Notification from Matt Rayburn on May 13, 2021
Since our webinar, IHCDA has updated its ERA brochure for landlords and for tenants. See updated versions, in Spanish and English, attached.
I also wanted to bring to your attention a federal program change mandated by Treasury. In both an updated Treasury FAQ and a separate ERA Fact Sheet released last Friday 5/7/21, Treasury has updated the ERA rules to require that a landlord may not evict a tenant receiving ERA for nonpayment of rent during the period that they are receiving ERA.
Here is the language from the FAQ:
32. Can grantees prohibit landlords from pursuing eviction for nonpayment of rent for some period after receiving ERA assistance?
With respect to landlords that receive funds under an ERA program for prospective rent, the grantee must prohibit the landlord from evicting the tenant for nonpayment of rent during the period covered by the assistance.
In addition, with respect to landlords that receive funds for rental arrears, to promote the purpose of the program the grantee is encouraged to prohibit the landlord from evicting the tenant for nonpayment of rent for some period of time, consistent with applicable law.
In all cases, Treasury strongly encourages grantees to require landlords that receive funds under the ERA, as a condition of receiving the funds, not to evict tenants for nonpayment of rent for 30 to 90 days longer than the period covered by the rental assistance.
Here is the language from the Fact Sheet.
At this time we have not implemented any longer period (i.e., have not implemented a 30-90 days longer as recommended below).
5. Protects Renters from Eviction While Payments Are Being Made on Their Behalf.
Starting with today’s guidance, programs must prohibit the eviction of renters for nonpayment in months for which they receive emergency rental assistance. While most landlords are working to secure relief and help renters stay in place, Treasury strongly encourages grantees to require that landlords not evict tenants for nonpayment of rent for 30 to 90 days longer than the period covered by the emergency rental assistance as a condition of receiving payment.
IHCDA has implemented this policy going forward. As of yesterday, the agreement form that the landlord signs in Submittable includes this language (it was added to the top of the agreement language and is bolded). We will do some direct messaging out to our ERA landlord contacts next week on this issue to make sure they are aware of this update.
To see the entire document, “U.S. Department of the Treasury Emergency Rental Assistance Frequently Asked Questions”, click here.
To view the entire document, “U.S. Department of the Treasury Emergency Rental Assistance Fact Sheet”, click here.