Elizabeth McCann/Staff Writer
On Friday May 13, presumptive Democratic nominee Joe Biden used “Good Luck America”’s Snapchat platform to call for rent and mortgage forgiveness amid the current health crisis.
This progressive approach is more fitting to our unprecedented circumstances than the alternative–postponing mortgage and rental payments.
The Coronavirus Aid, Relief and Economic Security (CARES) Act is only a temporary bandage for what is to come when society and businesses reopen. This $2 trillion relief fund provides unemployment benefits and loans for small businesses, as well as investments in healthcare, delayed evictions and foreclosures, which are all controlled federally.
However, this will not be enough to solve the inevitable financial and housing insecurity of low-income workers.
The Joint Center for Housing report stated that in 2018, there were 44 million renters—47 % of which spent 30% percent of their income on housing costs.
How is a person who is currently unemployed because of the pandemic supposed to pay rent?
At that time, there was less unemployment than there is during the current pandemic. This shows that a majority of the renters live from paycheck to paycheck, with a majority of that paycheck going towards housing. So how is a person who is currently unemployed because of the pandemic supposed to pay rent?
Currently, the economy is at a standstill, responding to good news or bad news from the coronavirus. When the pandemic settles down, there will undoubtedly be an economic crisis with uncertainty in job and housing security. Many low-income households that have accumulated months of rent deferrals will not be able to pay, forcing landlords to evict struggling families.
Like a natural disaster, no one is at fault for the coronavirus outbreak. Thus, no one should have to suffer from its unavoidable, yet damaging effects.
In a natural disaster like a flood, hurricane or tornado, if you lose your house, you get housing assistance from the Federal Emergency Management Agency (FEMA). Likewise, the government needs to step up and protect its citizens from the effects of this invisible global threat.
Rental and mortgage deferrals worsen the situation, especially for those who are in the low income brackets. When it is time to pay for mortgage and rent, the monthly price will multiply and people will not be able to catch up with payments.
More than 36 million people have filed for unemployment in the last two months and these numbers are projected to increase.
Many people are unemployed or quarantined and therefore do not have the financial means to pay. Even when jobs resume once the pandemic eases, these people will still have lost the pay they would have gotten in the months that their employment was halted. Not to mention, medical care and groceries only add to financial burden for many low-income families.
At the other end of the housing crisis are the landlords and lenders who may rely on this as a source of income for their housing as well. If rent forgiveness is implemented by the federal government, there needs to be an approach in which landlords and lenders are supported and don’t have to worry about struggling thanks to their tenants’ lack of income.
Rep. Ilhan Omar has proposed a bill to cancel rental and mortgage payments during the pandemic and also considers the needs of landlords and lenders.
In the proposal, a federal relief fund would be established for landlords and lenders. As long as they agree to abide by fair renting practices for five years, they can be reimbursed for income they would have received from mortgage and rental payments.
If rent and mortgage forgiveness is not implemented, is the government going to sit around and watch millions of Americans lose their homes as a result of a pandemic that is beyond their control?
No one could have ever predicted this event. At this time, the government needs to watch our backs and implement rent and mortgage forgiveness for the sake of the public good.
Featured image by Jernej Furman on Flickr.
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