Preventing a New York State housing emergency

The impending expiration of the eviction moratorium in New York State on Jan. 15, an undersupply of affordable housing and ongoing barriers to emergency rental assistance are all leading New York and many other states into a perilous winter of housing instability. But if policymakers take some critical steps now, vulnerable New Yorkers won’t have to lose their homes.

Current measures meant to aid struggling renters and homeowners are falling short. In November, New York’s Emergency Rental Assistance Program stopped accepting applications. The program, which has aided tenants and landlords harmed by the COVID-19 pandemic, was receiving as many as 9,500 requests per week, but it’s running out of funds. The program has received 290,000 applications and paid out $2 billion as of last week, with around 100,000 applicants still waiting for resources.

Residential and commercial tenants in New York who complete a hardship declaration may avoid eviction until the moratorium expires in the middle of this month. Likewise, homeowners facing foreclosure may complete a hardship declaration to delay foreclosure proceedings until the mid-January deadline. However, landlords and lenders may challenge a tenant or homeowner hardship declaration in court, which can mean additional time spent away from a job or family responsibilities such as caring for a child.

The surge in the spread of the omicron and delta variants across the country is adding to the uncertainty that still plagues the entire recovery, which compounds housing instability for low-income families. Policymakers can take immediate action in three different areas to help keep low-income New Yorkers inside through this season of cold.

First, Congress should increase funding for the Section 8 Housing Choice Voucher Program. Over the past few years, scholars and advocates have argued for a universal housing voucher for extremely low-income families. During the 2020 campaign, then-candidate Joe Biden adopted the proposal that all families eligible for Section 8 rental assistance receive it. The Build Back Better Act, which passed the House in November and is now back under consideration in the Senate, would provide $25 billion for Housing Choice Vouchers. Though less than the full amount needed for a universal voucher program, expanded funding would go a long way to keeping low-income families housed.

Second, Congress should provide additional emergency rental assistance funds to tenants and homeowners who have faced income loss during the pandemic. Emergency rental assistance funds allow tenants to remain in their homes, avoid build-up of additional back rent, and provide landlords with the income needed to cover their own costs of ownership. Too often the infrastructure to distribute needed funds is improved precisely to the point that funding is cut off.

Gov. Hochul has called for almost $1 billion from the U.S. Treasury to keep the program going, and recently announced a new Homeowners Assistance Fund. The Biden administration is making strides in redirecting available rental assistance funds from areas with less need to those with greater demand, but it seems that only very small sums will be available. Congress ought to allocate those funds to ensure that tenants and landlords experiencing hardships avoid eviction and foreclosure proceedings, respectively.

Finally, New York should adopt a civil right to counsel for low-income tenants facing eviction. The financial, social and emotional costs of losing a home are catastrophic. Costs to the state, as well as local governments, are also high. The return on investment calculations for the pilot right-to-counsel programs in New York City and elsewhere support public spending in furtherance of protecting low-income tenants. Hochul recently added $25 million to fund tenant civil legal services, but it will take more to guarantee all low-income tenants do not go through eviction unrepresented.

As for housing supply, New York still needs more than 600,000 units of affordable housing. But building new units of affordable housing takes time. Barriers to affordable housing construction persist through local opposition, burdensome local zoning regulation and financing challenges. Over the next 10 years, nearly 750,000 affordable homes nationally are at risk of becoming market rate when Low-Income Housing Tax Credit restrictions expire.

With New York’s eviction and foreclosure moratorium set to expire next week, Washington and Albany must act now to avert an impending surge in evictions that could reach crisis levels. Adding funds to support housing vouchers for low-income renters helps those who struggle to find affordable housing. Increasing funds for emergency rental assistance keep tenants in their homes and ensures landlords don’t face their own foreclosures. Finally, expanding the right to counsel statewide will avoid a rubber-stamp eviction process once the moratorium expires. This blueprint for housing stability during an uncertain winter will work if our federal and state lawmakers allocate public funds to these priorities.

De Barbieri is an associate professor at Albany Law School, where he teaches courses in housing and community economic development law and co-directs the Community Economic Development Clinic.