Aid program runs short as deadlines approaching
Demand has been outstripping the $5.2 billion fund
California’s $5.2 billion pandemic rental relief fund is running out of money even as the pandemic deepens economic turmoil and tenant protections expire in March.
Housing advocates have seen a steady demand in recent months for assistance to protect people from displacement or eviction. The state requested an additional $1.9 billion from the federal emergency rental assistance program to cover landlord and tenant debts, but last week state and local programs received just $68.7 million in additional funds.
Aid requests from tenants and landlords now have hit $6.9 billion, according to state data. Officials say some of those requests will be ineligible or are duplicate applications that will be denied.
“It’s premature in this moment to know if we are oversubscribed,” said Geoffrey Ross, deputy director of the state Department of Housing and Community Development, “because we don’t know how much more funding we will receive.”
State officials estimate they need an additional $2.5 billion to cover upcoming demand. The federal government is expected to redistribute additional, unused funds this spring. But California’s tenant protections end in March, allowing landlords to resume evictions for nonpayment in most cities.
Housing and landlord advocates say the everlengthening pandemic has strained a system launched in March to stem evictions and keep families housed during the health crisis.
“California will need significantly more funding from future federal reallocations in order to continue to meet the needs of low-income California renters impacted by COVID-19,” said Lourdes Castro Ramirez, the state’s Business, Consumer Services and Housing Agency secretary. The state will continue to focus relief toward the lowest-income families and tenants facing displacement, she said.
Tenants and landlords apply to state and local programs, and eligible, low-income renters can have up to 100% of their back rent paid to their landlord. Some may also qualify for payment of future rent. The state estimates the various programs have helped nearly 250,000 families and distributed about $2.5 billion to landlords.