Michigan unveils funding to help tenants avoid eviction during pandemic
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MICHIGAN (WNEM) — The state unveiled new funding to help tenants avoid eviction during the COVID-19 pandemic.
The Michigan State Housing Development Authority (MSHDA) announced a new $282 million rental assistance program to help residents with any pandemic-related hardships. An additional $340 million is available to be appropriated by the state legislature, which brings the program’s total funding to $622 million.
The COVID Emergency Rental Assistance (CERA) program replaces the popular Eviction Diversion Program (EDP) that MSHDA started in July. It helped about 16,000 households across the state avoid eviction and get current on rent, according to MSHDA.
“For so many Michiganders, the fear of losing their home during the pandemic has been very real,” Gov. Gretchen Whitmer said. “That’s why I took steps to mitigate evictions with a moratorium and the Eviction Diversion Program last year. I was proud to sign this legislation bringing more federal funds into MSHDA to help individuals and families by alleviating the burden of rent and utility payments.”
The state housing authority expects to help between 50,000 and 55,000 families or 140,000 individuals this year through CERA. Either landlords or tenants may start the CERA application. Renters who are making 80 percent of the area median income or less are eligible.
“At MSHDA, we know just how critical housing security is for success in so many other areas of life, and it takes a heavy toll on individuals and families when they don’t know how they will make their next rent payment or if they will still have a roof above their heads next week,” said Kelly Rose, MSHDA’s chief housing solutions officer. “CERA gives Michiganders that much-needed peace of mind by helping them catch up on their rent and utility costs while also ensuring landlords can recover rent owed to them.”
Eligible households may also qualify for help paying utilities through CERA. Copies of bills are required so payments can be made for the renter.
A statewide network of Housing Assessment and Resource Agencies (HARAs) and other nonprofits will be responsible for working with tenants and landlords to process applications, administer funds, and ensure as many eviction filings as possible are handled by conditional dismissal through CERA.
The program is funded by the federal coronavirus aid package passed in December. From the $622 million allocated to Michigan, $560 million will be used directly on rental and utility assistance. The remaining $62 million will be for case management as well as administrative and legal services.
MSHDA expects the average rental assistance payout through CERA could be as much as $10,00 per household, versus $3,300 per household under the EDP. MSHDA said 65 percent of the funding, which is $405 million, of the appropriation must be spent or obligated by Sept. 30.
For a list of HARAs by county and more information on CERA, visit MSHDA’s website.
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