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September 24, 2020

MaineHousing extends COVID-19 Rent Relief Program with $10M boost

A modern building that says MaineHousing on it with a sign in front that says Mainehousing main entrance Photo / Maureen Milliken MaineHousing has extended its COVID-19 Rental Relief Program to the end of the month, after the state provided an additional $10 million this week from federal CARES Act money.

MaineHousing has extended the application period for the COVID-19 Rent Relief Program through the end of the month after getting a $10 million infusion from the state.

MaineHousing projects that the additional program funding, which helps Maine residents who cannot afford to pay their rent because of the COVID-19 pandemic, will be enough to support applications for rent owed for September or earlier months, the state housing authority said in a news release Wednesday.

The additional money to the program, allocated by Gov. Janet Mills from the $157 million Maine got through the federal CARES Act in March, came with another call by Mills for the federal government to provide more relief to the state.

“With limited relief left, it is crucial that Congress and the administration in Washington step up now to provide economic support for Maine renters and landlords," Mills said in a news release. "The COVID-19 Rental Relief Program has been successful in keeping people in their homes and ensuring that the financial obligations landlords face are also met, but much greater financial support is needed.”

Applications are on a first-come, first-served basis and those received after the money is exhausted will be held in case the federal government provides more economic support, MaineHousing said.

MaineHousing and the Mills administration have dedicated $22.2 million in funding to support the program since it was created in April. Payments are made directly to landlords to cover rent or overdue rent. In turn, the landlord agrees not to evict the tenant for nonpayment in the month for which the payment was issued.

Since April, about 14,000 renter households have taken advantage of the program. In August, MaineHousing doubled its rental assistance from $500 to $1,000 in payments made directly to the landlord for up to three months. 

“Based on how the program has been used over the last few months, we know there is an ongoing need for rent relief," said Daniel Brennan, director of MaineHousing. "Good people — both tenants and landlords — are stuck having to choose which essentials to pay for. No one should have to make that decision — especially during a pandemic."

Maine’s Community Action Agencies have been administering this program locally, Brennan said. "They are in many ways on the front lines of this crisis and we appreciate their willingness to keep this program running as smoothly as possible," he added.

The program was originally supported with $5 million in CARES Act money as well as $2.2 million Mills earmarked in July from federal Community Development Block Grants. She said at the time the funding was “initial investment,” and may provide more for rent assistance depending on the need and on future federal support.

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