Will My Rent Increase If I Receive a Coronavirus Stimulus Package?

The ongoing coronavirus pandemic has brought with it a range of challenges, one of which is the impact on housing costs. If you receive a coronavirus stimulus package and live in subsidized housing, will your rent increase? This article aims to provide clarity on this matter and offer guidance for individuals in similar situations.

Overview of Subsidized Housing and Rental Assistance

Subsidized housing programs are designed to help low-income individuals and families afford housing. The amount of rent assistance often depends on the recipient's income. However, the impact of receiving a coronavirus stimulus package while living in subsidized housing can vary significantly depending on the specific program and the legislation in place.

Coronavirus Stimulus Package and Housing Assistance

Many individuals have received emergency benefit payments such as those provided by the coronavirus stimulus package. It is important to understand the specific rules regarding these funds and their impact on subsidized housing.

Question: If you live in subsidized housing where your rent is based on your income and receive a COVID-19 emergency benefit payment because of earnings, will your rent go up?

Answer: You will need to check with the administrator of your housing assistance program. Generally, legislation specifically excludes such payments from counting toward annualized income for purposes of determining rent. Nonetheless, it is always advisable to verify with your local program. Additionally, maintaining good hygiene practices and following health guidelines is crucial.

For those receiving Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF), the situation may be a bit different. Here are some key points to consider:

Social Security Recipients: If you receive Social Security, you will likely receive a subsidy through direct deposit. The housing subsidy or portion of rent may not diminish, assuming you receive a cash subsidy from the federal government. However, it is crucial to check with your local housing authority for specifics.

SSI/TANF Recipients: SSI recipients will receive the subsidy, but they may need to file an income tax return, even if they have no taxable income. Online tax filing services like HR Block or TurboTax Free Online can assist in this process. Low-income earners who do not need to pay taxes or file a tax return will receive a subsidy provided they file a tax return with the IRS.

Eviction Moratorium and Tenant Protections

Given the economic impact of the coronavirus, lawmakers and activists are pushing for relief measures to protect tenants. With rent due in April, there is a renewed urgency to implement statewide eviction moratoriums. These moratoriums aim to aid tenants who have lost their jobs due to the pandemic.

California Governor Gavin Newsom has made significant efforts to address the issue. He has urged local governments to take up the issue and signed an executive order last week that removes legal hurdles for them to act. While statewide action is possible, it is a complex issue. Newsom stated during a press conference that they are very concerned about the lack of action at the local level and reserved the right to consider a state overlay if necessary.

The key point to remember is that rent increases should not be due to individual fault. Landlords must abide by the rules and regulations put in place during emergencies.

Conclusion

The coronavirus stimulus package and its impact on subsidized housing vary based on individual circumstances. It is crucial to stay informed and check with your local housing authority for specific guidance. Additionally, maintaining good hygiene and following health guidelines is essential to ensure the safety of all.