The objective of this paper is to introduce the model and to present a structure of the proper database for planning the social infrastructure for older population, including home-care, based on a multiple decrement/multi-state transition model, where a higher standard can be achieved by implementing flexible Equity Release Scheme (ERS) products. ERSs influence the purchasing power of seniors and therefore the probability of transitions in the decrement models is changing. (a) As the central objective, the multiple decrements approach is developed and applied in the program of housing and accompanying services needed for older citizens as a new tool for better forecasting housing needs of senior citizens with decreasing functional capacities, and therefore the changing services and housing needs over their lifetime horizon. (b) To discuss new urban management model that generate shared values for community, users and commercial actors. (c) The Flexible Equity Release Scheme is developed tied with the person and not with his/her housing unit, as a novelty in the scientific and professional literature. The schemes are embedded in the directed graph of multiple decrements. The impact of higher purchasing power in case of using reverse mortgage benefits is evaluated, especially the impact on the probability of transitions in optimal adjustments to the needs of seniors when their functional capacities are reduced. The model can be used for policy makers on national or community level as well as to banks and insurance companies which are willing to develop such programs in Central and Eastern Europe, where such products are not developed yet. The case study for Slovenian state of the art and the policy development is presented.