(UPDATED June 23, 2020)
Illinois Governor J.B. Pritzker announced the framework of a new statewide initiative that will assist some of the communities and small businesses most affected by both COVID-19 and any damage that occurred during recent protests.
The $900 million state grant initiative is a combination of funds in the recently enacted state budget and federal dollars from the CARES Act. Under these programs, applicants from the most impacted areas will be given priority in receiving the grant money, which will be distributed through numerous programs to be run by various state agencies. Those new programs include:
- Emergency Rental Assistance (ERA)
- Through the Illinois Housing Development Authority (IHDA), the State will provide $150 million in grant money to some tenants who have been unable to pay their rent during the COVID-19 pandemic.
- Beginning in August of 2020, and running through the end of 2020, those who qualify will be eligible to receive up to a $5,000 grant for rental assistance.
- To qualify, a person must certify that:
- They were unable to pay rent, on or after March 1, 2020, due to a COVID-19 related loss of income,
- They currently have an unpaid rent balance, from March 2020 through the present day, with documentation of any unpaid rent balance incurred since March 2020;
- their pre-COVID-19 income was below 80 percent of the area median income for the household;
- They are not receiving any other local, State, or Federal rental assistance; and
- They have not applied, and will not apply for another COVID-related rental assistance program within Illinois for the applicable time period.
- The grant money will be paid directly to the tenant’s landlord or property owner, who must agree not to evict the tenant for the duration of the ERA program as a condition of accepting the grant assistance.
- The program is expected to provide assistance to approximately 30,000 renters, and will be distributed to qualified applicants on a first-come, first-serve basis.
- As part of his announcement of the ERA program and its scheduled August 2020 launch date, Governor Pritzker also announced that he will be extending his moratorium on evictions through July 31, 2020.
- Emergency Mortgage Assistance (EMA)
- IHDA will also be providing $150 million in grant money to assist approximately 10,000 eligible homeowners with grants of up to $15,000.
- To qualify, homeowners from disproportionately impacted areas who have a mortgage in arrears or forbearance on or after March 1, 2020, must certify that:
- They were unable to pay their mortgage in full due to a COVID-19 related loss of income.
- Their Pre-COVID income did not exceed 120 percent of the area median income for the household;
- Their mortgage was current through February 2020, and they are able to provide mortgage statements verifying arrearages incurred between March 2020 and the present day; and
- They have not applied, and will not apply for another COVID-19-related mortgage assistance program within Illinois for the applicable time period.
- The mortgage assistance grants will be paid directly to the homeowner’s loan service provider, on behalf of the homeowner.
- As with the ERA program, the EMA is scheduled to launch in August 2020, with money to be distributed to qualifying applicants on a first-come, first-serve basis.
Additional guidance from the state agencies on the administration of the new programs will be released soon. Illinois REALTORS® will continue to monitor the situation and provide you with important updates as new guidance from the state is released.
Learn more about these and other relief recovery programs.
In addition to these new State programs and requirements, current federal moratoriums on evictions and foreclosures still apply, if applicable. Under the CARES Act, landlords of rental properties with federal assistance or federally related financing cannot initiate eviction proceedings for nonpayment of rent during the 120 days following enactment of the CARES Act, or from March 27, 2020 until July 25, 2020. Landlords of such properties must also provide at least 30 days-notice before the tenant must vacate the property. Additionally:
- The Federal Housing Administration has recently extended the federal moratorium on foreclosures and evictions for homeowners with FHA-insured single-family mortgages to August 31, 2020, and
- the Federal Housing Finance Agency also recently announced that Fannie Mae and Freddie Mac will extend their single-family moratorium on foreclosures and evictions until August 31, 2020.
- Find more information on these extensions on these web pages: