Parent donates a property to a housing network for use by the family member with a disability
Donating a property (home) to a non-profit housing corporation is another option available to the parent(s). A non-profit housing corporation is a housing corporation which has a contract with the County Board of Developmental Disabilities to provide housing to people with disabilities. Many county boards have contracts with housing corporations.
What is this?
Donating a property (home) to a non-profit housing corporation is another option available to the parent(s). A non-profit housing corporation is a housing corporation that has a contract with the County Board of Developmental Disabilities to provide housing to people with disabilities. Many county boards have contracts with housing corporations. Generally, the housing corporation charges a reasonable rent for a housing unit and manages the administrative and maintenance functions.
Often, the non-profit housing corporation will accept donated property under a contractual arrangement with the parent(s). The extent of parent involvement is outlined in this contractual agreement. The agreement may specify things such as how the rent will be set for the family member with a disability, how many people can live at the address, how the other tenants for the home are qualified, and, in the case of changes in the family member’s situation, how long the space will be available in the case of a prolonged absence. (If any public housing subsidies are involved, there may be deadlines associated with prolonged absence).
The Housing Corporation will establish a lease with the family member with a disability, and the family member will pay rent. If the Housing Corporation did not charge rent, this would impact the family member’s public benefits (see In-kind support and maintenance).
The housing corporation will require that the housing be in reasonable condition and may require that funds be available to maintain the property (e.g. replace the roof, etc.).
At the point of donation, the parent(s) will no longer make day-to-day decisions as it relates to the operation of the property. All property management responsibilities and liabilities will transfer to the Housing Corporation. The housing corporation will be responsible for ensuring the condition of the housing, and will assume any injury or loss liabilities stemming from the property.
The Housing Corporation is not a service provider and therefore does not provide day-to-day care for a family member with a disability. The Housing Corporation’s responsibility is limited to care for the home. The family member with a disability maintains the right to choose a service provider to provide day-to-day supports. The Housing Corporation does not choose the service provider. The Housing Corporation will work with the service provider chosen by the family member with a disability to determine specific responsibilities regarding home care, such as cleaning and care of major appliances.
The parent(s) considering this option will want to reach out to the local housing corporation well in advance to discuss the feasibility of this option. The donation of the property should never be a surprise to the housing corporation. The housing corporation can refuse the bequest if they were not involved in the planning prior to the parent(s)’ death.
What Circumstances Make this a Possible Fit?
- The parent(s) wants to donate the family home where the family member with a disability grew up, or a home purchased specifically for the family member with a disability to live in. This home could be a single family home, a condo, an apartment building, etc.
- The parent(s) wants someone else to assume property management responsibilities.
- The parent(s) has tax considerations. The donation of property will, in some cases, likely serve as a charitable donation for tax purposes in the year that you make the donation. Contact a tax professional for assistance in making this determination.
- The parent(s) is not interested in Inheritance of the property by other heirs.
What Does This Mean to My Family Member with a Disability?
Donation of the property to a Housing Corporation can ensure the availability of housing for your family member with a disability beyond the life of the parent(s). The agreement negotiated with the Housing Corporation will stipulate what this will look like for a family member with a disability.
What Does this Mean to My Estate?
If the home is donated prior to the death of the parent(s), this will reduce the overall value of the estate by its lack of inclusion in the estate. The parent(s) may qualify for a tax deduction at the time of the donation. If the plan is to donate the property upon the death of the parent(s), seek the assistance of a qualified legal professional to ensure that the home transfers to the housing corporation as part of the estate process. The parent(s) can make plans to receive the tax benefits of the donation during their lifetime.
Where Do I Get More Information?
- In Hamilton County, contact The Housing Network of Hamilton County at 513-619-2929 and ask for the Executive Director
- In Hamilton and other counties, contact Options for Supported Housing at 614-389-4501 or on their website.
Pros and Cons
Extent of Control
Effects on Public Benefits
Property Management Responsibility
Long Term Flexibility
Explore other housing options
Created by a Home Think Tank workgroup.
Information on this sheet is provided for informational purposes only. Nothing in this document should be considered legal or accounting advice. Contact a professional for information pertinent to your specific situation.
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