Need more help with rent and utility bills?? “HELP IS ON THE WAY DEAR!!” in my Mrs. Doubtfire voice (love that movie, it was the orange to the back of the head for me). You may have heard that the recently passed American Rescue Plan includes rental assistance, but may not know the details; so I’ve decided to write a blog post to let you know who’s eligible, more specifics on the assistance being offered, and how to apply for the help – so read on!!
What Assistance is Being Offered
The American Rescue Plan, signed into law on March 11, 2021, earmarked $21.5 billion for the Emergency Rental Assistance Program (ERAP). The ERAP allows up to 12 months of assistance to be received by eligible households; plus an extra 3 months if needed to help further ensure household stability. If eligible, the funds will be given directly to your landlord and utility companies, unless your landlord elects not to receive the funds directly, then the payments may be sent directly to your household. Payment assistance must be applied to your past due rent and utility balances before being applied to future bill payments.
Three other important notes or ‘catches’ here are:
-The ERAP assistance is granted for only 3 months at a time – which means individuals must reapply every 3 months to have eligibility redetermined,
-The ERAP assistance cannot duplicate other assistance that you are receiving, and
-Those facing eviction due to past-due rent, those unemployed for at least 90 days before filing for assistance, and those with income that is 50% of the (area) median income will receive priority over others in terms of approval.
Eligibility
Now for the eligibility requirements… Eligible Households are defined as renter households (yes, that means ERAP assistance is being granted to renters not homeowners; you are also allowed to be in a rent-to-own situation as long as you have not yet exercised the buy option). In addition, at least one person in your household must meet at least one of the following requirements:
- Income must not exceed 80% of the median income for your area
- You can elect to use one of two methods to determine your household income: 1) 2020 annual income or 2) monthly income at the time of application – however, if select #2 your income must be redetermined every 3 months when you reapply for additional months of assistance
- One or more in the household must have experienced a financial hardship either directly or indirectly due to COVID-19; financial hardship for the purpose of eligibility means experiencing a reduction in your household income, qualifying for unemployment, having a significant increase in expenses, or other similar hardships
- Must be able to demonstrate risk of housing instability without assistance (e.g. that you would face eviction)
How to Obtain the Help
To receive ERAP assistance, you are required to apply through the actual programs (who are considered ‘grantees’) available in your state/local area – so here is an interactive list that is being maintained by the National Low Income Housing Coalition, the database contains programs available by state and is being updated regularly.
Also, here is a National Low Income Housing Program Map: https://nlihc.org/rental-assistance
And here’s another map that lists housing needs by state: https://nlihc.org/housing-needs-by-state
Check with your rental office and review the above resources to help determine the appropriate agency to contact based upon your local area and needs for assistance with eligibility and signing-up.
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Stay encouraged ❤️!
Shelly
Disclaimer: This information is provided for general information purposes only and does not constitute nor is to be construed as tax, legal, nor financial advice. Please consult with an accountant, legal aid or attorney, or a financial advisor for advice suitable for your personal situation.