Emergency Assistance is Available for Those Struggling to Make Rental or Mortgage Payments
Governor Pritzker just released guidelines for emergency assistance for both homeowners and renters who are unable to make rent or mortgage payments due to a loss of income related to the pandemic. While the majority of manufacturing companies continued operating over the past several months, some manufacturing workers may have experienced layoffs, furloughs, or reductions in pay that could qualify them for this federally-provided assistance.
If your employees may be eligible for this program, share this information. Resources are limited and there are strict deadlines for application.
Emergency Rental Assistance Program
Applications are now available (August 10-21) for the Emergency Rental Assistance Program (ERA) will support Illinois tenants unable to pay their rent due to a COVID-19-related loss of income. Tenants whose applications are approved will receive one-time grants of $5,000 paid directly to their landlords to cover missed rent payments beginning March 2020 and prepay payments through December 2020, or until the $5,000 is exhausted, whichever comes first. The assistance will be in the form of a grant and repayment will not be required. Applications for ERA will be accepted August 10th through August 21st. Due to the anticipated high volume, the application window may close early. IHDA will use a third-party entity to select a pool of applications to be reviewed for eligibility. Approximately 30,000 tenants are expected to receive funding.
Apply online at: era.ihda.org.
Tenant Eligibility:
- Household income before March 1, 2020 was at or below 80 percent of the Area Median Income;
- An adult member of the household must have had a loss of income due to the COVID-19 crisis on or after March 1, 2020; and
- Household has an unpaid rent balance that began on or after March 1, 2020.
Emergency Mortgage Assistance Program
Applications will become available on August 24, 2020, for the Emergency Mortgage Assistance Program (EMA) that will assist homeowners who have experienced a COVID-19-related loss of income resulting in past-due mortgage balances starting March 2020. Approved applicants will receive up to $15,000 paid directly to their mortgage servicer. Assistance will cover the homeowner’s past due or forbearance balance and their regular mortgage payments through December 30, 2020, or until the funding is exhausted, whichever comes first. Payments may include all escrowed first mortgage expenses including property taxes, insurance, and certain fees. The assistance will be in the form of a grant and repayment will not be required. Applications for EMA will be accepted from August 24th through September 4th. Due to the anticipated high volume, the application window may close early. IHDA will use a third-party entity to select a pool of applications to be reviewed for eligibility. The program is expected to assist approximately 10,000 households.
Apply online at: ema.ihda.org.
Homeowner Eligibility:
- Household adjusted gross income from 2019 Tax Return was at or below 120 percent of the Area Median Income;
- An adult member of the household has had a loss of income due to the COVID-19 crisis on or after March 1, 2020;
- Homeowner’s mortgage was current as of February 29, 2020;
- The mortgage is past due or in forbearance.
Financial assistance from both programs is funded through Illinois’ allocation of federal Coronavirus Relief Funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136).
The funding must be completely distributed by December 30, 2020.
For additional COVID-19 resources visit our Reopening Rockford section.
