Renters prepare for eviction crisis as aid is held up

Tenants, landlords on edge with federal eviction moratorium winding down

National /
May.May 04, 2021 11:40 AM
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)

(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)

The U.S. may be past the worst of the pandemic, but it could be in for another major crisis.

With a federal moratorium on evictions scheduled to end June 30, millions of people who owe back rent could lose their homes if federal aid does not arrive in time, according to Politico.

Congress has allocated about $50 billion to help struggling tenants and landlords, but most of it is being held up as state and local governments set up systems to verify what tenants owe and then distribute funds.

White House officials said they would soon release plans to speed up the process.

Under the relief law, the Treasury secretary is supposed to take funds away from jurisdictions that have failed to disburse at least 65 percent of the money by Sept. 30 and reallocate it to places that have moved faster.

The Urban Institute projected that before the relief funds went out some 10 million delinquent renters nationwide owed $57 billion in rent and late fees.

The national eviction moratorium has drawn backlash from landlord groups which have sued in courts throughout the country. Many smaller landlords claim that the law disproportionately affects them as they rely on rental income to pay their own housing costs.

[Politico] — Keith Larsen





    Related Articles

    arrow_forward_ios
    Steven Mnuchin and 740 Park Avenue (Getty, Google Maps)
    Steven Mnuchin’s $26M home finally finds a buyer
    Steven Mnuchin’s $26M home finally finds a buyer
    Robert Millard and 9 East 88th Street (MIT Corp, Google Maps)
    Former Lehman exec lists Carnegie Hill mansion for $38M
    Former Lehman exec lists Carnegie Hill mansion for $38M
    April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)
    Demand for short-term rentals surges past pre-pandemic levels
    Demand for short-term rentals surges past pre-pandemic levels
    Cape Cod and the Jersey Shore suffered among the sharpest inventory declines. (iStock)
    Here’s where homes virtually sold out in the pandemic
    Here’s where homes virtually sold out in the pandemic
    Borrowers can now get a 30-year fixed-rate jumbo mortgage for $2 million at 2.65%. (iStock)
    Jumbo mortgage lenders invade Fannie and Freddie’s turf
    Jumbo mortgage lenders invade Fannie and Freddie’s turf
    1384 Meadow Lane
    The 20 priciest Hamptons sales this year
    The 20 priciest Hamptons sales this year
    Airbnb CEO Brian Chesky. (Airbnb, Getty)
    Airbnb’s losing spree continues with $1B loss in Q1
    Airbnb’s losing spree continues with $1B loss in Q1
    Madison Realty principal Josh Zegen, Raphael Toledano with the properties at 325-329 East 12th Street and 223-235 East 5th Street (Madison Realty, Google Maps, Toledano by Michael McWeeney)
    Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
    Madison Realty Capital closes on Toledano’s bankrupt East Village portfolio
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...