What Steps are Communities Taking to Avoid an Eviction Crisis?

A federal eviction moratorium that has protected renters from eviction since March is coming to an end on July 24. The expiring moratorium was meant for tenants in federally subsidized or federally backed housing, and in response many states and cities imposed their own eviction moratoria to protect vulnerable renters. The expiration of these moratoria leaves millions of people at risk of eviction especially as COVID-19 continues to spread throughout the country. This risk is enhanced by the expiration of other CARES Act assistance programs, such as the enhanced federal unemployment compensation.

Eviction Crisis Exceeds Foreclosure Numbers 

Even before the COVID pandemic evictions in the US were at a record high, with more than 2 million people facing eviction each year. This number is higher than the number of people who faced foreclosure during the 2008 economic crisis. Experts are fearing an “eviction cliff”, a drastic increase in evictions once these moratoria expire.

Relief from States and Cities

Many communities that foresee serious issues for renters have introduced rental assistance programs as the expiration date of the federal eviction nears. The City of San Diego has launched a $15 million rent assistance program. The program can pay up to $4,000 per household, and priority is given to families with young children and households with at least one person 62 years old or older. The program is expected to help about 3,500 households and is using municipal CARES Act funding. Louisiana has launched a similar program, with a budget of $24 million, to help residents by providing up to 3 months of direct rental payments to landlords. The Louisiana program is expected to assist up to 10,000 residents. New York State is currently requesting applications for its COVID rent relief program. Though it might be hard to qualify for assistance due to the strict requirements, the New York State program hopes to help tenants with the increase in their rent burden since the start of the COVID pandemic. 

Federal Action Needed 

While these programs start to tackle the economic fallout of the COVID crisis for tenants, the public response has demonstrated that the current budget for these programs are wholly insufficient. In Louisiana applications for the program were suspended 4 days after opening due to overwhelming demand. In San Diego city leaders have already recognized the need for growing the fund by introducing a philanthropic element or crowdfunding. New York tenant advocates have called the program inadequate, as many tenants who have lost their jobs and incomes will not qualify under the program’s strict requirements. Expansive financial assistance  is needed according to tenant advocates to remedy the current housing crisis, requiring a large-scale government response.