Council President to introduce legislation to create a property tax credit for low-income seniors

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Contact: Lester Davis

Monday, February 22, 2016       
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Council President to introduce legislation to create property tax credit for low-income seniors

Measure touted as a neighborhood stabilization effort aimed at helping seniors living on a fixed-income remain in their homes and avoid falling deeper into poverty
BALTIMORE, MD –City Council President Bernard C. “Jack” Young will introduce legislation on Monday that would create a local supplement to the state’s Homeowners’ Tax Credit Program designed to provide additional assistance to our City’s seniors.

According to Maryland’s Department of Aging, “the greatest number of the state’s low-income minority older adults lives in Baltimore City.” In 2010, about 41 percent of the state’s low-income minority seniors lived in Baltimore City, a figure expected to grow as the state’s older adult population increases by about 7 percent in coming years, according to projections from the Department of Aging.

With Young’s legislation, Baltimore would join the majority of jurisdictions throughout Maryland to offer a localized homeowners’ tax credit for seniors.

Baltimore City currently has one of the highest foreclosure rates in the state, and Council President Young said his supplement to the Homeowners’ Tax Credit Program could help keep low-income seniors in their homes and avoid falling deeper into poverty.

“This piece of legislation represents a win-win for Baltimore’s older adult population and the communities they call home,” Council President Young said. “From a financial standpoint, it makes total sense to do everything in our power to keep low-income older adults in their homes and out of poverty. It’s good for seniors and beneficial to neighborhoods that would avoid the adverse impact of additional foreclosures.”

Dan Ellis, executive director of Neighborhood Housing Services of Baltimore, welcomed Young’s move to create an additional tax credit for low-income seniors.

“The Homeowners’ Property Tax Credit Program is one of the best tools to help low-income seniors remain in their homes,” Ellis said. “We applaud Council President Young’s efforts to expand the program and believe this legislation will benefit thousands of Baltimore’s most vulnerable residents.”

Marceline White, executive director of the Maryland Consumer Rights Coalition, said that the additional credit could help ease the burden on older homeowners who face a property tax rate double the rate in surrounding counties.

“For far too many, the Homeowners’ Tax Credit is the difference between keeping or losing their homes,” White said. “The extension of this program will assist older adults to age in place and continue to contribute to their neighborhoods. This legislation couldn’t have come at a better time.”

Loretta Jefferson, a 69-year-old homeowner on a fixed-income, who lives in Baltimore’s Brooklyn neighborhood, said that Young’s bill would help her pay for costly necessities like prescriptions and groceries. She called the additional tax credit a “lifeline.”

“Living on a fixed-income is really hard,” Jefferson said. “Having access to an additional homeowners’ tax credit would help keep me in my home and off the streets.”

Claudia Wilson-Randall, director of housing counseling at Southeast Community Development Corporation, said that her organization would welcome an additional tool to help keep seniors in their homes and out of poverty.

“Baltimore has a limited supply of affordable housing so our best strategy is to make sure our seniors are able to remain stable forces in their neighborhoods,” Wilson-Randall said.

Robert Strupp, executive director of Baltimore Neighborhoods, Inc., said that his organization would embrace legislation that can provide housing relief to older adults in need throughout Baltimore City.

“This bill will assist Baltimore’s deserving senior residents facing critical challenges to be able to age-in-place in their homes,” Strupp said. “Individuals and the community at large benefit from housing stability.”

To qualify for the credit proposed by Council President Young, a senior would have to be 62 or older, have lived in their home for 10 years or longer, and have a gross income of less than $40,000.

The formula for determining the credit for Baltimore City homeowners under Young’s proposal equals the amount of the property tax credit granted by the state, and the aggregate of the percentage of the homeowner’s income. The income tiers for the Council President’s bill are as follows:

• 0 percent of the first $12,000 of income
• 3 percent of the next $4,000 of income
• 7 percent of the next $4,000 of income
• 9 percent of combined income over $20,000, not to exceed $40,000

According to Maryland’s Department of Assessments and Taxation, the Homeowners’ Property Tax Credit Program “allows credits against the homeowner’s property tax bill if the property taxes exceed a fixed percentage of the person’s gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.”

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