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New Eviction Diversion Program offers $50 million in relief for renters, landlords
July 16, 2020
Media Contact: Katie Bach, BachK@michigan.gov
LANSING, Mich. – A new program administered by the Michigan State Housing Development Authority (MSHDA) in collaboration with Michigan Supreme Court and Department of Health and Human Services will help renters who have fallen behind on their payments due to COVID-19 and their landlords who want to recoup missed payments.
The Eviction Diversion Program (EDP) launched today to coincide with Wednesday’s end of the state eviction moratorium, which had temporarily halted residential eviction for missed rent payments. As part of the program, an allocation of $50 million was set aside to help tenants and landlords resolve eviction filings with conditional dismissals. Tenants making up to 100% of area median income are eligible for the rental assistance. Participating landlords can receive up to 90% of a tenant’s unpaid rent in one lump sum. In exchange, landlords must dismiss all late fees, up to 10% of the amount due, and allow tenants to stay in their homes.
“At a time filled with a lot of uncertainty, the Eviction Diversion Program offers some peace of mind for tenants and landlords,” said Kelly Rose, MSHDA’s chief housing solutions officer. “We understand how important housing is as a foundation for success in many other areas of life. That’s why we’re committed to leveraging the EDP to preserve tenant housing in as many cases as possible across the state.”
Funding for the EDP comes from Senate Bill 690, which appropriated $880 million in federal dollars from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Senate bills called for $60 million to be set aside to establish a rental assistance program – of which $50 million will be dedicated to rental assistance with the remaining $10 million covering case management, legal, and administrative costs.
MSHDA will administer the EDP through Housing Assessment and Resource Agencies (HARAs), a statewide network of homeless and special housing needs service providers. HARAs are responsible for collaborating with local stakeholders to design an eviction diversion process that notifies tenants and landlords about the program and ensures eviction filings are resolved by conditional dismissals in as many cases as possible.
For more information on EDP and a list of HARAs by county, visit Michigan.gov/EDP.
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.