Housing Groups Discuss Eviction Moratorium with Key Agencies and White House Staff
This week, NAHMA and several real estate industry associations held a discussion with the White House’s Interagency Council, White House (Domestic Policy Council, National Economic Council and Office of Public) and Federal Agencies (CDC, HUD, USDA, Treasury, DOJ, CFPB), regarding the impact and potential extension of the current federal eviction moratorium. The discussion focused on the current eviction moratorium, its failure to address the scope of damage in the housing sector and why extending it beyond March 31, 2021 would fail to meet the needs of renters and housing providers. Concerns, such as how and why the current federal eviction moratorium is not aligning with the scale and structure of rental assistance programs that are emerging at the state and local level were echoed by several participating groups. Industry recommendations for implementation of the $25 billion Emergency Rental Assistance program were also discussed, including providing greater application flexibility and ensuring that the funding is distributed swiftly and efficiently to those in need.
Additional items, such as providing further funding for rental assistance to protect renters from losing their homes, ensuring the owners’ ability to maintain the viability of the rental housing stock, and providing clear guidance on eviction processes for measures other than non-payment of rent were also highlighted during the meeting. Separately, NAHMA staff highlighted similar concerns this week, during a discussion with USDA Rural Development’s senior staff, regarding the eviction moratorium and its impact on rural housing providers and managers.
House Committee Approves Housing Provisions in COVID-19 Relief Bill
This week, the House Financial Services Committee approved a funding bill that included $25 billion in rental assistance, representing only a part of the $1.9 trillion COVID-19 relief bill proposed by President Biden. The Committee advanced the legislation in a 29-24 vote, and the full House is expected to pass the entire COVID-19 relief bill by the end of this month, or early March. This funding would be provided in addition to the $25 billion in emergency rental assistance approved by Congress in December 2020.
Of the $25 billion provided for rental assistance, $19.05 billion is designated for emergency rental assistance and would be funded through the Coronavirus Relief Fund (CRF) administered by the Treasury Department. Households would be eligible for emergency rental assistance funds if one or more individuals:
- has qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial hardship during or due, directly or indirectly, to the pandemic;
- can demonstrate a risk of experiencing homelessness or housing instability;
- has a household income below 80% AMI.
To access the funds, states and localities would prioritize households below 50% of Average Median Income or those who are unemployed and have been unemployed for 90-days. The funds must be used to provide financial assistance, including back and forward rent and utility payments, and other housing expenses. Assistance could be provided for 18 months but only 10% of the funds could be used to provide case management and other services intended to help keep households stably housed. Additionally, the rental assistance would not be regarded or considered as income when determining eligibility for federal benefits or federally-assisted programs.
Additionally, $5 billion would be allocated for housing vouchers, and households would be eligible for emergency vouchers if they are:
- at risk of experiencing homelessness or are already homeless;
- are fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking;
- are recently homeless and rental assistance will prevent the family’s homelessness or having a high risk of housing instability.
The bill would also provide $100 million in rental assistance to assist rural households living in USDA-financed properties. Funds would be available until September 30, 2022, and they may be used to cover back rent and ongoing rental assistance.
The legislation also would provide $100 million for housing counseling through NeighborWorks America. At least 40% of the funds would be provided to housing counseling organizations that target minority and low-income homeowners, renters, and individuals experiencing homelessness or provide services in neighborhoods with high concentrations of minority and low-income homeowners, renters, and individuals experiencing homelessness.
To view the full text of the draft bill, the Concurrent Resolution on the Budget for Fiscal Year 2021, click here.
To view the recording of the House Financial Services Committee Markup Hearing for this bill, click here.