units and common areas in the facilities.

These grants represent an important achievement for several reasons, according to Holder. First, senior housing owners and federal policymakers are struggling with the difficult question of how to provide services in independent living or elderly housing settings for a population of seniors who are not ready for the institutional environment of a nursing home. As people age, they often need assistance with activities of daily living -- such as eating, bathing, dressing and medication -- and many senior housing communities are looking for ways to accommodate residents in their home.

Second, this program is a way of providing affordable assisted living to very-low-income seniors, particularly when combined with Section 8 affordable assisted living vouchers. ``Without these two programs, many frail elderly persons would otherwise be unable to afford the cost of market-rate assisted living, leaving them with fewer appropriate housing and care options,'' said Holder.

Third, ALFA believes that meeting the demand for affordable assisted living is one of the greatest challenges facing our society today. Although the cost of a typical assisted living unit is, on average, only two-thirds that of traditional long-term care, there are fewer reimbursement opportunities available through Medicaid and no coverage through Medicare. ``Our association explicitly affirmed our commitment to this issue earlier this year when we announced our ALFAcares affordable assisted living initiative,'' he said.

Stating that today's funding is a critical first step along the path to solving a much larger issue of providing needed services to frail, vulnerable elderly persons living in federally subsidized housing who are at risk of premature institutionalization, Holder offered ALFA's help to continuing a strong working relationship with HUD on this and future affordable assisted living and senior housing initiatives.

ALFA especially congratulates the following ALFA members who were among the 13 award recipients. Tower One, New Haven, Connecticut received $4,292,067 to modify 33 apartments; Cathedral Towers, Jacksonville, Florida received $2,753,746 to convert 36 apartments; and Cathedral Square, Burlington, Vermont received $1,221,555 to modify 20 apartments into assisted living.

For more information on this program, visit the HUD website at: http://www.hud.gov .

The Assisted Living Federation of America (ALFA) represents over 7,000 for-profit and not-for-profit providers of assisted living, continuing care retirement communities, independent living and other forms of housing and services. ALFA was founded in 1990 to advance the assisted living industry and enhance the quality of life for residents. ALFA broadened its membership in 1999 to embrace the full range of housing and care providers who share ALFA's consumer-focused philosophy of care.

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