State Assistance for the Elderly - Study on Calculation of Income
HB989 addresses how income is counted for certain State programs that assist elderly individuals. The bill provides that, for specified State tax credits, housing assistance programs, and medical assistance programs, income received from renting a portion of an individual’s primary residence may not be included in the income calculation used to determine eligibility. The bill is aimed at programs that are designed to assist elderly individuals and that use income limits as part of eligibility.
In addition to establishing that exclusion, the bill requires the Department of Aging to review each State tax credit, housing assistance program, and medical assistance program to determine whether the new rule applies. If it does, the Department must notify the relevant State agency administering the credit or program. The bill also directs the Department of Aging, working with the Departments of Disabilities, Health, Housing and Community Development, and Human Services, to study the broader implications of excluding this rental income from eligibility calculations for certain housing and medical assistance programs and to report findings and recommendations to the General Assembly by December 1, 2026. The act is temporary and is set to sunset on June 30, 2027.
The bill’s impact on State law is to create a new limitation on income counting for qualifying elderly-focused programs and to impose a review-and-notification duty on the Department of Aging. It also creates a one-year study requirement to evaluate whether the exclusion can be applied more broadly to State housing and medical assistance programs serving aged, blind, and disabled individuals, including any legal or fiscal barriers and the State resources that would be needed.
Overall sentiment appears favorable. The bill passed the House on third reading by a wide margin, 115 yeas to 16 nays, and the committee report was favorable with amendments. That voting pattern suggests broad support for the policy goal of reducing barriers to eligibility for older residents who supplement their income by renting part of their homes.
The main points of contention are likely practical rather than ideological: whether excluding this rental income is consistent with federal requirements, how many programs can lawfully adopt the exclusion, and what administrative or fiscal effects it may have on State agencies. The study requirement reflects uncertainty about those issues, especially for housing and medical assistance programs that may be constrained by federal law or by program-specific eligibility rules.
HB989 amends the Human Services Article to bar certain rental income from being counted in income eligibility determinations for specified State tax credits, housing assistance programs, and medical assistance programs that assist elderly individuals. It also requires the Department of Aging to review affected programs, notify administering agencies when the exclusion applies, and complete a study on broader application of the policy to certain housing and medical assistance programs. The bill temporarily changes State administrative practice and may affect eligibility determinations for older homeowners who rent part of their primary residence.
The bill appears to have been received positively in the House, as reflected by a favorable committee report with amendments and strong floor passage on third reading, 115-16. The available record suggests bipartisan or at least broad cross-party support for the underlying policy of easing income-counting rules for elderly residents. The inclusion of a study and sunset provision also indicates a cautious, incremental approach rather than an immediate permanent overhaul.
The likely areas of contention are implementation and legal compatibility. The bill itself flags possible barriers, including federal law, and asks the Department of Aging to determine which programs can reasonably adopt the exclusion. Stakeholders concerned about program integrity, administrative burden, or fiscal impact may question whether excluding rental income could expand eligibility beyond intended limits. Others may support the change as a way to help seniors age in place and supplement fixed incomes without losing access to benefits.