As coronavirus relief — and eviction protections — expire, millions at risk of losing homes

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Millions of Americans could lose their homes in the coming weeks as eviction moratoriums lift and supplemental unemployment insurance expires.

The experience of two states which lifted eviction moratoriums two months ago provides a preview of the housing crisis that could affect millions of Americans as key provisions in the federal coronavirus assistance program are about to expire.

“Based on analysis of the U.S. Census Household Pulse Survey by Stout, the number of renters at risk of eviction has consistently increased for the past five weeks, and has exceeded 17 million households including over 40 million people,” said Emily Benfer, chair of the American Bar Association’s Task Force Committee on Eviction and a visiting professor at Wake Forest Law School.

“As the moratorium has ended, the eviction process has been in full swing, so the number of cases we’ve been seeing is kind of overwhelming,” said Jon-Ross Trevino, a managing attorney at Lone Star Legal Aid. “The federal moratorium is set to expire on July 25 and I think that number is just going to increase.”

“The ultimate solution has to come from the federal level because the city of Houston doesn’t have money to do endless rent relief,” Middleton said. Houston did offer a $15 million rental assistance program in May, but it filled up in 90 minutes. When its moratorium ended, Wisconsin launched a $25 million program to help renters whose jobs were affected by the pandemic. As of Friday morning, just over 25 percent of the funds had been paid out to roughly 3,000 households, according to Brad Paul, executive director of the Wisconsin Community Action Program, which provides guidance to the agencies that received the funds from the state.

Tenants not covered by local or state edicts have been protected by a national moratorium on evictions from rental units that were built with federal subsidies. This represents about 12 million units, 28 percent of the total market, per an Urban Institute analysis. Protection for renters ends on July 25, along with supplemental unemployment benefits.

With personal finances depleted and credit ratings damaged, those who lose their homes are left with limited options. In May, the House passed the HEROES Act, which would provide an additional round of stimulus checks and extended unemployment benefits, as well as additional testing and tracing for the virus. That bill stalled in the Republican-controlled Senate.

Source: Insurance Report (insurancereport.net)

 

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