$3.4 Billion FCC COVID Broadband Benefit Program Available to Multifamily Industry

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Multifamily Properties Offering Bulk Internet Service May Benefit from the Recently Enacted Emergency Broadband Benefit (EBB) Program.

By C. Douglas Jarrett, Guest Contributor

As Senior Counsel at Keller & Heckman, C. Douglas (Doug) Jarrett represents associations, major corporations, and entrepreneurs before the Federal Communications Commission (FCC) on telecommunications policymaking, licensing, and enforcement matters. Read his full bio >>>

The Consolidated Appropriations Act enacted in December 2020 established several key COVID-19 relief programs for multifamily operators and residents, including the much-talked about Emergency Rental Assistance Program (ERAP). A lesser-known program and set of funds that are welcome relief to the multifamily industry and its residents is the new $3.4 billion Emergency Broadband Benefit (EBB) Program being administered by Federal Communications Commission.

The FCC recently adopted a Report and Order, setting the rules and procedures for the EBB Program. In particular, one aspect of the FCC’s decision could be a major benefit for MDU owners of properties at which bulk internet service is offered to low-income residents. Under the EBB program, all qualified low-income households are eligible for a $50.00 per month discount to their monthly Internet access service ($75.00 per month for qualified households on Tribal Lands) and a one-time reimbursement of $100 for a laptop, desktop or tablet.

The discounts and reimbursements will be paid to broadband providers directly by the Universal Service Administrative Company (USAC), subject to FCC oversight.

Similar to the ERAP, eligibility for assistance is broadly defined in hopes of reaching all those in need, including those residents who lost their jobs due to COVID-19, regardless of previous income. Eligible low-income households must elect to participate and their enrollment in the program must be confirmed by the interested broadband providers. Presumably, some residents may qualify, others may not and some residents may decline to participate. Importantly, the EBB Program is also available for student and senior housing properties.

The FCC’s allowance for bulk service eligibility is rightly intended as a net savings to residents. Therefore, the FCC requires that the entire discount off the monthly bulk service fee must redound to the benefit of the customer. However, the owner or manager of a property will also benefit because they will be relieved of paying all or a substantial portion of the monthly bulk rate for participating qualified households.

Similar to guidelines under ERAP, interested property owners/managers providing bulk internet access service or the broadband providers must secure consent from residents that are eligible households before submitting an application for reimbursement. Furthermore, when the allocated $3.4 billion is expended, the monthly discounts and reimbursements will come to an end.

Household eligibility criteria and additional programmatic details, as laid out by the FCC order, are below.

The bulk service option under the EBB Program may be summarized as follows:

The eligible household must consent to the bulk purchaser/aggregator [the property owner/manager] or participating provider to obtain the EBB Program benefit, and the provider must retain documentation of such consent.
The provider must retain documentation demonstrating that the amount claimed from the EBB Program is fully passed through to the eligible household as a discount off the monthly bulk service price. This will require the property owner/manager’s consent. The following example illustrates how the benefit will be received by multifamily firms that provide bulk internet service and ultimately benefit residents.
- If a property owner/manager typically provides its residents bulk broadband service for $30 a month, each eligible household that receives service must provide consent to the property owner/manager or participating provider that the participating provider can seek reimbursement from the EBB Program for the $30 a month service.
- The participating provider must retain documentation of each resident’s consent, as well as documentation that the $30 that the provider is seeking reimbursement for will be fully passed through to the eligible household. As a result, the property owner/manager pays up to $30 less to the participating provider, and the eligible household receives free broadband service.
In cases where the household does not pay a fee for the service, either to the provider or a bulk purchaser/aggregator, but the fee is paid by another entity, the cost of the broadband service cannot be claimed for EBB Program support.

Do My Residents Qualify?

To be eligible under the EBB Program, a household must meet one of the following criteria:

Qualifies under the FCC’s Lifeline program (household may participate in both Lifeline and EBB Program)
- Only one (1) monthly Service Discount and one (1) Connected Device Reimbursement per household
Receives benefits under Federal free and reduced-price school lunch program or the school breakfast program (at least one child in household) or during 2019-2020 school year
Experienced a loss of income since February 29, 2020
Received a Federal Pell Grant in the current award year
Meets the eligibility criteria for a participating providers’ existing (in effect on April 20, 2020) low-income or COVID-19 program
- For example, it appears Comcast’s Internet Essential Program qualifies.
Through a school participating in USDA Community Eligibility Program
- These are very low-income schools for which all students qualify for free school breakfasts or lunches or both. The family of student participating in this program is eligible.
- Provider required to make certifications in the designated online database.

How Can My Residents Access these Funds?

Households in non-bulk properties who meet eligibility criteria will be able to enroll through participating broadband providers or directly with the Universal Service Administrative Company. Please visit the FCC’s website for the latest information on the enrollment process here.

Are there Requirements for Broadband Providers Participating in EBB?

The EBB is open to all broadband providers. Broadband providers will receive reimbursement from the program for delivering qualifying broadband services or devices to eligible households. Broadband providers can find more information about how to participate here.

When Does the Application Process Open?

The application process is now open. To check eligibility and apply for these funds, residents may visit GetEmergencyBroadband.org.

Interested owners of MDUs at which bulk Internet service is offered or may be offered, including student and senior housing communities, and whose residents likely qualify as low-income households should contact their broadband service providers for additional information.

Kevin Donnelly kdonnelly@rettc.org