Research from the Mortgage Banker Association (MBA) shows that since the Covid-19 pandemic began, missed rental payments have added up to the tune of $41.7 billion. In June of this year, approximately 8.6% of renters occupying 2.86 million households missed or made a reduced payment. The federal government allocated $47 billion for rental assistance related to the pandemic, but only 6.6% of these funds have been distributed. The National Apartment Association (NAA) estimates that apartment owners could be stuck with about $26.6 billion in rental debt not covered by federal assistance.
The eviction moratorium has faced questions of constitutionality since it was first implemented in March of last year. The moratorium was set to expire this year, but the White House has put a new ban on evictions. President Biden even admitted on live TV that the Supreme Court found the moratorium unconstitutional and most legal authorities agreed, but he was going to forge ahead and see how long a new ban held up. Maybe he just assumes people don’t take anything he says seriously at this point?
But, someone needs to pay for these homes. Landlords typically have mortgages and are obligated to pay off the debt they owe to their lenders. They’re also still on the hook for busted water pipes, broken clothes dryers, and keeping the building up to code.
Americans in the lower income brackets, representing those most likely to rent their homes, have received three stimulus payments from the federal government so far. Unemployment payments were boosted. Help Wanted signs decorate shop doors across the country, and business owners and managers are often quoted saying they have trouble finding workers. Seems like there may have been a few ways for landlords to get their rent money.
In other free stuff news, President Biden’s open door policy at our southern border has allowed 7,000 migrants who tested positive for Covid-19 to enter the city of McAllen, Texas since February of this year. Point of entry Brownsville has seen a number of infected immigrants as well. Taxpayer dollars fund these tests, but city officials cannot legally prevent those who test positive from moving about the country.
Private American citizens have to shell out $250 for a Covid test if they’re paying out of pocket. And our law allows for access to healthcare whether a patient can afford it or not. So, Biden basically handed out a bunch of free Covid tests to non citizens, allowed them into our country while he’s decrying the increase in Covid cases, and now he’s going to give them free healthcare if they experience severe symptoms and need to be hospitalized. Free for them, but not for us; taxpayer dollars can only stretch so far.
And we’re already stretched a little thin paying for all that back rent.