Independent living units provided for not-for-profit organisations: clarifying their current and future role as an affordable housing option for older people with low assets and low incomes

Summary

Independent Living Units (ILUs) are a housing option for older people with relatively low assets and incomes. With 34 700 units Australia-wide, ILUs provide approximately 27 per cent of social housing for older people. Yet, ILU stock is ageing and may no longer meet older people’ needs and expectations, and some organisations have withdrawn from providing ILUs. An extensive reduction of ILUs in the future is likely to have a substantial impact on the housing options of age pensioners; outcomes for the delivery of community aged care services, and; the capacity of State Housing Authorities to meet future demand for social housing from older people.


Project Number: 50138
Research Theme: Health_Ageing_and_Disability
Project Leader: McNelis, Sean
Funding Year: 2002
Research Centre: Swinburne-Monash

Research and Policy Bulletin

Research & Policy Bulletin

Issue 047: Australia's forgotten social housing sector?

Without coordinated strategic action by the providers and by governments, independent living units (ILUs) are not likely to remain an affordable housing option for older people with few assets, leading to further pressure on state housing authorities and the low-cost private rental market.

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Description

Between 1954 and 1984 the Commonwealth Government through the Aged and Disabled Persons Homes Act contributed capital funds for construction of around 36,000 Independent Living Units (ILUs). These ILUs were predominantly for older people and were developed in partnership with non profit organisations and local government. ILUs were funded in each Australian state and territory, with the largest numbers funded in New South Wales, Victoria and Western Australia. Many, but not all of the organisations funded for ILUs were charitable organisations, a number of whom also provide nursing home and/or hostels and often in close proximity to the location of the ILUs. Thus, ILUs tend to be managed by organisations with an aged care focus and operate within this framework.

Over the last two decades there has been a marked shift in aged care philosophy with a renewed emphasis on 'ageing in place'. Moreover, over recent years, there have been changes to Aged Care legislation that has resulted in different funding arrangements and increased building and service quality requirements for aged care facilities (nursing homes and hostels). Given these changes, the current operating framework for ILUs may not be the most appropriate. Many tenants are now frail and in need of support services to maintain their independence. The clustering of older people provides opportunities for support services to link more closely housing and support. Much of the stock is nearing or has already reached the end of its economic life, and much is now increasingly unsuitable in design for the needs of more frail and physically disabled older people. This raises the prospect that much of this housing is disappearing as part of redevelopments or that redevelopment is being funded through charging high ingoing contributions from tenants.

The significance of ILU stock as an affordable housing option for older people and the implications of reduced access for this group has been overlooked by State Housing Authorities. They operate outside both current aged care standards and a housing management framework and it is unclear whether their current framework ensures the right outcomes for tenants and whether it raises other issues for these organisations and for community housing. Prior to this project little systematic research appeared to have been undertaken on ILUs to ascertain their current status, the benefits and outcomes for tenants and possible future scenarios.

This Project aimed to fill an important information gap about this affordable housing option for older people developed outside the CSHA. Some of the issues which needed examination included:

  • How significant is this stock as an affordable housing options for older people?
  • What is the current condition and demographic and financial profile of tenants of ILUs managed by not-for-profit organisations?
  • How well are current ILUs meeting the housing needs of older people - particularly low income, low asset older people?
  • To what extent do ILUs need upgrading and refurbishment; to what extent to do they need demolition and redevelopment, to what extent should they be sold and new and more appropriate dwelling be acquired?
  • If this stock continues to disappear, what are the implications for older people and for public housing demand?
  • What are the opportunities or disadvantages for linking housing and support afforded by the clustering of ILU stock and the strengths and weaknesses when the same organisation provides both housing and some forms of support?
  • What implications will changes in this stock have on future housing assistance policy?

More Information

Download now Research and Policy Bulletin: Issue 047: Australia's forgotten social housing sector?
105 KB PDF Document

Download now Final Report: No. 053: Independent living units: the forgotten social housing sector
2.98 MB PDF Document

Download now Positioning Paper: No. 059: Independent living units: clarifying their current and future role as an affordable housing option for older people with low assets and low incomes
25 MB PDF Document

Download now Final Report: No. 053: Appendix 4 - Independent living units: the forgotten social housing sector
1.7 MB PDF Document

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