Full Summary: Consolidated Appropriations Act of 2021 from NAA

Industry ,

December's highly-anticipated COVID-19 relief package finally delivers rental assistance while extending the federal eviction moratorium. But how does it affect the apartment industry?  

>>>Go to full article on NAAhq.org

Eviction Moratorium & Rental Assistance​

  • Extends CDC eviction moratorium through January 31, 2021.
  • Provides $25b through September 30, 2022 for rental assistance. The monies will be allocated through the Coronavirus Relief Fund (CRF), administered by the Department of Treasury. 
  • Allocation and distribution to grantees:
    • States allocation will be based on population, no state will receive less than $200 million.
    • Eligible grantees are defined as:
      • A State; or
      • A unit of local government, such as a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 200,000; or
      • An Indian tribe or its tribally designated housing entity; or
      • The Department of Hawaiian Homelands.
  • Program requirements:
    • Not less than 90 percent of the funds are to be used for current rent payments, rent arrears, utility payments and other pandemic-related housing expenses. Assistance can be provided for up to 12 months with an additional 3 months of assistance "if needed to ensure housing stability".
      • To the extent that applicants have rental arrears, grantees may not make commitments for prospective rent payments unless they have also provided assistance to reduce an eligible household’s rental arrears.

      • Eligible grantees may use up to 10 percent of allocated funding for housing stability services, including case management and other services intended to keep households stably housed.

    • Eligible households are those:
      • With a household income below 80 percent of area median income (AMI);
      • With a demonstrable risk of experiencing homelessness or housing instability; and
      • Have one or more household members who qualify for unemployment benefits or experienced financial hardship due, directly or indirectly, to the pandemic.
    • States should prioritize families with incomes below 50% of area median income (but no set percentage of funds distributed is required), as well as renter households who are currently unemployed and have been unemployed for 90 days.
      • Income Eligibility is based on time of application and must be re-certified every three months.
    • The application process requires renters to apply for assistance from their administrative agency managing the program. Payments are sent directly to the housing provider.
      • Housing providers can also apply for rental assistance on behalf of the resident but must inform them and secure their consent.
      • Residents may receive payment directly from the administrative agency and pay their provider if that provider does not want to participate in the program.
    • NOTE: The bill puts loose parameters on state and local grantees as they craft or refine their rental assistance programs. Ultimately, eligibility requirements are at the discretion of grantees.
  • Rental assistance will not be included in recipient’s income for federal tax purposes.
  • $6,500,000 has been allocated to the Inspector General of the Department of Treasury to conduct monitoring and oversight of the receipt, disbursement, and use of funds.

Click here to read full article from NAA

State and Local Funding

  • Extend by one year (until Dec. 31, 2021) the availability of funds provided to states and localities by the Coronavirus Relief Fund in the CARES Act.

Click here to read full article from NAA