Stimulus for rent
You could qualify for up to $25,000 in stimulus funds to pay your rent.
Here’s what you need to know.
Stimulus
While home prices have surged during the Covid-19 pandemic, some renters have not been so fortunate. The federal eviction moratorium is scheduled to end on June 30, 2021, which could leave millions of renters vulnerable to eviction once the moratorium expires. According to the Center on Budget and Policy Priorities, nearly 14% of renters are behind on their rent payments. According to new research from The University of California, Berkeley, 6 million renters owe nearly $20 billion rent payments. Some Americans are hoping for a 4th stimulus check to pay their bills, although a fourth stimulus check is unlikely. If you’re a renter, the good news is that you may qualify for stimulus cash.
Here are the details:
Stimulus: $46 billion of cash available
- Congress has appropriated emergency aid for renters in response to the Covid-19 pandemic.
- There are $46.6 billion in total stimulus funds available for renters.
- This includes $25 billion that Congress approved last year through the Consolidated Appropriations Act.
- This also includes $21.6 billion in emergency rental assistance that Congress approved as part of the American Rescue Plan, which is the $1.9 trillion stimulus package that President Joe Biden signed in March.
- This rental relief is separate from mortgage relief.
- Rent relief is available to pay both rent and utilities, including past due rent, rental fees, late fees and relocation expenses.
- The U.S. Treasury is making funds for the Emergency Rental Assistance Program available to state and local governments.
- However, the U.S. Treasury isn’t sending stimulus funds directly to renters or landlords.
- Therefore, to access funds, you need to contact your relevant local or state housing authority or government agency to access available funds.
- Total financial assistance is capped at 18 months of relief.
How to qualify for rent relief
Here’s how to qualify for rent relief:
- You are a residential renter and pay rent;
- your or someone in your home has qualified for unemployment benefits, experienced a reduction in income, incurred significant costs, or experienced financial hardship as a direct or indirect result of the Covid-19 pandemic;
- you or someone in your home can demonstrate a risk of experiencing homelessness or housing instability; and
- your household income is at or below 80% of area median income.
You may be asked to provide documentation such as a copy of your lease agreement, past due rent notices or past due utility notices, for examples. Rent relief is available from as early as March 13, 2020. Importantly, to qualify for rent relief, there is no requirement to have past due rent. Therefore, you can apply for rent relief for future rent payments.
