How to Get Covid-19 Rent Relief

The whole world is in trying times. With over 90% of businesses shut down, millions of workers have been rendered jobless and thousands furloughed with no certainty of when they would get their jobs back. As a result of this, many are being burdened with trying to pay their rent. Thankfully, the government has stepped in with rent relief for renters who are the most vulnerable housing security.

The government has initiated programs that prevents homeowners from eviction and foreclosure, rather, provide mortgage payment relief. These programs have been adopted on both the state and municipal levels, including some private lenders.

CARES Act of 2020

The most notable rental relief is the CARES Act Eviction Protection which ensures suspension of Covid-19 related evictions all through the US by some of the programs initiated by the US government on both federal and state levels. The suspension would last between 30 to 90 days, pending on when the economy reopens and stabilizes. The CARES Act was first signed into law on March 27, 2020. It was created to provide eviction relief to tenants in federally-backed housing for 120 days. By extension, no tenant in this category would be served an eviction notice until July 25, 2020, and the notice must give a 30-day allowance for the occupants to leave the property (August 24, 2020).

The 120-day eviction moratorium also prevents landlords from charging tenants’ late fees, penalties, and other charges that come with late payment. The main purpose for the eviction moratorium is not to relieve tenants of their obligation to pay their rent but ensures that landlords do not evict tenants during the period of late payment.

Rental housing that temporarily requires an eviction moratorium include:

• Those concerned in section 41411 of the Violence Against Women Act of 1994 (34 U.S.C 12491(a).

• Those concerned in the rural housing voucher program under section 542 of the Housing Act of 1949 (42 U.S.C 1490r)

• Anyone that has a Federally backed mortgage or multifamily mortgage loan.

There is also a provision under the CARES Act that allows renters use part or all of their recovery benefits checks to pay their rent. There is no specification on how the beneficiaries should spend the money.

Fannie Mae Disaster Response Network

The Fannie Mae Disaster Response Network is an initiative created by Fannie Mae to provide assistance to renters affected by the Covid-19. The network provides:

• Custom-made recovery assessment and action plan

• Personalized financial coaching and budgeting

• Ongoing check-ins to ensure a successful recovery

• Provide help for housing situations

• Unhindered access to online tools and resources offered by Clearpoint’s* Project Porchlight.

In addition to federal eviction moratorium that has been put in place, states and counties have taken it upon themselves to halt or suspend renter evictions temporarily. The requirements may slightly differ by state, and renters can apply on their state’s official website.