An estimated 11 million families are at risk of eviction, according to a new report by the Consumer Financial Protection Bureau (CFPB). The American Rescue Plan, which includes tens of billions in emergency rental assistance, could help many of them stay in stable homes in the coming months, advocates say.
The CFPB report concludes that 8.8 million tenants and 2 million homeowners were “significantly” behind on their housing payments in late 2020. Mirroring the disproportionate impact of coronavirus on communities of color, black and Hispanic families they were twice as likely to be left behind as white families.
The report states that government policies, including stimulus payments, increased unemployment benefits and eviction moratoriums, kept millions in their homes during the pandemic. However, the countrywide ban on eviction expires in late March, and many important unemployment benefits expire in the middle of the month.
The next federal aid bill, passed Saturday morning by House Democrats, would reinstate many of the provisions that kept cash-strapped families sheltered. It allocates $ 30 billion for emergency rental assistance and $ 10 billion for homeowner assistance, extends improved unemployment benefits through August, and provides another stimulus check for many families.
“The American Rescue Plan Act provides Covid-19 relief resources urgently needed by America’s lowest-income tenants and homeless people,” said the National Low Income Housing Coalition (NLIHC). “If enacted, these investments will help prevent millions of low-income people from losing their homes during the pandemic.”
Notably, the bill does not extend the eviction moratorium because it is being passed through budget reconciliation in the Senate, said Diane Yentel, president and CEO of NLIHC. The budget reconciliation process allows the upper house to approve a bill with a simple majority, instead of 60 votes, but the legislation can only impact budget items, not implement policy changes such as an eviction ban.
“This highlights the need for the Biden government to take steps to extend, strengthen and enforce the moratorium,” said Yentel.
Who qualifies for rental assistance
Still, the help that the House bill provides is sorely needed for families at risk of eviction. You can qualify for housing assistance if you meet one of the following requirements:
- A tenant has qualified to receive unemployment benefits
- A tenant experienced financial difficulties (including loss of income) during the pandemic
- A tenant is at risk of homelessness or housing instability
- A tenant has a household income below 80% of the area’s median income (AMI), which varies by location
The relief can be applied to late or future rent or utility costs, and eligible families can qualify for 12 months (and up to 15 if necessary) of assistance. The amount for which a family qualifies varies according to the state or locality and is based on the payment of the monthly rent, which must be verified with a rental agreement or other document. States and localities will implement the programs when aid is finalized.
The aid is an addition to the $ 25 billion in emergency rental assistance provided by the relief bill signed in late December.
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