CEAC CEAC Home Modification Funding & Resources 2 — Questions and Answers
Question 1: When a CEAC consultant identifies that a client's home modification project may qualify for a state assistive technology program loan, which federal act funds most state AT programs?
- Americans with Disabilities Act (ADA)
- Assistive Technology Act of 1998 (AT Act) (Correct answer)
- Rehabilitation Act of 1973
- Individuals with Disabilities Education Act (IDEA)
Correct answer: Assistive Technology Act of 1998 (AT Act)
The Assistive Technology Act of 1998 (AT Act) funds state assistive technology programs that provide device demonstrations, loans, and financing options including low-interest loans for home modifications.
Question 2: A client is denied Medicaid waiver funding for a grab bar installation citing cost caps. What is the CEAC consultant's best next resource to recommend?
- File a complaint with CMS immediately
- Explore Area Agency on Aging (AAA) programs and Older Americans Act funding (Correct answer)
- Request a Medicare Part B durable medical equipment order
- Apply for Social Security Disability back pay
Correct answer: Explore Area Agency on Aging (AAA) programs and Older Americans Act funding
Area Agencies on Aging administer Older Americans Act Title III funds that can cover home modification services for older adults when Medicaid funding is unavailable or capped.
Question 3: Which federal tax credit may be available to businesses that make their facilities accessible for people with disabilities?
- Earned Income Tax Credit
- Disabled Access Credit (IRS Form 8826) (Correct answer)
- Work Opportunity Tax Credit
- Child and Dependent Care Credit
Correct answer: Disabled Access Credit (IRS Form 8826)
The Disabled Access Credit (IRS Form 8826) provides a 50% tax credit for eligible small businesses that spend money to make their facilities accessible to people with disabilities.
Question 4: A homeowner with a disability wants to deduct home modification costs on their federal taxes. Under which IRS provision may medical home modifications be deductible?
- Schedule C business deductions
- Schedule A medical expense deduction (IRC Section 213) (Correct answer)
- Schedule E rental expense deduction
- Form 2441 dependent care expenses
Correct answer: Schedule A medical expense deduction (IRC Section 213)
Under IRC Section 213, home modifications that are primarily for medical purposes (such as ramps or grab bars) may be deducted as medical expenses on Schedule A to the extent they exceed 7.5% of AGI.
Question 5: Which document should a CEAC consultant help a client compile to support a funding application for home modifications under most grant programs?
- A licensed contractor's business license only
- Documentation of disability, income verification, and a home assessment report (Correct answer)
- Only a physician's prescription
- A credit report and mortgage statement
Correct answer: Documentation of disability, income verification, and a home assessment report
Most home modification grant and loan programs require documentation of the applicant's disability status, proof of income eligibility, and a home assessment report to justify the requested modifications.
Question 6: A CEAC consultant is working with a client in a rural area who owns their home but has very low income. Which USDA program combination best addresses both repair costs and accessibility needs?
- USDA Section 502 Direct Loan only
- USDA Section 504 Loans (for repair) and Section 504 Grants (for elderly homeowners) (Correct answer)
- USDA Rural Rental Housing Program
- USDA Business and Industry Loan Guarantee
Correct answer: USDA Section 504 Loans (for repair) and Section 504 Grants (for elderly homeowners)
USDA Section 504 provides loans for lower-income rural homeowners to repair homes and grants specifically for elderly (62+) rural homeowners who cannot repay a loan, covering both repair and accessibility needs.
CEAC CEAC Home Modification Funding & Resources 2
When a CEAC consultant identifies that a client's home modification project may qualify for a state assistive technology program loan, which federal act funds most state AT programs?