Delaware rolls out financial aid for renters, homeowners late on rent, mortgage payments

Delaware News Journal

Delaware is going to spend $40 million to help residents who are struggling to pay rent or mortgages during the coronavirus pandemic.

Eligible renters and homeowners can get up to $5,000 in aid. The money would be paid directly to the property owner or mortgage servicer.

Gov. John Carney and the Delaware State Housing Authority announced Monday that the state is resurrecting the Delaware Housing Assistance Program to help people who are missing payments because they lost income due to the coronavirus pandemic.

A homeless man who identified himself as Ricky lugs his belongings down downtown Wilmington's Market Street. Ricky, who stays at the Sunday Breakfast Mission, was looking for somewhere to go during the daytime as coffeeshops and libraries were off-limits during the coronavirus outbreak.

The program was originally launched in late March but then halted a few weeks later because it was swamped with applications. At the time, they received requests from three times more tenants than they originally set aside funds to help.

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The $40 million to pay for this program comes from the federal CARES Act, which Congress passed in late March to help states and local governments cover coronavirus-related expenses. The state is paying half from its share of the federal money and New Castle County is paying the other half.

Using weekly Census surveys, the financial consulting firm Stout Risius Ross LLC found about 29% of renters in Delaware at the end of July had no or only slight confidence in their ability to pay the next month’s rent. That firm also estimated a monthly shortfall of $10 million in rent statewide.

Gov. John Carney announced Monday that the state is resurrecting the Delaware Housing Assistance Program.

To be eligible for the rent assistance, renters have to live in Delaware and have a maximum household income post-pandemic that is at or below 60 percent of the Area Median Income for the county they live in. You can find out more about income eligibility per county on the state housing authority's website at http://www.destatehousing.com/OtherPrograms/ot_dehap.php.

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Applications for rent assistance now have to be submitted by landlords or property owners on behalf of tenants. The application is available on the state housing authority's website, which also has a step-by-step tutorial video and a list of frequently asked questions for landlords submitting the application.

The state is helping homeowners who are struggling to pay their mortgage through an existing program called the Delaware Emergency Mortgage Assistance Program. The program will help people at risk of foreclosure because of income loss due to the pandemic.

To be eligible for mortgage assistance, the homeowner's home must be in Delaware and their primary residence. They have to have a maximum household income post-pandemic that is at or below 80 percent of the Area Median Income for the county they live in. In Kent and Sussex counties, the income limit is $65,520. In New Castle County, the income limit is $77,280.

Jeanne Kuang contributed to this report.

Sarah Gamard covers government and politics for Delaware Online/The News Journal. You can reach her at (302) 324-2281 or sgamard@delawareonline.com. You can also follow her on Twitter at @SarahGamard.