More affordable homes with safety modifications in accessible communities could be on the horizon.
The Visitable Inclusive Tax Credits for Accessible Living (VITAL) Act was introduced in the Senate on August 6, and, if approved, would revitalize the low-income housing tax credit program (LIHTC) and expand the development of accessible housing for seniors and people with disabilities.
Features like no-step showers, wider doorways and lower kitchen counters could become more common in homes—along with locations near resources to remain independent and involved in the community, like public transportation.
“The VITAL Act could help address two challenges at the same time: the nationwide shortage of affordable housing and the even more limited supply of housing that is both affordable and accessible,” says Ana Lopez, director of housing at Community Partners of South Florida, a nonprofit organization that offers homeownership education and more for those facing adversity.
But the bill isn’t guaranteed to pass, and even if it does, it would take time for the homes to be built. If you need home safety modifications now, a home equity line of credit (HELOC) can help you cover the costs.
A Closer Look at the Bill
If approved, the VITAL Act would make the following reforms to the LIHTC program:
- Increase the number of credits a project can get if it is in a walkable (or wheelchair-negotiable) neighborhood and has accessibility design standards.
- More units would be available, with the minimum requirement that at least 40% of states’ LIHTC units are disability adaptable and accessible.
- States will have a boosted annual LIHTC allocation.
There’s plenty of support for the bill, including praise from several lawmakers and endorsements from more than 30 associations, including the National Low Income Housing Coalition, the National Disability Rights Network and National Council on Aging.
How This Bill Could Help
In the bill, Congress reported that less than 6% of the national housing supply is considered to meet the bare minimum of disability friendly requirements. And yet more than 89% of adults over 65 hope to age in place and avoid an institution.
To put it simply: Most homes don’t have the safety modifications to support seniors or people with disabilities to age in place. And even if you find a home within budget, it can be costly to add modifications yourself.
If approved, the VITAL Act can help Americans age in place and live more comfortably with disabilities, with more opportunities to stay involved in the community.
“The legislation also promotes housing in walkable and accessible communities with connections to public transportation, which can be especially valuable for residents who cannot drive or have limited mobility,” says Lopez.
Consider These HELOC Lenders
Some may need a safety home modification sooner rather than later, and a HELOC can help you secure the funds. With a HELOC, you borrow against the equity of your home, and the money can be used on these home improvements.
“This is especially relevant for those baby boomers who may be house-rich but cash-poor,” says Daryl Fairweather, chief economist at Redfin, a real estate brokerage and online property marketplace.
But it’s best to speak to a mortgage broker or financial advisor to confirm if a HELOC is best for your long-term financial needs.
“A HELOC may not be the best solution for everyone, particularly seniors living on a fixed or limited income. The homeowner must have sufficient equity, qualify based on the lender’s requirements and be able to afford the additional monthly payment,” says Lopez. After all, your home is put up for collateral when you take out a HELOC, which means defaulting could lead to foreclosure.
If a HELOC is a good fit for you, research top lenders to secure the best rate and terms. Here are a few of the best HELOC lenders to consider.
Bottom Line
The VITAL Act, if approved, paints a more hopeful future for aging in place and living comfortably with a disability. Homes with accessible features near useful community resources could be a part of the new norm. Still, not everyone can afford to wait for safety modifications, and a HELOC could be a solution for some.
