New COVID-19 relief has passed the house and reached President Biden’s desk, where he signed the historic relief bill. While many in America are taking this time to celebrate that their stimulus checks are coming again and soon, those in the property industry are cheering for something else.
The American Rescue Plan 2021
New COVID-19 relief has passed the house and reached President Biden’s desk, where he signed the historic relief bill. While many in America are taking this time to celebrate that their stimulus checks are coming again and soon, those in the property industry are cheering for something else.
The American Rescue Plan 2021
The American Rescue Plan passed the house officially on March 10th, 2021 with a 1.9 trillion stimulus deal. This marks the largest “injection of financial aid since the great depression.” Luckily for most landlords, the plan also includes a large bundle of money all assigned to rental assistance. One of the main concerns during the pandemic was how people, now out of work as we spiraled into a recession, would pay their rent. The answer for many was that they couldn’t. With so many industries closed up tight with stay-at-home orders, everyone from waitstaff to hotel managers were suddenly out of a job and rent just was not being paid.
The American Rescue Plan passed the house officially on March 10th, 2021 with a 1.9 trillion stimulus deal. This marks the largest “injection of financial aid since the great depression.” Luckily for most landlords, the plan also includes a large bundle of money all assigned to rental assistance. One of the main concerns during the pandemic was how people, now out of work as we spiraled into a recession, would pay their rent. The answer for many was that they couldn’t. With so many industries closed up tight with stay-at-home orders, everyone from waitstaff to hotel managers were suddenly out of a job and rent just was not being paid.
That is why the stimulus package has $45 billion dedicated to rent relief. It is split into two different pots, and the first pot of $25 billion will roll out immediately while the second pot will roll out later. That means more and more states are coming up their individual programs, like California’s, to set up how landlords and property managers can pay off the debts that have begun to build and build due to the ongoing pandemic.
Rental Assistance Roll-Out
That is why the stimulus package has $45 billion dedicated to rent relief. It is split into two different pots, and the first pot of $25 billion will roll out immediately while the second pot will roll out later. That means more and more states are coming up their individual programs, like California’s, to set up how landlords and property managers can pay off the debts that have begun to build and build due to the ongoing pandemic.
Rental Assistance Roll-Out
California is a preliminary example of how rental assistance can roll out. The state is getting $2.2 billion of the rental relief deal and following the guidelines in SB 91. Renters can apply for rental assistance if they hit certain markers. The money has been added to those rental relief funds, and on Monday, March 15th, renters can begin to apply, although some places have already opened the processes for the funds.
California is a preliminary example of how rental assistance can roll out. The state is getting $2.2 billion of the rental relief deal and following the guidelines in SB 91. Renters can apply for rental assistance if they hit certain markers. The money has been added to those rental relief funds, and on Monday, March 15th, renters can begin to apply, although some places have already opened the processes for the funds.
Each state needs to decide whether the rental assistance will be distributed straight to landlords or to renters. For example, Ohio is expecting to receive $700 million from the American Rescue Plan. Nationwide, in order to qualify, at least one person per household must show that they have lost income due to the pandemic or have had an influx of expenses because of it. They will also have to prove they are at risk of homelessness, which could be proven by owed rent notices. Finally, the income level must be 80% that of the local median income. With all that, the plan will cover rents, depending on your state’s plan. It may give a year of rent paid or a year and a half, all depending on where you are.
Each state needs to decide whether the rental assistance will be distributed straight to landlords or to renters. For example, Ohio is expecting to receive $700 million from the American Rescue Plan. Nationwide, in order to qualify, at least one person per household must show that they have lost income due to the pandemic or have had an influx of expenses because of it. They will also have to prove they are at risk of homelessness, which could be proven by owed rent notices. Finally, the income level must be 80% that of the local median income. With all that, the plan will cover rents, depending on your state’s plan. It may give a year of rent paid or a year and a half, all depending on where you are.
Homeowners
The stimulus package establishes the Homeowners Assistance Fund that gives ten billion designed to help people who have fallen behind on their mortgages and other housing bills because of the coronavirus. It is operating through state Housing Finance Agencies which is where a landlord can get started.
Homeowners
The stimulus package establishes the Homeowners Assistance Fund that gives ten billion designed to help people who have fallen behind on their mortgages and other housing bills because of the coronavirus. It is operating through state Housing Finance Agencies which is where a landlord can get started.
It also covers homeowners assistance. The American Rescue Plan will continue the foreclosure moratorium until mid-year, on June 30th. The same date will affect those who were seeking mortgage forbearance. The plan allows for an extra half year forbearance payment set in three month increments as well as extending the enrollment period until June 30th.
This is a strong step towards helping landlords begin to recoup the lost funds due to the pandemic and cover the debts caused by it. As the program moves forward and new legislation is added to continue helping landlords through these times, we will informing you of how things are going.
It also covers homeowners assistance. The American Rescue Plan will continue the foreclosure moratorium until mid-year, on June 30th. The same date will affect those who were seeking mortgage forbearance. The plan allows for an extra half year forbearance payment set in three month increments as well as extending the enrollment period until June 30th.
This is a strong step towards helping landlords begin to recoup the lost funds due to the pandemic and cover the debts caused by it. As the program moves forward and new legislation is added to continue helping landlords through these times, we will informing you of how things are going.
