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we have some new updates from the department of the treasury with regard to the 25 billion emergency rental assistance program i'm going to tell you what the latest is coming up hey guys if we're just meeting my name is vitale volpov i'm a practicing attorney an active real estate investor and a part owner of a real estate brokerage in upstate new york on this channel i discuss relevant legal concepts as well as best strategies and tips for real estate investing and personal finance if you're new to the channel consider subscribing and hitting the notification bell so that youtube notifies you of all my future content if you enjoy the content in this video hit the like button and comment down below and as always whenever i'm discussing legal concepts just remember nothing that i say should be construed as legal or financial advice i provide this information for educational and entertainment purposes only and you should always consult with your own attorney and your own advisor before making any legal or financial decisions last but not least the views and opinions that i expressed in this video are my own alone and don't necessarily reflect those in my law firm or any of my business partners so as you may have heard the new stimulus act includes a 25 billion dollar rental assistance program i covered the terms of the program what's required who's eligible in another video that i will link in the description below and in the youtube card above if you haven't watched that video yet go watch it and then come back to this one for the updates so there are a few new pieces of information that the department of treasury has just released on their website the first one is with regard to which state and local governments are eligible for the program funds so just as a recap so that you understand how this is supposed to work the us treasury appropriates 25 billion dollars toward rental assistance this is for the entire country and then this money supposed to be divided proportionally based on population between states and local governments according to the department of the treasury in order for a local government within a state to receive its own grant funding under this program they must have a population of at least two hundred thousand people so as long as a unit of local government meets this threshold it does not need to wait for the state and can apply for this funding directly the treasury department on its website has provided us with a list of local governments that meet this threshold based on 2019 census data i'm going to put a link to this list in the description of this video so that you guys can access it if you want to see whether you live in a county or city which is on this list in my case there are several counties cities and towns which meet this 200 000 resident threshold but just because these municipalities meet the minimum threshold it does not mean that they will actually be receiving any of this funding and this is because the department of the treasury actually had a deadline of january 12 2021 by which grantees who are the municipalities or the states were supposed to apply for this funding and the department of the treasury website actually says that eligible grantees that do not provide complete information by 11 59 pm on january 12 2021 may not receive an emergency rental assistance payment so unfortunately if your state or municipality that was eligible to apply didn't apply by this due date it may be that it will not receive this funding i can't imagine that any counties or states who have residents that are struggling right now who are behind on rent and who have landlords who have residents that are not paying them rent would not actually meet this deadline and make sure that they applied in time but anything is possible i tried calling the department of the treasury to find out which states and municipalities actually applied for this by this due date but i wasn't able to get through to anyone and i didn't get that information this information should become publicly available very soon because there are certain reporting requirements that come along with this program the department of the treasury is supposed to publish reports on which states and which municipalities applied for this funding and how much funding they actually received a lot of you have asked me the question of when will this program roll out in my state or my municipality the answer to this is unclear right now the states and municipalities had until january 12 2021 to submit their applications to the federal government for this funding from there the federal government is supposed to provide the funding within 30 days of the enactment of the new stimulus act which was enacted on december 27th which means that by january 27th or thereabouts they're supposed to provide this funding to the states and municipalities who have requested it from there will be up to each state and each municipality as to when they're going to roll their programs out when they will be ready to provide this funding so in order to answer this question you need to find out which agency in your area is going to be administering the funding and then ask them about their timing another thing that i think is interesting to know is how much funding each state is eligible for and the department of the treasury provided this information in another document that i will link in the description below as i mentioned in my last video the minimum amount of assistance that would be provided to a state is 200 million dollars so if a state's proportional share of 25 billion dollars would come out to be less than 200 million based on that state's population the state would still receive at least 200 million because of this minimum threshold and in this document you can see the state population numbers estimated by the department of the treasury based on 2020 and 2019 census data and you can also see the state share of the total population which then results in a maximum state allocation and so for example alaska which only has a population of 731 000 people would normally receive less than 200 million but here in this document you can see it will be receiving 200 million assuming that it applied in time on the other hand a state like california which has 39 million people would be receiving an amount of up to 2.6 billion dollars in rental assistance and unsurprisingly the four states that are going to be receiving the most rental assistance here are california florida which is going to receive 1.4 billion new york which is set to receive 1.28 billion and texas which is set to receive approximately 1.94 billion dollars other things published in the department of the treasury's website basically reinforce the rules that are outlined in the stimulus act section that relates to this program specifically that at least 90 percent of the awarded funds must be used for direct financial assistance to eligible households and not for other purposes that grantees in other words states or municipalities that receive the funding from the federal government decide to allocate those funds too these funds are supposed to be distributed completely through december 31st 2021 my hunch is that they will go much quicker than that because the need is so great right now as i mentioned in my previous video there are estimates out there that say that renters currently have a back rent backlog of approximately 70 billion so the 25 billion should go very fast and likely will not be enough to cover all of the arrears the department of the treasury's website also touches on the eligibility criteria for eligible households again this is not different than what i discussed in the previous video you guys can check that out here or you can check it out in that video but another thing that wasn't really clear from the law and this is something that i think is a new piece of information is that eligible households that include an individual who has been unemployed for the 90 days prior to application for assistance and households with income at or below 50 of the area median are to be prioritized for assistance so those households are going to be prioritized before any of the other ones will be and that makes sense because these households are presumably the ones that are suffering the most right now and the ones least able to make the rental payments as a final note for this video there is a reference to the application process on the department of the treasury's website which basically says that an application for rental assistance can be submitted by an eligible household or by the landlord themselves as i mentioned before landlords do need to work with their tenants if they're going to apply for their attendance or assist their tenants in applying because tenants still need to sign the application and they will need to provide personal information with regard to their income and other factors that the grantee the state or the municipality may consider in approving them for this funding in my next video i'm going to go over the frequently asked questions document that the department of the treasury just released with regard to this program it contains a lot more detail with regard to the program and the application process that both landlords and renters will find very interesting so stay tuned for that i should be releasing that within the next few days and that's going to do it for this video guys if you enjoyed it do me a favor and hit the like button if you like this type of content definitely subscribe to my channel so that you don't miss any of my future videos and if you guys are interested in diversifying your portfolio from real estate by investing in a stock market consider signing up for a commission free platform like weeble currently weeble is providing four free stocks if you sign up using my link in the description below and deposit at least one 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