Further government stimulus action in the form of the $1.9 trillion stimulus package was signed into law by the Biden Administration on 11th of March. Along with another stimulus check and an extension of increased unemployment, the stimulus package includes aid for 3 key areas of housing.
This financial aid is likely to expedite the US recovery considerably and lead to a reversal of the current negative market trends that have evolved due to the COVID-19 pandemic.
In this article, we give a quick summary of the three key areas of housing that the American Rescue Plan aims to resolve.
What areas of housing does the ARP help?
Emergency housing Vouchers eg. section 8 vouchers
- An additional $5 billion has been available for emergency housing vouchers.
- These funds will be going to those individuals that are homeless, or at risk of being homeless.
- Funds will be distributed to local housing authorities to be distributed.
Homeowners assistance funds
- Approximately $9 billion in funds has been made available for assisting homeowners.
- Qualifying individuals can use these funds can be used to help pay mortgages, back taxes on properties, HOA fees etc.
- More details will be released over the coming weeks on how to determine if you qualify and how these funds will be distributed by the federal government.
Emergency rental assistance
- The American Rescue Plan includes $21.55 billion in Emergency Rental Assistance to augment funds provided to states, localities, and territories in December
- These funds can be used by renters and families pay the rent and utilities so that they can stay in their homes.
- Landlords should assist tenants that are struggling help them get the appropriate rental assistance and catch up with their rent.
Other financial assistance that will impact landlords
Stimulus checks of up to $1400
- For individuals earning under $80,000 a third stimulus check will be received – this one the largest yet. This will help those in immediate need of financial assistance.
Extends the increase of $300 in unemployment benefits
- The $300 increase in unemployment benefits has been extended through to September 2021.
Where to find and apply for emergency rental assistance?
- National Low Income Housing Coalition: https://nlihc.org/rental-assistance
- HUD Rental Assistance: https://www.hud.gov/topics/rental_assistance/local
Useful Sources for More Information
- American Rescue Plan Act of 2021 Full Bill: https://www.congress.gov/bill/117th-congress/house-bill/1319/text
- Title by Title Summary of the American Rescue Plan: https://www.democrats.senate.gov/imo/media/doc/ARP%20-%20Title-by-Title%20Summary1.pdf