Chicago Mayor Lori Lightfoot announced on Friday that the city would be helping about 2,000 residents with $1,000 grants to help cover rent and mortgage payments through a new program.
Lightfoot said the new COVID-19 Housing Assistance Grant program is designed to help people who are now unemployed because of efforts to contain the coronavirus pandemic, which has essentially brought the national economy to a standstill.
In order to gain access to the grants, applicants need to show that they make 60% of the area median income and have proof of a recent change in employment status or an unemployment insurance claim.
“This program represents a critical resource not only to our communities but our entire city as we navigate this evolving challenge and ensure every Chicagoan remains safe, healthy and secure," Lightfoot said in a statement shared with The Chicago Tribune.
Marisa Novara, a commissioner of the Department of Housing, said in a statement that 60% of the median income was about $53,000 for an average family of four.
The Tribune reported that the program will cost about $2 million with its source of funding coming from the Affordable Housing Opportunity Fund.
Lightfoot said the grants will be split in half, with 50% given out through a lottery system and the other half given to local organizations. Most of the money, however, will be distributed through a one-time payment in April.
Those interested in the program can apply through local housing organizations or the city's official website. City officials told NBC Chicago that the money will be sent through PayPal, CashApp or regular bank transfers.
Chicago residents have been hard hit by social distancing efforts, and Lightfoot has already set up programs to help the homeless. Illinois Gov. JB Pritzker has also stepped in to help those struggling with housing by temporarily pausing evictions.
The announcement comes directly on the heels of President Donald Trump signing the landmark $2 trillion stimulus package designed to help sustain the American economy.
The wide-ranging bill includes billions of dollars for corporations struggling to sustain amidst the pandemic while offering direct payments of $1,200 to anyone earning less than $75,000 in adjusted gross income.
Couples that are married and earning less than $150,000 are slated to receive $2,400 and an extra $500 per each child. The payout gets smaller for individuals making over $75,000, and anyone making over $99,000 won't receive any financial support. Couples making over $198,000 also won't receive any funding.
For companies in struggling industries, like airlines and hotels, the bill provides financial relief, something both Democrats and Republicans have complained about.
