Debbie Peterson’s home gets a low-income water discount. Does she really qualify?
Former Grover Beach Mayor Debbie Peterson, who’s running to reclaim that job, appears to have received assistance paying her water and sewer bills despite making more income than is eligible to receive that benefit, which is intended to help low-income residents.
And she received the discount even though she has multiple streams of income. She runs a real estate agency, rents out two vacation properties (including one in Hawaii) and is the published author of four books.
Peterson — who also leads the GroverH2O citizens group that opposes water and sewer rate increases — received a break on her water and sewer bill from the city’s Customer Assistance Program for her home on 3rd Street, according to a Public Records Act request submitted by The Tribune.
Peterson lives at the home, runs her real estate business Peterson Team Realty from there, and rents it out as a vacation property.
Resident Jim Joffee — who is current Mayor Karen Bright’s partner of 23 years — was the first to raise questions after he submitted a public records request to the city on June 25 for a cross-referenced list of all water meter customers participating in and qualified for the program who receive a reduced water bill and also have a current valid business license at the same address within Grover Beach.
The city replied to Joffee’s request on July 11 with a list of businesses that use the benefit, including Peterson’s address.
During public comment at the Oct. 15 City Council meeting, Joffee said he sought the information to see whether customers who receive the discount also run a commercial business at the same address.
“It sleeps up to 10 people and rents for up to $517 per night, booked a majority of time,” Joffee said of Peterson’s short-term rental during public comment. “Can you imagine how much water can be consumed by 10 people using three bathrooms? Can you imagine that Debbie Peterson gets a discount intended for low-income residents on water that she doesn’t even use herself?”
Peterson’s 3rd Street property has received Customer Assistance Program benefits since at least March of this year, according to a separate public records request submitted by The Tribune.
Peterson did not reply to repeated requests for an interview or to questions submitted via email from The Tribune a week in advance of publication, but later sent an email to The Tribune with the following statement:
“I have submitted no fraudulent financial information to any program,” Peterson wrote in the email. “I have committed no fraud or deceit. I have made full campaign reports as required by law.”
The Tribune looked into the question as part of its Reality Check series.
Is it legal to use low-income benefits for an Airbnb?
To be eligible to receive Customer Assistance Program benefits, a household must provide the city proof that it meets PG&E’s requirements for its California Alternate Rates for Energy program, which provides energy bill discounts for lower-income households, according to city manager Matt Bronson.
According to PG&E’s website, households can seek CARE benefits if they meet the following requirements:
- The PG&E bill must be in your name, or in your landlord’s name if you’re a sub-metered tenant.
- You must live at the address to which the discount applies.
- Another person besides your spouse can’t claim you as a dependent on an income tax return.
- You must not share an energy meter with another home.
- You must account for all sources of qualifying household income.
- This combined household income must meet the program income guidelines.
- You must enroll in qualifying public assistance programs.
- After you enroll, you may need to provide proof of qualifying household income, and may also be required to participate in the Energy Savings Assistance program.
- Your monthly electric usage must not exceed six times the Tier 1 allowance, the lowest priced rate tier within PG&E’s standard Tiered Base Plan.
- You must renew your eligibility every two years unless you are on a fixed income, in which case you must renew your eligibility every four years.
- You must notify PG&E if your household no longer qualifies for the CARE discount.
PG&E’s income guidelines state that a household of one or two residents’ combined gross income can total no more than $40,800 to qualify for CARE benefits.
As it stands, a total of 218 accounts in Grover Beach were signed up for the city’s Customer Assistance Program program at a combined annual cost of $83,000 from the general fund, according to city manager Matt Bronson.
“There are no specified residency or income requirements for the CAP — the city only asks that the account holder demonstrate enrollment in the CARE program, as noted above,” Bronson told The Tribune in an email.
“Based on PG&E requirements, it appears someone could run an owner-occupied STR (short-term rental) and also receive the CARE credit, assuming they are otherwise eligible (i.e., meet income requirements),” Bronson continued. “We would add that the city’s policy intent in creating the CAP was to help low-income residents and households with utility bills rather than businesses.”
Is Peterson’s rental property eligible for benefits?
The question of whether Peterson’s property qualifies would depend on her total income, which comes from multiple sources.
As a vacation rental, Peterson’s property has paid a little over $36,132 in transient occupancy tax in the five years since October 2019, according to a separate Public Records Act request shared with The Tribune by former Five Cities Fire Authority Chief Steve Lieberman — who recently formed a group called Grover Forward that opposes the efforts of GroverH2O.
By reverse calculating using Grover Beach’s 12% TOT rate, that comes out to a gross income of around $301,270 since October 2019 — or $8,275 in 2019, $53,336 in 2020, $73,849 in 2021, $51,988 in 2022, $66,151 in 2023 and $47,668 as of the end of August.
According to its Vrbo listing, Peterson’s short-term rental charges an average of $334 per night, and is currently booked for a total of 16 nights between Nov. 1 and Dec. 31. It can be rented as a single floor or as the complete home for up to eight guests, according to its Airbnb listing.
It’s unclear where Peterson stays when the full home is rented out.
However, the Grover Beach property is not Peterson’s only vacation rental.
She also owns a two-bedroom, two-bath condo in Hawaii, which is also listed on her Airbnb page and is booked for 24 nights in November alone. The condo, located about a half-hour’s drive from Honolulu, appears to rent on a monthly basis for about $8,000 to $14,000.
Peterson wouldn’t take home all the income from the rentals, as she would have to pay fees to the reservation platforms and for cleaning.
Meanwhile, Peterson’s real estate firm Peterson Team Realty — which consists of Peterson and fellow Realtor Mary McNally — has sold 18 homes since the start of 2022 worth a total of nearly $14 million, according to the sale prices listed on the firm’s website, though the business’ commission from those transactions likely falls somewhere between 3% and 6%, or between $420,000 and $840,000 total.
Finally, Peterson is also a published author with four titles currently available for purchase through Amazon, including “The Happiest Corruption: Sleaze, Lies, & Suicide in a California Beach Town,” “Leadership Secrets of Taylor Swift: How to lead like America’s favorite pop star,” “City Council 101: Insider’s Guide for New Councilmembers” and “Local Impact: You CAN Make a Difference,” though sale information and income was not available.
Though Peterson’s actual net income from her real estate sales, short-term rental properties and books is not known, her rental gross income alone was more than PG&E’s income limit for her residence.
In a Facebook comment posted by Bright on Monday in response to a post by the Central Coast Taxpayers Association that named Peterson a “Tax Hero” in 2024, the current mayor expressed displeasure with Peterson’s actions.
“Public records show Debbie Peterson avails herself of taxpayer funds she’s not entitled to,” Bright said in the comment. “Central Coast Taxpayers Association supports and gives accolades to an individual who takes advantage of low-income, taxpayer-funded assistance programs designed for our residents who are truly in need.”
This story was originally published October 31, 2024 at 5:00 AM.
CORRECTION: The original version of this story stated that Debbie Peterson did not reply to The Tribune’s requests for comment. Peterson’s statement was sent to The Tribune after publication and has been added to the story.
