Legislation has been introduced to establish a $100 billion Emergency Rental Assistance Program to help Americans pay their rent during the COVID-19 crisis.
By supporting tenants struggling to pay rent, the bill also supports rental property owners of all sizes, and economic recovery as Americans withstand the pandemic, according to supporters.
The Emergency Rental Assistance and Rental Market Stabilization Act of 2020 was introduced by Rep. Denny Heck (D-Wash.) and is supported by 133 House cosponsors, including Rep. Maxine Waters (D-Calif.), chair of the House Financial Services Committee. Sen. Sherrod Brown, ranking member of the Senate Banking Committee, is planning to introduce a companion bill in the Senate.
The proposed rental assistance program is based on the Emergency Solutions Grant (ESG) program, an existing program that supports emergency short-term rental assistance.
“Millions of Americans are facing new financial uncertainty, through no fault of their own,” Heck said. “This bill will help tenants pay their rent, without placing the burden on landlords, many of whom are relying on payments from renters to pay their mortgages. It is vital to our recovery and to the well-being of Americans that we do everything we can to keep people in their homes.”
Housing remains the single largest expense for American families, and the COVID-19 pandemic has further exposed renters to the threat of housing instability and eviction.
The Urban Institute estimates that it could cost $96 billion to assist about 17.6 million renters for six months.
"This pandemic is yet another painful reminder of just how vulnerable millions of workers are to a single setback—whether it is losing your job, a broken-down car, or just being late on rent," Brown said. "Congress must act now to keep families in their homes.”
The bill would:
- Authorize $100 billion for an Emergency Rental Assistance program to help families and individuals pay their rent and utility bills and remain housed during and after the COVID-19 crisis.
- The program would send funds to communities, states, and tribes through an existing federal temporary rental assistance program to facilitate the rapid distribution of funds through an already available administrative and reporting system.
Specifically, the program calls for 40% of its funding to assist individuals or families experiencing homelessness or at risk of homelessness who have income not exceeding 30% of the area median income (AM). And, another 30% of funds can be used to serve households at 50% of the AMI. The remainder of funds can be used to serve households at 80% of the AMI, but the Department of Housing and Urban Development can waive income-targeting requirements for jurisdictions that can show the needs of low-income renters are being met, allowing them to serve households up to 120% of the AMI.
Here’s the bill text.
A number of organizations are applauding the efforts.
“Even before the coronavirus, 11 million renters—including 8 million of America’s lowest-income seniors, people with disabilities, low-wage workers and other individuals—were paying at least half of their limited incomes to keep a roof over their heads, leaving them one financial crisis away from eviction and, in worst cases, homelessness,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “For many, this pandemic is that financial crisis.”
“Lost jobs and lost wages—combined with rents that were unaffordable even before coronavirus— leaves millions of people struggling to figure out how to make rent and scared of being evicted during a public health emergency. In this moment when our collective health depends on our ability to stay home, it’s never been more obvious that housing is health care,” Yentel said. “Congress should be doing everything they can to keep people stably housed during and after this public health emergency by implementing a national moratorium on evictions and providing at least $100 billion in rental assistance.”
