Charlotte approves $5.7M in coronavirus relief for housing. Here’s where the money will go
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Some residents struggling to pay their rent, mortgage or utility payments could see relief soon from a portion of $5.7 million of federal stimulus money headed to Charlotte.
City Council members voted 9-2 on Monday to approve plans to spend the funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act, which Congress passed in response to the COVID-19 pandemic that has shut down much of the U.S. economy. Part of the aid package goes specifically to housing programs.
Rent, housing relief in Charlotte includes:
▪ $1.3 million for 120 long-stay hotels for homeless individuals and families for up to eight months
▪ Nearly $1.2 million for up to three months of mortgage relief for 350 households earning up to 80% of the Area Median Income, or about $63,000 per year for a family of four
▪ $1.05 million for three months of rent relief for 350 households earning up to 80% AMI.
▪ $1.05 million for one-time security deposits up to $1,500 for 700 homeless households to move into permanent housing
▪ $175,000 for one-time utility deposits of up to $250 for to 700 households
‘A new reality.’ 1 in 4 Charlotte area renters missed April rent payments, study shows
Rent relief was not included in the initial proposal but several council members raised concerns at last week’s meeting about its absence.
The Observer reported last week that nearly a quarter of tenants in the Charlotte area missed April rent payments — about an 8% increased from the same time last year.
Councilman Matt Newton said he was in favor of the revised proposal, particularly rent and mortgage relief. Eviction and foreclosure hearings are temporarily stopped in North Carolina and other states.
But “as soon as the courts open back up there will be a flood of need,” Newton said.
Council members Braxton Winston and Renee Perkins Johnson voted no. Both said they had concerns about whether the allocations for the money appropriately addressed the growing need.
Johnson said she was hesitant to commit uses for the money all at once, saying the pandemic and its impact changes constantly.
City officials have said the stimulus relief money is expected to arrive in late April and will be distributed to qualifying residents on a first come, first served basis. More information about qualifications and how to apply will be released soon, officials said.
This work was made possible in part by grant funding from Report for America/GroundTruth Project and the Foundation For The Carolinas.
