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The COVID-19 pandemic caused frustration, anxiety, and depression in the rental market. Many tenants stopped having money to cover even affordable housing, whereas landlords stopped getting a consistent flow of money for their rentals.
Colorado's Emergency Rental Assistance Program came as the solution to this problem. Keep reading this guide to learn more about it and other useful resources for property managers.
Disclaimer: At the time of writing this guide, Colorado stopped accepting new applications. Those who already applied may still receive funding. Due to the changing nature of COVID-19 and its effect on the rental market, we recommend you check the state's ERAP portal to verify if new applications are available.
What Is ERAP in Colorado?
The Emergency Rental Assistance Program was designed to provide tenants with financial help. It was created as a response to the effects of the COVID-19 pandemic.
ERAP1, which was the program's first era, was designed by the Consolidated Appropriations Act of 2021. The second phase, ERAP2, was approved by the American Rescue Plan Act of 2021 as an effort to provide further rental assistance to more renters facing housing instability or experiencing homelessness.
How Does ERAP Work in Colorado?
Those who applied to the Emergency Rental Assistance Program (ERAP) could get the following benefits:
- Relocation assistance
- Rent and security deposit coverage
- Up to 15 months of assistance for current and/or overdue payments
Once the tenant's application got approved, the landlord or property manager would receive their payments directly on the renter's behalf.
How Does ERAP Benefit Colorado Landlords?
Even though it seems like the Emergency Rental Assistance Program only benefited tenants, it indirectly helped landlords too.
ERAP worked as an excellent method to ensure a consistent stream of money for the landlord during times of financial hardship. By getting all rental payments covered, the eviction rates lowered, which also benefited the landlord's reputation.
What Is the Role of the Landlord in This Program?
Landlords in Colorado didn't have to participate in the ERAP for their tenants to receive rental assistance. However, it was recommended for them to help their tenants with their application process in hopes of getting it approved faster.
By participating in the process, landlords could verify the tenant's statements and submit the right documentation to the government.
Who Is Eligible for ERAP in Colorado?
Renters had to meet one of the following requirements to apply for ERAP and pay rent through its funding:
- Being at risk of experiencing homelessness or housing instability.
- Being eligible for unemployment.
- Experiencing a significant reduction in household income.
- Experiencing financial struggles directly or indirectly due to COVID-19.
Furthermore, households with a gross income of 50% (or lower) than the area median income got their applications prioritized by the government. The same applied to households where one (or more) members were unemployed for 90 days or more at the time of making the request.
Can Tenants That Are Already on Government Housing Plans Apply to ERAP in Colorado?
There's no current information about this topic, as the Emergency Rental Assistance Program in Colorado stopped accepting new applications after November 15, 2022.
Other states, such as New York, allowed renters under other housing plans, such as Section 8, to apply under the condition that they had to report that information in the application process. It's possible that Colorado renters had the same possibility.
How to Apply for ERAP in Colorado
Those who wanted to apply for ERAP in Colorado had to follow these steps:
- Gather the necessary documents for the landlord and tenant.
- Apply through the official ERAP portal for Colorado.
- Check the application's status from time to time.
- Wait until the landlord receives the money through a third-party processor.
How DoorLoop Can Help You Learn More About the Rental Market in Colorado
It's not easy to get up-to-date information about the rental market nowadays. With so many websites out there, many landlords get overwhelmed.
Thankfully, platforms like DoorLoop help you receive assistance and get all your questions answered easily. Its website provides you with all the resources necessary for your rental business in Colorado.
Regardless of the information you're looking for, you're likely to find the answer in DoorLoop.
Moreover, if you're looking for a powerful tool to manage your portfolio, DoorLoop also features a clean and intuitive dashboard where you can monitor your leases, communicate with your tenants, and process your maintenance requests and payments seamlessly.
There's no need to get frustrated because of a lack of information regarding the market. With DoorLoop, you can get access to all you need (and more) in the same space!
Bottom Line - Try Out DoorLoop Today
The Emergency Rental Assistance Program of Colorado was one of the many methods to help those in need. Even though the state isn't currently accepting applications, we encourage you to keep yourself updated on the latest information just in case.
If you want to learn more about rental assistance programs or Colorado's rental market, don't hesitate to go to DoorLoop. On the other hand, if you want assistance making the most out of your rental portfolio, schedule a demo today, and discover everything you can do with the platform.
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