Maryland will commit $30 million in new funding to help prevent tenants affected by the coronavirus pandemic from facing eviction.
While eviction moratoriums provided time for federal stimulus funds and state unemployment benefits to take effect, many people are still struggling to pay their rent.
Gov. Larry Hogan said the money will be spent in two different ways and come directly from the federal Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.
“Too many Marylanders have faced undue financial hardships during this unprecedented crisis, including the inability to pay their rent,” Hogan said in a statement.
“While our eviction moratorium has helped families remain in safe and stable housing through the pandemic, we are also maximizing federal resources to help as many renters as possible.”
Most of the money, $20 million, will go into federal Community Development Block Grant program to help address eviction prevention needs across all 24 jurisdictions.
After Hogan declared a state of emergency order on March 5, 20% of all residential rental units fell into delinquency, according to a news release.
The remaining $10 million will go toward the Assisted Housing Relief Program.
It is intended to provide relief for tenants affected by the coronavirus pandemic with direct payments to eligible property management companies.
Once a payment for back rent through the program is received by a landlord, tenants will have their rental debt eliminated, while no longer facing eviction.
Approximately 9,000 of the 45,000 state-financed rental units are delinquent, at an estimated $3 million per month.
The program will also help those in multifamily rental units that were financed by Maryland’s Department of Housing and Community Development Administration with state funds or federal resources.
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