Emergency rental aid coming too little, too late, study finds

As COVID eviction protections end in most California cities March 31, the state’s $5.2 billion emergency rental assistance program is still struggling to get money to needy tenants and landlords.

About 70,000 Bay Area tenants seeking state aid to pay their back rent are stuck in limbo, according to a new analysis of the state program by the National Equity Atlas. Roughly 20,000 applicants have been approved and are waiting for payments, and other 50,000 applicants are still waiting for their cases to be reviewed.

Statewide, just 1 in 6 California tenants in the program have received aid, and the typical wait time has been 4 to 6 months, according to the analysis. “If we allow protections to expire before people receive assistance, it will be a failure,” said Sarah Treuhaft, vice president of research at PolicyLink and co-author of the report.

State officials dispute the analysis, and say far more households have been helped. Many of the approved cases marked as unpaid are awaiting action from landlords and tenants, such as cashing a check. “We absolutely are the largest, most successful program in the country,” said Geoffrey Ross of Department of Housing and Community Development.

The need for tenants and landlords has become urgent: limited, statewide COVID eviction protections end March 31, and advocates fear a potential wave of displacement will follow in the spring and summer months. Other local protections, including an Oakland eviction moratorium, are being challenged in court.

In December 2020, the federal government established the emergency rental assistance program to keep families and workers housed during the pandemic. States and localities distribute the funds.

The demand in California has been immense, although difficult to quantify. Researchers estimate California tenants owe $3.3 billion in back rent during the pandemic. At the same time, renters had applied for more than $6.9 billion in relief through January, although the figure reflects some duplicate applications and those likely to be rejected.

But the National Equity Atlas analysis found weaknesses in California’s program: About 60% of approved applicants have yet to receive funds. The median wait time between application and payment is 135 days. And while roughly 180,000 applications have been approved, 289,000 are still under review.

The analysis by the National Equity Atlas, along with Housing NOW! and the Western Center on Law & Poverty, draws on public data from the state-run assistance program from its March 2021 launch to February 2022.

The state programs cover almost two-thirds of the population, with other residents covered by city and county-run programs. San Jose, Oakland, San Francisco, Fremont and Santa Clara County are among the 25 California local governments that distributed federal aid through independent programs.

The state program has paid more than $2.2 billion in aid since it opened a year ago. The state has guaranteed it will pay all of the eligible claims submitted between last April and March 31, 2022. The program is expected to close next month. “Every eligible applicant will get paid,” Ross said.

State housing officials say application reviews and vetting have delayed some payments. Officials are wary of seeing a re-run of the rampant fraud in the state pandemic unemployment program, now estimated to total at least $20 billion.

But advocates for both renters and landlords are urging the state to move more quickly on relief.

Debra Carlton of the California Apartment Association said landlords want to see the money moving faster. They would rather receive rent than go through a costly and unpredictable eviction suit.

Many property owners will likely wait for aid to come before trying the courts, although losses are mounting. “The small, mom and pops are in the most dire straits,” she said.

For struggling tenants, frustration is mixed with fear.

Rhonda Campbell fell behind on rent in her San Jose townhouse during the pandemic, despite support from local charities. She’s missed work because of illness, and is uncertain about when she can return full-time.

She applied to the state program with help from Catholic Charities of Santa Clara County, and received three months rent to cover back expenses.

She applied for a second round of benefits, and her case has been pending for months. In December, her landlord served her a notice to pay or leave.

Campbell wants to stay, but she’s worried. “It’s been awful,” she said. “I pray a lot.”