Financial Help For Renters & Buyers Affected by COVID-19
There is a flurry of assistance programs out there, now is not the time to be shy, if you are feeling a financial impact, I strongly encourage you to look into one of these programs:
Relief Checks for Residents (Renters and Home Owners)
Part of the national stimulus package or CARES Act, any citizen can apply for a relief check.
If you make less than $99,000 in annual Adjusted Gross Income (AGI) you qualify.
At $75,000 AGI you qualify for a $1,200 credit. This amount lessens as you get closer to $99,000 AGI. Limits and credits double for couples that file jointly.
The IRS will automatically send these based on the filing information you have with them. This could be as soon as three weeks but many say it could take months.
Unemployment Benefits for Full-Timers and Independent Contractors
Those that have been laid off, furloughed or seen a drop in contract work can now apply for unemployment insurance. While this was usually limited to those that pay unemployment insurance through full-time paychecks, the inclusion of independent contractors is a major win as many in Southern California fall under this status.
File for unemployment with the EDD regardless of your former employment status.
An additional $600 per week through July 2020 is being granted as part of the CARES Act plus an extension of an additional 13 weeks of unemployment. Benefits vary in every situation but could equate to $1,200 per week.
Those recently laid off from the restaurant industry have a wide variety of options. If you or someone you know is feeling the impact, check out this massive list of possible relief beyond Unemployment benefits.
Help for Homeowners with a Mortgage
When you purchased your home you got a loan through a lender. It was a bank like Chase, or perhaps through an independent lender. However, neither of these lenders will keep your mortgage for the life of the term (usually 230 years). Most mortgages are sold to what we call the “Secondary Market”. Most often this is one of two large mortgage loan aggregators that we have heard of before; Freddie Mac and Fannie Mae. These government-sponsored entities control a bulk of US mortgages and very well may control yours.
Freddie Mac / Fannie Mae Mortgage Help can defer mortgage payments through a new program for homeowners affected by COVID-19. Look on your mortgage statement for a contact number of call Fannie Freddie direct.
One word of caution, we do not know the effect of deferred mortgage payments on your credit score. If you can make the payments do it, if you can’t ask about the possible repercussions.
Help for Renters
Renters will fall into one of two categories: Renting from an independent property owner that owns one or a few properties or they are renting from a large corporation that has many units (like a large apartment complex).
In either case, it is all about having a conversation with the owner or property manager. Because they have a potential reprieve, as mentioned in the above sections, they can defer their mortgage payments, they too can extend this possibility of deferred rent payments to you. Have a conversation, explain the situation. Know that LA has established a reprieve on evictions to those that can not make rent. This break on payments can apply to utility payments as well.
Help for Small Business Owners
The City of Los Angeles has the following initiatives to help businesses during the crisis.
$11 Million is available to small businesses affected through the Emergency Microloan Program. $5,000 to $20,000 available. No interest, no fees. Eligible to for-profit and tax-exempt businesses in Los Angeles with 100 of fewer employees.
A moratorium has been placed on commercial evictions of tenants unable to pay commercial rents due to circumstances related to COVID-19. “No landlord shall evict a commercial tenant in the City of Los Angeles during this local emergency period if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic. " A provision in the order gives eligible tenants up to three months following the expiration of the local emergency period to repay any back due rent.
Businesses can apply for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration for up to a $2M loan with deferred payments for a year with a possible $10,000 emergy cash grant.
Facebook has a new Small Business Grant program that has $100M in cash grants and ad credits. Sign up for info and updates.
Verizon Small Business Grant. Verizon just announced a $2.5 million fund to assist small businesses. More info HERE.
In closing, there is assistance out there for almost all of us that need it. If you are freaking out or stressing about making the finances happen, there is help. Google away or if you do not have any idea where to go, please reach out, I will do my best to offer any possible insight or guidance I can find. You are not alone.
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Michael Robleto
REALTOR®-Compass Real Estate
213-595-4720
Michael Robleto is a Los Angeles based REALTOR® that specializes in Historic Pre-War residential properties and those with architectural merit. Home buying and home selling is extremely challenging in Los Angeles County. Michael uses his vast knowledge of historic homes, residential construction and modern day marketing and digital technology to predict and solve the many problems that arise in real estate transactions. His client accolades of insight, integrity and hard work support the fact that he is not your average agent.
Michael leverages his personal passion for historic architecture to provide his clients the unknown insight on the pros and cons of older homes. Michael, the son of a contractor, a California native, grew up in an older Bungalow home and has spent 23 years in Southern California admiring the unique architecture of the region. He often writes on homeownership strategy, historic residential architecture and related topics which can be found on Facebook, YouTube, Twitter and Instagram under the common profile name of his blog; BungalowAgent or at www.BunaglowAgent.com/blog.
Michael is a committee member and frequent volunteer for the preservation efforts of Pasadena Heritage, the LA Conservancy as well as a supporter of the Five Acres center for children.