Wrangell renters have benefitted from more than $237,000 in assistance under a federally funded, state-managed program that is among the leaders nationwide in getting money to landlords and utilities on behalf of households economically hurt by the pandemic.
More than $110 million had gone out to help almost 19,000 households statewide as of last week, almost half of the $242 million allotted to Alaska under the federal pandemic assistance program.
Alaska was ranked third in the nation among states for distributing the funds, according to Treasury Department data analyzed by The Wall Street Journal.
Nationwide, only about 20% of the $25 billion allocated to states, municipalities and tribes last December had been distributed as of the end of July, according to the Treasury Department.
The department last week advised states that have been slow to distribute the aid to start accepting self-declarations of financial hardship from tenants when proof is not “readily available.” Treasury also said states and local programs can advance money to landlords while still working to confirm the amount owed.
The Alaska Housing Finance Corp., which before the pandemic managed subsidized rental housing and home loan programs, has been administering the federally funded rent relief payments since last summer.
In Wrangell, as of last Friday, more than $215,000 had been paid to cover past-due, current and future rent for 61 applicants who met income guidelines and could show loss of earnings due to the COVID-19 pandemic. The program also has paid out almost $20,000 to help cover utility bills.
Statewide, AHFC as of last Friday had distributed rent and utility assistance for almost 19,000 households. Almost 75% of applicants have been approved for payment, with the rest either still in processing, determined ineligible or withdrew their application.
Most of the landlords participating in the program are small operations, with one or maybe a few rental units, the housing agency said.
As AHFC gets ready to open up another program of federally funded rent relief, it is reaching out to applicants to finish the first round.
“The most common problem we see with applications now is lack of response. There are approximately 5,000 who applied for the program but did not go on to submit their identification, income statements or other documentation such as a rental agreement,” said Stacy Barnes, director of governmental relations and public affairs at AHFC.
“We have emailed these individuals almost weekly since March asking for their documents. We have also begun texting them and we’ve initiated phone calls,” she said Monday.
The next round of aid, funded in March by Congress, will cover rent and utility assistance for tenants who missed the first application period. Applicants under the first round of rental assistance will not need to reapply.
AHFC will open the new program for pre-registration after Labor Day, Barnes said, with the online system available for applications Sept. 13 to Oct. 1. This second round includes about $125 million to help Alaska tenants.
The March federal appropriation also included money to help homeowners behind on their mortgage because of income loss due to the pandemic. Alaska’s share of that program is $50 million.
AHFC plans to submit its plan for mortgage relief payments to the Treasury Department by Sept. 30, Barnes said. After federal approval, the state hopes to bring the plan to the public later this fall.
Reader Comments(0)