|Posted:||August 26, 2020 04:21 PM|
|From:||Senator Art Haywood and Sen. Vincent J. Hughes, Sen. Katie J. Muth|
|To:||All Senate members|
|Subject:||CARES Act Rental and Mortgage Assistance Program Fixes|
|In the near future, we will introduce legislation to make necessary changes to the Mortgage and Rental Assistance Grant Program established though the CARES Act so the program works as it’s intended.
The Governor’s Executive Order to suspend evictions and foreclosures expires 31 August 2020. The best way we can keep people in their homes past 31 August is to ensure the programs we created to keep people in their homes under the CARES Act are functioning properly. The Pennsylvania Housing Finance Agency (PHFA) reports there are several issues causing the $175 million for program to be underutilized. For example, a $750/month cap on payments to landlords and a $1000/month cap on payments to lenders are not enough for many to forgive the outstanding balances that remain. If this money is not spent by the end of the calendar year for its intended purpose, we might have to give it back to the federal government. Without these changes, we will leave our neighbors out on the cold.
PHFA and our state’s network of housing advocates are working on a comprehensive solution, including the following changes:
Please join me in co-sponsoring this critical legislation for our neighbors across the Commonwealth.
Introduced as SB1290