On March 11, 2021 President Biden issued into law a 1.9 Trillion COVID-19 bill. The American Rescue Plan Act of 2021 covered many areas including individual stimulus checks, housing, rental.
These are steps forward to assist in the closing of the poverty gap. Prior to the pandemic the Census Bureau reported that the United States poverty rate in 2019 was 10.5 percent. This is 1.3 percentage points less than the 11.8 percent in 2018. Efforts to close this gap are honorable and necessary.
The next step is execution. Within the financial industry I have seen my fair share of new guidelines coming down the pipeline. I have also seen legislation not quite translate into process. Let us take Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This act established the CFPB, Volcker Rule, SEC Office of Credit Ratings, and the Whistleblower Program.
From experience, I recall the effort it took many organizations to implement the new regulatory guidelines. There were great efforts to establish more robust teams and systems to have better business controls and quality reviews to establish checks and balances. Day to day tasks were overhauled and continued to change as amendments came from the CFPB.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was put in place to address a crisis. The American Rescue Plan Act of 2021 has also been established to address crisis. It is important that we within the financial industry take note from the past and we take steps to ensure legislation is executed well.
This can be difficult. For example, although this bill addresses rental assistance the federal eviction moratorium is scheduled to end on March 31, 2021 (subject to extend). Will funds efficiently distribute to prevent evictions? I am unsure; however, I am sure leaders can stand up to the occasion and ensure the spirit of this bill is properly executed.
In addition to the leaders that will establish the processes and programs to expeditiously and efficiently allocate funds there are consultants that have the expertise and skills to manage change well. For example, consultants can assist with establishing quality control processes and systems that ensure funds are reaching those in need. Yes, business leaders can also do the same, but consultants that specialize in change management can focus on establishing change within an organization and business leaders can focus on leading their organizations.
When asked his opinion Blackfin Group’s Chief Innovation Officer Mark P. Dangelo stated, “My take would be that consultants would be useful to assist apartment holders/managers in keeping their quality renters who have been impacted. It costs more money and loss of goodwill/to evict individuals. …we (as consultants) could aid apartment managers with providing the processes and means to get the individuals the assistance offered (which in turn lessens the chance of the individuals being evicted and the firm to gain back their loss in rental income). “
We are in this together and can unite to assist each other. Legislation can be hard to establish in reality, but if we all utilize all of our skills, we can help our nation succeed during this time.
References:
H.R.1319 - American Rescue Plan Act of 2021
https://www.congress.gov/bill/117th-congress/house-bill/1319/text?utm_campaign=2021%20Stimulus%20Bill%20-%203.10.21&utm_medium=email&utm_source=Eloqua
Dodd-Frank Wall Street Reform and Consumer Protection Act
United States Census
Centers for Disease Control and Prevention
https://www.cdc.gov/coronavirus/2019-ncov/covid-eviction-declaration.html