Three Virginia programs target increased services for elderly

Aging, Fall, 1994

Tax Credits for Landlords Who Reduce Rents for Elderly

A grandmother raising a disabled grandchild; an older couple who hadn't asked their landlord for repairs in years for fear of jeopardizing their below-market rent; an elderly blind man in a rural location -- these are a few of the people who have benefited from a unique program in which Virginia's landlords earn tax credits by reducing rents for elderly or disabled tenants.

The program, called the Virginia Tax Credit Rent Reduction Program, is the first of its kind in the country and is being undertaken by the Virginia Housing Development Authority (VHDA). The program is designed to benefit both parties, says Brenda Goodman, program administrator. Landlords are able to rent apartments, single-family homes, or other living arrangements that might otherwise remain vacant and elderly or disabled people have access to decent, affordable housing.

Under the program, landlords agree to reduce the rent for elderly and disabled tenants whose annual incomes are no more than 80% of the median for the area. The landlord is then eligible for a 50% tax credit on the yearly amount the rent has been reduced. For example, a landlord who reduced the rent by $200 a month would receive a $1,200 state tax credit -- half the yearly amount of $2,400. Likewise, a landlord who reduced the rent of five units by $150 for 12 months (equaling $9,000) would receive a $4,500 state tax credit.

A unit usually comes under the program in one of three ways: either a landlord applies to the program for a new unit; a landlord applies for a unit already being rented to an elderly or disabled tenant; or a prospective tenant, service agency, or realtor asks a landlord to accept a reduced rent under the program. Most units in the program fall into the second category, according to Goodman. Frequently these are landlords who have been renting to poor elderly people for many years without raising their rent -- at the expense of delaying needed repairs on the apartment. Under the program, the tax credit is often used to pay for those repairs.

When a unit is made available to the program, state agents conduct an inspection to make sure that it meets housing quality standards set by the Department of Housing and Urban Development (HUD) for rental assistance. Ordinarily, there is no follow-up inspection, unless there are problems. "We're trying to keep administrative costs down," Goodman explains. "If we had to go through formal inspections each year, the paper work and hiring inspectors would make the program too expensive. I use more or less a common sense approach: if there's a problem with the roof, I make a note and keep it in the file. It's done more on a case-by-case basis."

Since the program began three years ago, approximately 100 landlords have made 637 households available under the Rent Reduction Program. VHDA expects this number to grow as more service agencies learn about its existence. A new VHDA information line identifies on a county-by- county basis all properties offering reduced rents to seniors and people with disabilities through the program. It also lists those properties that offer wheelchair accessible units. In Virginia to reach the VHDA helpline, dial 1-800-435-2185.

For more information about the program, contact Carol Hurdle or Brenda Goodman at VHDA; 601 S. Belvidere Street; Richmond, VA 23220-6504; phone: (804) 782-1986.

Tax Fund Pays for Rural Transportation

Although the Americans with Disabilities Act has greatly helped elderly and disabled people who rely on public transportation, it doesn't solve the transportation needs of those who live in rural areas where public transportation is virtually nonexistent and who rely on private service agencies to provide access to the doctor, a community center, or the grocery store.

To address this gap in Virginia's transportation system, the State Income Tax return allows taxpayers to donate part of their taxes to a special fund that pays for the transportation needs of 500,000 Virginians who cannot drive because of disabilities. The Specialized Transportation Incentive Fund has awarded grants totaling almost $100,000 to Area Agencies on Aging and other service organizations in many of the 100 counties in the state that lack public transportation.

Virginians who want to make a tax-deductible contribution to the fund may send a check payable to "Treasurer of Virginia," c/o VA Department for the Aging; 700 East Franklin Street, 10th Floor; Richmond, VA 23219.

Fee-for-Service Plan Benefits Homebound Elderly

Paying fees for home-care services empowers elderly people to be more assertive with their caregivers and to take more responsibility for their own care. This is the preliminary finding of a demonstration project undertaken by the State of Virginia and the Capital Area Agency on Aging in Richmond to determine the feasibility of non-profit agencies charging fees for services.

"Our clients are exerting more control over nurse's aides who come to their homes. They used to be afraid to ask for anything or to complain if the aide was late or refused to do something. Now they feel more independent and I can hear when they talk to me that they're more involved and more concerned about their care," says Joyce Bowne, CAAA program coordinator.