Newsletter - #7

Statewide Emergency Cash Assistance Program.  The Commonwealth's Department of Human Services will start accepting applications TODAY, May 11, for its new Emergency Assistance Program. This is a cash assistance program for people who lost income during the COVID-19 crisis. This program will run until June 12.

Eligibility requirements:

·         household must have children or a pregnant woman;

·         someone in the household was working as of March 11, 2020;

·         and lost more than 50% of earnings due to COVID-19;

·         have resources of less than $1,000;

·         and household income is below 150% of the Federal Poverty Level.

 The grants are two months of a TANF for the household size (e.g., a household of 3 will receive $806). People receiving TANF or Diversion cannot get this grant.There is no interview required. DHS also says they are striving to expedite these applications and make determinations within 10-15 days.  There is a special COMPASS application here. Paper application is here, and Spanish version is here. Paper applications can be submitted at drop boxes outside local CAOs.

Rental Assistance.  Philadelphia is making emergency rental assistance funds available to people who are living above but near the poverty line, do NOT live in public housing, and were current in their payments until April, 2020.  An online application will be available beginning TOMORROW, MAY 12, 2020 from this website:  https://phlrentassist.org/. The application deadline is Saturday, May 16.  More information about eligibility and application details is available on the website as well.

For people in Philadelphia who are not eligible for this emergency program but are facing eviction for non-payment of rent, this website maintained by the city has a list of organizations that might be able to provide assistance:  http://philadelphiaofficeofhomelessservices.org/stay-in-my-home/assistance-with-my-rent/.  In surrounding counties, one of the organizations on the list found here may be helpful:  https://www.abingtonhealth.org/app/files/public/5932/Rental-Assistant-Word-Template-KM622017.pdf

Small Business Reopenings. Small businesses that are currently making plans to reopen in the coming weeks may want to check the Pennsylvania Department of Health's list of Frequently Asked Questions about the health and safety measures the Commonwealth expects businesses to adopt.  That information, which appears to be updated regularly, may be found here.

Newsletter - #6

Evictions.  Pennsylvania Governor Wolf signed an executive order yesterday extending the moratorium on eviction process throughout the state to July 10.  A previous moratorium imposed by the Pennsylvania Supreme Court was set to expire today, though various counties, including Philadelphia and Montgomery, had their own bans that extended to at least the end of the month.  The order means that landlords are prohibited both from filing new eviction cases and from enforcing evictions orders previously obtained.  Since the new moratorium is established by an executive proclamation rather than a court order, there may be a legal challenge from one or more landlord associations.  A recent challenge by business groups to the Governor's business closure practices was denied by the Pennsylvania Supreme Court.

      Several of you have commented to me that while these eviction moratoriums are helpful, they do not provide for rent abatement and therefore serve only to put off the real problem, which is that many tenants are in economic distress and won't be able to get current on their rent when the moratoria are ultimately lifted.  A number of legal groups are attempting to address this issue -- here are some initiatives I am aware of:

•   The Pennsylvania Legal Aid Network, which is the association of legal aid offices across the state, have written the Pennsylvania Supreme Court asking it to impose guidelines on landlord/tenant courts to enable them to handle the flood of new eviction cases and requests for enforcement that are expected.  There is a suggestion, for instance,that cases should be handled by "masters," which could be trained attorneys, so that many more matters per day could be processed.  This suggestion could codify the usual practice in Philadelphia, where almost all cases are resolved by negotiation between landlord and tenant as opposed to an order from a judge.

• Several members of Philadelphia City Council have introduced a package of measures that would restructure rental obligations in the city and provide for things like diversion of cases away from court and rent abatement.  Council has not currently scheduled any dates for hearings or votes, however, and is scheduled to adjourn in mid-June.

• The Reinvestment Fund has published an analysis of several thousand decisions in the Philadelphia Landlord-Tenant Court which, among other things, provides further evidence for the perceived disparity in outcomes for unrepresented versus represented tenants.  Philadelphia has already enacted an ordinance requiring courts to appoint counsel for tenants, but has not identified a funding source for this initiative. 

Guide for Employees.  The Pennsylvania Department of Labor and Industry has issued a helpful infographic that summarizes the benefits that may be available to employees who find themselves in various situations, including "on furlough"  and "unwilling to work for a business that is currently open."  I have attached a copy for your information and use.

Montgomery County Small Businesses.  Small businesses in Montgomery County that have not been able to access funding for their COVID-19-related financial problems may want to know that on this coming Wednesday, May 13, Montgomery County is accepting applications for grants that can be used for accounts payable, rent and mortgage, and debt service payments.   This is a one-day opportunity for businesses with 30 employees or fewer and revenues of under $10,000,000 that requires the submission of an on-line application.  Click here for more information.

Newsletter - #4

Renters.  The Philadelphia Eviction Prevention Project has prepared a helpful one-page flyer, which is attached, summarizing options for renters who are facing eviction or who can no longer afford their rental payments.  As we previously reported, all evictions are suspended in Philadelphia through at least April 5.  Tenants in federally-subsidized properties are protected from eviction for a longer period extended into June.  And for people with rent hardships who are not yet facing eviction, the Project recommends that they contact their landlords to work out payment arrangements.  Alternatively, Good Shepherd Mediation Program is offering a free landlord-tenant mediation session with a neutral, private mediator.  Information can be found by going to: http://www.sharedprosperityphila.org/wp-content/uploads/2020/04/philarentersandlandlords.pdf

Loan Relief.  Many major banks in Pennsylvania, including  PNC, First Commonwealth, Dollar, Citizens, OceanFirst, Fulton, and  WSFS, are participating in an initiative launched by the Attorney General’s office called “PA CARE Package,” under which they agree to offer the following assistance to their customers:

• Expansion of small and medium business loan availability

• 90-day grace period for mortgages (at least)

• 90-day grace period for other consumer loans such as auto loans

• 90-day window for relief from fees and charges such as late, overdraft fees

• Foreclosure, eviction, or motor vehicle repossession moratorium for 60 days

• No adverse credit reporting for accessing relief on consumer loans

Individuals and businesses with accounts or loans at these banks may contact them directly for more information.  

Stimulus Checks.  People who filed tax returns this year or last and provided the IRS with bank deposit information should be receiving their stimulus checks now.  The IRS promises to send checks to other eligible recipients for whom they have address information, including tax filers and people who receive Social Security.  Individuals who do not believe the IRS has contact information for them, but who have access to a computer, may go to this web address and register for payment: https://www.irs.gov/coronavirus/economic-impact-payments

Paycheck Protection Program status.  If your church or someone you know is applying for relief under the PPP, our colleagues in the public interest law sector tell us that:  (1) you should have applied by now and received electronic confirmation your application was received; (2) you may or may not have received notice from your bank that your “loan” was approved; and (3) you probably have not received any funds yet.  Funds are being released on a daily basis, however, so hopefully you will have good news about that soon!

Newsletter - #3

Under the most recent COVID-19 bill passed by Congress, mortgage holders can obtain at least six months "forbearance" on their mortgage payments from their lenders if their mortgage is backed by federal funds.  This means that, while the loan is not forgiven, the borrower can stop making payments for several months with no penalty.  According to the Wall Street Journal, "[b]orrowers don't have to show documented proof that they have been hurt by the coronavirus.  If the loan is backed by the government, the mortgage servicer is generally supposed to grant the request."  Many people assume that because they obtained their mortgage from a private bank or mortgage company, their mortgage is not federally backed, but this is not the case.  According to the Journal, "[a]bout 70% of U.S. mortgages are backed or insured by a federal agency."  Borrowers should contact their lender to see whether they qualify for forbearance.

People who are thinking about obtaining powers of attorney and medical directives, as well as those considering writing or updating a will, should know that Pennsylvania has suspended the requirement that these documents be notarized in person.  Procedures have been established for handling the notarization part of the process electronically.  This removes a barrier to completion of these important documents.

Here is some information that may be useful for parishes:

• Churches impacted by a loss of pledge revenue are eligible for "loans" from the Small Business Administration to cover expenses, most notably payroll and utilities.  Moreover, these "loans" will be forgiven if the church demonstrates that proceeds were used to retain an employee who would otherwise have been furloughed or laid off.  The loans are being processed and administered by banks, so a good first step would be to contact the bank where your checking and savings accounts are held.  Banks are supposed to be using a standard application form, which may be found here:https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

• Alternatively, a church that feels it must lay off employees should be aware that the employees may not be entitled to regular unemployment benefits.  Churches are typically tax-exempt organizations under Section 501(c)(3) of the tax code.  Such organizations are exempt from paying into the state unemployment system, but that means that their employees are not eligible for compensation upon being laid off.  However, employees who are laid off now for reasons related to COVID-19 are eligible to receive $600/week through June 30, 2020 through the COVID-19 bill recently passed by Congress.  These funds are administered by the Pennsylvania Office of Unemployment Compensation, which can be found through this link: https://www.uc.pa.gov

• Finally, churches should be aware that under the financial bill individual taxpayers may now deduct up to $300 in charitable gifts on their 2020 tax returns (to be filed in 2021) even if they don't itemize their deductions.  As part of the tax reform package passed by Congress a couple of years ago, the threshold for itemizing deductions was raised substantially, causing many Americans to choose not to take a charitable deduction.  This had an obvious adverse effect on amounts donated to charities, including churches.  In an effort to stimulate financial aid to charitable organizations, the new legislation will allow a deduction for up to $300 in charitable gifts, so churches should let their parishioners know that there will be tax savings next year from keeping their pledge payments current now.