Residents of the United States are at risk of becoming homeless due to housing debts during the coronavirus pandemic. Millions of Americans are unable to pay rent and mortgages, despite government assistance, writes The New York Times.
According to a report from the Harvard’s Joint Center, the US housing market has split along two paths. While some families buy houses with savings accumulated during lockdowns, others part with property due to debt on loans and loss of jobs.
The moratorium on eviction from houses and apartments due to non-payment of rent, introduced in March 2020, will end at the end of June, and then about seven million residents of the country are at risk of being on the street. According to the analysis of the researchers, most Americans were unable to set aside funds for future payments for housing, as unemployment benefits and lump-sum payments from the state were spent on goods and services that had risen in price.
Two dozen state attorneys general have called on the US Supreme Court to maintain a rent moratorium for fear of an unprecedented wave of mass evictions. The housing disaster will affect the dark-skinned population of the country the most, experts predict.
Landlords are not opposed to extending the moratorium, but they emphasize that the procedure for receiving money from the state should be facilitated, or they will have to increase their rent.
“It takes a very long time to process applications for rent compensation from the US budget. Homeowners wait eight weeks for their money, ”explained Melissa Dutton, managing director of the Columbus Legal Aid Society, Ohio.
In 2020, when many Americans lost their jobs due to the coronavirus and could no longer pay rent, then US President Donald Trump imposed a moratorium on the eviction of debtors from their homes. For the “freeze” of rent until July 1, 2021, Congress has allocated about $ 40 billion.