Last night, the Senate passed the Coronavirus Aid, Relief and Economic Security Act (CARES). The House is expected to vote on and pass the $2 trillion stimulus bill on Friday. With direct assistance to families, expanded unemployment benefits and aid to states and localities, there are many significant measures to help households and communities combat this health crisis and the significant economic fallout. However, both Governor Cuomo and Mayor de Blasio are critical of the bill, calling for more targeted assistance to impacted communities like New York.

The legislation includes many recommendations that NYHC called for, in partnership with national and local organizations, that will help homeless and at-risk Americans, including funding to help house homeless people, CDBG funding to localities, and operating funding for federally-assisted programs that will see decreases in rental income. We thank the NY Congressional Delegation for their work on advancing solutions to help NYers and all Americans keep stable housing during this crisis.

Here is what the bill does for housing:

  • $4 billion in McKinney-Vento Emergency Solutions Grant to address the impact of COVID-19 among individuals and families who are homeless or at risk of homelessness, and to support additional homeless assistance, prevention, and eviction prevention assistance.  
  • $5 billion Community Development Block Grants to provide communities and states with funding to provide resources to address the economic and housing impacts from COVID-19, with $2 billion allocated to governments that received an allocation in FY 2020 CDBG formula, $1 billion directly to states to support a coordinated response across entitlement and non-entitlement communities, and $2 billion to governments based on the prevalence and risk of COVID-19 and related economic and housing disruption. 
  • $1 billion Project-Based Rental Assistance to make up for reduced tenant payments due to the coronavirus. 
  • $1.25 billion Tenant-Based Rental Assistance to preserve Section 8 vouchers for households, many of whom will experience loss of income from the coronavirus.
  • $685 million for public housing operating for anticipated shortfalls in rent and expenses related to COVID-19. NYCHA estimates its shortfall will be $300 million. We are concerned that NYCHA could be shortchanged in the distribution formula.
  • $65 million for Housing Opportunities for Persons with AIDS (HOPWA) to maintain rental assistance and expand operational and administrative flexibilities for housing and supportive service providers. Given that this population is particularly vulnerable, the bill includes temporary relocation services to contain and prevent the spread of COVID-19 for these at-risk households.
  • $50 million for Section 202 (housing for seniors), and $15 million for Section 811 (supportive housing for people with disabilities) for rental assistance, service coordinators, and support services. 
  • $2.5 million for fair housing enforcement
  • $900 million in Low Income Home Energy Assistance Program to help lower income households heat and cool their homes. 
  • $45 million for Family Violence Prevention Services to support families during this uncertain time, and to prevent and respond to family and domestic violence, including offering shelter and supportive services to those who need it.
  • $590 million for Vulnerable Veterans to support veterans at increased risk of contracting coronavirus. It includes funding for the Health Care for Homeless Veterans program, the Supportive Services for Veterans Families program, and the Grant and Per Diem program. 

The bill aids impacted homeowners by establishing a moratorium on foreclosures for all federally-backed mortgages, including those covered by HUD, USDA, FHA, VA, Fannie Mae and Freddie Mac, for 60 days, starting March 18, 2020. The bill also provides a temporary moratorium on evictions for residents of federally subsidized apartments, including those supported by HUD, USDA or Treasury (Low Income Housing Tax Credit developments). The legislation codifies the guidance from FHFA earlier this week offering mortgage forbearance and protections to impacted renters and owners in federally-backed loans, covering roughly half of the market, but it still leaves many owners and renters out. See NLIHC summary for full analysis on funding and regulations.

The legislation gives the HUD Secretary broad waiver authority in a number of areas. This may be helpful as it is critical that localities be able to use ESG funding for populations that have not always met the definition of homelessness, such as people being discharged from hospital or leaving jails. Given the current crisis, we do not want red tape to force anyone into shelter for a night to prove homelessness.

While there is significant housing assistance in the bill, New York is facing an unprecedented set of challenges. We will therefore continue to monitor the ongoing effects of the coronavirus on the housing stability of New Yorkers. We are already talking with partners about housing finance solutions and plan to be actively involved in any future legislation.

Stay safe and stay tuned!