Renters Assistance is On the Table in Stimulus Talks
The industry is at a breaking point—many have burned through their reserves and cannot continue to bear the financial burden of housing the nation’s renters alone, says NAA’s Bob Pinnegar.
A credible proposal for another stimulus measure hit Capitol Hill on Tuesday. There is no guarantee that it will pass and be signed into law and it is light on details but it is the first serious attempt to jumpstart bipartisan talks for further coronavirus relief.
A bipartisan group of senators proposed the measure. Worth about $908 billion, the bill seeks to take the middle road between competing proposals that have been introduced in the House of Representatives and the Senate.
According to the Washington Post, it will provide $300 a week in federal unemployment benefits for four months. It will also devote $160 billion in funding for state and local governments. Funding will also be made available for small businesses, schools, health care, transit authorities and student loans.
Most significantly for the commercial real estate industry, it would also allocate funds for rental assistance.
This is welcome news to Bob Pinnegar, president and CEO of the National Apartment Association. “We are pleased that the latest COVID-19 relief proposal acknowledges this need, and look forward to working with our leaders to ensure the unique needs of the industry and our residents are addressed,” he tells GlobeSt.com.
It can’t come soon enough, he adds. The industry is at a breaking point—many have burned through their reserves and cannot continue to bear the financial burden of housing the nation’s renters alone, he says. “Congress’ and the Administration’s failure to act has left millions of Americans on a financial cliff, jeopardizing 40 million apartment homes, 17.5 million jobs and a $3.4 trillion industry.”
Unfortunately, the measure is facing a steep uphill climb. Senate Majority Leader Mitch McConnell rejected it shortly after it was unveiled. Instead, he wants to pass a “targeted relief bill” this year that would come in at around $500 billion. Complicating matters is the government funding package that must be passed by Dec. 11 to avoid another shutdown.
McConnell has told reporters that the spending bill and pandemic relief provisions will “all likely come in one package.”
But even if this current proposal does not come to fruition, the apartment industry can take heart that relief was included for renters. It augurs well that renters assistance will be included in the next stimulus proposal.