Trickle of federal rental aid heightens eviction worries

The White House is under growing pressure to significantly ramp up the amount of emergency rental relief reaching tenants and landlords, as some economists and housing advocates say the Biden administration's attention to the eviction crisis is coming too late.

Just weeks before an eviction moratorium put in place by the Centers for Disease Control and Prevention expires July 31, much of the federal aid meant to help tenants and landlords has not reached them. Many are not even aware that the assistance is available, or they continue to struggle with onerous and complicated application rules.

All told, Congress has appropriated roughly $46 billion for emergency rental aid — some approved in December and a second round approved in March.

Of the $25 billion appropriated in December, only $1.5 billion had been spent nationwide on rent, utilities and arrears between January and the end of May, according to figures released last week by the Treasury Department.

Congress allocated nearly $210 million to Iowa in that first round of rental assistance. About $15 million of that was designated for Des Moines and Polk County, with the rest sent to the state more broadly. But only $3 million of the roughly $195 million available outside of Polk County was spent as of May 31, helping 217 households, according to the Treasury Department data.

In the second round of rental assistance funding, approved in March, nearly $292 million was allocated to Iowa. Of that, almost $5.37 million was earmarked for Linn County.

Treasury does not yet have data on how much of the overall $21 billion approved in March is being spent.

With help from federal community development block grants, Cedar Rapids has spent about $1 million to help more than 650 households through its own eviction prevention program, which provides low- to moderate-income households grappling with the impacts of COVID-19 with rent and utility payment assistance, community development Director Jennifer Pratt last month told The Gazette. The city has about $550,000 more allocated.

Many parts of the nation’s economy show signs of improvement from the wild swings in 2020. But housing has proved especially complicated. Home prices are soaring, boxing out many potential buyers. Meanwhile, tenants behind on rent — and landlords strapped for income — are on unstable ground. The CDC's eviction moratorium was intended to keep people in their homes, but it does not erase bills once they come due. The moratorium will not be extended past July 31, federal officials say.

More than 116,000 Iowans are not current on their mortgage or rent payments, according to the latest U.S. Census Bureau’s Household Pulse Survey, which was conducted June 9-21. The same survey shows that over 48,000 Iowans fear they are “very likely” or “somewhat likely” to face foreclosure or eviction within two months

Both figures — the number of Iowans behind on housing payments and the number of Iowans afraid of being kicked out — have worsened since the previous survey conducted two weeks earlier.

Iowa formerly had a statewide eviction moratorium, but it was lifted by Gov. Kim Reynolds in May 2020, leaving the federal ban as the only widespread protection.

In Linn County, an Iowa Legal Aid help desk is open at the Linn County Courthouse to assist tenants facing eviction hearings. Starting Monday, Iowa Legal Aid plans a similar help desk at the Johnson County Courthouse.

There is an uneven picture across the nation of how the federal rental assistance is being used around the country.

In Rhode Island, for example, the data show that no money was spent on rent, utilities and arrears until May, when $100,000 was paid out, and six households were assisted. But local officials say that is because it took time to correct flaws in the systems, which delayed payments and led to a backlog in applications. Meanwhile, programs in Virginia and Texas picked up momentum early. Between January and May, those states paid out $155.5 million and $139.8 million, respectively, in rent, utilities and arrears, according to the Treasury data.

The data does show a steady increase in the number of people receiving help: Almost 160,000 households were assisted in May, up from about 97,400 in April. But experts say those numbers pale in comparison to the number of people who risk losing their homes when the CDC eviction moratorium expires after July 31.

Senior White House officials say they are frustrated with the slow roll out of the funding. With increasing concern about what happens after July 31, the Biden administration is imploring state and local governments, courts, legal aid organizations, community groups and others to do all they can to raise awareness about rental relief programs.

The Washington Post contributed.