Housing officials say anxiety among struggling tenants is mounting, but offered calm advice Friday — breath easy, there’s still billions of dollars in aid to wipe out pandemic rental debt.
California’s eviction moratorium is scheduled to end Thursday, and officials say aid workers are trying to correct misinformation that the $5.2 billion emergency rental relief program for tenants and landlords will end with the ban. Despite rumors to the contrary, the program will continue until the fund — which has allocated just $1.2 billion so far — is exhausted.
“We will continue to assist financially distressed renters with rent relief until the money for the California COVID-19 Rent Relief Program runs out,” Gustavo Velasquez, director of the Department of Housing and Community Development, said in a statement. “We urge anyone who owes back rent or who will have problems paying upcoming rent to apply as soon as possible, but no one should fear that the rent relief program is going away anytime soon.”
The rent relief program launched in March with $2.6 billion in federal funds designed to wipe clear rental debt and reimburse landlords for lost income due to the pandemic. The state expects to receive another $2.6 billion in federal emergency funds, and has contributed $2 billion to cover unpaid residential utility bills. The program, found at the state’s Housing is Key website, provides 100% reimbursement for eligible low income renters impacted by the COVID-19 pandemic.
The massive relief effort has been slow to deliver funds to landlords, although state and local efforts have recently started to streamline applications.
Housing advocates say there’s a strong incentive for applying for relief — a successful application will wipe out past debt, and protect tenants from being evicted for nonpayment come Oct. 1. The program can also cover up to three months of future rent.
California has paid out nearly $600 million in claims to landlords and renters since March, with a total of nearly $1.2 billion allocated, according to state data updated Friday. State relief efforts have paid $40.6 million to Santa Clara County, $52 million to Contra Costa County, $21.3 million to Alameda County, $28.5 million to San Mateo County and $31.2 million to San Francisco. Some of the counties and the cities of San Jose, Fremont, Oakland and San Francisco have distributed additional funds.
“We are working closely with local leaders and many nonprofits to ensure that these funds are targetedand deployed as effectively as possible,” said secretary of the Business, Consumer Services and Housing Agency Lourdes Castro Ramírez.
State and local officials say the Sept. 30 expiration of the eviction ban has increased concern among delinquent tenants. “There’s a lot of fear and anxiety that this looming date is coming,” said Ragan Henninger, deputy director of the San Jose Housing Department.
A joint program between San Jose and Santa Clara County received 5,800 applications for $61 million in aid, exceeding the $57 million local allocation, she said. Additional requests have been handed off to the state.
The city is conducting pop-up help clinics at community centers and schools in low-income neighborhoods with high COVID rates to get information out about promote the program and to help people with applications. The Law Foundation of Silicon Valley has also provided staff to answer legal questions.
Said Henninger, “There’s still money available.”
