California is a state mixed with economic recovery for some and continued financial struggle for others, particularly senior citizens. One of the state's helpful solutions that kept seniors in their homes was the Senior Citizens' and Disabled Citizens' Property Tax Postponement program (PTP).
This program, which was indefinitely suspended in 2009 due to budget cuts, aimed to help seniors on low or fixed income, as well as blind and disabled residents. Since 2009 thousands of needy Californians have applied for the PTP program while it remains in limbo, as they must deal with rising cost of living issues. The following details are a reminder of the program's success:
PTP Background
Throughout the 1970s California experienced a booming real estate market. But with rising home values came rising property taxes, leading to the voters passing Proposition 13 in 1976, which postponed property taxes for lower and middle class homeowners who were at least 62 years old.
The PTP program was then set in motion in 1977. This tax was again postponed in 1984 when voters approved Proposition 33, this time it was regardless of age. This postponement of property taxes has helped claimants pay their medical bills as well as meeting the high cost of living.
Program Details
The program provided tax relief in the form of a loan to about 5,000 Californians over two decades. Most of these residents were over the age of 70 and many were even over the age of 90.
These loans were secured by liens that were repaid upon the homeowner's death, sale or transfer of the title or vacating the property without a qualified person continuing to reside in the home. Qualifications for the program included annual household income less than $39,000 with a minimum of 20 percent equity interest and claims filed each year.
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