The Treasury Department has launched a $25 billion rental assistance program promised under the most recent relief act passed by Congress. The program will assist households unable to pay rent and utilities due to the COVID-19 pandemic.
This was part of Congress' $900 billion stimulus package passed during the final two weeks of December. In the package, each state received a reported $200 million. But will this be enough?
It's a fair question given that many renters are struggling to claw out of a very deep hole. Moody's Analytics estimated that back rent debt had reached a collective $70 billion or $6,000 per renter by the end of 2020 alone.
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Indeed, Doug Bibby, National Multifamily Housing Council president, says long term, the relief package is a drop in the bucket, calling it instead a down payment.
"While there is light at the end of the tunnel with the rollout of vaccines, the country and the multifamily industry continue to face steep challenges," said Bibby. "The recently passed COVID relief package included $25 billion in desperately needed rental assistance as well as expanded unemployment insurance. Now, it is critical that those funds reach those in need as quickly and efficiently as possible. What's more, it is clear that is only a down payment on the financial support that will be necessary to make apartment residents and owners and operators whole."
NMHC reports that 76.6% of apartment households made a full or partial rent payment by January 6, 2021, up from the 75.4% who had paid by December 6, 2020.
The rental assistance program requires that nearly all (90%) of awarded funds must be used for direct financial assistance including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other housing expenses.
Eligible households may receive up to 12 months of assistance, plus an additional three months if it is determined extra months are needed to ensure housing stability and funds are available. Households may reapply for additional assistance at the end of the three-month period if needed.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
