On December 21, Congress passed a COVID-relief package, which also included an Omnibus spending bill for FY21, and some tax extenders. The National Association of Realtors produced a summary of the major provisions of that bill impacting REALTORS®.
One of the many provisions that interest Realtors is the eviction moratorium and rental assistance. There has been much discussion among real estate professionals who are concerned about the fallout from scores of renters unable to pay rent. Here's what the package includes:
Provides $25b through September 30, 2022 for rental assistance. The monies will be allocated to states through the Department of Treasury.
States allocation will be based on population, no state will receive less than $200 million.
Allows landlords to apply for funds on behalf of tenants.
Includes payments for rent in arrears as well as utilities and “and other expenses related to housing.”
States should prioritize families with incomes below 50% of area median income (but no set % of funds distributed is required).
Rental assistance will not be included in recipient’s income for federal tax purposes.