SLO County has $8 million to distribute in rent relief. Here’s why that’s not nearly enough
San Luis Obispo County has received $8.4 million in federal COVID-19 rent relief funds — and at least 90% must go to tenants and landlords affected by the pandemic.
Sounds like a substantial sum, right?
Yet it’s not nearly enough. Estimates of the amount of back rent owed in SLO County range from $24 million to over $43 million, according to estimates shared by a San Luis Obispo County analyst.
Statewide, figures vary even more dramatically.
The nonpartisan Legislative Analyst’s Office recently put Californians’ rental debt at $400 million, while Bay Area Equity Atlas estimates it at $3.7 billion.
That far exceeds the $2.6 billion California received for rental assistance, divided between the state and local jurisdictions.
Meanwhile, rent debt keeps mounting; February payments are soon coming due, which means time is of the essence.
When will money be available?
San Luis Obispo County is working on how to distribute the $8.4 million.
“Decisions about how/who administers the funding is yet to be determined, but county staff understands how critical it is to make this funding available to residents quickly and is working as quickly as possible,” county analyst Carolyn Berg said in an email.
To further complicate matters, the state Legislature just passed SB-91, which extends the partial eviction moratorium until June 30 and covers a portion of back rent for lower-income tenants who fell behind on payments due to the pandemic; households earning less than 50% of local median income will have priority.
Under that legislation, the state will cover 80% of rent missed between April 2020 and March 2021, as long the landlord agrees to forgive the remaining 20%.
The source of that funding?
The same $2.6 billion awarded to the state.
It’s unclear at this point whether the state would distribute the money already allocated to counties and cities, or if local agencies would take the lead.
SLO County is weighing its choices.
“The county is still exploring local options for implementation,” Berg wrote, “but we will also look at the state’s bill and what that provides.”
Outreach to renters is essential
Whatever happens, it’s critical to get information about the rent relief program out to people who need it most.
“Most renters aren’t aware there is rental relief,” said Dona Hare Price, who chairs a countywide coalition, Rent and Mortgage Relief for All. “We really have to demystify the rent relief process and eviction (moratorium) process for our tenants.”
The last thing we need is for the rental relief process to play out like the COVID vaccination rollout, where people with computer access — and in some cases, connections — have the advantage. For example, we know of at least one local pharmacy that was offering vaccines to people over 75 — and those people in turn alerted their friends and relatives to sign up there.
But there’s a big difference between the two programs.
Eventually, we should all have access to free vaccines.
When it comes to paying rent, a finite amount of rental relief money available, and it’s imperative to distribute it equitably, starting with those most in need.
We don’t want to make the process sound too daunting, but the application will likely require a fair amount paperwork, including proof of income — funds are limited to people earning under 80% of the county’s median income — and a demonstration of need, such as an eviction notice or lay-off notice. Proof of legal residency in the U. S. is not required.
So yes, there are some hoops to jump through.
Housing advocates also warn of loopholes in SB-91 that could hurt some tenants.
One of the biggest: If a landlord refuses to forgive 20% of rent, the tenant can still qualify for some benefits, but it’s a more complicated process and tenants receive only 25% of rent debt — the minimum that must be paid to avoid eviction. That leaves them on the hook for 75%.
Ideally, government would find a way to reimburse landlords 100% of what their owed, especially small landlords who depend on rent for basic living expenses. But a guaranteed 80% — versus 25% now with the possibility of maybe more down the road — isn’t a bad outcome.
For tenants, though, the problem doesn’t end with rent; many also are behind on utility payments.
The state Water Resources Board recently estimated that Californians collectively owe $1 billion just in overdue water bills. Federal rental assistance funds can be used for utilities, but again, that $2.6 billion will only go so far.
On the plus side, there are many committed people in San Luis Obispo County — in government, nonprofits and the private sector — working on this issue..
Rent and Mortgage Relief SLO is working with local elected officials to create a responsive private fund to address rent relief. Information on how to donate and how to access the fund will be available in the coming weeks.
Right now, it’s critical that we keep people housed by providing education on legislation, advocacy and legal counsel. The SLO Legal Assistance Foundation is doing this work. Donate to SLO Legal Assistance Foundation at slolaf.org/donate/donate-now.
Organizing tenants so they have power to advocate and influence policy is the goal of Rent and Mortgage Relief SLO. To learn more email rentandmortgagereliefSLO@gmail.com.
For information about the state rental assistance program, go to landlordtenant.dre.ca.gov/ or call the state’s COVID-19 assistance line at 1-833-422-4255.
This story was originally published January 29, 2021 at 12:40 PM.