Tenants await help as evictions resume
COLUMBIA, S.C. — Six months after Congress approved spending tens of billions of dollars to bail out renters facing eviction, South Carolina was just reaching its first tenants. All nine of them.
Like most states, it had plenty of money to distribute — $272 million. But it had handed out just over $36,000 by June. The pace has since intensified, but South Carolina still has only distributed $15.5 million in rent and utility payments as of Aug. 20, or about 6% of its funds.
“People are strangling on the red tape,” said Sandy Gillis, executive director of the Hilton Head Deep Well Project, which stopped referring tenants to the program and started paying overdue rent through its own private funds instead.
The struggles in South Carolina are emblematic of a program launched at the beginning of the year with the promise of solving the pandemic eviction crisis, only to fall victim in many states to bureaucratic hurdles, political inertia and unclear guidance at the federal level.
The concerns about the slow pace intensified Thursday, after the Supreme Court blocked the Biden administration from enforcing a temporary ban that was put in place because of the Coronavirus pandemic. Some 3.5 million people in the US as of Aug. 16 said they face eviction in the next two months, according to the US Census Bureau’s Household Pulse Survey.
“The Supreme Court decision undermines historic efforts by Congress and the White House to ensure housing stability during the pandemic,” Diane Yentel, CEO of the National Low Income Housing Coalition, said in a statement.
“State and local governments are working to improve programs to distribute emergency rental assistance to those in need, but they need more time; the Supreme Court’s decision will lead to many renters, predominantly people of color, losing their homes before the assistance can reach them.”
The Treasury Department said this week that just over $5.1 billion of the estimated $46.5 billion in federal rental assistance — only 11% — has been distributed by states and localities through July. This includes some $3 billion handed out by the end of June and another $1.5 billion by May 31.
Nearly a million households have been served and 70 places have gotten at least half their money out, including several states, among them Virginia and Texas, according to Treasury. New York, which hadn’t distributed anything through May, has now distributed more than $156 million.
But there are 16 states, according to the latest data, that had distributed less than 5% and nine that spent less than 3%. Most, according to the National Low Income Housing Coalition, are red states, often with tough-to-reach rural populations. Besides South Carolina, they include Alabama, Arizona, Arkansas, Iowa, Indiana, Florida, Nebraska, North and South Dakota, Mississippi and New Mexico.
There are myriad reasons for the slow distribution, according to the group. Among them is the historic amount of money — more than the Department of Housing and Urban Development’s annual budget — which required some 450 localities to create programs from scratch. Getting the money out is also complicated by the fact that checks aren’t sent directly to beneficiaries like, for example, the child tax credit.