An estimated 11 million families are at risk of eviction, according to a new report from the Consumer Financial Protection Bureau (CFPB). The U.S. bailout, which includes tens of billions in emergency aid, could help many of them remain stably housed in the coming months, proponents say.
The CFPB report shows that 8.8 million tenants and 2 million homeowners were ‘significantly’ behind with their housing costs by the end of 2020. The disproportionate impact of the coronavirus itself on colored communities was more than twice as great. to lag behind white households.
The report says government policies, including stimulus payments, increased unemployment benefits and eviction moratoriums, kept millions of people in their homes during the pandemic. However, the nationwide deportation ban will expire at the end of March and many major unemployment benefits will expire mid-month.
The next federal emergency relief bill, passed early Saturday morning by House Democrats, would restore many of the amenities that families with shortages of money kept at home. It allocates $ 30 billion for emergency relief and $ 10 billion for homeowner assistance, extends the increased unemployment benefits through August, and provides another incentive check for many families.
“The American Rescue Plan Act provides the urgently needed Covid-19 resources for America’s lowest-income tenants and people who are homeless,” said the National Low Income Housing Coalition (NLIHC). “If implemented, these investments will help prevent millions of low-income people from losing their homes during the pandemic.”
Notably, the bill does not extend the deportation moratorium as it is passed through Senate budget reconciliation, said Diane Yentel, NLIHC president and CEO. The budget reconciliation process allows the upper house to pass a bill by simple majority instead of 60 votes, but the legislation can only affect budget items, not policy changes such as an expulsion ban.
“This underscores the need for Biden’s government to take action to extend, strengthen and enforce the moratorium,” said Yentel.
Who is eligible for rental assistance
Still, the help that the Bill does provide is badly needed for families at risk of deportation. You can qualify for the housing allowance if you meet one of the following conditions:
- A tenant is eligible for unemployment benefit
- A tenant experienced financial difficulties (including loss of income) during the pandemic
- A tenant is at risk of experiencing homelessness or housing instability
- A tenant has a family income less than 80% of the median income (AMI) of the area, which varies by location
The reduction can be applied to past due or future rental or energy costs, and eligible households can qualify for 12 months (and up to 15 if deemed necessary) of aid. How much a household qualifies for varies by state or locality and is based on their monthly rent payment, which they must verify with a lease or other document. States and places will roll out the programs when aid is complete.
The aid is in addition to the $ 25 billion in emergency relief provided by the Emergency Relief Act signed into law in late December.
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