Hundreds of thousands of low-income elderly and disabled Californians who were qualified to receive renter assistance this year will not receive any, after Gov. Arnold Schwarzenegger cut a vital assistance program last month.

When the governor approved the state budget two weeks ago, the largest cut included in his $510 million line-item vetoes eliminated a $150 million tax-related rebate program for low-income seniors and disabled renters.

Under the program, seniors who are 62 years of age or older with incomes of $44,096 or less were eligible to receive payments of up to $348 per year for renter assistance. People with disabilities and low-incomes, irrespective of age, were also eligible to benefit from the program.

In addition, the governor vetoed $41 million in tax-rebates for low-income seniors and the disabled who own homes.

Berkeley resident Dan Marlin, 63, said he receives renter tax credit and that the renter assistance program the governor cut helps many of his senior friends.

"Renter assistance is very important for people living on the edge," he said. "To me it shows a lack of sympathy on (the governor's) part."

In 2006, the Homeowner and Renter Assistance Program gave nearly 450,000 senior citizens and disabled renters tax-related rebates with payments averaging $315, according to the state Franchise Tax Board 2006 Annual Report.

"This was a governor who said he was for the seniors and children," said Bill Powers, a board member of the California Alliance for Retired Americans. "He has a heck of a way of showing it."

The eliminations are part of the budget reform to address California's $15.2 billion shortfall, and according to the governor's office, Schwarzenegger felt the need to "achieve meaningful budget reform."

Schwarzenegger's decision comes at a time when many Berkeley residents are feeling the effects of the economic downturn. Rents in the Bay Area increased by 5.7 percent from January 2007 to June 2008, according to the 2007 city of Berkeley Consolidated Annual Performance and Evaluation Report.

The market price for a one bedroom apartment in Berkeley reached $1,300 in the second quarter of 2008 compared to $1,200 in the second quarter in 2007, according to the city of Berkeley Rent Stabilization Board.

Alex Ghenis, president of the UC Berkeley Disabled Students' Union, said that the program cut is worrisome because it affects people who have already been burdened with extra costs by virtue of their conditions.

"Having a disability really increases a lot of the cost, and the elderly have to pay for medicine and insurance premiums," he said. "You're talking about a person who's already not in a good financial position to begin with."

Ghenis said that people with disabilities tend to have difficulty finding a place to rent in Berkeley due to the limited supply of accessible housing.

Jay Kelekian, executive director of the city of Berkeley Rent Stabilization Board, said that with rising rents, everyone is feeling the pinch, but those who have low incomes are especially affected.

"It just seems unfair that people with resources don't have to make any sacrifices," he said. "Once again we're asking those most vulnerable to make significant sacrifices."

Tags: CALIFORNIA BUDGET, HOMEOWNER AND RENTER ASSISTANCE PROGRAM