A new supplemental federal COVID-19 relief bill contains several provisions for Illinois real estate professionals and housing providers. The federal stimulus comes just as Illinois REALTORS® has begun negotiations with state elected leaders on its statewide housing relief package.

Part of a larger legislative package extending funding for federal government operations through next September, the bill signed by President Trump on Sunday night includes the following for REALTORS®, housing providers and Illinois residents:

  • Illinois residents who meet certain income levels (similar to the first round of direct stimulus money but a lesser amount) will receive direct payments of $600.
  • To provide rental assistance to tenants and housing providers, Illinois, including state and local governments, will receive an estimated $850 to $950 million of the $25 billion appropriated for states and local governments under the package.
  • The federal eviction moratorium is extended through January 31, 2021. However, the current Illinois eviction moratorium remains in place through January 9, 2021 and is the one for Illinois housing providers to follow, until such time as it expires or is not extended.
  • Illinois REALTORS® associations might benefit from the continuation of the Paycheck Protection Program (PPP) which makes loans available to eligible businesses through the Small Business Administration (SBA). There is also additional funding for Economic Injury Disaster Loans (EIDL).
    • This supplemental relief bill adds additional businesses that might benefit from a PPP loan, notable among them, Section 501(c)(6) not for profit entities (this might include certain local REALTOR® associations)
      • To be eligible for a PPP loan, the entity can’t receive more than 15% of its receipts from lobbying activities, the lobbying activities do not comprise more than 15% of the total entity activities, it does not employ more than 300 employees ​and lobbying expenses do not exceed $1 million. (Note: PPP funds must not be used for lobbying activities)
    • Clarification that PPP loan proceeds used to pay business expenses are tax deductible
    • Provision for a simplified process for seeking PPP loan forgiveness
    • Provision for some businesses to get a second PPP loan

 

  • Illinois individuals who are self-employed or independent contractors will continue to receive unemployment benefits through April 19, 2021. The federal portion of those benefits would pay an additional $300 per week through March 14, 2021.

The approval of another stimulus bill by Washington comes as Illinois REALTORS® is working with state legislators in Springfield on a relief bill for housing providers and tenants in Illinois. The Illinois REALTORS ® advocacy team recognized months ago that housing providers had not been the recipients of any relief assistance and no plans were in place to ensure housing stability for thousands of renters once mitigation restrictions are lifted.

The Illinois REALTORS® statehouse advocacy team has:

  1. Provided state legislators with a draft of legislation on the administration of the federal rental assistance dollars received from the federal stimulus. For any rent deficiencies not covered by stimulus funds, our advocacy team has recommended the state consider income tax credits to help housing providers absorb the financial consequences of the state-imposed mitigation measures during the pandemic.
  2. Included language in that legislation calling for an end to the eviction moratorium to coincide with the rollout of federal rental assistance funds and the availability of the tax credit.

The Illinois REALTORS® advocacy team is optimistic that negotiations will lead to a positive result for housing providers in Illinois who have, so far, carried a disproportionate amount of the financial burden in 2020.

Negotiations on the statewide relief bill are expected to continue through the holidays in advance of an expected lame duck session of the General Assembly.

To find a summary from the National Association of REALTORS® on the major provisions of the relief package, go here. For specific advice on the details of these programs, consult with your attorney, accountant and/or your local lender for assistance. Check back often for updates related to this developing story.