New Rules From Treasury Department: Free Rent if You Attest You Need It

Seven New Rules

Over 90% of the rent assistance money allocated to prevent evictions and halt evictions is still unused.

Meanwhile evictions remain halted in many states while landlords go unpaid. 

Today the Treasury Department announced Seven New Policies to Encourage State and Local Governments to Expedite Emergency Rental Assistance.

  1. Self-attestation can be used in documenting each aspect of a household’s eligibility for ERA, including with respect to: a) financial hardship, b) the risk of homelessness or housing instability, and c) income
  2. During the public health emergency, state and local ERA programs may rely on self-attestation alone to document household income eligibility when documentation is not available. 
  3. State and local grantees may advance assistance to landlords and utility providers based on estimated eligible arears.
  4. State and local grantees may enter into partnership with nonprofits to deliver advance assistance to households at risk of eviction while their applications are still being processed. 
  5. Grantees may make additional rent payments to landlords that take on tenants facing major barriers to securing a lease, including those who have been evicted or experienced homelessness in the past year.
  6. Past arrears at previous addresses may be covered. To remove barriers a household may face in accessing new housing if they have outstanding debt in collection, Treasury’s guidance makes clear that state and local grantees may—at an eligible tenant’s request—provide assistance to cover remaining rental or utility arrears at a previous address.
  7. A tenant’s costs associated with obtaining a hearing or appealing an order of eviction may be covered with ERA funds as an eligible “other expense.”

Landlords Unpaid

Many landlords have not been paid since March of 2020. That’s 17 months of unpaid rent while some squatters take advantage.

There is no provision for landlords to file on behalf of tenants. 

On July 29, I commented At Least 12 Million Face Eviction as Moratorium Ends.

And despite the Supreme Court clearing the way for more evictions, many states extended moratoriums.  

As long as eviction moratoriums continue, many tenants do not give a damn. I also suspect a lot of fraud. Why work or pay rent if you don’t have to? 

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Cocoa
Cocoa
4 years ago
https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html
Big institutions are taking advantage of the rental markets and hoovering up distressed homes from Mom and Pop owners. They take free money from FED, pay cash and have the legal teams to BOOT renters out regardless of new rules. Catastrophe Capitalism
Cocoa
Cocoa
4 years ago
Even without this, it takes an owner almost a year to boot a bad renter in California. I would NEVER own rental property(especially leveraged purchase). Maybe commercial as you can chain up the doors for non-payment very easily-but commercial is in the dumps now too. Meanwhile, as landlords go broke, Blackrock can snap this up for cheap…since they are the go-to property owner for the new neo-marxist oligarchs. IE: Communism for us-Feudalism for them. Its all by design. Big tech is also taking advantage of COVID-19 lockdowns to take over retail, which is in the dumps as well
Eddie_T
Eddie_T
4 years ago
Reply to  Cocoa
A private survey conducted by Mike Zubis, who cold-called  a list of every landlord he could find in California who owned less than 10 units showed that 89% of Mom & Pop landlords were unaffected by the rent moratorium.
So there aren’t that many distressed Mom & Pops out there.
What there is….is a  real temptation to take profits, since prices a re good  and the rules on taxation are probably going to tighten up. At retirement age, a small landlord can still do a 1031 into a DST (Delaware Statutory Trust) and own a piece of a larger multifamily deal, or a piece of a doctors office building or other good commercial prospect….and let somebody else do all the heavy lifting and just collect mailbox money. I thought about it myself.
anoop
anoop
4 years ago
just buy stonks.  they are headed to the moon.  don’t worry about anything else.
Steve_R
Steve_R
4 years ago
Reply to  anoop
This just in, The bank of Korea raised its policy rate for the first time in almost three years, Governor Lee Ju-yeol maintained his hawkish tone and suggested the bank could further tighten as data showed Asia’s fourth-largest economy was over heated, sound familiar , I wonder if Powell can grow a pair and do the same, 10 to 20 percent correction coming if a taper or rate hike is in the works.
Bam_Man
Bam_Man
4 years ago
Apparently a good many tenants are too lazy/stupid to file for the ERAI, and are content to just live rent-free until the moratorium expires and then be evicted. Too much trouble to have to expend the effort to get the funds and then hand them right over to the landlord.
Why am I not surprised?
thimk
thimk
4 years ago
Reply to  Bam_Man
I agree , what I can’t get my arms around is how did a person getting stimulus payments in excess of their previous wages get behind in their rent ?   
shamrock
shamrock
4 years ago
Reply to  thimk
I don’t think you’re paying attention. Why pay the rent if you don’t have to?  Money better spent on vacations or a new car.
Carl_R
Carl_R
4 years ago
Reply to  thimk
Sales of things like boats and cars skyrocketed. You can’t expect people to pay both rent and car payments, can you?
kurtellis
kurtellis
4 years ago
Reply to  thimk
not everyone qualified for the UE+$300. had to be laid off. 
Jojo
Jojo
4 years ago
“New Rules From Treasury Department: Free Rent if You Attest You Need It”
——-
Just like the Covid $9k death benefit from FEMA.  They initially wanted a death cert that said died of Covid but too many scammers complained that the death certs said something like “heart attack” and the coroner refused to play along and change the death cause.  So last I heard was they eliminated that requirement.  A slong as the dead person might have had Covid, you’re good for up to $9k from the government towards burial costs.  Make sure to get the 14k gold inlay coffin!
Intelligentyetidiot
Intelligentyetidiot
4 years ago
The reason the money cant be distributed is because contrary to all hysteria going on most people have been paying rent on time and do not own any rent. 
In order to qualify, you need to prove your loss of income and the landlord must confirm that your are delinquent .
Most people did not lose any income, were made whole and some, or made more money than ever before.
Check the national rent payment tracker throughout the pandemic, it has been within 1% of historical average.
I dont understand why no one bothers to do some research beyond the ready fed narrative.
dbannist
dbannist
4 years ago

Except the real world it isn’t working that way.None of our tenants have had to prove any loss of income or even being behind on rent.  I’ve had the HOPE program pay for about half my tenants, nearly all of whom were current and had no loss of income, rent for the next three months.I am angry about it as this is a federal giveaway to people who did not need the help in any way, but I do not blame the tenants for applying for it.

Eddie_T
Eddie_T
4 years ago
The tracker only covers multi-family..and large multi-family at that.
What are the numbers for single family and small multis? I don’t think anybody really knows.
Eddie_T
Eddie_T
4 years ago
So….some additional info.
The CDC moratorium on eviction is not a blanket ban. The tenants apparently have to make a written declaration to the landlord that states they’re unable to pay due to loss of income from COVID…and if they neglect to do this, eviction can go forward.
I haven’t had to deal with this, but I would expect some of the same tenants who aren’t paying……are the same tenants who would not get around to making the declaration either. People in arrears are not known to be good communicators.
dbannist
dbannist
4 years ago
Reply to  Eddie_T
We have done it.  We passed out forms to all tenants behind on bills.  Those that never bothered to turn them in….well, they aren’t living here anymore.
Evictions can still happen.
Jackula
Jackula
4 years ago
Reply to  Eddie_T
This is really great to know! Does this work in California too?
dbannist
dbannist
4 years ago
Reply to  Jackula
Nothing works in California.  You should know that by now.  haha

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