In an effort to give financial relief and boost the real estate industry in the middle of the coronavirus global pandemic, the Senate will discuss US President Joe Biden's American Rescue Plan. The bill worth $1.9 trillion contains various relief measures for those highly affected by the economic crisis brought by COVID-19.
Last Saturday, the House passed the legislation championed by the National Association of REALTORS. NAR chief advocacy officer Shannon McGahn is looking forward for the Senate to pass the will without changing any major provisions.
"The White House is hoping for final passage by mid-March when current unemployment benefits expire," McGahn said, as reported by Realtor magazine.
Real Estate-Related Provisions
The American Rescue Plan aims to address the real estate industry's significant problems since the pandemic hit last year.
Thank you to @SpeakerPelosi for your leadership and everyone in the House who supported the American Rescue Plan. Now, the bill heads to the Senate and there’s no time to waste. If we act quickly and decisively, we can finally get ahead of this virus and get our economy moving.
— President Biden (@POTUS) February 27, 2021
Tune in as President Biden delivers remarks on the American Rescue Plan. https://t.co/EjnSg2zDSD
— The White House (@WhiteHouse) February 27, 2021
Some of the real estate-related provision on the bill include the following:
- Creation of homeowners assistance fund.
- Additional $20.3 billion rental fund assistance, on top of the initial $25 billion given last December 2020.
- Extended eviction and foreclosure moratorium and restraining the federally guaranteed mortgages until September 30, 2021.
- $10 billion Housing Assistance Fund lets state housing finance agencies give aid to homeowners highly affected by the COVID-19 pandemic.
- Additional $100 million for housing counseling services.
Last week, NAR sent a letter to Congressional leadership citing the provisions they want to highlight, including rental assistance, state and local aid, unemployment assistance, small-business relief, paid sick and family leave extension, and employee retention program. "The 1.4 million members of the National Association of REALTORS® thank you for your focus on rebuilding our economy, businesses, and families during and after this worldwide pandemic," the letter reads. "The American Rescue Plan ... has several provisions that will be essential to ensure Americans are safe, small businesses survive, and the economy recovers," the letter added.
The House has voted to pass the American Rescue Plan. This is a critical step towards getting relief to those who need it, getting people vaccinated, getting kids back to school, and getting Americans back to work. The Senate should take quick action to move the bill forward.
— Vice President Kamala Harris (@VP) February 27, 2021
Other Provisions
"Perhaps the biggest component of this bill is state and local aid, which was left out of previous legislation," McGahn said.
"Nearly nine in 10 cities expect a budget shortfall this year. No local government could really prepare for something like what we have lived through the past year, and this new assistance was needed to keep our economic recovery from suffering a relapse," she added.
Other provision also focuses on assisting struggling state, local governments, and individuals. The rest of the aid include:
- Additional $1,400 stimulus checks except for higher earners.
- Pandemic Unemployment Assistance program extension until August 29, 2021, increased Pandemic Unemployment Compensation from $300 to $400 weekly.
- One year child tax credit increase from $2,000 to $3,000 per child ages 6 to 17 and $3,600 for children ages six and below.
- Expended paid sick and family leaves until September 30, 2021.
- $15 billion for a new small business grant program.
- $350 billion in state and local aid.
- $130 billion for schools.
- $20 billion for national Covid-19 vaccination.
- $50 billion for coronavirus testing.READ MORE: World's Top Pet-Friendly Airbnbs Revealed
