Around 2,000 Philadelphia homeowners recently received a letter about the City’s Longtime Owner Occupants Program, or LOOP. The program can help homeowners whose property assessment tripled from one year to the next.
If you received one of our letters, it doesn’t mean you’re pre-approved for LOOP. The letter alerts you that your property’s assessment tripled, or more, from 2018 to 2019. The letter also encourages you to find out if you meet the program’s other requirements.
The other requirements are:
- You must be the owner of the home
- You must have lived in the home for 10 years or more
- Your Real Estate Taxes can’t be in delinquent status (if you’re in an Owner-Occupied Payment Agreement you are considered compliant)
- Your income must fall below certain limits based on family size
If you meet all the requirements, the letter still recommends you weigh your options carefully. You may not save any money, or very little, by enrolling in LOOP this year. LOOP works by 1) tripling your home’s previous assessed value, and 2) locking-in that assessment for as long as you remain eligible.
Future property assessments may increase the market value of your home. But LOOP guarantees your future property taxes are based on the “frozen” assessment. If Real Estate Tax rates go up, so can your bill.
If your assessment exactly tripled, you won’t save money this year. But there could be savings in the future. The Homestead Exemption, another tax relief program, may save you more money in the short-term.
If you’re not sure what’s the best option, you should check with a housing counselor. Philadelphia residents can receive free housing counseling in 28 locations across the city.
LOOP may not be a perfect match for you. But if you get one of our letters, you owe it to yourself to find out.
