According to a new report from the Office of Consumer Financial Protection (CFPB), it is estimated that there are 11 million families at risk of eviction. The U.S. rescue plan, which includes tens of billions in emergency rental aid, could help many of them stay housed stably in the coming months, according to advocates.
The CFPB report finds that 8.8 million tenants and 2 million homeowners were “significantly” behind in their housing payments by the end of 2020. As a reflection of the disproportionate impact of coronavirus on communities of color, black and Hispanic households were more than twice as likely to be behind as white households.
The report says government policies, including stimulus payments, increased unemployment benefits and eviction moratoriums, have kept millions in their homes throughout the pandemic. However, the nationwide eviction ban expires in late March and many key unemployment benefits expire in mid-month.
The next federal assistance bill, passed early Saturday morning by House Democrats, would restore many of the provisions that kept families with cash problems lodged. It spends $ 30 billion on emergency rental assistance and $ 10 billion on landlord assistance, extends improved unemployment benefits through August, and provides another incentive for many families.
“The U.S. Rescue Plan Act provides urgently needed Covid-19 relief resources for America’s lowest-income tenants and the homeless,” says the National Coalition for Income Housing Low (NLIHC). “If promoted, these investments will help prevent millions of low-income people from losing their homes during the pandemic.”
In particular, the bill does not extend the eviction moratorium because it is being passed through budget reconciliation in the Senate, according to Diane Yentel, president and director general of the NLIHC. The budget reconciliation process allows the upper house to pass a bill with a simple majority instead of 60 votes, but legislation can only affect budget items and not implement policy changes such as a ban on eviction.
“This underscores the need for the Biden administration to take steps to extend, strengthen, and enforce the moratorium,” Yentel says.
Who meets the requirements for rental assistance
However, the help provided by the House bill is much needed for families at risk of eviction. You can apply for housing assistance if you meet one of the following requirements:
- A tenant has qualified for unemployment benefit
- A tenant has experienced financial hardship (including a loss of income) during the pandemic
- A tenant is at risk of homelessness or instability in the home
- A tenant has a family income below 80% of the median income (AMI) in the area, which varies by location
Relief may apply to subsequent or future rental costs or utilities, and eligible households may be entitled to 12 months (and up to 15 if deemed necessary) assistance. The amount for qualifying a home varies by state or location and is based on the monthly rent payment, which you must verify with a lease or other document. States and localities will deploy the programs when the grant ends.
The aid adds to the $ 25 billion in emergency rental aid provided by the distress law signed at the end of the law.
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