NAA, NMHC Welcome $1.9T Stimulus Bill Passage
The final package, which includes $27.4 billion in rental assistance and a weekly $300 unemployment supplement, was signed by President Biden on Thursday.
The multifamily industry has been patiently waiting for the passing of the latest stimulus bill, showing support of the assistance it will provide to businesses and renters. Last Wednesday, the House passed the nearly $1.9 trillion American Rescue Plan and President Biden signed the bill—hammered out over nearly two months—on Thursday. The House voted 220-to-211 to send the legislation to the White House one week after the Senate narrowly approved the stimulus package, and nearly three months after the most recent, $900 billion relief bill was adopted.
One of the largest spending packages in American history, the legislation changed in several regards from that Biden’s original proposal in January.
The National Apartment Association and the National Multifamily Housing Council lauded the plan. In a joint statement, NAA President & CEO Bob Pinnegar and NMHC President Doug Bibby said, “The assistance included in this legislation will prove critical during the coming weeks and months for keeping residents safely and securely housed, and ensuring the nation’s rental housing market remains stable.” They noted, however, that the extension of the federal eviction moratorium through September 2021 could create more volatility without addressing underlying affordability issues.
Direct and indirect multifamily impacts
The plan includes a range of measures which will have a measurable impact on both landlords and renters. These components include $27.4 billion in rental housing assistance, an additional $300 per week in unemployment assistance through September 6, and one-off payments of $1,400 to those earning less than $75,000 and to couples earning below a $150,000 threshold.
Also of note, the package increases the federal child tax credit to $3,600 for each child under six years of age and $3,000 for those under 18 years old, which is expected to provide a significant income boost to low-income families. And the beneficiaries will be able to receive payments on a monthly, rather than an annual, basis.
Additionally, the bill includes $350 billion in relief targeted at state and local governments, many of which have been hit hard by the turbulence of the past year. Other measures inside the legislation include $10 billion in mortgage assistance for homeowners, $20 billion for vaccine manufacturing and distribution, an expansion of the Supplemental Nutrition Assistance Program and further subsidies for health insurance.