‘Debt for life’: U.S. residents do not pay billions of dollars for rent

During the spring and early summer the complex Federal, state and local restrictions on eviction were allowed tenants to stay in rented accommodation. During this time, people owed $21.5 billion in rent, says Fox Business.

'Долги на всю жизнь': жители США не заплатили миллиарды долларов за аренду жилья

Photo: Shutterstock

This sum was formed due to the fact that people EN masse were left without work and livelihood. Evaluation of the amount was provided by the global Advisory firm Stout, Risius and Ross on Wednesday, July 29.

The Republicans in the Senate proposed a new plan, but it will not restore recently repealed the Federal prohibition on evictions, which allowed one third of the tenants to remain in housing. In addition, on July 31 will stop payment of the weekly Federal unemployment benefits in the amount of $600.

No quick solution likely result “will be a staggering increase in the number of homeless, which is different from anything we’ve seen,” said John Pollock, the lawyer of the Center for public justice and coordinator of the National coalition for a civil right (NCCRC), which has helped to develop a tool to track statistics of deportations in the United States.

The unprecedented size of the debt for the rent will not change the course of macroeconomic games, said the chief economist at Moody’s Analytics mark Zandi. But for tenants “it’s catastrophic. Very few people will be able to return the money.”

“A spiral of debt can pursue the displaced tenants the entire life,” he added.

In the spring and early summer, when unemployment reached levels not seen since the great depression of the 1930-ies, the combination of Federal, state and local restrictions on eviction were allowed tenants to stay in rented accommodation.

On Friday, July 24, lifted the ban on evictions, which covered one third of tenants in buildings with mortgages supported by the Federal government. Rents, delayed more than four months, is now also payable, as well as any rents in the housing, which also ended local and state moratoriums on evictions.

“When the rent is not paid within such extended period, the lower part of the market turns into a house of cards, and he begins to fall, said Emily Benfer, Professor of law at the Wake forest University. — Increases the risk of eviction, risk of foreclosure and bankruptcy, property taxes remain unpaid, leaving the community and schools in deficit.”

In may, Democrats controlled the House of representatives passed a measure that would extend the expanded unemployment assistance until January and allocated $100 billion on aid in the rent. It also would prolong the Federal ban on evictions for a period of one year.

The Republican-controlled package in the Senate, released on Monday, July 27, dedicated to the return of children to school, adults to work, and victory in the fight against the virus, reads the statement of the majority leader in the Senate. The bill proposes to reduce a reinforced unemployment assistance up to $200 per week and does not mention housing, eviction or restore a ban on evictions.

An avalanche of lawsuits hit the courts for eviction throughout the country. Hearings resume online, in the courtrooms, which require social distancing, and even in the Convention center in Columbus, Ohio. Only in July, 21% of tenants did not pay the rent, according to research firm Apartment List.

According to Stout and NCCRC, from 44 million households in the United States who rent housing, 17.3 million are not able to pay the rent and risk being evicted.

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