All recipients of Government Financial Assistance will have to prepare for reassessment as of Thursday, July 1, when the new Financial Assistance Legislation and Regulations comes into effect.

In addition, current recipients of the Government's Housing Allowance are being warned they only have one year before their benefits end.

The Department of Financial Assistance released a statement yesterday to remind all current recipients, and to also inform all new applicants, that the department will be operating under the new legislation as of the first of next month.

But persons currently on Social Assistance will have a six month-grace period ? between July 1 and December 31 ? to be reassessed according to the new regulations.

The Government's Housing Allowance is being phased out completely but recipients are reminded that they will have a grace period of one year ? July 1, 2004 to July 1, 2005 ? before the programme ceases to exist.

"Persons who are currently receiving assistance should have received a letter informing them that they will soon be contracted by their financial assistance worker so that they can be reassessed," a department spokesperson said yesterday.

The new regulations will mean that Bermudians who are property rich and cash poor will be able to receive assistance.

Under the new regulations people who apply for assistance are evaluated according to their total household income. They must not have any financial investments in Bermuda or elsewhere exceeding $5,000.

The new legislation, which was tabled in May in the House of Assembly as an amendment to the Financial Assistance Act 2001, also specifies that homeowners are eligible for financial assistance as long as their annual rental income does not exceed $9,900. The requirements of the Department of Financial Assistance stipulate that people eligible for financial assistance must have expenses, which exceed the amount of their household income.

"The new procedure provides for assessment based on household income and the determination of household needs. This definition of household income is significant as it allows for the responsibility of family welfare to be borne by all contributing members of the household," said Health Minister Partrice Minors in May, when she tabled the legislation.

The Financial Assistance Regulations 2004, which outline the new procedures for eligibility, were published in the Bermuda Sun on May 28, 2004.