Millions of Americans struggle to pay rent and have a place to live.
PhotoMIX-Company / Pixabay
California Democratic Rep. Maxine Waters said the $ 25 billion for rent payment debts approved in the United States Congress as part of the new stimulus package should be complemented with more aid under the Incoming administration by Joe Biden.
The legislation, part of the $ 900 billion plan that was given way yesterday in Washington DC, is aimed at paying for part of the rental debt of tenants affected by the COVID-19, and an extension of one month, until January 31, to the federal moratorium to avoid evictions.
For Waters, the provisions are a beginning in the disbursement of aid that the authorities under the Biden government would have to expand.
“We have to do everything that corresponds,” said the representative in an interview with CNBC.
Waters, who promoted legislation to that end valued at $ 100 billion within HEROES Act, that more rescue funds are required for landlords who must pay their mortgages.
How will the money be managed?
The money approved under the new stimulus package will be administered by the Department of the Treasury through the fund named Coronavirus Relief Fund (CRF). Once the financial aid is distributed to the states, the tenants must apply for the incentives through the entities that handle the process in each demarcation.
Disbursement of funds will depend on the state
The time it takes to make the funds available will depend on the person’s place of residence.
Diane Yentel, president and CEO of the National Low Income Housing Coalition (NLIHC), told the aforementioned media that in states such as New York and California the application and processing process would be faster, since the authorities have already established assistance programs for the pay of the rent. Others like Alabama and Missouri will need to first lift the system before distributing the funds.
Because in some states it will take more than a month to build the necessary infrastructure at the agency level, Yentel believes that the government should again extend the moratorium at the national level.
When the beneficiary receives the funds, they can use it for either back rent or past-due utility payments; but at least 90% of the money sent to states and territories must be used to provide financial assistance to housing residents
Individuals would be eligible if family income is below 80% of area median income, figures that differ depending on location and number of members.
Additionally, some of the household members must have received unemployment assistance or proof of economic crisis as a result of COVID-19.
The applicant must also show that they are at risk of being evicted from their home or losing their home.
Direct transfer to landlords
Landlords and utility companies can be paid directly by government authorities once tenants complete the application and it is approved.
In the event that the landlords reject the money transfer, the tenants can apply and receive the funds to pass on to the landlords.
Help for up to 15 months
Recipients are eligible for assistance funds for a period of 12-15 months.
Digsmak is a news publisher with over 12 years of reporting experiance; and have published in many industry leading publications and news sites.