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Labor and Economic Opportunity

MSHDA distributes $40M in eviction diversion funds to 38 housing assessment and resource agencies and the Michigan State Bar Foundation

Media Contacts:
Katie Bach, BachK@michigan.gov
Tracey Houston, HoustonT1@michigan.gov

 

LANSING, Mich. – The Michigan State Housing Development Authority (MSHDA) has distributed $40 million in funds to 38 Housing Assessment and Resource Agencies (HARAs) and the Michigan State Bar Foundation as part of the Eviction Diversion Program (EDP).

“COVID-19 has created economic uncertainty for individuals and families across our state. These eviction diversion funds will help Michigan families stay in their homes and provide stability to property owners as they navigate this crisis,” said Jeff Donofrio, director of the Department of Labor and Economic Opportunity (LEO), the department that houses MSHDA.

EDP was announced on July 16 in conjunction with the end of the state’s eviction moratorium. The program, administered by MSHDA in collaboration with the Michigan Supreme Court and Department of Health and Human Services, helps renters who have fallen behind on their payments during COVID-19 and their landlords who want to recoup missed payments. Landlords who participate in the program can receive up to 90% of a tenant’s unpaid rent in one lump sum under the condition they dismiss all of a tenant’s late fees, 10% of the amount owed, and allow tenants to stay in their homes. Renters up to the area median income are eligible for the program.

Local HARAs are responsible for collaborating with stakeholders to utilize the funds to resolve as many eviction cases through settlement agreement or conditional dismissal as possible.

“After creating the Eviction Diversion Program, it was critical we work as quickly as possible to get the funds distributed to the local HARAs so they can begin doing the important work: keeping people in their homes,” said Kelly Rose, MSHDA’s chief housing solutions officer.

HARAs were awarded funds based on previous rates of eviction filings in the local areas they serve. Below are links to regional news releases with a breakdown of each HARA and funds allocated in that area:

A total of $60 million was set aside to fund the EDP as part of Senate Bill 690, of which $50 million is dedicated to rental assistance and the remaining $10 million covering case management, legal, and administrative costs.

For more information on EDP, visit Michigan.gov/EDP.

MSHDA Mission

The Michigan State Housing Development Authority (MSHDA), established in 1966, serves the people of Michigan by partnering to provide quality housing that is affordable, a cornerstone of diverse, thriving communities.

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