The nonprofit Maryland Consumer Rights Coalition (MCRC) was joined on February 3 by Baltimore Mayor Catherine E. Pugh and Baltimore City Council President Bernard C. “Jack” Young to announce MCRC’s new statewide public awareness campaign, “Rent Worries Got You Down? The Maryland Renter’s Tax Credit Program Can Help!” The campaign was revealed at the Oliver Senior Center in Baltimore. The goal of MCRC’s newest public awareness efforts is to increase applications to the Maryland Renter’s Tax Credit by Maryland’s low-income renters, mainly seniors and people who are permanently disabled. Carmen Castro-Conroy, Manager/Certified Housing Counselor at HIP (Housing Initiative Partnership, Inc.), Homes of Prince George’s County and Baltimore City Health Department, Division of Aging & CARE Services, Deputy Commissioner Heang Tan representing Dr. Leana K. Wen, Baltimore City Health Commissioner, also spoke in support of these efforts. Attendees were welcomed by Marceline White, Executive Director of the Maryland Consumer Rights Coalition, as well as Karen Wheeler, the Oliver Senior Center Manager.
Low-income Maryland renters were urged to call the new Maryland Tax Credit Hotline at 443-961-6220 or go to www.MarylandTaxCredit.com to see if they are eligible for help with their rent.
Why is the Maryland Consumer Rights Coalition sponsoring a public awareness campaign? As the only statewide coalition that advances and protects the interests of consumers through education, advocacy and training programs, MCRC works to ensure fairness and safety in the marketplace. Many older adult renters living on low fixed incomes across the State of Maryland and particularly in Baltimore City face financial challenges. Informing these renters that the Maryland Renter’s Tax Credit is available could be the difference between paying the rent and buying food or medications. In 2016, MCRC worked with Delegate James Tarlau (D-47A) to pass legislation in Annapolis to raise the cap on this tax credit from $750 to $1000 per eligible renter yearly.
Why is this Campaign important? Few people eligible for the Maryland Renter’s Tax Credit even know it exists! The plan is designed to be similar in principle to the Maryland Homeowners' Property Tax Credit Program, another “forgotten” tax credit that’s also been around for 30 years. Low-income renters whose total assets do not exceed $200,000 and whose dwelling is their principal residence may qualify to receive as much as $1000 per year (or $83.33 per month). Many seniors over 60 years of age or people who are permanently disabled may qualify.
How will the public awareness campaign work?
City Council President Bernard C. “Jack” Young is the spokesperson for the Maryland Renter’s Tax Credit television public service announcements! Public service messages making people aware of the Maryland Renter’s Tax Credit target low-income senior women and include MTA bus sides and interior cards, brochures, and public service announcements on radio and TV. Interviews and news stories in print, online, TV and radio will be pursued and shared via social media. Grassroots outreach and training will be conducted at senior centers, libraries, community and neighborhood associations, houses of worship, and other organizations in the targeted neighborhoods.
Who are the renters in Maryland and Baltimore?
Maryland median monthly rent: The median monthly gross residential rent in Maryland was $1,242 in 2014 according to the Census ACS survey. The median rent most accurately depicts rental rates.
Maryland real gross rent trends: At $1,242, real median gross rent in Maryland was at its highest level in 2014 since the Census ACS survey began in 2005.
Maryland rent as a percentage of income: For Maryland, the percentage of income the median household would use to pay rent at the median monthly gross rate was 20.15% in 2014 according to the ACS. This is the highest fraction of median household income going to rent since the series originated in 2005, when it was 17.36%.
Who are Baltimore’s renters? 34% of families who rent live below the poverty line (about 19,000 families). 57% of renters pay more than 30% of their income for housing while 33% pay more than 50% for housing.**
Rents have risen, Earnings have not: Housing costs have risen dramatically, rising faster than the incomes of families earning between $20,000 - $75,000 per year. It’s nearly impossible for two full-time workers earning minimum wage to afford a median rent ($774), two-bedroom apartment in Baltimore. **
Women Head of Households: Low-income female-headed households are disproportionately affected because they need more bedrooms than single renters or couples without children. **
Which Baltimore neighborhoods are most rent-burdened? Belair-Edison, Midway/Coldstream, Madison/East End, Howard Park/West Arlington, and Greater Mondawmin. **
Homeownership out of reach: Being rent-burdened is a barrier to both homeownership and financial stability. When you’re paying 50% of your income on rent, it’s virtually impossible to save toward a down-payment for a house or to save for a financial emergency.
Many seniors qualify: Many of the renters who are eligible for this tax credit are seniors, but they don’t know about this program. You must be over 60 years old or permanently disabled to qualify or the surviving spouse of someone who qualified.
Age exceptions: If you are under 60 years old and have at least one dependent under 18 years of age living with you and do not participate in a federal or state housing subsidy program. For example, a possibly eligible family of 2 must have total income of under $16,317.
How is this tax credit calculated? Credits are calculated according to the renter’s total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not they’re taxable for federal and state income tax purposes. This also includes Social Security payments as well as all other retirement benefits.
How can renters find out if they’re eligible for this tax credit? Call the Maryland Tax Credit Hotline at 443-961-6220 or go to www.MarylandTaxCredit.com to see if they are eligible for help with their rent.
When can renters apply for this program? Renters have until September 1 of the year in which the credit is sought to apply, but renters can apply as early as February 1 each calendar year.
Where can renters find the form to apply? Go to www.MarylandTaxCredit.com
What if a renter needs help filling out the Maryland Renter’s Tax Credit form? The Maryland Consumer Rights Coalition, as well as City Community Action Centers and some neighborhood associations can help. Eligible renters can call the Maryland Tax Credit Hotline at 443-961-6220 to make an appointment to sit down with a specialist who can help the renter fill out the correct form.
www.MarylandTaxCredit.com website: In addition to information regarding the Maryland Renter’s Tax Credit geared for renters, the new website also includes information about another “forgotten” tax credit, one that could help Maryland low-income homeowners – the Maryland Homeowners’ Property Tax Credit. Taking effect this year, Baltimore City Council President Young helped pass an increase to the city version of the homeowner’s property tax credit.
**Statistics based on BNIA (Baltimore Neighborhood Indicators Alliance) 2016 report
“Rents have been rising in Baltimore and throughout the state and wages haven’t kept pace. The Maryland Renter’s Tax Credit is an important resource for renters and helps families who are struggling to pay their rent and save money,” said Marceline White, Executive Director, Maryland Consumer Rights Coalition
“I’m always eager to share ways that Baltimore City residents can maximize their tax return, especially those who rely on fixed incomes. More than 1 in 6 people living in Baltimore are age 60 or older, therefore we cannot thrive without uplifting everyone. The Maryland Renter’s Tax Credit is a great example of a timely boost available to qualifying seniors and permanently disabled residents. As the costs of living change, I am committed to making sure residents understand that they may qualify for additional benefits. No one should have to prioritize their basic needs, and the Renter’s Tax Credit has helped increasingly more residents bridge the gaps in their income,” said Mayor Catherine E. Pugh.
“Thanks to the great work of the Maryland Consumer Rights Coalition, more renters from Baltimore City will learn about a vital program that works to keep people in their homes and off the streets,” said Baltimore City Council President Bernard C. “Jack” Young. “This public awareness campaign will help us spread the word and reach more of Baltimore’s vulnerable renters.”
“Older adults are the backbone of our city, and we are dedicated to serving them so that they can lead healthy, fulfilling, and active lives in their communities. This program will complement our work at the Baltimore City Health Department to ensure that older adults can age with dignity and in place,” said Baltimore City Health Commissioner Dr. Leana Wen. “From providing activities in senior centers, to protecting older adults from neglect and abuse, we are proud to work with dedicated partners across the city to promote well-being.”
ABOUT THE MARYLAND CONSUMER RIGHTS COALITION (MCRC):
The Maryland Consumer Rights Coalition (MCRC) is a statewide nonprofit organization that protects and advances fairness and justice for Maryland consumers through research, education, and advocacy. Each year, MCRC issues various reports with advice on best practices on different consumer issues from predatory car sales practices to how to improve your home to the need for affordable auto insurance, among others. MCRC: The Voice for Maryland Consumers. For more information, contact Marceline White, Executive Director, MCRC at Marceline@marylandconsumers.org or 410-624-8980.
Find MCRC on the web at www.marylandconsumers.org , on Facebook at facebook.com/mdconsumers and on Twitter at twitter.com/mdconsumers
