The Biden American Rescue Plan Gives Approximately $10 Billion To Struggling Homeowners
President Joe Biden signed the Biden American Rescue Plan Thursday. The plan frees up $1.9 trillion to help invigorating the economy following the COVID-19 pandemic.
The bill authorizes sending $1,400 direct payments to individuals making up to $75,000 annually. The package also allocates $350 billion in aid to state and local governments and $14 billion for vaccine distribution.
In addition, it allocates $50 billion to small businesses including $7 billion for the Paycheck Protection Program. It also allocates $25 billion for small and mid-sized restaurants.
Direct deposits of $1400 have already started hitting Americans’ bank accounts.
The Biden American Rescue Plan Helps The Housing Industry
For the housing industry, the Biden American Rescue Plan is an enormous buoy. Especially with home prices are sky-high and low inventory. In addition, millions of people are struggling to make rent and mortgage payments.
Specifically, the bill allocates $22 billion for emergency rental assistance by replenishing the Coronavirus Relief Fund.
Renters and homeowners must meet several requirements. The first requirement is that total household income cannot exceed 80% of the area median income. Also, at least one household member must be at risk of homelessness or housing instability. In addition, individuals in the household must qualify for unemployment because of the pandemic.
Low-income families receive priority relief under the Biden American Rescue Plan. The plan also gives priority to those who have been unemployed for three months or more.
The rescue plan also allocates $10 billion toward helping homeowners struggling with mortgage payments. In addition, it dedicates $100 million to housing counseling.
The Biden American Rescue Plan also allocates $5 billion to fight homelessness by converting certain properties into shelters.
Treasury Secretary Janet Yellen will now begin the giant task of overseeing the distribution of the bill. Congress passed the bill in lightning speed via the budget reconciliation process. Yellen said that while the numbers may not immediately reflect it, Thursday was a “pivotal day” for the American economy.
The Mortgage Bankers Association released a statement commending the passage of the bill, saying it will strengthen the overall rental and housing market.
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