To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: REPORT CONCERNING POST-COVID RENT DELINQUENCIES IN THE HOUSING AUTHORITY’S PUBLIC HOUSING AND VOUCHER PROGRAMS
RECOMMENDATIONS:
ACCEPT report concerning post-COVID rent delinquencies in the Housing Authority’s public housing and voucher programs.
BACKGROUND:
During COVID, as was true at the State level, HUD (the U.S. Department of Housing and Urban Development) imposed a moratorium on evictions. Additionally, HUD relaxed many of its rules and processes concerning income verifications, which determine rent in all the Housing Authority’s programs. However, HUD also was clear that families in all HACCC’s programs had to continue paying their share of rent during the pandemic, that fees could accrue on unpaid rent and that families could be evicted post-COVID for unpaid rent. This is because HUD’s programs adjust for rent. If your household income drops to $0 for some reason, HACCC will pay all your rent and you will pay nothing.
Unfortunately, many of our families came to believe they did not have to pay rent during COVID (and post-COVID) and now that the courts have re-opened, a significant portion of our families must resolve their past due rent and fees in some manner or face possible eviction. Additionally, some families did not accurately self-report their income and now that the HUD verification systems are back in place, they face significant rent increases. This is exacerbated by the fact that some landlords are trying to raise rent significantly to catch up for what they view as losses during COVID.
Not surprisingly, this has led to a significant spike in complaints to our office, local, State, and national political offices, Legal Aid, etc. In the public housing program and in the tax credit/project-based voucher (PBV) properties owned by HACCC, we have some flexibility to work with clients. The vast majority of the remaining PBV properties are owned by mission-driven nonprofits and we hope that most will be as flexible as they can with families who have past-due rent burdens. HACCC has started working with some of these organizations on a property-by-property basis. However, most of our clients are in private market units. Because of this HACCC is unclear of the exact scope of the problem in the voucher program and how each individual case will play out. Based on initial complaints, it seems significant.
The goal, obviously, is to keep everyone we are helping on our programs housed. However, based on HUD’s guidance to date, our tools are limited. Our primary options are to retroactively adjust income and rent (based on an extensive income verification process) or to have households enter into repayment agreements. As such, the resolution to this overall problem will have to play out on a case-by-case basis in what will often be a lengthy and contentious process.
Attached are data from the voucher and public housing programs that staff will discuss with the Board and a HUD tenant FAQ (Frequently Asked Questions) about COVID rent payments.
FISCAL IMPACT:
Unknown presently.
CONSEQUENCE OF NEGATIVE ACTION:
None. Informational item.
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Joseph Villarreal, Executive Director |
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By: |