Philadelphia Overhauls Low-Income Water Billing Program
By Sara Jerome,
@sarmje
Known for its high rate of deep poverty, Philadelphia already has a program to help low-income residents with their water bills. But city officials say they are introducing a new program that will be more supportive of a higher number of residents.
“The Philadelphia Water Department next month will launch a low-income assistance program that offers payments starting at $12 per month and is open even to those who haven’t fallen behind on their bills. For those who have, that debt would be frozen indefinitely,” The Philadelphia Inquirer reported.
The city plans to enroll 50,000 households, the report said. That's five times more enrollees than the city's current low-income water program, WRAP (Water Revenue Assistance Program).
“A lot of assistance programs require people to be delinquent. This is innovative in that it’s giving people an affordable rate so they’re able to stay current,” Revenue Commissioner Frank Breslin said. “We are really putting an affordable bill in their hands.”
The new initiative is called the Tiered Assistance Program (TAP). Customers who enroll in TAP will be charged a fixed amount for water based on how much money they make.
“Under TAP, unpaid balances are suspended while families are in the program. It is open to anyone responsible for a water bill, including owners and tenants. The Water Department has budgeted $15 million for TAP... The money was included in the most recent water rate increase, last July,” CBS News reported.
About 40 percent of Philadelphia customers are delinquent, owing more than $260 million, according to the Associated Press.
“Anyone making less than 150 percent of the federal poverty level qualifies. That's about $36,900 for a family of four. Those folks would be charged 2 to 4 percent of their household income and not billed on how much water they use,” the report said.
A release from the mayor’s office lists notable features of the program:
- Customers do not have to be behind on their bill
- Expanded eligibility; approximately 60,000 customers are now eligible
- More ways to apply: Online, in-person and by mail
- Income-based, consistent monthly bill
- Past due amounts are suspended and not enforced upon while enrolled in the program
- Only a single application is required
The program is intended to protect low-income residents from foreclosure due to unpaid water bills, according to Next City.
“While the repercussions of the mortgage foreclosure crisis are commonly explored, less researched are the impacts of tax lien foreclosures,” Next City reported. “It’s commonplace for local governments to file a tax lien for an overdue utility bill, and every state allows its municipalities to sell unredeemed tax liens.”
To read more about how water systems bill customers visit Water Online’s Funding Solutions Center