How Will the American Rescue Plan Help Housing?

The American Rescue plan has been set in motion to help ensure that Americans recover from the effects of the covid pandemic. Have you been affected by the virus that swept through our nation?

[su_note note_color=”#effce8″ radius=”8″]You may be wondering exactly how the American Rescue Plan will impact housing? Recently, the president announced that there would be an extension of foreclosure relief programs, provide rental assistance, and provide multiple programs that help alleviate issues related to the pandemic.[/su_note]

As we start recovering from the pandemic, we believe every person must know their options. If you have been feeling hopeless and like you can’t afford to get help, we want to be the ones to share with you all the programs brought to you by the American Rescue Plan and what the Biden-Harris Administration is doing to help everyday people like us.[toc]

Emergency Rental Assistance Program

Millions of families have been affected by covid-19 and need relief to help with rent. This law provides $21.5 billion to the treasury for emergency rental assistance to distribute to Americans who need help.

How can I get rental assistance during the covid-19 pandemic?

The Housing and Urban Development department is helping renters acquire this money. You will need to contact your local HUD department and speak with a counselor to help you take the following steps the counselor provides.

How does HUD calculate your rent?

The amount of rental assistance you qualify for is calculated by dividing your adjusted gross income by 12 and then multiplying it by 30%. When you fill out your application to the HUD, you will have to give exact and accurate numbers for them to provide you with the most you qualify for.

Homeowner Assistance Fund

Renters are not the only families struggling; many homeowners are too. This legislation provides funds of $10 billion to the treasury that will go to homeowners who are behind on mortgage payments. This law allows the owners to stay in their homes while they get back on their feet and help American families avoid foreclosure and eviction.

What are the requirements for mortgage relief?

This legislation allows you to lower your monthly mortgage payment for a short time or, in some cases, completely pause it. You may be eligible for this relief if you have been experiencing financial hardship due to covid-19 and if your mortgage is federally backed. If your mortgage is not federally backed, you will have to talk to your servicer to develop new solutions.

The best way to receive this help is by contacting your service provider. If you feel like they are not helping, you can submit a complaint to the Consumer Financial Protection Bureau.

Emergency Housing Vouchers

This legislation, sometimes referred to as section 8 housing, has provided $5 billion for emergency housing vouchers. This means that any families who are at risk of becoming homeless can get help with housing vouchers.

How to apply for emergency housing vouchers?

Typically, there is a long wait to get into section 8 housing. However, this legislation opens up opportunities for families and individuals who need immediate housing. The easiest way to apply for emergency help is by calling (800) 955-2232 or applying under your state.

Homelessness Assistance

During the covid-19 pandemic, many people could not afford rent, mortgages, or living arrangements. Before the government stepped in to help, they had to move out of their homes. If this is your situation, you may qualify for this program. Under the American Rescue Act, this legislation provides $5 billion to the HOME Investment Partnership Program.

How does the home program work?

This is a federal block grant program that enables funds to go to local programs to help create plans and activities for low-income housing. This means anyone at risk of homelessness can get help easier amidst the coronavirus pandemic.

Housing Assistance For Native Americans

This act provides $750 billion to the treasury, which will be used to help Native Americans or Native Hawaiians with housing-related health risks. This will help fund tribal communities until the economy is strong again.

What are housing-related health risks?

Poor conditions in a home can lead to serious health risks. Are you wondering what they are? They can include things like respiratory infections, asthma, and even cancer. So it is important to support homes, which is why the government is ensuring the tribes are taken care of.

How to apply for housing as a Native American?

To start the process, you can call the Office of Native American Programs to see if you qualify for any benefits. You must live on the tribal lands, on the reservation, or within the allotted distance to have this program accept you.

Emergency Assistance For Rural Housing

The USDA has received $100 million from the American Rescue Plan to help out those families who live in rural areas. In some cases, these areas were affected by covid-19 and need more help than those who live in the city.

This act helps people in the rural areas keep their homes by providing extra funds, so they do not get evicted.

How is rural housing defined?

The USDA defines rural housing as homes in an open country, not part of the urban area. This makes it a very generous term. If you qualified for a USDA mortgage and need help due to the covid-19 pandemic, you may qualify for extra help.

How to apply for rural housing assistance?

The best way to qualify for any loans is to direct questions to sfhgld.program@usda.gov They will walk you through the loan process. On top of the assistance, this legislation provides extensions of forbearance and foreclosures for up to 180 days.

Funds For Housing Counseling

Housing counselors ensure that people and the community get the funds they need during times of instability. The American Rescue Plan gave $100 million to the non-profit organization NeighborWorks that will allow housing counselors to provide these funds.

Where to find Neighborworks?

The easiest way to find a branch near you is by using their website and entering your state. You can call the local phone number or email them.

Relief Measures For Section 502 and 504 Loan Borrowers

If you have received a USDA mortgage loan under sections 502 and 504 for low-income housing, there is extra relief that the American Rescue Plan has provided. The Biden-Harris administration has put this legislation out that provides $39 million for the USDA to administer to those who have 502 and 504 home loans.

What does this money help?

This money will go to helping purchase, repair, and rehabilitate housing in rural areas. The USDA will define what rural areas qualify and what families need the most help.

Funds For Fair Housing Activities

This money is provided to the Fair Housing Initiatives Program to help them investigate unfair and unjust housing complaints. This program has received $20 million and will help those who believe they have been victims of housing discrimination.

Who to contact if you have been a victim of housing discrimination?

If you feel as if you have been a victim of housing discrimination, you can fill out a complaint with FHIP. They will contact you and help you with housing, loans, and more. The goal of this program is to strengthen enforcements and stand up for what is right.

Other Programs To Be Aware Of

Covid-19 impacted us all in drastic and unexpected ways. Other programs have helped us get money to help us stay on top of bills and the things we need to live. We have received stimulus payments from the Biden-Harris administration and also a boost in unemployment wages.

Summing It Up

The Biden-Harris administration focuses on boosting the American economy and ensuring that people have a place to live. If you have found yourself becoming homeless due to the pandemic, you can reach out for help, and you may get immediate assistance. If you have questions about these programs, comment below.