$115 million in grant funding is available for affordable rental housing Low-income older adults, including those raising grandchildren, just got a boost for housing assistance, but analysts say funding more is needed.

The U.S. Department of Housing and Urban Development (HUD) recently announced $115 million in grant funding to support the development and improvement of affordable rental housing for low-income seniors. Of that funding, $35 million is earmarked to create intergenerational housing for households headed by seniors who are raising children under 18 years of age.

“Creating these homes will enable older adults to live independently. It is important that we provide opportunities for seniors of modest means to age with grace and dignity in a supportive environment,” said HUD Deputy Secretary Adrianne Todman.

The funds will help non-profit organizations create new homes that are energy efficient, or rehabilitate existing ones, for low-income adults 62 years of age or older. Funding is provided to support capital costs and ongoing project rental assistance.

This new batch of funding builds on another similar funding tranche of $161.1 million in Section 202 housing grants that were awarded to 25 grantees in 14 states. That funding will be used to create nearly 1,300 units for eligible households.

“Having access to housing that is affordable for all of our seniors is critical. This is going to be even more important moving forward given the significant growth in our older adult population,” said Lisa McCracken head of research and analytics, the National Investment Center for Seniors Housing & Care.

Read: Dream of aging in place? This government program could be a game-changer for seniors

“The $115 million in funding that HUD has announced certainly acknowledges the need for additional housing to support low-income older adults and is welcome news. Most would agree that there is a need for even greater funds, not only for low-income seniors, but also for those who are just above the income threshold for government support, otherwise known as the middle market. Having said that, this funding is a step in the right direction,” McCracken said.

Read: Where can I afford to live in retirement? Senior housing and the ‘forgotten middle’

The funding also comes as people want to age in place, but finding age-friendly housing is difficult. As many as 77% of people aged 50 and older want to stay in their own home as they age, but only 49% think that they will be able to do so, according to AARP.