Help with housing costs
State launching $622M rental assistance program
Residents struggling to keep up with housing costs amid the pandemic will soon see more rental assistance from the state.
The Michigan State Housing Development Authority (MSHDA) is rolling out a new $282 million COVID Emergency Rental Assistance (CERA) program that’s expected to impact between 50,000 to 55,000 families, or 140,000 individuals. It replaces the state’s Eviction Diversion Program, initiated in July 2020, that kept 16,000 households across the state from being evicted and current on their rent.
Landlords and tenants who are making 80% of the area median income or less are eligible for the program. The state housing authority estimates that the average rental assistance payout will jump to $10,000 as
opposed to the $3,300 per household under the Eviction Diversion Program.
With another $340 million available for the program to be appropriated by the state legislature, CERA will see $622 million allocated to the state. Funding for the program comes from the December 2020 federal coronavirus relief package.
A total of $560 million will be set aside for rental and utility assistance. The remaining $62 million will be used for case management, administrative and legal fees, according to the state.
At least 65% of the funds, or $405 million, is required to be spent or obligated by Sept. 30. A statewide network of Housing Assessment and Resource Agencies will be responsible for working with tenants and landlords to process and administer the money.
“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,” Kelly Rose, chief
housing solutions officer at MSHDA, said. “CERA gives Michiganders that muchneeded peace of mind by helping them catch up on their rent and utility costs while also ensuring landlords can recover rent owed to them.”
Some households will also qualify for utility assistance. Copies of bills are required in order to make payments for the renter. The U.S. Department of Treasury is now also requiring applicants to show documentation of their pandemic-related hardships including loss of income, unemployment and increased
expenses.
“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.”