Homeowner and Renter Assistance (HRA)

State

California

Year

2007

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

For qualified homeowners and renters, the benefit is a once-a-year payment on part of the property taxes paid or the property taxes paid indirectly through rent. The benefit is determined by 38 income brackets with maximum relief ranging from $347.50 for renters and $472.60 for homeowners if income is up to $10,691, to $15 for renters and $20.40 homeowners if income is between $40,988 and $42,770. The maximum benefit for homeowners is the lesser of $472.60 or the property tax bill. The maximum benefit for renters is the lesser of $347.50 or property tax rent equivalent.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

Applicants must be at least 62 years of age, blind or, disabled. In addition, if the applicant owned a home they must have a gross household income below $42,770. If the applicant rented then the monthly rent was $50 or more per month.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state disburses benefits directly to eligible applicants.

Enrollment Data

In 2007 the administrative costs for the program were $6,294,000

Record ID

CA101_RR07

Footnotes

Gross household income is total household income plus all non-cash business expenses such as depreciation, amortization, depletion, and net operating losses. Total household income includes social security; interest/dividends; pensions/annuities; Supplemental Security Income (SSI); State Supplemental Program (SSP); Aid to the Totally Disabled (ATD); rental income/loss; gain/loss from sale of assets; wages, alimony, life insurance, unemployment insurance, worker's compensation for temporary disability, and public assistance and relief. In addition, participants may deduct the following amounts from their total household income: IRA contributions deduction, student loan interest deduction, medical Savings Account (MSA) deduction, moving expenses, and alimony paid from the total household income.

Sources

Cal. Revenue and Taxation Code § 20505 ~ § 20564 (in effect for 2007)
Law Summary Homeowner and Renter Assistance (2008) View Archived Source

Annual Report, California Franchise Tax Board (2007), p. 31
[http://www.ftb.ca.gov/aboutftb/plans_reports.shtml Accessed on 11/8/10]
View Archived Source
Home owner and Renter Assistance Booklet (2007) View Archived Source

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