New Eviction Diversion Program offers $50 million in relief for renters, landlords
A new program administered by the Michigan State Housing Development Authority (MSHDA) in collaboration with Michigan Supreme Court and Department of Health and Human Services will help renters who have fallen behind on their payments due to COVID-19 and their landlords who want to recoup missed payments.
The Eviction Diversion Program (EDP) launched today to coincide with Wednesday’s end of the state eviction moratorium, which had temporarily halted residential eviction for missed rent payments. As part of the program, an allocation of $50 million was set aside to help tenants and landlords resolve eviction filings with conditional dismissals. Tenants making up to 100% of area median income are eligible for the rental assistance. Participating landlords can receive up to 90% of a tenant’s unpaid rent in one lump sum. In exchange, landlords must dismiss all late fees, up to 10% of the amount due, and allow tenants to stay in their homes.
Funding for the EDP comes from Senate Bill 690, which appropriated $880 million in federal dollars from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Senate bills called for $60 million to be set aside to establish a rental assistance program – of which $50 million will be dedicated to rental assistance with the remaining $10 million covering case management, legal, and administrative costs.
MSHDA will administer the EDP through Housing Assessment and Resource Agencies (HARAs), a statewide network of homeless and special housing needs service providers. HARAs are responsible for collaborating with local stakeholders to design an eviction diversion process that notifies tenants and landlords about the program and ensures eviction filings are resolved by conditional dismissals in as many cases as possible.
For more information on EDP and a list of HARAs by county, visit Michigan.gov/EDP.
36th District Court extends moratorium on evictions to August 31
The 36th District Court announced the extension of its moratorium on evictions for the city of Detroit Thursday, upon the expiration of Gov. Gretchen Whitmer's Executive Order 2020-118.
The Court’s moratorium will now extend through August 15, 2020.
“We want to ensure that as our number of positive COVID-19 cases continues to rise, no one is left facing homelessness at this critical time,” said Chief Judge William C. McConico. “Removing people from their homes right now could prove to be devastating, as our efforts to control this virus depend upon the ability of all to self-isolate, practice social distancing, and exercise frequent hand-washing.
“While I am optimistic that the eviction diversion program instituted by Gov. Whitmer will be successful and of great benefit to both landlords and tenants, I believe it would be helpful for the Court to give this initiative an initial grace period as those administrative operations begin to fall into place.”
The 36th District Court began its eviction moratorium on March 13, 2020.
Please check the Court’s website at www.36thdistrictcourt.org for further updates and information.
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