The Rental Assistance Program is going to save people from going homeless. Even as the pandemic hit the US and nearly destroyed its economy, people everywhere feared the worst. Despite the stimulus payments, there was growing concern that homeowners without jobs would start to massively default on their mortgages.
Millions of renters without jobs might have been thrown out into the streets at the same time. And people can thank the historically low mortgage rates for it. However, while homeowners witnessed a spectacular increase in their home’s value, renters were less fortunate.
Rental Assistance Program Will Save Many From Eviction
The bulk of tenants who work in industry were hit hard by the epidemic. Those managing small companies and working in susceptible areas like transportation, retail, and hospitality were among the most severely impacted. They barely managed to put food on the table with the initial batch of stimulus check money.
However, the federal government intervened and provided assistance to both tenants and homeowners. Depending on where they resided, folks received up to $25,000.
The federal government provided immediate assistance by putting a stop to evicting tenants. But it was abandoned after a year. Renters who had already fallen behind on their rent and had little to no income were understandably anxious. About 6 million renters were behind on their payments by the end of the first year in the middle of 202. Housing experts estimate that they owed roughly $20 billion in total in arrears rent. At that point, they issued a warning that the country was headed for an eviction cliff.
The federal government intervened after Congress approved a two-stage emergency rental aid. The pandemic relief legislation that was passed in Dec along with the second stimulus payment included $5 billion. Within weeks after taking office in March 2021, President Biden signed the American Rescue Plan Act and Rental Assistance Program, bringing in an additional $216 billion.
The US Treasury was given control over the money’s disbursement. The sum infused by the Treasury’s (Emergency Rental Assistance) program was unprecedented. The money was intended for any last-minute rental help. This assisted tenants in maintaining stable housing even after the one-year eviction moratorium ended. The National Low-Income Housing Coalition made this information public. The Rental Assistance Program application is now available.
