New Program Helps Michigan Tenants Following End Of Eviction Ban

MICHIGAN — A new program administered by the state of Michigan aims to help renters who have fallen behind on their payments due to the new coronavirus and their landlords who want to recoup missed payments following Wednesday's end of the state eviction moratorium.

The Eviction Diversion Program launched Thursday will coincide with Wednesday’s end of the state eviction moratorium, which had temporarily halted residential eviction for missed rent payments.

“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.”

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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 percent of area median income are eligible for the rental assistance. Participating landlords can receive up to 90 percent of a tenant’s unpaid rent in one lump sum. In exchange, landlords must dismiss all late fees, up to 10 percent of the amount due, and allow tenants to stay in their homes.

Funding for the EDP comes from Senate Bill 690, which appropriated $880 million in federal dollars from the 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, 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.