Summary — HB 5088 (H‑4): Low‑Income Water Residential Affordability Program
Status and Sponsor
- Sponsor: Rep. Abraham Aiyash (originally introduced Oct. 4, 2023)
- Major milestone: Committee substitute (H‑4) adopted Dec. 11, 2024.
- Current status (per materials provided): placed on third reading.
- Related bills in the package: HB 5089 (creates the program fund), HB 5090 (Water Shutoff Protection Act), HB 5091–5093 (tenant billing and related criminal/penalty updates).
Purpose
- Establish a statewide Low‑Income Water Residential Affordability Program administered by the Department of Health & Human Services (DHHS) to reduce/retire water bill arrearages and, subject to available funding, ensure eligible households do not spend more than 3% of household income on water bills.
Key provisions
- Definitions: establishes terms including “eligible customer,” “provider,” “water bill,” and “affordability funding factor” (a mandatory fee on each retail water account, excluding irrigation/fire lines).
- Eligibility: household income ≤ 200% of Federal Poverty Guidelines OR enrollment/receipt of specified supports (state emergency relief within past year; SNAP; Medicaid; MI energy assistance; WIC; SSI; weatherization assistance, etc.).
- Administration: DHHS (with third‑party assistance if contracted) runs the program; DHHS and the Department of Treasury must prepare annual funding projections beginning in 2026.
- Program priorities & fiscal controls: benefits must be prioritized to provide household income–based bills (aiming for the 3% target). If fund projections show insufficient revenue, DHHS, Treasury, and a statutorily created task force must identify alternate funding or adjust benefits equitably; DHHS has final decision authority to keep benefits within revenue.
- Rollout timeline: program begins 18 months after collection of the Low‑Income Water Residential Affordability Program Fund begins. At startup it applies to providers with ≥500 retail connections, expanding to all providers 18 months after initiation.
- Application & review: a simplified “nonaffordability application” triggers an income eligibility review; DHHS/administrator has 30 days to complete review and must notify the provider within 3 business days of starting the review — providers may not pursue shutoff during the review.
- Documentation: federal tax returns, public benefit enrollment data, self‑attestation and other documents may be used for eligibility verification.
Who is affected
- Primary beneficiaries: low‑income residential water customers meeting eligibility criteria.
- Providers: public and private community water supplies; required to participate once program applies to them and to pause shutoffs during reviews.
- All retail water customers: may be affected by the “affordability funding factor” fee that funds the program (assessed on each retail account).
- State agencies: DHHS and Department of Treasury administer and fiscal‑manage the program; a task force is created to advise/coordinate.
Procedural/timeline notes
- The program’s activation depends on collection of the companion fund (HB 5089).
- Annual projections begin in 2026 per the bill.
- Administrative deadlines: 30‑day eligibility review; 3 business‑day provider notice to delay shutoff during review.
Notes
- HB 5088 is part of a multi‑bill package addressing water affordability, shutoff protections, tenant billing, and related penalties. Specifics about the fund mechanics and fee amount for the affordability funding factor are addressed in companion legislation (HB 5089) and implementing rules.
