(CBS DETROIT) – A program designed to assist people who fell back on rent is now falling behind on finalizing applications.
Paperwork is building for the eviction diversion program and officials with the Michigan State Housing Development Authority is routing property owners their way to get caught up.
“We’re really reaching out to landlords that do have those multiple tenants in either Wayne, Oakland, Macomb, Washtenaw, Ingham or Kent counties to put their applications in through us because that will help the local servicing happen at a little, quicker pace,” said Kate Rose, MSHDA chief housing solutions officer.
Back in July a $50 million fund was set up to protect residents from evictions in the pandemic.
Tenants with back rent can receive payments up to $3,500 as long as landlords knock off 10 percent of the balance and cancel late fees.
Only 16 percent of the fund has been disbursed causing a backlog.
Now landlords can apply with MSHDA to expedite results.
“So landlords that have three or more tenants that are in the pre-eviction filings stage of the process, so they have not yet filed in court for eviction but they have given their tenants a notice to quit or demand for possession because they’re behind on their behind on their rent. Then the landlord will work with the tenant in putting together a complete application,” said Rose.
Last month the Centers for Disease Control put a stop to evictions in the pandemic but some are still vulnerable.
State housing regulators are urging delinquent renters to make payment arrangements with landlords because the CDC’s moratorium only delays evictions until the end of the year but it does not clear balances.
“Because in many situations we fear that if the tenant only does the CDC declaration, in January when that protection is no longer active, this program will not have the funds available because we only have the funds available through the end of the year,” said Rose.
For more information about the eviction diversion program click here.
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