How does the $25 billion for rental assistance in the #omnibus break down? Initial notes on eligibility, landlord application, prioritization requirement, when it'll be dispersed, & the use it or lose it provision. Take away: More funds needed to prevent #eviction crisis.
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Disbursement: Federal government must allocate rental assistance to states, territories and reservations within 30 days from date of enactment (1/20/21)
Expiration of funds: States must use funds by 12/31/21
Recoupment and reallocation of unused funds will begin on 9/30/21.
90% of rental assistance funds must be used to provide financial assistance including rent, rental arrears, utilities & home energy costs/arrears, other expenses related to housing due (directly or indirectly) to #COVID19 (as defined by @HUDgov Sec'y).
No more than 10% of rental assistance funds can be used by states for admin & housing stabilization services, including case management, data and reporting.
ELIGIBILITY: 1+ household members:
-qualify for unemployment OR lost income or incurred significant costs or other $ hardship due to #COVID19 (must attest in writing)
-can demonstrate risk of homelessness/housing instability OR unsafe/unhealthy housing
-80% median income or less
Tenant Eligibility (cont.): Risk of homelessness or housing instability may include a past due notice on utility/rent or eviction notice.
State may require other evidence (but they'd be wise not to if they want to ensure #eviction prevention & expedited disbursement of funds).
Eligibility Prioritization: States are directed to prioritize rental assistance to people with household income 50% of area median income OR 1 or more household members has been unemployed for 90 days preceding the application and remains unemployed.
LANDLORDS CAN APPLY on behalf of renters but must obtain signature of tenant and provide a copy of application to tenant. Any payments to landlord my be used to pay rental obligation/debt.
Any financial assistance to tenants is not income and can NOT be used in determining eligibility or benefit amount under federal programs.
Set asides:
$15 million for @hudgov administrative expenses, including providing TA to grantees to facilitate funds.
$6,500,000 to Treasury to carry out oversight and recoupment activities.
Tenant Eligibility (con't): States are required to re-determine household income eligibility every 3 months while receiving assistance (can look at total 2020 household income and current monthly income).
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