LANSING, Mich. – 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 July 16 to coincide with the July 15 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.
For more information visit Michigan.gov/EDP.
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