The Alberta Government is giving seniors the province to keep a little extra money in their pockets and help them stay in their homes longer.
On April 22, the province unveiled a new property tax deferral program, where homeowners 65 years and older can defer all or part of their residential property taxes through a low-interest home equity loan with the Alberta government. The loans are repaid when the home is sold, or sooner if the senior chooses.
It is estimated the program will free up an average of $2,000 per year for senior homeowners.
“We know most seniors live on fixed incomes, and that while many are house-rich, day-to-day cash flow is sometimes limited,” said Associate Minister of Seniors, George VanderBurg. “With the Seniors Property Tax Deferral program, we’re offering seniors a way to free up funds that otherwise would have been spent on property taxes.”
However, the program could exacerbate housing issues for local seniors housing groups.
“Everyone wants to see seniors stay in their homes as long as possible, which is a good thing as long as they are safe and cared for,” said Tom Zariski, vice-chair of Drumheller and District Seniors Foundation.
“The issue we need to address is we are planning for the future...we have been a little frustrated with not being able to find out how many people are being cared for in their homes and at what level, so we can plan for down the road.”
The result of the program could also mean seniors would enter seniors housing at a higher level of need.
“Eventually these people are going to have to go into a care home, but at an SL3 or SL4 level,” said Zariski.
The Drumheller Seniors Foundation is hoping to be ready for an expected spike in those needing seniors housing.
“We are anticipating a fairly big increase in the future, but we don’t know what that might be. We’re building up capital reserve funding to build another wing, but we don’t know what we’re going to need,” said Zariski.
To be eligible for the property tax deferral, homeowners must be at least 65-years-old and have a minimum equity of 25 per cent in their home. The home must be the senior’s primary residence.