SAN DIEGO APPROVES $92.2M IN RENT RELIEF
Federal funds to be given to qualifying tenants harmed by pandemic
The San Diego City Council and its housing authority agreed Monday to distribute $92.2 million in rent relief to tenants with financial stress due to COVID-19.
The funds, from federal sources, will be given to renters whose household income is at or below 80 percent of the area median income — about $64,700 a year for an individual. Renters must prove at least one member of their household lost income due to the pandemic, or had significant health costs.
Renters should be able to apply around March 15, and most money will be sent directly to landlords. For now, the San Diego Housing Commission has created an interest list form on its website so those looking to apply can be notified as soon as applications are available.
The unanimous vote Monday approved a memorandum of understanding between the Housing Commission and City Council, which was the final government action holding up distribution of funds.
“There’s nothing more important than keeping people in their homes,” said Councilman Raul Campillo. “It’s a substantial amount, and I’m thrilled that we have this to help our constituents.”
Money came from three federal sources: $5 million from the first COVID-19 stimulus bill passed by Congress and sent by the City Council to its housing authority in December; $42.3 million from the second stimulus bill signed by Congress; and $44.9 million from California Senate Bill 91, which is also redistributing money from the second stimulus bill.
While applications will be accepted at 80 percent of the area median income, the city said priority will be given to renters who are below 50 percent — $40,450 a year for an individual — or who have been unemployed for more
than 90 days.
It is more generous than San Diego’s first rent relief program in 2020. That $15.1 million program said applicants must have been earning 60 percent or lower of the area median income to apply.
Similar to that program, this new rent relief program will send money directly to landlords. However, there is a slight change: About 25 percent of funds will be set aside to pay renters directly if landlords decline to participate in the program. Landlords must fill out online forms to receive funds, so it is possible that they don’t do it for unknown reasons.
The creation of the $92.2 million fund is a much different result from last year’s council action, where members argued against using too much of the federal money for rent relief. A big difference this time was that federal funds sent directly to San Diego, and those distributed by the state, are specifically earmarked for rent.
Just how much an individual renter will get can get complicated, and it depends a lot on their landlord. It is technically possible for renters to get up to 100 percent of owed rent from April 1, 2020, to March 31, 2021, paid off by the city program. For this to work, the landlord must forgive 20 to 25 percent of owed rent and the city will send them the other 75 to 80 percent. If the landlord does not do this, they will receive 25 percent of rent owed by their tenant — leaving a renter who who hasn’t paid for months on the hook for most of the money.
In both scenarios, 25 percent of rent for the following months — April to June — is included. The program also includes assistance for pastdue utilities, such as electricity and water.
Renters already receiving rental assistance, such as Section 8, are not eligible for the program. Also, only applicants with a San Diego address are eligible. A list of programs in other cities and unincorporated areas can be found at ERAPsandiego.org.
City staff members confirmed at the meeting, after questioning by Councilwoman Monica Montgomery Steppe, that an applicant’s immigration status is not a factor in approval — allowing undocumented renters to access funds.
The open-ended nature of this program is different from many rental programs launched in cities across the nation in 2020, including San Diego’s. For example, San Diego’s 2020 program would pay a maximum of $4,000 of a tenant’s rent. The new program makes it possible to pay much more and does not have a cap, making it difficult to say exactly how much a landlord and renter could get.
Gov. Gavin Newsom approved an extension of benefits in late January that said tenants cannot be evicted due to nonpayment of rent related to COVID-19 until July.
Councilman Joe LaCava said the money will help not only tenants but also smaller landlords who may have lost money during the last year. “Both (renters and landlords) need assistance to navigate the pandemic,” he said.
San Diego’s housing authority will be under a tight timeline to distribute funds. State requirements say the $44.9 million from Sacramento must be spent by Aug. 1. Federal requirements say the $42.3 million must be spent by Dec. 31 (although there are some provisions in place to extend the timeline if needed).
Many other cities and governments across the state are planning rent relief programs using federal funds. Long Beach is launching a nearly $29 million program; Orange County is launching a $65.6 million program; and Sacramento will have a roughly $31 million program.