A report by Up For Growth looks at how the recently-signed $2.2 trillion CARES Act will impact the housing market.
The report said the bill provides billions of money directed toward housing programs.
Among the funds receiving money, the Community Development Fund was given $5 billion, rental-assistance programs were given $1 billion, $50 million was set aside for housing for the elderly, $15 million was set aside for housing for those with disabilities, and $2.5 million was appropriated for fair housing activities.
However, the report says one of the most beneficial sections of the bill is the increase in unemployment insurance benefits. The bill includes an additional $600 per week for up to four months, which brings the monthly average to $3,769 from $1, 369.
Up For Growth says this money is essential to help people stay in their homes and provide financial stability.
“Boosting and expanding eligibility for UI benefits efficiently gets money into the hands of the people who need it most, whether for housing costs or other expenses. This money also helps stabilize the housing ecosystem as landlords, owners, and lenders depend on rental and mortgage income,” the analysis said.
The bill was approved by the Senate unanimously–96-0—last week and Senate Majority Leader Mitch McConnell (R-Kentucky) called the vote a “proud moment for the United States.”
One of the largest portions of the bill is that Americans who earn $75,000 in adjusted gross income would get direct payments of $1,200 each and married couples would get $2,400 each. Single Americans making more than $99,000 will be phased out of the payment plan and $198,000 for couples without children.
Tendayi Kapfidze, Chief Economist, Lending Tree, said the payments to Americans will be kept to help people meeting financial obligations, especially the more than 3 million who filed for unemployment.
“There is a big risk to our servicers from borrowers not sending in payments as they would still need to meet their obligations to investors,” Kapfidze said. “This is especially acute for non-bank lenders who do not have sufficient reserves in place. It was disappointing that the bill did not directly address this risk.