New aid available for county renters, homeowners
WEST CHESTER » With the state ban on evictions set to expire July 10, a new program was launched this week to help keep Chester County renters and homeowners financially impacted by the pandemic to stay in their homes.
The funding is available through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, passed in March, which provided $3.9 billion for Pennsylvania and is intended to help people hurt economically during the pandemic. In late May, the General Assembly directed $175 million of these CARES dollars to PHFA to provide assistance for struggling renters and homeowners. The portion for rent assistance is at least $150 million.
Applications for CARES financial assistance for renters and homeowners will be taken beginning July 6 for those who need rent and mortgage assistance to avoid homelessness, said Dale Gravett, executive director for the Housing Authority of Chester County. Anyone who lost income due to the pandemic-related economic slowdown may be eligible for rent or mortgage assistance through the program.
“If (Chester County residents) are in arrears in rent from March 1 on, they may be eligible for rental assistance up to $750 a month for six months,” Gravett said.
For renters to be eligible for financial assistance under the CARES Rent Relief Program, they will need to document at least a 30 percent reduction in annual income since March 1 related to COVID-19, or they must have become unemployed after March 1. If unemployed, they must have filed for unemployment compensation with the Pennsylvania Department of Labor and Industry. Their household income cannot exceed the Area Median Income for their county of residence, adjusted for the number of people in their home.
Renters who qualify may receive assistance equal to 100 percent of their monthly rent up to $750 a month for a maximum of six months of assistance between March 1 and Nov. 30, 2020. Payments will be made to their landlord on their behalf. Renters or landlords can apply for rent relief for apartment tenants, but renters are responsible for submitting all the documents needed to ensure their eligibility. Gravett said if the landlord agrees, the payment they receive will be a full payment for rent with no back charges. He said many landlords will consider this option to be better than seeking eviction, which is costly and time consuming.
Homeowners who became unemployed after March 1 or who suffered at least a 30 percent reduction in annual income due to reduced work hours and wages related to COVID-19 may be eligible for financial assistance to help with missed mortgage payments, Gravett said. To qualify for the Pandemic Mortgage Assistance Program, they must be an owner-occupant of their residence, the dwelling must consist of one or two separate units, the mortgage must be at least 30 days delinquent, and the homeowner’s annual household income must not exceed the Area Median Income for their county of residence, adjusted for the number of people in their home.
The assistance available for homeowners can be up to $1,000 a month for a maximum of six months. The time period eligible for assistance is for mortgage payments owed from March 2020 through December 2020, however any CARES assistance provided must be disbursed by Nov. 30, 2020. Financial assistance payments through this program will be made directly to the mortgagee. Homeowners or their lenders can apply for mortgage relief, but homeowners are responsible for providing all the documents needed to determine their eligibility.
“Our goal is to make this financial assistance available as quickly and easily as possible while ensuring applicants meet the eligibility requirements established by the state legislature,” said Robin Wiessmann, PHFA executive director and CEO. “Keeping people in their homes is essential for our economic recovery, and we are grateful that the General Assembly and Governor
Wolf recognize that stable housing provides the foundation on which to build that recovery.”
Pat Bokovitz, director of the Chester County Department of Community Development, is encouraging those who qualify to take advantage of the program.
“The moratorium on evictions helped in a big way, but that expires July 10,” he said. “We are hopeful a program like this will go a long way in reducing the number of individuals and families that are forced into homelessness. This program will bolster and stabilize individuals and families in their homes until they can get their footing back in the economic rebound we are optimistic about.”
Applications for both rent and mortgage assistance are accessible from PHFA’s homepage at https:// www.phfa.org/pacares. The county has hired two new full-time employees to assist with the program. For assistance on applications, call 484-367-HELP (4357). Krystal Bentz is handling the processing of applications and calls.