CDC Rent Moratorium Extension Includes Rent Relief
It looks like the US government is planning on approving a second wave of COVID-19 related stimulus package in the form of a $25 billion aid fund to help families pay their rent and bills. This would be an extension to the CDC eviction moratorium. Here are some important takeaways from the extension:
- Extends Federal Eviction Moratorium one month through January 31, 2021.
- The rental assistance will be administered by the US Department of the Treasury to state and local relief organizations.
- Tenants can then apply for assistance at state and local levels.
- The assistance will be made available depending on where you live. Some states already have state and local organizations established to accept and disperse the aid to affected tenants. Other states who don’t will need to establish the organizations which can take time.
- The funds can be allocated for back rent and overdue utility bills as well as to help pay future bills.
- At least 90% of the relief money that state and local organizations receive must be used to assist households.
- Renters must meet certain criteria to qualify for rental assistance relief:
- Must have income below 80% of the area average income.
- Tenant must have qualified for unemployment benefits and has lost part or all of their income due to COVID-19
- Can prove they are at risk for losing their home.
- Landlords and utility companies can receive the owed amounts directly by state and local organizations.
- Tenants can receive 12 months of aid but can receive up to 15 if it is necessary to keep them in their home.
- Tenants will have access to tenant-landlord mediation services if required.
As of the day of the publishing of this article (12/23/20), the stimulus package has not been signed by the President. He has told congress to go back and make a few changes such as incrementing the amount the stimulus bill would provide in assistance.
If you have any questions about how this could further affect you and your business, please call us at 1-800-686-8686 for a free consultation.
This post is filed under: News and Updates