If you want to continue living on your own, but don't want the responsibilities and upkeep of owning a home, then moving into a maintenance-free residence may be a good alternative for you. These residential options eliminate the hassles of home repairs, lawn care, snow removal and other similar chores, as well as offer the benefits of living among your peers. Many also provide enriching activities and convenient services.
There are several types of housing options. Understanding what aspects are most important to you will help you determine which option best fits your needs.
This option consists of apartment style residences tailored to the needs and preferences of people of a minimum age, or older. The residences are often designed to make life easier with features like railings in bathrooms or power outlets higher up on the wall or even 24- hour emergency call service. Some places also offer supportive services like meals, transportation, social activities and other programs.
Fees and monthly charges vary depending on the size of the residence, the services provided and the income level the building or community is designed to serve. Subsidy programs can help make rent more affordable. The U.S. Department of Housing and Urban Development (HUD) funds the following rental assistance programs for seniors who qualify.
- Public housing was established to provide decent and safe rental housing for eligible low-income families, seniors and persons with disabilities. Public or low-income housing is owned and operated by local housing authorities. To apply for public housing, go to the housing authority in your area. The local representatives will explain their system for accepting applications and how to find an available apartment.
- HUD's Section 202 program helps expand the supply of affordable senior housing in two ways. First, private, nonprofit sponsors are extended capital advances to finance the construction, rehabilitation or acquisition of supportive housing for low-income elderly persons, including the frail elderly. Second, owners are subsidized with rental assistance funds, which are passed along to qualified residents to cover the gap between what individuals can afford (generally 30 percent of adjusted income) and the actual operating cost of rent. Occupancy in Section 202 housing is open to very low-income households comprised of at least one person 62 years or older at the time of initial occupancy. For a list of privately owned, affordable housing communities near you, contact your local HUD office. To apply for housing, visit the management office at the community you select.
Living in a retirement community enables you to continue working, traveling, volunteering and enjoying life outside the community. There are two general types of retirement communities: those that offer a continuum of care, called continuing care retirement communities (CCRCs), and those that don’t include long-term care services.
Both types of communities are usually arranged in a campus-style setting, with more choices in residences and a broader selection of services than senior housing. The size and style of homes can range from efficiency apartments to two-story, 3-bedroom homes with garages. Homes can often be customized with special features like upgraded appliances, crown molding, hardwood floors, sunroom additions and other similar options.
Most retirement communities today include a wide variety of appealing on-site amenities. They may include heated indoor pools, fitness centers with personal trainers, restaurant style dining and a selection of meal plans, guest lecturers and performers, libraries, education programs and social events, woodworking shops, gardens, coordinated trips and chaplaincy programs. Conveniences such as hair salons, banking and transportation services are usually available as well.
Living in a retirement community may be more costly than senior housing, but may also deliver more value in terms of residence, services and amenities. Fees vary widely depending on the features and benefits included. For example, fees charged by CCRCs may be higher, but they provide ongoing health care services to meet changing needs as you grow older. Having access to assisted living and skilled nursing care enables you to stay in the same community if your physical or mental health should ever change. It’s important to know what benefits and services are important to you to determine which type of community is worth considering.
Retirement communities also offer different types of financing plans. Some require a onetime entrance fee and then monthly payments thereafter. Some operate on a rental basis, charging monthly payments, but not requiring an entrance fee. Some even offer a choice of finance plans and refund options to accommodate different financial situations.
CCRCs offer similar financing choices, but their independent living contracts address housing, services and health care for life. There are three common types of contracts:
- Life care communities provide access to all levels of health care, including assisted living and nursing care, with little or no increase in monthly payments, but entrance and monthly fees are typically higher in these communities
- Fee-for-service communities charge full daily rates for all assisted living or long-term nursing care, but only if services are used.
- Some CCRCs include a specified amount of nursing care in the contract, beyond which the resident is responsible for payment.
In Pennsylvania, CCRCs are regulated by the state Department of Insurance. In addition, onsite assisted living and nursing care facilities are licensed separately by the Departments of Public Welfare and Health.