Congress allocated $25 billion for rental assistance in the recently signed Coronavirus Relief Fund (link from our previous article) to help struggling Americans. This rental relief is an extension to the various rental assistance programs established under CARES Act.
According to a study by the Global Investment Bank, the combined rent to landlords have already reached as much as $24 billion since September. The fund will provide some help, although argued not enough, to both landlords who have no rental income for months due to the pandemic and to renters who are facing eviction.
Both Landlords and tenants may apply for aid through their state or local agencies once funds are available. Landlords can be paid directly as long as tenants have signed the application. If landlords refuse the relief, renters can apply and receive the funds to pay their landlords. Eligible individuals can use the money for past-due rent and overdue utility payments when the pandemic started, including future bills.
New York Rental Relief Extension Program (RREP)
For taxpayers living in New York, RREP will provide eligible households with a one-time rental amount that will be sent to the household’s landlord. This amount does not need to be repaid and the Home Care Registry (HCR) will give priority to lower income households or jobless renters.
To be eligible to the program, tenants have to meet all the following:
- Should be a renter and have a primary residence in New York State
- You must have lost income between April 1, 2020 to July 31, 2020
- Prior to March 7, 2020 and during the application is submitted, household income must not exceed 80% of the Area Median Income (adjusted for household size)
- Households must be “rent burdened” at the time they are applying for assistance between April 1, 2020 to July 31, 2020.
If you have previously applied, you do not need to reapply to be reconsidered. HCR will evaluate all applications that were previously denied based on the new guidelines, and issue revised decision letters.
Last December, the New York state passed a moratorium on residential evictions until May 1. Tenants affected by the Covid pandemic must show documentation explaining their situations to qualify
If you want to know more about Covid 19 relief programs and how to qualify check out our previous articles https://levineandassoc.com/blogs or sign up to our newsletter.
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