» Seniors, Affordable Housing, and Property Taxes

Seniors, Affordable Housing, and Property Taxes

I’m a baby boomer. Because of my aging parents, I’ve gotten involved in senior issues over the last few years. I have one parent remaining, my step-Dad, who after 41 years in my life, I think of us as my Dad. He’s not doing well right now, but is in a safe, loving environment.

I know many friends and clients have been through what I’ve been going through. I hear stories of people running to see their parents in another part of the country because they’ve had to find a safe home or a less costly place for their parents to live. Accessibility and affordability for seniors is a serious issue. With our aging population, it will only become worse.

I had to rethink my parents living situation both from a monetary and an accessible point of view. For them living in a safe place where they could have assistance was the most important thing. They couldn’t stay in their home on their own. So I relocated them from Connecticut to Kirkland, Washington five years ago to be near one of their children, me.

So many seniors are facing these same issues here on Seattle’s Eastside. Some of the more expensive areas, Medina, Clyde Hill, Kirkland, and South Bellevue, have some of older homes which are still in the hands of the original owners. When these homes were purchased 40 or 50 years ago, these neighborhoods were considered nice suburban areas, but nothing like they are today. Today, many of the homes in these areas are surrounded by million dollar properties, causing property taxes to rise significantly. The cost of staying in a home can be a huge problem for seniors because of increasing property tax bills. I’ve heard countless stories of seniors forced out of their homes because they can’t afford to pay the real estate taxes for a home which they’ve occupied for half a century.

I’m always intrigued when I learn about new ways to help seniors with housing and real estate. Having aging parents led me to volunteer for The Kirkland Senior Council these past three years where I had the opportunity to learn more about the issues seniors face. I pay attention to seniors and real estate.

Last week I noticed a post on the Sellsius Real Estate blog regarding the way property taxes are handled for seniors in British Columbia. Those Canadians have an interesting plan with programs set up for seniors to defer or refinance their property taxes. The goal is to keep the senior home owner in their home.

Here is the nuts and bolts of what’s happening in British Columbia according to the Sellsius blog:

“Simply, it is a low interest loan offered by the province (state) to the homeowner. The province, on behalf of the homeowner, then pays those property taxes owed to the civic authorities.

Highlights:The British Columbia Property Tax Deferment Program is a loan program that allows home owners to defer their annual property taxes on their homes subject to eligibility criteria.

you must be at least 55 years old
you must be a Canadian citizen or be a permanent resident who has lived in British Columbia for at least one year prior to applying for the program
it applies only to your principal residence
deferment applies to all or some of your tax owed
taxes can be deferred as long as you own and live in your home and continue to qualify for the program
the deferred taxes must be fully repaid, with interest when either of these occur (a) before your home can be legally transferred to a new owner, other than directly to your surviving spouse, (b)upon the death of the agreement holder(s)
you may repay all or part of the deferred taxes, fees and interest at any time without penalty
simple interest is charged on deferment accounts at a rate not greater than 2% below the prime rate of the Province’s principal banker.

What’s your thought? Should we create a program similar to this so seniors can stay in their homes? Are there other programs you’ve heard of that could help seniors financially with things such as property taxes?

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