In recent years, state housing finance agencies have joined with state units on aging to develop programs to help the frail, elderly homeowner. Under an accessory apartment conversion program, a low-income homeowner will borrow money at a reduced interest rate to underwrite conversion of excess space into a rental apartment. The tenant will provide additional income as well as, ideally, certain kinds of personal assistance and a friendly presence. To date, few elderly clients have used this option. The initial rationale for the program is explained as are plausible reasons for the fact that it has not met expectations.