There is good news for property owners and tenants impacted by COVID-19 in Central Missouri. The Missouri Housing Development Commission (MHDC) just launched its Missouri Emergency Rental Arrears Program (ERAP) to provide relief and prevent eviction due to non-payment of rent.
ERAP is offering a one-time payment for up to six months of past-due rent backdated to April 1, 2020. Payments will be made directly to landlords for qualified tenants. In exchange for this payment, landlords must agree not to file for eviction for non-payment for 120 days from the date of application submission as well as waive all fees and outstanding rent up to the date of application submission.
“ERAP offers support to the many Missouri families facing unemployment and underemployment from the ongoing COVID-19 pandemic. Eviction moratoriums offer tenants temporary protection from eviction, but as unpaid rent and fees continue to accumulate, it becomes more difficult for tenants to catch up on past-due rent. In addition, mounting rental arrears leave landlords without income vital for ongoing care and upkeep of properties and paying bills.”
ERAP WEBSITE
In order to qualify, tenant households must be below 50% of the Area Median Income at the time of application. Preference for ERAP assistance will be given to small landlords with 10 or fewer units. Applications must be submitted by landlords who will work with tenants to provide required information.
Applications for the ERAP program will open in January.
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Landlord Eligibility
To be eligible for the Missouri Emergency Rental Arrears Program (ERAP), landlords must:
- Be a landlord of a residential property in Missouri
- Have a social security or employee identification number that appears on a W-9
- Be current on all state and local tax obligations
- Not be a governmental entity
- Have not received assistance from any other sources for the months requesting rental arrears unless a need still exists after exhausting all resources
- Not requested assistance for a tenant that is receiving any other rent subsidy unless the amount requested is only for a one-time payment of rental arrears for the tenant portion of rent
- Not have a pending eviction action against the tenant for which the landlord is requesting rental arrears
- Agree to not evict tenant or report to credit agencies for non-payment of rent for 120 days following the application submission date
- Agree to waive all outstanding rent and late fees beyond MHDC assistance following the application submission date
- Have a fully executed lease between the landlord and the current tenant for the unit seeking assistance; The lease must match the landlord name, tenant name, and unit/property address entered in the online application
- Complete an itemized statement of outstanding rental arrears, late fees, and any additional fees since April 2020
- Property/unit meets HUD Habitability Standards
- Property/unit meets lead-based paint requirements
- Have checking account that can receive Electronic Fund Transfer (EFT) payment
Tenant Eligibility
To be eligible for the Missouri Emergency Rental Arrears Program (ERAP), tenants must:
- Not be the landlord or application point of contact
- Have an estimated household income that includes all household members over 18 (based on the average income for last 30 days) below 50 percent of the Area Median Income in the county the tenant unit resides in
- Certify to the presence of a COVID-19 related financial impact on ability to pay rent
- Have received less than 24 months of Emergency Solutions Grant services in any three (3) year period
- Have not received assistance from any other sources for the same costs for the months requesting rental arrears unless a need exists after exhausting all resources
- Not be receiving any other rent subsidy unless the amount requested is only for a one-time payment of rental arrears for the tenant portion of rent
- Provide requested demographic information on all household members
- Provide photo ID(s) for all household members over 18 years of age
For more information on the ERAP program, visit https://www.mohousingresources.com/erap.