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Act II-B · The Hidden Crisis · The Waiver-Funded Locked-Out

The State Calls Them
"Served."
They Are Not.

The 4,200 people on Pennsylvania's Emergency Waitlist are the visible crisis. Behind them is a larger, invisible one: tens of thousands of adults with IDD who receive waiver funding, appear in no waitlist statistics, and still cannot own the home they live in. Pennsylvania counts them as a success. They are not.

Exhibit 7-A · The Two Populations Pennsylvania Refuses to Count Together

Two Crises.
Only One Makes the News.

When Pennsylvania reports on its IDD housing crisis, it cites the Emergency Waitlist: 4,200 people with no waiver funding, no services, and no housing pathway. That number is real. It is also incomplete.

There is a second population the state does not count in its crisis statistics: adults with IDD who have waiver funding, receive services through the Office of Developmental Programs, and are therefore classified as "served" — but who live in homes they do not own, have no path to ownership, and are one caregiver death or one group home closure away from the Emergency Waitlist themselves.

The Visible Crisis
4,200

Adults on Pennsylvania's Emergency Waitlist. No waiver. No services. No housing. Counted as a crisis. Reported publicly.

The Hidden Crisis
~50,000+

Adults receiving waiver funding in Pennsylvania. Counted as "served." The vast majority live in homes they do not own and have no path to ownership. Not reported as a crisis. Not counted.

* ~50,000 figure reflects Pennsylvania ODP waiver enrollment. The ownership gap applies to the subset living in state-funded group homes or rental settings — the precise number of waiver recipients currently locked out of homeownership is not publicly reported by ODP, which is itself part of the problem.

Exhibit 7-B · The Waiver Trap · How "Served" Became a Ceiling

The Waiver Trap:
Funded, But Still Locked Out.

Pennsylvania's Medicaid Home and Community Based Services (HCBS) waiver funds services — personal care, behavioral support, day programming, transportation. It does not, and by federal regulation cannot, fund homeownership. Waiver dollars cannot be used as a down payment. They cannot service a mortgage. They cannot capitalize an ownership stake in a shared home.

The result is a structural ceiling: an adult with IDD who receives waiver funding can have their services paid for indefinitely, but the setting in which those services are delivered will almost always be a home they do not own. The waiver funds the tenancy. It cannot fund the deed.

Exhibit 7-B-1 · What Waiver Funding Can and Cannot Do
✓ What Waiver Funds CAN Cover
  • Personal care and direct support services
  • Behavioral health and therapy
  • Day programming and employment supports
  • Transportation
  • Assistive technology
  • Respite care for family caregivers
  • Case management and coordination
✗ What Waiver Funds CANNOT Cover
  • Down payment on a home
  • Mortgage principal or interest
  • Ownership stake in a shared residence
  • HOA dues or condo fees (as ownership costs)
  • Home equity or asset building of any kind
  • Capital contribution to a co-op or LLC
  • Any form of homeownership capitalization

This is not a gap in the waiver program. It is a structural feature of the Medicaid system. The waiver was designed to fund services, not assets. But when the only housing available to adults with IDD is service-funded housing, the distinction between "funded" and "housed with permanence and dignity" becomes the difference between a life and a life well-lived.

Exhibit 7-C · The Ownership Gap · A Representative Case

"Served" Is Not the Same
as Home.

Representative Case · Anonymized

Consider a 32-year-old man with autism and an intellectual disability. He receives Pennsylvania waiver funding. He has a support team. He attends a day program. He lives in a group home operated by a provider agency. By every metric Pennsylvania uses to measure its IDD system, he is a success story. He is "served."

He does not own his home. He has no equity. He has no legal right to remain if the provider agency closes, loses its license, or decides to exit the market. His parents — who have spent 32 years advocating for him — will not live forever. When they are gone, there is no plan. There is a phone number for a case manager.

This is not a failure of the waiver system. It is the waiver system working exactly as designed — and the design is not enough.

The Pennhurst Longitudinal Study established that permanence — the knowledge that a home is yours, that you will not be moved — is one of the most significant predictors of long-term wellbeing for adults with IDD. The waiver system, by design, cannot provide permanence. It can only fund the services that surround a setting someone else controls.

The ODP 4-person rule — the regulatory legacy of Byberry — compounds this by making it illegal to build the kind of ownership-based community model that would solve both problems simultaneously: providing the services the waiver funds, in a home the resident owns, with the permanence the research demands.

Exhibit 7-D · The Complete Picture · Three Populations, One Broken System

The State Reports One Crisis.
There Are Three.

01
The Emergency Waitlist
~4,200 people · No waiver. No services. No housing.

The visible crisis. Reported publicly. Represents the acute failure of the system to meet its own commitments. Every person on this list is a $44M unfunded lifetime liability.

02
The Waiver-Funded, Renter-Trapped
Tens of thousands · Has waiver. Has services. Does not own home.

The hidden crisis. Counted as 'served.' Living in provider-controlled settings with no ownership, no equity, and no permanence. One provider closure away from the Emergency Waitlist.

03
The Aging-Out Pipeline
Continuous inflow · Turning 21. Leaving school. Entering the system.

Young adults with IDD aging out of school-based services every year, entering an adult system that has no ownership pathway for them. The Emergency Waitlist replenishes itself from this population annually.

"Pennsylvania counts 4,200 people as a crisis and 50,000 as a success. The difference between those two numbers is not the quality of their lives. It is whether they are visible enough to be counted."

— The Pennhurst Declaration · pennhurstdeclaration.org