Michigan Launches Eviction Diversion Program for Renters, Landlords
Back in March when the pandemic hit, and businesses had to close, many people in Michigan and across the country found themselves without an income to cover necessities. Michigan stepped up and protected its residents by putting a moratorium on evictions and foreclosures. The good news is 90% of Michigan residents stayed current on rent or mortgage payments. Those who fell behind are concerned as steps taken to help them ended in July. Many folks are still unemployed, and now the extra $600 Uncle Sam was adding to their Unemployment checks each week has ended as of July 31st.
The state of Michigan has launched a new program to help those still struggling. The Michigan State Housing Development authority in collaboration with the Michigan Supreme Court and the Department of Health and Human Services has created the Eviction Diversion Program. If you are a participating property owner, you can receive up to 90% of a tenants unpaid rent in one lump sum. You then must dismiss all late fees, up to 10% of the amount due, and allow the tenant to remain in their home.
"At a time filled with a lot of uncertainty, the Eviction Diversion Program offers some peace of mind for tenants and landlords,” said Kelly Rose, MSHDA’s chief housing solutions officer. “We understand how important housing is as a foundation for success in many other areas of life. That’s why we’re committed to leveraging the EDP to preserve tenant housing in as many cases as possible across the state."
Fifty million dollars has been set aside for tenants and property owners to resolve evictions with conditional dismissals. Tenants who make up to 100% of the area’s median income will be eligible for aid.