When the federal government passed its sweeping coronavirus pandemic relief package, one of the major provisions included a payment of up to $2,000 to help vulnerable renters pay their rent. Now, officials who overpaid these renters due to certain federal regulations are asking for the money back.
A recent Wall Street Journal article explains that officials from the Department of Housing and Urban Development sent letters to more than 4,600 families that had received overpayments, or more money than they were entitled to. Now, these officials are asking for the money back.
Those affected by the letters are people who were already living in difficult financial situations, and the news of the overpayments has been particularly hard to take. According to Renee Kuhlman, an Ohio-based tenant assistance lawyer, “People don’t understand at all why HUD is coming after them now. … They thought they were getting help.”
The Wall Street Journal goes on to explain that the overpayments stemmed from a HUD regulation that requires landlords to accept rent payments directly from tenants who opt to use the pandemic aid. However, this regulation also applied to tenants who already had their rent subsidized, resulting in them receiving overpayments of up to $2,000.
While the HUD is asking for these payments back, it is also considering offering a new payment plan that would allow for the repayment of the debt over time. But, many of those affected are still worried and uncertain about their future.
The federally mandated overpayments have left many vulnerable renters feeling betrayed by their government. It’s a situation that requires officials to take responsibility and apologize for the mistake. However, it’s equally important for the federal government to find a solution that allows for those affected to be able to make right on their debts without becoming further burdened.
