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MSHDA Streamlines Process For Landlords With Tenants Facing Eviction

 

October 22, 2020

Unfortunately this is the reality for many people in Michigan

CBS Detroit – Starting Monday the Michigan State Housing Development Authority is giving aid to landlords who have three or more tenants in the pre-trial phases of eviction through the state's Eviction Diversion Program (EDP). According to an article by the Detroit Free Press, MSHDA is taking applications from landlords in Wayne, Oakland, Macomb, Washtenaw, Ingham, and Kent counties.

Before landlords had to apply through local housing agencies to get aid from the state. Now they can apply directly through MSHDA, who manages the $50 million reserved by the state for the program. Katie Bach, the communications director at MSHDA, said in a statement that so far only $8 million, or 16% of the $50 million has been used. Initially, when the program was unveiled, many thought t would be just a drop in the bucket with so many out of work from the Coronavirus pandemic and state-mandated closures affecting everyone.

Bach told the Free Press, "MSHDA is allowing landlords to apply directly for EDP relief due to the high volume of applications and the timeline by which funds need to be spent,". The goals she says, "MSHDA will process these applications internally in support of the local service organizations so that tenants and landlords can be served at a quicker pace."

To qualify for the MSHDA benefits, if the landlord and tenants have already applied to their respective local agencies, tenants must also submit paperwork to those local agencies. Only landlords should apply through MSHDA if their tenants haven't done so through other local housing agencies. Landlords can find directions to MSHDA's EDP program here.

Under the state's EDP program, landlords can receive 90% of tenant's back rent, based on their income, in a one-time payment as long as they forgive all late fees and penalties. This gives those tenants, many of whom experienced delays in getting unemployment benefits a chance to get current on their rent. According to the Free Press, 2,400 families have taken advantage of the program, with more cases being processed.

For those in Michigan facing eviction or needing legal help can go to https://michiganlegalhelp.org. The City of Detroit has eviction resources for it's residents as well..

 

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