M id A tlantic Real Estate Journal — Owners, Developers & Managers — February 18 - March 17, 2022 — 11C
www.marej.com
O wners , D evelopers & M anagers By Peter Oliva, Withum Emergency Rental Assistance (ERA) Program
A
s we live through the crisis of the COVID-19 pandemic, many fami-
seling, case management, and, in some cases, legal representa- tion. The ERA program allows local programs to grant eligible participants 18 months of help with rent. However, if there is overdue rent, the grant must first pay off the rent owed to the landlord. The ERA program also allows a recipient to receive money for utilities or other costs even if assistance is not needed to pay rent. For people who have lost their house due to the pandemic and are living in a hotel or motel room, the ERA program can help cover these costs as well. Who is eligible to receive
emergency rental assistance? A landlord’s eligibility is based on the tenant’s house- hold needs. Here are the eligibility requirements. 1. There must be an agree - ment to pay rent for a home, apartment, or mobile unit. (This agreement doesn’t nec - essarily need to be a signed lease agreement, but some type of agreement is needed to verify the liability for rent). At least one member of a household has qualified (or should qualify) for unemploy- ment, lost income, owed a large expense, or had other financial hardships.
2. Household income must be below a certain amount based on where an individual is living. The general rule of thumb is that household income must be below 80% of the Area Median Income (AMI) in the area. However, the ERA program prioritizes households below 50% of the AMI and unemployed workers. 3. At least one member in the household is at risk of be- ing homeless or would have trouble finding a stable place to live (housing instability). Each local ERA program distributes money differ- ently. Some may contact a
landlord or utility provider directly to accept the pay- ment from the Emergency Rental Assistance programs to pay off what is owed. If the landlord/utility pro- vider does not respond within seven days, the ERA program will distribute the money to the individual, but the pro- ceeds must be used to pay what is owed to the landlord or utility provider. Anyone struggling with fi - nancial hardship due to the pandemic should check if there are any ERA programs in the area to determine eligibility for assistance. MAREJ
l i e s h a v e struggled to pay rent. As tenants have been unable to pay their rents, land- l o r d s hav e s t r u g g l e d to maintain
Peter Oliva
their properties. To help deal with this issue, the US De- partment of Treasury (“DOT”) introduced the Emergency Rental Assistance program, in two waves. The DOT introduced the first wave of the Emergency Rental Assistance Program (ERA1) under the Consolidated Appropriations Act, 2021 on December 27, 2020. This wave set aside $25 bil - lion to be paid to eligible grant- ees for fiscal year 2021. The second wave of the Emergency Rental Assistance Program (ERA2) was introduced under the American Rescue Plan Act of 2021 on March 11, 2021. The second wave added an additional $21.55 billion to be paid to eligible grantees until September 30, 2027. The funds were distributed to states, local governments, US territories and (for the first wave) Indian tribes. 90% of the funds must be used for rent, rental arrears, utilities, and other costs related to housing. The remaining 10% is able to be used for housing stability services that help serve the homeless community. As stated above, the ERA funds are dis- tributed to state and local gov- ernments, not directly to land- lords or households. In order to qualify for ERA funds, those in need must contact a state- or locally-run ERA program. What is the process to ap- ply for funds? The Consumer Financial Protection Bureau website has a guide to show available ERA programs. Please visit the CFPB site to inquire about available ERA programs. For tenants, depending on the locality, the landlord may need to submit an application first. All local programs cover rent, utility costs, and home energy costs. However, some local programs are more flexible than others and may also cover reasonable late fees, internet service, moving expenses, or other expenses related to mov - ing such as security deposits, application fees, housing coun-
continued on page 6C
FUTURE -PROOF! HACKER -PROOF! DISASTER -PROOF! SECURE YOUR COMPANY TO THRIVE IN THE NEWDIGITAL ECONOMY.
(973) 575-4950 ibsre.com
Made with FlippingBook flipbook maker