Important note: Information in this article was accurate in 2005. The state of the art may have changed since the publication date.
Bay Area Reporter - December 1, 2005
Matthew S. Bajko, m.bajko@ebar.com
The Property Tax Postponement Program, run by the state controller's office, has already helped several PWAs deal with tax bills they couldn't afford. L.C., a 38-year-old Twin Peaks resident, is hoping the program will allow him to keep his one-bedroom condominium he bought in 1997.
"I don't want to lose my house. I don't want to live on the street," said L.C., who asked that only his initials be used for fear future employers would not hire him if they knew he is HIV-positive. "I have always been a homeowner. For me it is peace of mind."
L.C. learned three and half years ago he has AIDS. He soon lost a well-paying job in the healthcare industry due to his illness. But he was able to maintain paying for his home with the help of his partner, who also had AIDS. The two men had been together for four and half years and pooled their resources to make ends meet.
Then last fall, L.C.'s partner died from bone cancer and he found himself in a financial quagmire. The men had taken out a second mortgage of $205,000 to pay off their debts, and without his partner's help, L.C. had trouble making ends meet with only his disability checks for income. The mortgage interest alone came to $1,130 a month plus L.C. had to pay a monthly homeowners association fee of $362.
Before his partner died, L.C. said the couple had several hundred dollars to live on each month. Now alone, L.C. has $40 left each month after making his housing payments. Looming over his head was his property tax bill, due in December. The financial obligations seemed insurmountable, and L.C. feared he would have to give up his home of eight years.
"I didn't want to use my savings to pay for my housing," said L.C.
Unsure of what to do, he contacted the AIDS Housing Alliance and met with its founder and director, Brian Basinger. Basinger stumbled upon the tax deferment program in the controller's office and urged L.C. to apply.
"He was fearful he would become homeless in December because he was not sure how to pay his property tax bill," said Basinger.
According to the controller's Web site (www.sco.ca.gov/col/taxinfo/ptp/index.shtml) senior citizens, blind, and disabled residents of California are eligible for the tax deferment program. Once an applicant is accepted, the controller's office records a lien against their property. Interest is then charged on the postponed taxes on a simple interest basis.
The controller's office said several PWAs have already been accepted into the program.
"People shouldn't lose their homes because of illness," Controller Steve Westly said in a statement. "By helping people stay in their homes, we're giving them the peace of mind they need to concentrate on their health."
To be considered disabled under the program, the applicant must make less than $24,000 in a year; not be able to engage in any substantial, gainful employment because of their physical impairments; and expect to be disabled for at least a year.
The postponed amount and interest are not due until the homeowner either moves from the qualified property; sells or conveys title to the home; dies and does not have a spouse, or domestic partner, or other qualified individual who continues to reside in the home; or future property taxes or other senior liens are allowed to become delinquent. At any time the homeowner can pay all or part of the obligation before it becomes due.
For domestic partners, the state treats such couples the same as married couples, meaning if one of the partners dies the other is not responsible for paying back the lien as long as they remain in the house. They also are not automatically removed from the program and can choose to continue to defer the tax payments.
Officials in the controller's office who oversee the program said many people do not utilize it due to the lien being placed against their property and because they don't want to leave their heirs with a loan on their house.
L.C. is still awaiting word on whether his application has been approved. Basinger said he is confident he will be accepted into the program.
"It doesn't look like he is going to lose his housing because of the taxes," said Basinger.
***
For more information about the program call the controller's office at 1-800-952-5661.
051201
BR051205
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