Illinois is launching a new framework for distributing housing assistance to both tenants and property owners as Gov. J.B. Pritzker signed key COVID-19 emergency housing legislation Monday.
HB2877 (Ramirez) creates a system to distribute nearly $1.5 billion in federal funds to renters and property owners through the Illinois Housing Development Authority (IHDA) and extends key protections for renters, including sealing eviction records until Aug. 1, 2022.
At a press conference Monday, Pritzker said that the Illinois Rental Payment Program, overseen by IHDA, will support tenants who have lost income because of the COVID-19 pandemic by providing grants of up to $25,000 directly to landlords to cover rent dating back to June 2020 and up to through Aug. 2021.
“It was clear when we implemented last year’s housing relief programs that the need was far greater than the dollars allocated to our state. That’s why I’m pleased to announce today that Illinois is expanding rental relief to $1.5 billion, nearly 4 times the amount that was available last year,” Pritzker said. “The Illinois Rental Payment Program will ensure more than 120,000 household renters see relief, with more renters potentially being touched in the future, too. Any eligible resident who rents their home, is behind on payments, and experienced financial hardship in the pandemic is eligible to apply for up to $25,000 of rental assistance paid directly to their housing provider or landlord.”
Tenants are eligible if their 2020 income was below 80 percent of the area median income and have an unpaid rent balance. Priority is given to those who earn less than 50 percent of the area median income and to those who have been unemployed for at least 90 days.
In addition to the rental funds, the state will also be providing $400 million in mortgage assistance and using $280 million in federal and state funds to prevent utility service shutoff around the state.
“Families suffering from financial hardship should not have to worry about losing their homes. I’m proud to have taken action, with my colleagues in the General Assembly, preventing evictions and providing funding for the rent assistance working families need. Legislation like House Bill 2877 will give people experiencing housing distress the means to keep a roof over their heads as they seek better opportunities as the economy recovers from the pandemic,” said Sen. Omar Aquino (D-Chicago), sponsored the bill in the Senate.
HB2877 passed through the House on March 18 and through the Senate on April 29 with opposition from Republicans in both chambers.
Allison Richard
Legislative Consultant
