Congress has passed $46 billion in emergency rental assistance as part of COVID-19 relief, yet millions of renters could face eviction when a federal eviction moratorium expires on June 30—or much sooner, if more courts uphold a judge's decision striking down the moratorium Wednesday. While the federal government has gotten most of the money to the states, state and local governments are struggling to get it to renters and landlords. Meanwhile, prior to the judge’s ruling against the moratorium, the Biden administration is threatening action against the largest landlords if they pursue evictions.
In other words, tenants who have been hit hard by the COVID-19 economy and are behind on their rent have a lot to worry about right now.
Distributing the relief funds is a big job for governments already hit hard by the demands of the pandemic and the burdens of the COVID-19 economy. The agencies in charge of distributing the aid had to “hire new staff and contractors, and they have to create entirely new networks to move an enormous amount of money to millions of people,” Stockton Williams, executive director of the National Council of State Housing Agencies, explained to Politico.
”Emergency rental assistance is a big new program, it has a really hard job to do, and it is still relatively early in the process that Congress envisioned to help renters who need it,” he added. But while it’s true that state housing agencies have not had a ton of time, there’s eight weeks left before the eviction moratorium lapses. The stakes are incredibly high for the people who have those eight weeks to catch up on what could be a year of rent, and then could be put on the street.
In fact, many renters were already facing eviction proceedings despite the moratorium. On Monday, the Biden administration warned many major landlords and debt collectors to comply with the moratorium after a report from the nonprofit Private Equity Stakeholder Project found that large landlords were still filing eviction petitions, amounting to 57,000 of them since the moratorium took effect in September 2020.
”With millions of families nationwide at risk of eviction, it’s vital that landlords and the debt collectors who work on their behalf understand and abide by their obligations,” acting Federal Trade Commission Chair Rebecca Kelly Slaughter wrote in a letter to the landlords. “We are continuing to monitor this area and will act as needed to protect renters.” Legal action is possible if eviction petitions continue, the letter stated—but just days later, the very existence of the moratorium was thrown into doubt.
The $46 billion in federal rental assistance will help put a big dent in the emergency … when it reaches tenants. But until it does, tenants will be living in fear and small landlords will be struggling. The courts could be on the brink of making the situation much worse.
In other words, tenants who have been hit hard by the COVID-19 economy and are behind on their rent have a lot to worry about right now.
Distributing the relief funds is a big job for governments already hit hard by the demands of the pandemic and the burdens of the COVID-19 economy. The agencies in charge of distributing the aid had to “hire new staff and contractors, and they have to create entirely new networks to move an enormous amount of money to millions of people,” Stockton Williams, executive director of the National Council of State Housing Agencies, explained to Politico.
”Emergency rental assistance is a big new program, it has a really hard job to do, and it is still relatively early in the process that Congress envisioned to help renters who need it,” he added. But while it’s true that state housing agencies have not had a ton of time, there’s eight weeks left before the eviction moratorium lapses. The stakes are incredibly high for the people who have those eight weeks to catch up on what could be a year of rent, and then could be put on the street.
In fact, many renters were already facing eviction proceedings despite the moratorium. On Monday, the Biden administration warned many major landlords and debt collectors to comply with the moratorium after a report from the nonprofit Private Equity Stakeholder Project found that large landlords were still filing eviction petitions, amounting to 57,000 of them since the moratorium took effect in September 2020.
”With millions of families nationwide at risk of eviction, it’s vital that landlords and the debt collectors who work on their behalf understand and abide by their obligations,” acting Federal Trade Commission Chair Rebecca Kelly Slaughter wrote in a letter to the landlords. “We are continuing to monitor this area and will act as needed to protect renters.” Legal action is possible if eviction petitions continue, the letter stated—but just days later, the very existence of the moratorium was thrown into doubt.
The $46 billion in federal rental assistance will help put a big dent in the emergency … when it reaches tenants. But until it does, tenants will be living in fear and small landlords will be struggling. The courts could be on the brink of making the situation much worse.