Reverse mortgage loan payment--Undisbursed reverse mortgage funds

A reverse mortgage loan payment made to a borrower is 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. Undisbursed reverse mortgage funds shall be treated as equity in a borrower's home and not as proceeds from a loan, resources, or assets for the purpose of determining eligibility and benefits under means - tested programs of aid to individuals. This section applies to any law or program relating to payments, allowances, benefits, or services provided on a means - tested basis by this state, including supplemental security income, low - income energy assistance, property tax relief, medical assistance, and general assistance. Source: SL 1997, ch 276 , § 3.