Legislative Analysis
Phone: (517) 373-8080
LOW-INCOME WATER RESIDENTIAL AFFORDABILITY
http://www.house.mi.gov/hfa
House Bills 5088 (H-4) and 5090 (H-2) as adopted and amended Analysis available at
Sponsor: Rep. Abraham Aiyash http://www.legislature.mi.gov
House Bill 5089 (H-3) as adopted and amended and House Bill 5093
Sponsor: Rep. Donavan McKinney
House Bill 5091 (H-3) as adopted
Sponsor: Rep. Mike McFall
House Bill 5092 (H-1) as adopted
Sponsor: Rep. Jimmie Wilson, Jr.
Committee: Natural Resources, Environment, Tourism and Outdoor Recreation
Complete to 12-12-24
BRIEF SUMMARY:
House Bill 5088 would amend the Social Welfare Act to establish the Low-Income Water
Residential Affordability Program and provide for its purpose and eligibility requirements.
House Bill 5089 would amend the Social Welfare Act to establish the Low-Income Water
Residential Affordability Program Fund in the Department of Treasury. The fund would be
used to aid low-income residents for expenses related to water and sewer service.
House Bill 5090 would create a new act, the Water Shutoff Protection Act, which would
establish standards and criteria for when a water service provider can shut off water supply to
certain categories of nonpaying customer.
House Bill 5091 would amend 1972 PA 348, which regulates rental agreements between
landlords and tenants, to allow a tenant in a metered or sub-metered rental property to request
that a copy of the water and sewer bill be sent to both landlord and tenant, and to transfer the
water and sewer bill for the premises in the name of the tenant who is renting that unit.
House Bill 5092 would amend the Michigan Penal Code to make certain actions related to
restoring water service to a lawfully occupied residence after a water service shutoff a state
civil infraction rather than a misdemeanor.
House Bill 5093 would amend the Code of Criminal Procedure to update MCL references to
reflect amendments proposed by HB 5092.
DETAILED SUMMARY:
House Bill 5088 would add several new sections to the Social Welfare Act. The bill would
establish the Low-Income Water Residential Affordability Program. The purpose of the
program would be to reduce or eliminate money owed for water bills, to ensure that a water
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 bill is based on the customer’s household income, and, subject to funding availability, to keep
a customer from spending more than 3% of their household income on their water bill.
Water bill would mean a request from a provider to a retail water customer for payment
for water service. Water bill would include a request for payment of sewer, storm water,
or other related services if the provider charges for those services.
Provider would mean a public or private community water supply that provides retail
water service in Michigan or performs retail billing services for another community
water supply.
With the assistance of third-party organizations, the Department of Health and Human Services
(DHHS) would administer the program to customers of a provider that choose to use the
program. Each year beginning in 2026, DHHS and the Department of Treasury would have to
prepare projections to estimate funding required to offer program benefits to all enrolled and
eligible customers and for eligible applicants who will enroll in the next fiscal year.
Eligible customer would mean a provider’s customer whose household income does
not exceed 200% of the federal poverty guidelines or who meets any of the following
requirements:
• Has received assistance from a state emergency relief program within the past
year.
• Receives food assistance under the federal supplemental nutrition assistance
program administered by Michigan.
• Receives medical assistance administered under the Social Welfare Act.
• Receives assistance under the Michigan energy assistance program.
• Receives assistance under the special supplemental nutrition program for
women, infants, and children.
• Receives supplemental security income.
• Receives assistance under the weatherization assistance program.
If the fund will not have sufficient money to pay out the benefits according to the projections,
DHHS, the Department of Treasury, and the Low-Income Water Residential Affordability
Program Task Force (created in Senate Bill 980) would have to identify alternative funding
sources or adjust program benefits in a manner that, while prioritizing all enrolled and eligible
customers equitably, across geographic regions and provider population sizes, can be sustained
through available funding. In consultation with the Department of Treasury and the task force,
DHHS would have final decision-making authority to ensure that program benefits do not
exceed revenue collected. Based on available funding, these three entities would have to
prioritize program benefits designed to provide eligible applicants with household income-
based water bills over other program benefits. Reducing the program benefits corresponding
with the tier with the lowest household income (see below) could only occur if all other
alternatives have been exhausted.
The Low-Income Water Residential Affordability Program would begin 18 months after
collection begins for the Low-Income Water Residential Affordability Program Fund (created
in HB 5089). When the program starts, it would be open to providers with 500 or more retail
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 water service connections. The program would apply to all water providers in Michigan 18
months after it is initiated.
Program application process
After receiving a signed nonaffordability application, DHHS or the program administrator
would have 30 days to perform an income eligibility review to determine whether the applicant
is eligible for the program. The application would have to be simple and accessible and include
authorizations for release of the customer’s information to the provider and for the program
administrator to call or text the individual about the program.
Nonaffordability application would mean a form DHHS would have to develop to
trigger an income eligibility review for the program. The application would include
options for authorizing release of the customer’s information to the provider and for
indicating consent to receive telephone communications about the program.
Program administrator would mean DHHS, a provider, or a third-party organization
that administers a low-income water residential affordability program.
Not later than three business days after the eligibility review has begun, DHHS or the program
administrator, as applicable, would have to notify the provider. After that notification, the
provider could not pursue shutoff of service during the review.
In addition to any other verification of income accepted by the program administrator, a federal
income tax return would count as documentation of income. When applicable, the program
administrator would have to use publicly available information regarding standard benefit
amounts for Supplemental Security Income and Temporary Assistance to Needy Families in
determining eligibility. An applicant would have no obligation to provide confirmation of the
amount of benefits they receive from supplemental security income. Among other documents
as determined by the program administrator, the program administrator would have to consider
the customer’s enrollment in the Low-Income Home Energy Assistance Program, the
Supplemental Nutrition Assistance Program, the Special Supplemental Nutrition Program for
Women, Infants, and Children, Supplemental Security Insurance, the Weatherization
Assistance Program, or the customer’s self-verification of income or lack of income as proof
of the customer’s eligibility in the form of a written customer statement regarding their income
or lack of income.
DHHS could contract or collaborate with a third-party organization that collects or processes
household income information in order to do any of the following:
• Complete this eligibility review to determine if an individual meets the requirements
for the Low-Income Water Residential Affordability Program
• Notify the applicant and provider
• Perform other functions necessary for implementing the Low-Income Water
Residential Affordability Program.
Once review is completed, the applicant would have to be notified of the results. If the program
administrator finds that the applicant is an eligible customer, the administrator would have to
provide them with information about the Low-Income Water Residential Affordability
Program and the rate to be charged by the provider.
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 Depending on funding availability, the program administrator could issue a waiver and include
a household that is between 200% and 250% of the federal poverty guidelines into the program
if the household is experiencing any of the following financial hardships:
• Job loss or reduction of income.
• Acute or chronic physical or mental illness.
• Increase in essential expenses.
• Major home repair due to natural disaster or unexpected catastrophic event or repairs
to essential equipment.
• Death of a household income provider or unexpected funeral or burial expenses.
DHHS would have to create a process and timeline for redetermination based on
recommendations of the Low-Income Water Residential Affordability Program Task Force and
would have to consider the redetermination timelines and processes for similar programs,
including the Supplemental Nutrition Assistance Program. There would not be a time limit on
a customer’s enrollment in an affordability program.
If the applicant is not an eligible customer, the program administrator would have to provide
the applicant with information on the appeal and complaint process (which DHHS would have
to create) through which a customer could challenge the eligibility determination or otherwise
submit a complaint about the program. If an appeal is filed, the administrator would have to
notify the appealing applicant’s provider to place a hold on the customer’s account to cease
collection or disconnection of service until the appeal process has been completed.
If the applicant is an eligible customer, the program administrator would have to provide that
information and the customer’s household income to their provider. Upon receiving the
information, the provider would have to provide a discount, credit, or other payment method
on the eligible customer’s water bill to result in a bill that is affordable based on the eligible
customer’s household income, as determined by the program administrator. The provider could
not provide a discount or credit if the eligible customer’s pre-discount, pre-credit bill amount
would be lower than the bill amount after application of that discount or credit (i.e., the provider
would not be required to issue a credit or discount resulting in a negative balance). The discount
or credit would have to apply to the entire water bill, including any rider, fee, surcharge, or the
funding factor (the $2 per retail water meter fee created in HB 5089 that provides funding for
the affordability program). The discount or credit could not be applied to other charges for
public services on the eligible customer’s water bill that are unrelated to water, sewer, or storm
water services.
Program tiers
In consultation with the Low-Income Water Residential Affordability Program Task Force,
DHHS would have to create tiers of eligible customers for the program based on household
income compared to federal poverty guidelines, along with the corresponding discounts,
credits, or percentage of household income cap on water bills for each tier.
A provider could use discounts, credits, or other payment methods to ensure water bills meet
the 3% income threshold created by the bill. The tiers would have to include the following:
• A tier for households where the household income is not more than 135% of the federal
poverty guidelines and the corresponding cap is 2% of household income, or there is a
standardized household contribution of 2% of the average household income for
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 households with income not exceeding 135% of the federal poverty guidelines within
the provider’s water service area
• A tier for households where the household income is greater than 135% but not more
than 200% of the federal poverty guidelines and the corresponding cap is 3% of
household income or there is a standardized household contribution of 3% of the
average household income for households with income between 135% and 200% of
the federal poverty guidelines within the provider’s water service area.
DHHS would have to adjust the standardized household contribution based on the Department
of Treasury’s projections beginning in 2026 of available annual funding that would have to
project at least a 10% fund balance to remain at the close of the fiscal year.
Water use
An eligible customer in an affordability program would have a limited allocation of water use
per month to qualify for the cap described above. If the eligible customer exceeds the limited
allocation, the provider would have to charge the provider’s normal rate. The limited allocation
of water use per month would be determined by the provider within the following ranges:
• Six to eight centum cubic feet (600 to 800 cubic feet) for households with up to four
people.
• Nine to 11 centum cubic feet (900 to 1,100 cubic feet) for households with five or six
people.
• Twelve to 14 centum cubic feet (1,200 to 1,400 cubic feet) for households with seven
or eight people.
• Fifteen to 17 centum cubic feet (1,500 to 1,700 cubic feet) for households with nine or
ten people.
• Eighteen to 20 centum cubic feet (1,800 to 2,000 cubic feet) for households with up to
11 or more people.
A provider would have to attempt to contact a customer that exceeds the above limited
allocation of water use per month to determine the next steps the customer may take to reduce
water consumption, including possible minor plumbing repairs as described below, and to
coordinate with the program administrator regarding continuing program eligibility.
Plumbing repairs
The program administrator would have to make a good-faith effort to assess whether an eligible
customer is the property owner and needs a household plumbing repair to address a leak or
other plumbing or water service issue. If the eligible customer is the property owner, DHHS or
a contracted third-party organization would have to connect the eligible customer with licensed
master plumbers or licensed journey plumbers in Michigan to fix the water service issue, and
DHHS or the contracted third-party organization would pay for the necessary minor repair, up
to $2,500 per household. The program administrator would have to establish a waiver process
for those property owners demonstrating extreme need to issue payment over $2,500 for
plumbing repairs.
Provider notification of affordability programs
Each provider would have to notify its customers of the existence of the affordability program
or provider’s own affordability program for low-income customers, along with the respective
application process. This notice would have to be provided in writing on the customer’s water
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 bill and on the provider’s website. Beginning when the program is effective, DHHS would
have to engage in public relations activities to promote the program across the state, and would
have to inform all individuals receiving DHHS benefit program services about the program’s
availability and the process to apply.
Forgiveness of outstanding water bill balances
Timely payment, as defined by the water provider, of a water bill would satisfy the customer’s
current water liability so there is no addition to the amount in arrears.
A customer who has a balance of not more than $1,500 at the time they enroll in the program
would have that entire balance forgiven. If the outstanding amount owed is greater than $1,500,
then the customer would have half of their balance forgiven at the time of program enrollment,
followed by forgiveness of an additional $1,500 if they successfully participate in the program
for 12 months. Participation in the program for 24 mont