Tom Murphy
RedwoodAge.com
As the nation's 78 million baby boomers drift towards retirement, a central question looms ever larger: where are they going to live when they get old?
Contrary to popular conception, most boomers don't own homes. And, of those who do, many live in houses that are too big and otherwise ill-suited to the needs of aging. The concept of "aging in place" is popular, but it may prove impractical for elders if it involves driving in from isolated residential neighborhoods to get to stores, doctors or activities.
The question has been greatly complicated since the recession began in late 2007, because falling property values have eaten up much of the equity middle-age homeowners had stored in their houses, leaving them unable to shift that illiquid investment to a home more suitable for their retirement years.
And availability of affordable housing is very narrow for any age group - twenty-somethings who graduated from college in debt; seniors living on meager Social Security income; or the Gen X-boomer workforce that has trouble keeping up with rising costs of rearing children and caring for their elders. Never mind that mortgages are hard to obtain for those near the end of their careers.
Gray and Gold
Nowhere is the problem more apparent than in Marin County, California, the
"grayest" of the Golden State's 58 counties. Located just across the
Golden Gate from San Francisco, Marin is also the wealthiest county per capita
in the nation, but its residents have few options in affordable housing as they
age. The county has a median household income of $96,800 that supports a medium
home value of $670,000 (including condos), making it very hard for pensioners,
teachers, city workers, caregivers and other lower-income workers to find places
to live without long commutes.
The county is, in many ways, experiencing the same challenges other mid-sized American cities will face in coming years, if they are not already confronting them. Existing models for transportation, health care, public safety and housing are breaking down as the median age rises in America. The problem is even more severe for African Americans and Hispanics, who tend to have much smaller nest eggs as they enter retirement.
However, the shortage of affordable housing is getting new attention in the San Francisco Bay Area as aging advocates, poverty workers, architects, public officials and environmentalists are forming ersatz coalitions to support mutual goals of easing burdens on public services, cutting carbon emissions and maintaining large sections of open space. Marin, a county renowned for towering redwood forests and scenic seashores, has dedicated 84 percent of its land area to open space.
"Affordable housing has become the new mantra for the climate-change people. So now we're all working together," Whitney Merchant of Greenbelt Alliance said as she opened a recent meeting of architects, planners, politicians and housing activists in San Rafael, Marin's county seat and largest city.
Multiple Benefits
The evening's featured speaker, affordable housing advocate and architect Peter
Waller of Berkeley, Calif., emphasized the multiple benefits of ensuring there's
an ample supply of housing in all price ranges within communities like San
Rafael.
First, he noted it's good for business, creating more customers for downtown merchants. Second, it builds a sense of community in downtown areas that otherwise tend to be abandoned outside of working hours. Affordable housing also tends to raise property values of nearby property - the opposite effect by many neighbors who initially oppose the developments. Finally, it's good for the environment because it reduces the release of greenhouse gases by commuters and reduces the burden on local roads.
To be sure, there are numerous challenges, considering these projects often have a density upwards of 100 unit per acre. Parking is one key area, according to Waller, with a single parking space adding about $24,000 to the cost of a $120,000 one-bedroom unit. Many communities require affordable housing projects to include 2-2.5 parking spaces per unit, allowing room for two cars belonging to occupants plus room for occasional visitors.
Parking Lot Playgrounds
Waller noted open space is another concern. In some projects, the parking areas
serve double duty as play areas of children during the day when commuters have
driven to work. Maintaining some degree of open space is critical for
family-based housing, he said. Otherwise, children end up playing in surrounding
streets.
Creating intergenerational projects can be even tougher, according to Katie Lamont, associate director of real estate development for Eden Housing, a nonprofit group based in Hayward, Calif. Funding for family-friendly projects tends to come through tax-credit programs that require a minimal number of three-bedroom units. Funding for senior projects, which mostly have one-bedroom units, tends to come from HUD. "There are complications in how the funding is set up," she said.
On approach is to locate family projects near senior housing, creating neighborhoods with a range of ages. But even that tends to reduce interaction between age groups that would be living next door to one another in an intergenerational development.
Many boomers are finding their needs met in cohousing projects where occupants share some common facilities and even chores. But retrofitting existing high-density units for cohousing is extremely complicated due to parking, historical and code requirements, Waller said. An office building, for example usually doesn't have another windows to meet the code restrictions placed on housing.
"It's OK if you're starting with an old hotel," he said. "The costs may be near new construction, but it may be worth it."
Waller also noted that, if a building has a historic designation, it may be possible to obtain special funding to help preserve it by bringing it into a new use.
