Some cities, states embrace property tax refunds for older homeowners

Older homeowners living on a fixed income have a higher chance of seeing their finances destabilized by rising costs, and that can be particularly true of something like property taxes.

For homeowners who have either a forward or reverse mortgage on their home, these costs also must be paid in order to keep the loan in good standing.

But some states are embracing programs that allow for property tax refunds if a homeowner meets specific requirements. More often than not, one of these requirements is a minimum age that classifies someone as a senior.

In South Dakota, for instance, the state maintains a property and sales tax refund program that homeowners 50 and older can attempt to qualify for. The state’s AARP chapter advocates for the availability of these programs, and it recently published a bulletin designed to raise awareness among South Dakota residents.

“Property taxes are the single most burdensome tax for low-income and older homeowners,” the chapter said in the bulletin. “Many of our state’s elderly citizens have lived in their homes for generations. As their property values have appreciated, so have their property taxes.

“Plus, older adults often live on fixed incomes and cannot afford the yearly increases in their property taxes while meeting their basic needs for food, medicine and utilities.”

The city of Denver offers a similar program with more stringent eligibility requirements. In order to qualify, a homeowner must be at least 65 or have been disabled for the entire calendar year of 2024.

They also must have owned and lived in the property in question during that time and paid their property taxes for the year in full. They cannot make more than 60% of the area median income ($59,345 for an individual or $70,440 for a family of three), according to an overview of the program from Denverite.com.

In South Dakota, qualified residents can apply for the program by July 1, 2025. In Denver, as many as 3,000 residents qualified for the program in 2024.

Property tax payments are a commonly expressed concern for reverse mortgage borrowers who seek out the loan. And other options offered by localities include property tax deferrals.

Alicia Munnell of the Boston College Center for Retirement Research recently called deferral programs “the best way to help older homeowners.” But these programs still require the taxes to be paid at a later date and do not constitute a waiver.

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Why federal support for tiny homes could be a game changer

As homelessness continues to rise nationwide, one nonprofit is pushing for a paradigm shift.

DignityMoves, a San Francisco-based organization, has been leading the charge for what its founder and CEO Elizabeth Funk calls “interim supportive housing.”

These cost-effective tiny home communities aim to help individuals stabilize their lives while waiting for permanent housing options that are often years away from being built.

In a candid conversation with HousingWire, Funk explained why the current federal housing strategy is falling short — and what can be done to change it. The interview has been lightly edited for length and clarity.

HW: Over the past decade, permanent housing has been the cornerstone of federal homelessness policy. Why push for interim housing now?

Funk: So, you know, in the U.S., our strategy to address homelessness for the last decade has been very clearly mandated. It’s about permanent housing, because only permanent housing ends homelessness.

And so the only valid use of taxpayer money — quote unquote shelter — was shunned because shelter doesn’t work, which it doesn’t in a meaningful way. It keeps you out of the elements, but it’s not a place where you’re mentally ready to do something with your life, right?

But the problem is that, especially in California, where that costs a million dollars a unit on average — over $800,000 per unit — and takes years to build, we’re never going to get there. It’s just not practical.

HW: What’s the alternative you’re proposing?

Funk: We believe that if we invest in something dignified that’s in the interim, a whole lot of stuff happens — one of which is you prevent the trauma of being on the street. We call this interim supportive housing. It functions as shelter in the system.

But (the Department of Housing and Urban Development’s) definition of housing is your habitual place of residence and you have separate sleeping quarters. Well, if you’ve got your own tiny room, tiny cabin, that’s housing. It’s a form of housing. It’s just temporary.

HW: Is there any existing federal funding for these kinds of projects?

Funk: There’s very little funding — quite frankly, none from the federal level that goes to interim housing. Interim housing is such a new concept that it’s had to wiggle in.

We’ve had to apply for grants that are meant for one bucket or the other. They hand down the Community Development Block Grants and stuff that can be used for whatever — prevention, street outreach — but it’s a small amount and has to compete with many other things.

HW: Where does your funding come from right now?

Funk: Our funding is somewhat philanthropy and state funding. We apply for grants like the Encampment Resolution Funds, and there’s a Project Homekey that’s a state funding program. Hospitals step up, obviously, because half of the cost of unsheltered homelessness is carried by them.

“We’re also experimenting with an investor model because our little cabins are not technically classified under the tax code as real estate — they are personal property because they are relocatable, just like a truck.

Also, thanks to (President Donald Trump), they are eligible for accelerated bonus depreciation. So if an investor paid to construct these, they could get half the value back in a tax write-off if they’re in the 50% tax bracket.

HW: But the long-term cost is in operations, not just building the units, right?

Funk: A unit might cost $50,000 to build, but it’s another $50,000 per year to operate, and that’s an ongoing cost that cities are very hesitant to commit to. None of the programs for funding have a line of sight longer than two years. Lots of them are just one year, and that’s got everybody [looking like a] deer in the headlights.”

HW: Are there any federal programs that are helping to offset these costs?

Funk: California has its own version of Medicaid called CalAIM, and it has waivers from Medicaid that allow it to reimburse for things that happen at shelters and interim housing. It can reimburse for your case managers, housing navigation specialists, behavioral health care — all that stuff can get reimbursed.

The first thing we’re hoping for is to make darn sure that doesn’t go away. That’s probably half of the operating budgets and it’s reimbursed by the federal health care system.”

HW: And what about Section 8 vouchers — can they be applied to interim housing?

Funk: Interim housing doesn’t get Section 8 vouchers, but those vouchers are called ‘housing choice’ for a reason. The person gets to pick their apartment. Well, what if they got it in interim housing? They’re now covered, they’re paid for, right? And if they want to stay a little longer because it’s healthier for them, or if they can’t find an apartment, it won’t lapse.”

HW: That sounds like it could be controversial.

Funk: As soon as I talk about Section 8 vouchers for interim housing, all the housing people get into this zero-sum game of, ‘You’re stealing our resources.’ Every year, we have to send unused vouchers back to the federal government. We can’t find apartments. That’s criminal.

HW: There was also mention of a six-month transitional rent waiver through CalAIM. What’s the status there?

Funk: They wrote a concept paper, sent it up to the federal level, got it approved, and now we’re waiting for implementation. Everybody’s holding their breath. The medical system is offering to pay six months of rent. Like, what does that say about unsheltered homelessness, right?

HW: Final thoughts. What’s the broader vision for interim housing on a national level?

Funk: This is not about us trying to grow a business. We’re nonprofit. We’re just trying to change this thinking and get interim housing into the mainstream. We’ve literally put together a playbook — like, somebody in Toronto wants to build interim housing? Here’s your site plan. Here’s the modular manufacturer. Like, have at it.

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Los Angeles County event will assist reverse mortgage borrowers with wildfire recovery

The communities engulfed in the Los Angeles-area wildfires continue to recover and pick up the pieces. And representatives of Los Angeles County have signaled they want to provide specific guidance for impacted reverse mortgage borrowers to navigate issues that arise with these loans in disaster areas.

The county’s Aging and Disabilities Department will host a special event on Saturday, May 10. The event is designed to help older Americans whose homes were damaged by the Eaton Fire, and who may be facing property damage or loss while maintaining a Home Equity Conversion Mortgage (HECM).

“The workshop will help participants take the first steps to better understand their existing reverse mortgage agreements and the financial and legal implications tied to disaster-related property damage,” according to an announcement distributed by the Arcadia Chamber of Commerce.

The event will take place at the MonteCedro Senior Living Community in Altadena on May 10 Saturday from 10 a.m. to noon local time. It will include a group workshop led by Aimee Williams, associate vice president of justice for tenants, homeowners and unhoused individuals at Bet Tzedek Legal Services in Los Angeles.

“Ms. Williams will provide critical guidance and answer questions related to reverse mortgages in the context of disaster recovery,” the announcement explained. “There will also be representatives from various housing and legal services agencies — including the Federal Housing Administration (FHA), U.S. Department of Housing and Urban Development (HUD), and pro bono legal private firms — on hand to help with more individualized consultations.”

Kathryn Barger, the chair of the Los Angeles County Board of Supervisors, said that reverse mortgage borrowers are in particularly unique circumstances as they aim to recover from the devastation of the fires.

“Seniors navigating the aftermath of the Eaton Fire shouldn’t have to face uncertainty alone — especially when it comes to complex issues like reverse mortgages,” Barger said.

“That’s why I’ve brought together the Los Angeles County Department of Aging and Disabilities, the Los Angeles County Development Authority and the Department of Consumer and Business Affairs to partner with local experts for this workshop.”

The overarching goal is to “offer clarity, guidance and trusted advice to help seniors make informed decisions during a challenging time,” she added.

Barger added it’s critical for reverse mortgage borrowers to know that there are resources they can call on if needed.

“We need to ensure older residents in our community know they’re not alone,” she said, according to a report by the Colorado Boulevard. “Recovering from a disaster is hard enough. Understanding reverse mortgages and legal obligations shouldn’t add more stress. That’s why we’re bringing experts together to offer meaningful, hands-on support.”

In the immediate aftermath of the fires, representatives from reverse mortgage lenders and servicers told HousingWire’s Reverse Mortgage Daily (RMD) that it’s imperative for borrowers to let their servicer know about anything that could impact the occupancy of their property due to the terms of FHA-backed reverse mortgages.

This led to guidance on the issue from the National Reverse Mortgage Lenders Association (NRMLA), L.A.-area based lenders HighTechLending and New American Funding (NAF), and individual loan originators who were in contact with their impacted clients.

Jared Skrabala, who oversees servicing and asset management at Reverse Market Insight (RMI), told RMD that “HUD does not require servicers to follow separate occupancy requirements for natural disaster victims; however, they do provide some relevant guidance for servicers on properties impacted by a Presidentially-Declared Major Disaster Area (PDMDA).”

According to data from HUD, there are more than 5,000 HECM originations and nearly 4,600 endorsements in the Los Angeles-Long Beach-Glendale metropolitan statistical area. California has long served as the most dominant state in the country for reverse mortgage business.

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Lenders witness surge of mortgage demand this week

It’s probably too early to get excited, but several lenders reported that mortgage demand climbed to 2022 levels this week.

After months of hovering in the high 6% range—and most recently dipping to 6.84%— declining mortgage rates may finally be luring buyers back. Applications rose 11% last week, according to the Mortgage Bankers Association (MBA), as mortgage executives report renewed activity in the market. And several say it will be even stronger when this week’s stats are tallied by the MBA.

Patty Arvielo, co-founder and co-CEO of New American Funding (NAF), told HousingWire that Tuesday was NAF’s best day for mortgage applications since 2022. 

“I think the last few years have paid off for us. First off, we grew 60% last year,” Arvielo said. “So I think the consolidation of loan originators is part of it. I think the move-up buyer is driving the market, meaning a former first-time home buyer [who] now has a significant amount of equity.”

Arvielo says that 74% of the applications submitted this week to NAF were purchase applications. 

“I think people have been sitting on the sidelines waiting for these big rate drops we thought were going to happen…but that tiny 6.8% interest rate, well, it’s better than the sevens.”

Arvielo imagines this leading to a bustling refi market. “I think the refinance market is gonna continue to increase, because you’ve got people paying high credit card debt. We have more card loan debt than we’ve had in many, many years. So people are using their equity to consolidate,” she said.

Florida-based Jay Promisco, president at Sierra Pacific Mortgage, attributes the applications uptick to the state experiencing a high level of sales price reductions. “It’s becoming a buyer’s market here, and that’s kind of transpired ever since the kind of hurricane action in September,” he said.

Promisco agrees with Arvielo that after three years of interest rates at this level, the consumer has finally decided that now is not a bad time to buy. However, he said that certain regional markets are skewing the numbers.

Joseph Panebianco, CEO and president of AnnieMac Home Mortgage, says the company has seen a 17% increase year over year in application activity. In tandem, the company is growing its recruiting and sales efforts.

“We’re in a process where rates have come down from their high, which is always very helpful. I think people realize that what was potentially going to be a booming economy has sort of muddied, I’d say, by tariffs. So to make a long story short, interest rates are more accommodating now than they were just a year ago,” he said.

Panebianco continued, “The housing market has had more time for real incomes to increase…There are still some tight markets, but I think [we’re] seeing more inventory than we’ve been we’ve seen. Employment across the economy is still very robust; rumors of the demise of the U.S. economy have not yet come to fruition.”

Concerns about future and first-time homebuyers

While Arvielo is encouraged by the return of buyers to the market and their confidence in submitting applications, she expressed concern for first-time homebuyers — particularly regarding how they are interpreting media coverage of the market and managing financial obligations like student loan debt.

“The first-time buyer is a bit more impacted by inflation than the move-up buyer,” she said. “I’m a bit concerned about what we’re going to do with our first-time homebuyers, because we need that market for the long term to continue to build generational wealth for those who have been sitting on the sidelines…we’ve also had some some cuts in employment, so that that doesn’t make me feel good.”

Panebianco has a similar sentiment. “You have five or six Ds of real estate: diapers, diamonds, diplomas, divorce, death. And I always say the sixth, of course, which is becoming more prevalent, is debt,” he said.

However, Panebianco says that AnnieMac’s percentage of first-time buyers is up. “We generally see about 25% to 30% of folks who are first-time homebuyers. We’ve gotten a larger share; we’re at 48% just recently,” he shared. “I will say that more and more first-time homebuyers are doubling up with each other, whether that be with their significant others or their friends. The dual-income, college-educated folks can much more easily qualify for a home.”

He continued, “Life happens, not just to their incomes, their real inflation-adjusted incomes, but maybe they have children, maybe they graduated college, you know, maybe they were forced, because of student loan debts, to make a move. Maybe there was a death in the family, maybe there was a divorce. So, like I said, as life continues to happen, at some point you just have to make a move.”

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Deadline looms in Minnesota property tax forfeiture lawsuit

Thousands of Minnesota residents who lost homes over property taxes may now be eligible for compensation, following a landmark U.S. Supreme Court ruling and a resulting $109 million class-action settlement fund.

The case began with Geraldine Tyler, a 94-year-old Minneapolis woman who owed $15,000 in property taxes on her condominium.

In response, Hennepin County, Minnesota, seized the property, sold it for $40,000 and kept the full amount — leaving Tyler with nothing.

While she accepted that the government was entitled to the back taxes, Tyler argued that the excess $25,000 from the sale belonged to her.

The nation’s highest court unanimously agreed — declaring that the government violated the U.S. Constitution by keeping more than it was owed.

Attorneys raise awareness

With a June 6 deadline to file class-action claims approaching, case attorneys Vildan Teske and Garrett Blanchfield spoke with HousingWire about efforts to make those affected aware of the payout.

As many as 15,000 people across Minnesota may qualify for restitution if they lost a home, business or other property due to tax forfeitures between 2012 and 2023.

More than 6,000 properties statewide have already been identified as potentially eligible.

“Kroll, which is the claims administrator, mailed out and emailed notice to the potential class members starting in September of 2024 and has done several mailings since then,” Teske said.

“But we also know that this is a difficult population to find, because they’ve moved several times and, by definition, they are no longer at the address that was given to us by the counties, which is their property address that was forfeited.

“So we are doing everything that we can to get the word out so that, in case the mailed notice didn’t get to them, that they would hear about the settlement and put in their claim.”

Teske and Blanchfield urged claimants to file online for the sake of processing speed.

The $109 million fund will provide payouts to affected property owners or their heirs, in cases involving deceased individuals.

Class-action claims can be submitted here.

Disproportionate impact

Many of those impacted are elderly or on fixed incomes, and advocates say this settlement may offer long-overdue justice.

“The people who lost their houses often can’t really afford to lose their houses,” Blanchfield said. “They don’t have a lot of money, and the house — the money, the equity that they have in the house — is likely their biggest asset.

“This really has a disproportionate effect upon the people that it happens to, and that’s why we’re so eager to try and get the money back to these folks. For a lot of them, they lost their greatest financial asset. For some of these people, the recovery will be in the six figures. That’s not the average, but it’s what’s there for some.”

Since the Supreme Court decision, other states have begun revisiting their tax forfeiture laws to prevent similar constitutional violations.

“There’s over a dozen other states that have had similar statutes to the Minnesota statute, so it’s the minority of states, but still a substantial number of people that are impacted,” Teske said. “The rest of the states had statutes that allowed the homeowner to get the surplus value back.”

Claimants deemed eligible for a payout will be able to receive up to 90% of the surplus value from their home sale — plus interest — going back to the forfeiture date, the attorneys said.

“We started mailing out notices more than six months ago, but now we’re in the last month of this of this class period, so this is kind of the home stretch,” Blanchfield said. “When they look at the claim form, if they don’t think they have documentation that they might need, they should still submit a claim, because the important thing is to get a claim submitted before the deadline.

“There will be opportunities after that to submit supplementary documents if the settlement administrator thinks that’s necessary.”

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eXp Realty launches land and ranch division

eXp Realty has launched a new land and ranch division to serve real estate agents who specialize in rural, agricultural and recreational properties, the company announced this week.

The new division is designed to support agents working in a growing sector of the housing market with tools tailored to land and ranch transactions.

“Our launch of the Land & Ranch Division is yet another example of how eXp continues to redefine real estate around the agent,” said Leo Pareja, CEO of eXp Realty. “We’re giving land and ranch professionals an unmatched platform, combining elite marketing exposure, innovative tech, and a collaborative national network so they can build credibility faster, close more deals, and grow sustainable businesses.”

According to the company, the division will offer custom branding kits, access to national listing platforms such as Land.com and LandWatch.com, and tools such as mapping features, automated reports and presentation builders.

Agents will also be able to participate in peer support networks, certification programs and biweekly meetings with other specialists.

“Land and ranch agents deserve more than just a traditional brokerage,” said Taryn King, chair of the brokerage’s land and ranch agent advisory committee. “At eXp, we’re offering a future-forward platform that speaks directly to the unique needs of this segment — and equips agents with every advantage to dominate their niche.”

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Expert tips Melbourne’s best first-home buyer suburbs for first auction weekend after election

Suburbs across Melbourne’s leafy east have been earmarked as the city’s best bet for first-home buyers open to an apartment.

Melbourne first-home buyers have been given a hit list of the best places for them to make a move as the city’s auction market fires up again after the election.

They’ve also been warned that waiting for rate cuts and election promises to come through could wind up costing them in the longer term, as experts tip them to lead a late autumn and early winter charge for some of the city’s most affordable addresses.

PropTrack figures show there are 836 homes slated for auction across Melbourne this weekend.

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Wakelin Property Advisory director Jarrod McCabe said with 242 of these being units, now was the time for first-home buyers to lock in one of the city’s older-style apartments in eastern and southeastern suburbs ranging from Elwood to Hawthorn.

Mr McCabe said with economists predicting a series of interest rate cuts in the months ahead and last week’s ALP election win confirmed an expansion to the federal government’s First Home Guarantee scheme, expected to give an unlimited number of market entrants access to the government as a guarantor from early next year, making a move sooner could pay off.

“They will be better off now than they will be by the end of the year,” Mr McCabe said.

The buyer’s advocate added that with most of the recent federal election promises around housing aimed at supporting buyers, rather than boosting supply, buyer demand would push prices up this year and into 2026.

6/25 Isabella Grove, Hawthorn - for herald sun real estate

A one-bedroom apartment at 6/25 Isabella Grove, Hawthorn, sold last month for $670,000 gives an idea of the home first-home buyers are advised to pursue.

Real Estate Institute of Victoria president Jacob Caine said it was expected that forward-thinking would-be homebuyers would be making a move as quickly as this weekend, after last weekend’s election result confirmed what policies would shape the market in the year ahead.

“I think we could definitely see those savvier first-home buyers drive things as they seek a first-mover advantage,” Mr Caine said.

“And it’s not going to be getting cheaper for them to buy a home.”

Mr McCabe said while other parts of Melbourne had older-style apartments available, those built in the city’s east and south east had largely been created at a time when apartments were needed as an affordable alternative to houses — meaning they were larger and better thought out.

He advised that Hawthorn, St Kilda, Elwood, South Yarra and Armadale would provide some of the best opportunities.

6/25 Isabella Grove, Hawthorn - for herald sun real estate

Features such as courtyards can make older apartment buildings a better option for first-home buyers to make their start in the market.

Buyers should expect to pay one-bedroom prices from $450,000-$650,000 for the homes that fit the bill, while worthy two-bedroom residences would mostly be starting from $650,000.

“And those still fit within the current First Home Guarantee scheme,” Mr McCabe said.

A one-bedroom apartment at 6/25 Isabella Grove, Hawthorn, sold for $670,000 early in April had been a perfect example of what buyers should seek out, he added.

The 52sq m home was located in a popular part of the suburb, but came with its own courtyard and a bedroom big enough to host its own study nook.

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Record warehouse seller emerges as $15m buyer of rare penthouse

The buyer of a $15m penthouse in a rare Darlinghurst development has just sold his inner-city warehouse for a record price.

The doctor who just sold his inner-city warehouse for a suburb record-breaking price has emerged as an off-the-plan buyer of a luxury $15m penthouse.

Dr Andrew Goy recently achieved $12.4m for designer Stephen Collins’s conversion of the old Labor Club premises at 464 Bourke St, Surry Hills, a record for Surry Hills.

The now semi-retired medical specialist bought the 370sqm space for $2.8m in 2008, commissioning Colllns for the impressive revamp, creating a four-bedroom, five-bathroom residence.

The sales agent, Maclay Longhurst of Sotheby’s, has been tightlipped on both the purchaser and also where Goy is headed.

MORE:

Homeowners hoping for $40m windfall

Dr Goy’s new home is a 300sqm north-facing penthouse in the boutique luxury project Henri House.

It’s located at 349 Liverpool St, Darlinghurst.

But other sources have confirmed he bought the $15m 300sqm penthouse at a rare designer project called Henri House, at 349 Liverpool St, Darlinghurst, when it was launched in February.

Savvy buyers were quick to pounce on the first top-end apartment development on offer in the hot inner city suburb in 12 years.

The agent for Henri House, Ben Stewart of Stewart Residential, was equally tongue-tied when discussing any of the purchasers in the exclusive boutique project.

He sold $42m worth of apartments in the first week.

“It’s a sign of confidence in the market for off-the-plan,” Stewart said at the time.

Dr Goy had bought the Surry Hills warehouse for $2.8m in 2008.

Supplied Editorial 464 Bourke Street Surry Hills pics 1-2 of 2

It had four bedrooms and 370sqm of internal space.

The executive chairman and founder of premium developer Abadeen, Justin Brown, had said: “This year has shown renewed confidence in the market, with strong demand for premium projects like Henri House.”

There’ll be just two apartments per floor, both north facing, with interiors by Studio McCue.

And also a communal rooftop terrace, with landscaping by Dangar Barin Smith.

A range of three-bedroom apartments remain at Henri House, priced from $8m.

The project will be complete in early 2027.

The new build, a joint venture between Abadeen Group and Phoenix Property Investors (PPI), replaces a 1960s block of 22 apartments.

The display suite is located close by at 379 Liverpool St.

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Rocket says it could close Redfin acquisition as soon as this quarter

Home loan giant boosts Q1 mortgage production by 7 percent, to $21.6 billion, says Redfin and Mr. Cooper acquisitions remain on track to close this year.

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Realtor.com parent Move raises quarterly revenue amid headwinds

Move Inc. grew revenue for the second-consecutive quarter, despite declines in lead volume and suppressed web and mobile traffic at Realtor.com, earnings data released Thursday shows.

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