1 / 27

Accessible Assets

Accessible Assets. Chicago’s Tax and Asset Building Work for People with Disabilities. Karen Harris Supervising Attorney . Shriver Center. The Sargent Shriver National Center on Poverty Law

tasanee
Download Presentation

Accessible Assets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Accessible Assets Chicago’s Tax and Asset Building Work for People with Disabilities Karen Harris Supervising Attorney

  2. Shriver Center • The Sargent Shriver National Center on Poverty Law • A national law and policy center that provides national leadership in identifying, developing and supporting innovative and collaborative approaches to achieve social and economic justice for low-income people. • Asset Opportunity Unit • Takes action against poverty by advocating for policies that expand asset-building opportunities for all. www.povertylaw.org

  3. Asset Poverty • Asset poverty focuses on total household wealth, rather than just income • An “asset poor” household does not have enough assets to meet its expenses for 3 months if no outside sources of income

  4. Asset Poverty • 1 in 5 U.S. families are asset poor and in Illinois it is 1 in 4. • 1/3 of U.S. households have zero or negative assets. • 60% of African Americans and 54% of Hispanic households experience asset poverty. • As many as 80% of households with a disability have zero assets.

  5. Selected Disability Measures By Selected Age Groups 2005 (numbers in thousands) Source: http://www.census.gov/prod/2008pubs/p70-117.pdf

  6. Working Age People (25-61) with Income Below the Annual Poverty Line in 1997 By Disability Status 1 or More Disabilities No Disabilities Source: Peiyun She and Gina A. Livermore, “Long-Term Poverty and Disability Among Working-Age Adults,” Journal of Disability Policy Studies 2009; 19; 244.

  7. Existing Barriers Multiple barriers exist for people with disabilities to participate in asset building opportunities: • Policy barriers that preclude saving, restrict earnings, and complicate even low levels of employment • Programmatic barriers include design structures and lack of accommodations • Psychosocial barriers of stigma, discrimination, and individual’s misconceptions about their own abilities to work, earn, and save

  8. Asset Limit Rules • AABD - $2,000 per individual, $3,000 per couple • GA - $2,000 per individual, $3,000 per couple • HBWD - $25,000 per household • LIS - $8,100 per individual, $12,910 per couple (full subsidy); $12,510 and $25,010 (partial subsidy) • SSI - $2,000 per individual, $3,000 per couple • TANF - $2,000 per individual, $3,000 per couple

  9. Federal Asset Limit Reform • SSI Savers Act of 2010 (H.R. 4937) • Introduced by Rep. Niki Tsongas (D-MA) • Revise Asset Limits: • $5,000 per individual, $7,500 per couple • Index to inflation • Education savings accounts excluded

  10. State Asset Limit Reform • States have authority to eliminate asset tests in TANF and Medicaid and, with USDA approval, in Food Stamp Program • States can implement asset limit reform by legislation or administrative rule • Several states have implemented asset test reform

  11. Lack of Access to the Financial Mainstream • 68% of SSDI recipients & 51% of SSI use direct deposit • 39% of SSI recipients reported never having a bank account • 68% of SSI recipients are unbanked compared to the national average of 8% • SSI recipients represent the largest percentage of federal benefit recipients that receive their payment via check

  12. Asset Building Strategies for the Disability Community • PASS Plan • Individual Development Accounts • Homeownership Coalition • Assistive Technology Financial Loan Programs

  13. PASS Plan • Beneficiaries can write a plan that SSA approves to set aside earned or unearned income to meet an occupational goal, such as starting a business, attending school, or supporting their current or prospective employment • The income or resources set aside for this goal will not count to determine the amount of SSI monthly benefits

  14. PASS Budgeting • Total Income $700 (SSDI) - Income not counted -300 (PASS) - 20 (exclusion) ___________________ _____ = Countable Income $380 • SSI Federal Benefit Rate $694 - Countable Income -380 ____________________ _____ = SSI Benefit $314

  15. Individual Development Accounts • Matched savings accounts (1-4 times) operated by service providers or institutions • The income limit to participate is usually 200% of FPL • Typically savings are designated for a goal of either purchasing a home, starting a business, or attending school • Participants receive financial literacy training

  16. Combining IDAs and PASS Plans Hector receives $700 in SSDI benefits. He writes a PASS Plan which SSA approves that includes setting aside $300 per month in an IDA to start a business. Hector receives a 2:1 match in his IDA program. The PASS Plan will allow for Hector to receive a total monthly benefit amount of $714 and he will have $600 per month of savings for his goal.

  17. Federal IDA Reform • Assets for Independence Reauthorization Act of 2010 (H.R. 6354) • Raises the authorization limit to $75 million • Simplifies asset purchase processes • Expands eligibility standards • Allows matches to be placed into a 529 college savings account • IDA Protection Act of 2010 (H.R. 6067) • Increase federal funding available for IDAs by $25 million • Eliminate requirement for state matching funds

  18. Homeownership Assistance • Illinois Assistive Technology Program (IATP) is a statewide not-for-profit agency • IATP has a Homeownership Coalition for People with Disabilities • The Homeownership Coalition is committed to providing a comprehensive pre- and post-purchase support system to ensure eligible people with disabilities successfully purchase and maintain their homes

  19. Homeownership Assistance • Homeownership Coalition Eligibility: • First-time homebuyer (cannot have owned a home in the last three years) • Income 80% or less of the Area Median Income to be eligible for grant assistance • Home will be primary residence • Contribute at least $500 towards down payment • Willing to work to improve credit, if needed • Attend home buyer education classes

  20. Assistive Technology Loans • Illinois Assistive Technology Program runs the ILoan Program, Illinois Loans for Independent Living • Loans can be used to purchase assistive technology for daily living and assistive technology and other equipment for self-employment and home-based employment

  21. Assistive Technology Loans • Maximum loan amount is $35,000 • Home modification loans cannot be more than $5,000 • Maximum loan term is 10 years for all loans • Variable interest rate of 5.5% - 7.5% based on term • Down payment equal to 3 months payment for all loans • Anyone with a credit score below 560 must go through credit education and/or find a qualified co-borrower

  22. Achieving a Better Life Experience (ABLE) Act of 2009 • H.R. 1205 & S. 493 (February 26, 2009) • Introduced by Sen. Robert Casey (D-PA) and Rep. Ander Crenshaw (R-FL) • Purpose: • To encourage & assist individuals & families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life • To provide secure funding for disability- related expenses on behalf of designated beneficiaries with disabilities that supplement, not supplant, public benefits

  23. ABLE Accounts vs. Special Needs Trust Funds • Beneficiary can be trustee (also family members, financial institutions, and other qualified 3rd parties) • Contributions up to $2,000 per year per individual are tax deductible (similar to 529 College Savings Accounts- not refundable) • Contributions can be made by anyone- including the beneficiary (does not count as ‘earned income’ by SSI) • No contributions can be made after beneficiary turns 65 • Can pay for Housing- including rent & mortgage

  24. ABLE Act of 2009 • One tax exempt account per SSI beneficiary up to $500,000 • Allowable expenses include: • Preschool & postsecondary education; tutoring; special education services; training; • Employment supports; • Personal assistance and community-based supports; • Respite care; • Assistive technology and home modifications; • Out-of-pocket medical, vision, or dental expenses; • Transportation vehicle purchases or modifications; • Insurance premiums; • Habilitation and rehabilitation services; and • Other services or products allowed by regulation

  25. Asset Building Resources • Accessible Assets Webinar Resource Page - http://www.povertylaw.org/clearinghouse-review/web-extras/asset-building-disability-webinar • Asset Coalition Toolkit for States www.assetcoalitiontoolkit.org

  26. Upcoming Webinar Fair Treatment of Low-Income, Disabled, and Elderly People During Modernization of Electricity Distribution Wednesday, December 1, 2010 12:00 PM - 1:00 PM CST Register at https://www2.gotomeeting.com/register/860972730

  27. Thank YouKaren Harriskarenharris@povertylaw.org

More Related