Articles & Alerts
What Does the New Stimulus Package Mean for Landlords?
The highly anticipated second stimulus relief package, released shortly before the holidays, on December 22, 2020, has a provision that will finally provide benefits to property owners.
As part of the new stimulus package, a one-time payment of $600 is to be distributed to those with an income of $75,000 or less. In addition to the stimulus payments, the Pandemic Emergency Unemployment Compensation extension will be providing an additional $300 to be added on top of state benefits until March 14th, 2021.
Additionally, the bill includes $25 billion of rent relief funds that are to be distributed to state and local governments. An individual who receives the rental assistance may use the funds for current rent, rent arrears and utilities. In most cases, the rental funds will be paid directly to their landlord by the state or city managing the relief. It’s important to note that landlords and property owners can apply for assistance on behalf of their tenants with permission from the tenant.
According to the Federal guidelines, in order to qualify for assistance, a taxpayer must meet the following qualifications, at a minimum:
- The taxpayer must rent their home.
- Household income must be less than 80% of the median income of the area in which they live.
- Someone in the household must qualify for unemployment benefits or can prove financial hardship and be at risk of losing their home.
Ultimately, the additional financial support for lower income families paired with the rental assistance funding will play an integral role for landlords looking to collect rent. Owners struggling with overdue rents may see a substantial improvement in their payment collections over the next 3 months.
For more information on the new stimulus package or related topics, please contact Marc Wieder at [email protected] or your Anchin Relationship Partner.