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Millions of Americans have struggled financially in the course of the pandemic. Thankfully, help is on the way.
Last week, President Joe Biden signed a $1.9 trillion coronavirus relief bill into law, and it includes a host of provisions designed to help the public. Those benefits include boosted unemployment, an expanded Child Tax Credit, and a round of $1,400 stimulus checks. Many of those direct payments are already starting to hit recipients' bank accounts. Also included in that massive aid package is money for rental assistance -- $45 billion worth, in fact. Here's what you need to know about qualifying.
Who's eligible for rental assistance?
Many people are struggling to pay rent after having lost income during the pandemic. To qualify for rental assistance under the new relief bill, you must have at least one person in your household who's either eligible for unemployment benefits, has lost income since the coronavirus outbreak began, or has incurred significant expenses due to the pandemic. For the latter, a family whose school district hasn't opened for in-person learning may qualify on the basis of incurring added childcare costs, for example.
Additionally, to be eligible for rental assistance, you'll need to prove that you're at risk of being homeless. You can satisfy this requirement by providing copies of a past-due rent notice or an overdue utility bill.
Finally, to qualify, your 2020 income can't exceed 80% of your area's median income. You should also know that states have been instructed to prioritize rental assistance applicants whose 2020 income is 50% of their area's median income or lower, and who have been jobless for 90 days or more.
How to apply for rental assistance
The process of applying for rental assistance varies based on where you live. A good place to start is with your state housing agency, which should point you in the right direction. In some cases, your landlord may be able to help out by applying for assistance on your behalf.
How much aid can applicants get?
The amount of aid you're eligible for will depend on where you live. Some rental assistance programs will cover up to 12 months of rent payments, while others may cover up to 18 months' worth. Keep in mind that any rental assistance funds you're eligible for will generally be sent to your landlord. If you're notified that you qualify for assistance and don't see that money directly, be sure to follow up with your landlord to confirm they got it.
Another thing you should know is that not every state has its rental assistance program set up yet. But in time, all states should have a system in place to dish out the aid the new relief bill allows for.
Can landlords evict tenants before that aid comes in?
Right now, there's a federal eviction moratorium in place through the end of March, which means renters can't be evicted until it expires. There's a good chance that moratorium will get extended given the high level of unemployment and general state of the economy. Also, some states have their own eviction bans in place that extend beyond the end of March, so there's added protection there. If you're being threatened with eviction, it could pay to visit Lawhelp.org for free or low-cost legal aid.
If you've had a hard time paying rent in the course of the past year, you're not alone. The good news is that money is being made available to help those in need get current on their rent and avoid eviction once the existing bans are lifted. You may need to do some digging to access that aid, but keep at it -- at a time like this, you deserve all the relief you can get. For other pandemic help, check out our coronavirus resources for more financial assistance options.
