Rent is Due By the …
by Mathew Rose
The rent is too high and COVID hasn’t not made things easier for anyone struggling with our high rent issue across the country. For folks who are dialed in I hope that this is a summary of what’s going on. But also some resources and opportunities that exist to help people get through this challenging time. The federal government has made some opportunities and resources available.
Many people before the pandemic were well aware that the rent was too high and in many places there was a dangerous bubble being formed. The issue was compounded by the pandemic. By the end of 2020, the median rental price for a vacant unit had reached an all-time high of $1,190. With 23 states and the District of Columbia, a the current estimates would show that a full-time worker would have had to earn $20 per hour or more — well above national and state minimum wages — to afford a two-bedroom rental home with only 30 percent or less of income going to housing, as is recommended[1]. As the pandemic sent massive numbers of people into unemployment or disputing income streams for millions the federal government through the CDC was able to place an order that determined that the evictions of tenants could be detrimental to public health control measures to slow the spread of COVID-19. In the first waves of the pandemic nearly one-third of renters fell behind on their rent1. The CDC order will end later this month in June. With the economy still recovering and back rent mounting there is still a large hole in keeping families and individuals in their homes.
A number of states and landlords have challenged the CDC’s order in courts across the country. All the while some truths are reminded and the reality is: the average renter who is behind on rent owes thousands in back-rent, and many of them still don't have a decent paycheck1. Furthermore people of color were disproportionately affected by affordability options in the market pandemic. More than half of Black and Hispanic renters were already shuttling more than 30 percent of their income to housing even before the pandemic, which was a significantly higher proportion than white renters, according to Harvard University's Joint Center for Housing Studies[2]. Making this a prime issue for our community and a place we need to make sure understand how to connect people to resources that can help folks feeling this crunch of the moment.
The first resource is: The Treasury Emergency Rental Assistance program has made $46.55 billion available to help renters struggling to pay rent or utilities. The program is open to all States (including the District of Columbia), territories, tribal governments or tribally designated housing entities, the Department of Hawaiian Home Lands, and local governments with more than 200,000 residents may be administering a program as part of the federal Treasury Emergency Rental Assistance program.
The second resource to direct people two is a page put together by the Consumer Financial Protection Bureau is focused on making financial markets work for consumers, responsible providers, and the economy as a whole. They protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. And the rent crisis has spurred them to make tools to support consumers. CFPB made a regulation that requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. This means tenant have a right to legal challenges against landlords that don’t compel with this rule before the person’s eviction[3].
Hopefully these tools can be shared with those in need and help them during this crisis. We must democratize knowledge. We can make sure that our people know what is out there and how they can be helped in this critical time.
[1] Eskind, Amy. “'Things Have Come Undone': At Home with the Millions of People Who Owe Billions of Dollars During COVID.” PEOPLE.com, 13 Mar. 2021, people.com/politics/the-crisis-of-renters-and-landlords-in-covid/.
[2] Sophia Wedeen Research Assistant Sophia Wedeen is a Research Assistant, et al. “Black and Hispanic Renters Face Greatest Threat of Eviction in Pandemic.” Black and Hispanic Renters Face Greatest Threat of Eviction in Pandemic | Joint Center for Housing Studies, 11 Jan. 2021, www.jchs.harvard.edu/blog/black-and-hispanic-renters-face-greatest-threat-eviction-pandemic.
[3] “CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions.” Consumer Financial Protection Bureau, 19 Apr. 2021, www.consumerfinance.gov/about-us/newsroom/cfpb-rule-clarifies-tenants-can-hold-debt-collectors-accountable-for-illegal-evictions/.