Concern over mass evictions due to pandemic job losses unleashed a tidal wave of government funding for renters. But that money is still largely untapped.
San Diego County received around $216 million to give to struggling renters but, after three months, there is roughly $161 million left.
Finger-pointing has gone in all directions but it doesn’t change a central issue: There are simply not enough applicants for all the money.
That could change if more people become aware of the program and policy changes made in Sacramento. There are valid complaints that the money is taking too long to be distributed, which is what most housing leaders have said is the biggest reason so little money has been spent. But even if all applicants were instantly approved with no verification, it would still leave a substantial amount of money left over.
Average payouts across the county have ranged from $4,000 to nearly $6,000, meaning the three main rent relief programs would need to, at least, double the number of applicants they have received so far to get close to spending the remaining money. There have been around 29,000 applications so far for rent relief across the county, city and Chula Vista.
In the early days of the rent relief programs, a prevailing belief of many government officials was that renters simply didn’t know about the program. However, at this point, there have been thousands of dollars spent on advertising; dozens of news stories; extensive outreach to community groups; and materials translated into more than 20 languages.
One theory among local economists is that public officials overshot the need for rental assistance. With several rounds of pandemic-related stimulus money, renters may have found a way to pay rent despite job uncertainty.
Lynn Reaser, the chief economist at the Fermanian Business and Economic Institute at Point Loma Nazarene University, said her team has deeply studied the data on this issue. And she believes both economic and procedural issues at the government level are responsible for the lack of fund usage.
“On the economic side, California and the federal government provided a significant safety net,” Reaser said. “Our research found that low-income rental households as a whole in 2020 actually saw their incomes exceed pre-pandemic levels. In of process, some potential beneficiaries may not have been aware of the program, did not understand how to apply, or were intimidated by the application procedures.”
The way the program works (in its simplest form): A renter who lost work because their industry was shut down to slow the spread of the virus can apply for money to pay past rent. Their landlord must then forgive 20 percent of the rent to get 80 percent from the government.
Critics have said this is a major problem in that it gives power to the landlords who can elect to take a tenant to small claims court to get the full amount. If this was widespread, it would be an easy explanation for the lack of success of the rent relief program. However, the numbers so far don’t overwhelmingly this.
In the city of San Diego, there have been 12,421 applicants. Out of that, 39 landlords either decided not to participate or didn’t respond to requests to turn in paperwork. In the city of Chula Vista, three landlords have declined to participate out of 2,600 applicants.
San Diego County, which has received roughly 14,000 applicants, said they had 56 landlords who declined at least one tenant application, while still participating for other renters they had. As of June 9, it said there were 388 landlords that did not participate or declined to respond to tenant applications.
If a landlord declines to participate, a renter can instead receive up to 25 percent of their total rental debt amount directly from the city or county. And they’ll still be protected from eviction until this fall when San Diego County’s rent eviction law is set to expire. That is later than the state moratorium, which is scheduled to expire at the end of June.
Some renters who have applied to the program say slow processing of the applications explains why so much of the money is still in the coffers.
Ramon Toscano, a Vista resident who’s struggled to find consistent work throughout the past year, said a family member applied to the county program on his behalf because he does not have a Social Security Number. He had eight months of back rent to pay and still owed over $4,000. It took months to receive rental assistance for the first quarter of the year, and he’s still waiting to hear back if he will receive help for April, May and June.
Toscano said he’s worried about what will happen when renters are no longer protected from evictions.
“I have five kids and my wife is pregnant,” Toscano said. “It’s difficult …They’ll be able to throw me out on the streets”
Gov. Gavin Newsom has proposed to increase the amount of unpaid rent the government would pay — upping it from 80 percent to 100 percent for low-income residents. The idea was part of Newsom’s $100 billion economic recovery plan announced in May.
Money given to cities and the county was not all for renters, with funds needed for workforces to distribute, paperwork and assist renters and landlords in the process. Some money was also used for ments and community outreach.
Relief can also be given for future rent, something activists say is important because many low-income tenants did everything they could to stay in homes: family loans, delaying car repairs and even skipping meals. This means they have depleted savings and could use a hand up for future rent.
Estimates of remaining money in funds by The San Diego Union-Tribune were based on a review of reports provided by cities and municipalities. Housing officials were hesitant to provide their own estimates of money remaining because they say it is rapidly changing and funds are still in the pipeline to be approved.
Azucena Valladolid, a vice president at the city’s housing authority, the San Diego Housing Commission, said it is hard to say the average time it takes for a landlord or renter to get funds because state requirements say money for back rent must be paid first.
Based on a review of documents by the Union-Tribune, this means a landlord waiting on back rent could get the money in a month but those with future rent requests could wait much longer. The process is further delayed if a landlord or renter files incorrect paperwork.
San Diego
San Diego’s program started at $92.2 million and had roughly $70.6 million remaining as of June 2.
The average amount of paid-due rent was five months and six months for utilities. More than 3,078 applications have only asked for rent.
Chula Vista
Chula Vista’s program was awarded $16.8 million and has roughly $15.2 million remaining as of the second week in June.
It appears that may significantly change when more money is distributed. Chula Vista provided a report to the Union-Tribune that said $1.5 million in funds had been expended, but another $5.1 million was to be paid out.
San Diego County
The county program started with $107 million and has at least $75 million remaining as of the second week in June.
It said the average application takes three to four weeks from receipt to award. It said the average assistance per household was $4,200 for rent and $800 for utilities.
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How to Apply
San Diego: (619) 535-6921 / https://www.sdhc.org/housing-opportunities/help-with-your-rent/covid-19-rental-assistance/
Chula Vista: (619) 271-1805 / https://www.chulavistaca.gov/departments/development-services/housing/assistance-during-covid-19/rentalandutility
San Diego County: (858) 694-4801 / https://www.sandiegocounty.gov/sdhcd/community-development/COVID-19-Emergency-Rental-Assistance-Program.html
