Treatment of reverse mortgage loan proceeds by public benefit programs.

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(1) Reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals.

  1. Undisbursed funds under a reverse mortgage shall be treated as equity in a borrower'shome and not as proceeds from a loan for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals.

  2. This section shall apply to any law relating to means-tested programs of aid providedby this state, including but not limited to supplemental security income, low-income energy assistance, and the "Colorado Medical Assistance Act", articles 4, 5, and 6 of title 25.5, C.R.S.

Source: L. 92: Entire article added, p. 943, § 1, effective April 23. L. 2006: (3) amended, p. 2000, § 40, effective July 1.


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