Some of the state’s American Rescue Plan Act funding is going towards a rent reporting pilot program with the goal to help low-income renters in Delaware build credit.
State Sen. Kyle Evans Gay partnered with the Delaware State Housing Authority to get $200,000 in funding for the pilot program.
The program aims to help renters increase their credit score by showing their reliable payment history.
Most rental payments are not reported to the large credit reporting bureaus, and Gay says that means renters' credit scores fail to reflect their true credit risk.
"By providing rent reporting services, we can connect those renters and the credit agencies and really then help the renters improve their credit for the action they're doing every month anyway. To help them hopefully have access to additional financial opportunities including potentially a mortgage, or a business loan, or whatever is the next step for them," said Gay.
Gay notes the DSHA will be the administrator of the Tenant Rent-Reporting Pilot Program with two partners working with the DSHA.
"A rental reporting company that will provide the service. The other will be an organization that will help recruit and facilitate this program for the actual renters,” said Gay. “There's going to be a focus in the program on low income renters those 250% of the federal property line and below."
The program will subsidize 12 consecutive months of rent reporting service for up to 400 tenants with an income at or below 250% of the federal poverty level.
It is expected to begin this fall and conclude in 2024.
