Editorial Board
Don’t Let Covid-19 Cause a Surge of Evictions
Congress must do more to help renters stay in their homes.
By Editorial Board
June 30, 2020, 1:00 PM GMT+1
The coronavirus is putting Americans under severe stress,
challenging them to cope with uncertainty, protect themselves and their loved
ones, and in many cases just put food on the table. At such a harrowing time,
getting thrown out of your home would be an unthinkable hardship. Yet that’s
what is likely to happen to millions of renters — particularly people of color
— unless Congress finds a solution, soon.
challenging them to cope with uncertainty, protect themselves and their loved
ones, and in many cases just put food on the table. At such a harrowing time,
getting thrown out of your home would be an unthinkable hardship. Yet that’s
what is likely to happen to millions of renters — particularly people of color
— unless Congress finds a solution, soon.
More than 100 million people live in rental housing in the
U.S. A disproportionate share of that population consists of Black and Latino
families that the pandemic is already hitting hardest in many ways.
U.S. A disproportionate share of that population consists of Black and Latino
families that the pandemic is already hitting hardest in many ways.
Even before the outbreak, these renters were in a fragile
position. Nearly half of all households — and a majority of Black and Hispanic
ones — were spending more than 30% of their income on rent, the government’s
threshold for excessive cost. Federal subsidies, designed to keep housing
expenses below that threshold, covered only a small fraction of qualifying
families. And instead of addressing the issue, Donald Trump’s administration
has been reversing efforts to expand access to affordable housing.
position. Nearly half of all households — and a majority of Black and Hispanic
ones — were spending more than 30% of their income on rent, the government’s
threshold for excessive cost. Federal subsidies, designed to keep housing
expenses below that threshold, covered only a small fraction of qualifying
families. And instead of addressing the issue, Donald Trump’s administration
has been reversing efforts to expand access to affordable housing.
The coronavirus has only made things worse, and the U.S.
response is so far inadequate. The CARES Act, passed by
Congress in March, offered homeowners as much as six months of forbearance on
mortgage payments, but gave renters no
similar relief — only a dollop of emergency funding and a temporary
moratorium on evictions from federally financed properties. Other moratoriums, imposed by municipalities,
are already starting to expire. Meanwhile, more than 21 million people have little or no
confidence that they’ll be able to make next month’s rent payment,
according to the Census Bureau. That includes about 36% of people in Black
households, and 44% in Hispanic or Latino households.
response is so far inadequate. The CARES Act, passed by
Congress in March, offered homeowners as much as six months of forbearance on
mortgage payments, but gave renters no
similar relief — only a dollop of emergency funding and a temporary
moratorium on evictions from federally financed properties. Other moratoriums, imposed by municipalities,
are already starting to expire. Meanwhile, more than 21 million people have little or no
confidence that they’ll be able to make next month’s rent payment,
according to the Census Bureau. That includes about 36% of people in Black
households, and 44% in Hispanic or Latino households.
So why not just extend the moratoriums? For one, doing so
won’t improve renters’ finances. Unpaid bills will accrue, creating a bigger
problem later. Beyond that, most
inexpensive rental units belong to smaller
individual investors, who often don’t have other sources of income.
Driving them into default on their mortgages, or leaving them without
the wherewithal to maintain properties, will ultimately hurt everyone by
shrinking an already inadequate supply of affordable housing.
won’t improve renters’ finances. Unpaid bills will accrue, creating a bigger
problem later. Beyond that, most
inexpensive rental units belong to smaller
individual investors, who often don’t have other sources of income.
Driving them into default on their mortgages, or leaving them without
the wherewithal to maintain properties, will ultimately hurt everyone by
shrinking an already inadequate supply of affordable housing.
Extending enhanced
unemployment benefits, which are providing an added $600 per week through
July 31, can help keep the problem from getting worse. But it won’t reach many
in distress, including those who for various reasons can’t access
unemployment insurance.
unemployment benefits, which are providing an added $600 per week through
July 31, can help keep the problem from getting worse. But it won’t reach many
in distress, including those who for various reasons can’t access
unemployment insurance.
The solution, then, is to provide direct federal housing
assistance. In the context of the vast support Congress has already provided,
the cost isn’t out of line: about $12 billion a month if combined with enhanced
unemployment benefits, or $16 billion a month without. This money should go
primarily toward expanding the existing Housing
Choice Voucher program, which — despite some shortcomings — is designed to
automatically compensate for renters’ income loss while providing direct
payments to landlords.
assistance. In the context of the vast support Congress has already provided,
the cost isn’t out of line: about $12 billion a month if combined with enhanced
unemployment benefits, or $16 billion a month without. This money should go
primarily toward expanding the existing Housing
Choice Voucher program, which — despite some shortcomings — is designed to
automatically compensate for renters’ income loss while providing direct
payments to landlords.
Unfortunately, the money will take time to reach people,
partly because many local housing authorities are ill-equipped to handle a
surge in cases. In the meantime, Congress should give states the flexibility to
distribute relief funds through whatever channels — including private
nonprofits — can get assistance quickly to the people who need it most. It
should also protect those who nonetheless face eviction by requiring
municipalities receiving federal funds to provide services such as mediation
and legal advice.
partly because many local housing authorities are ill-equipped to handle a
surge in cases. In the meantime, Congress should give states the flexibility to
distribute relief funds through whatever channels — including private
nonprofits — can get assistance quickly to the people who need it most. It
should also protect those who nonetheless face eviction by requiring
municipalities receiving federal funds to provide services such as mediation
and legal advice.
A wave of evictions would severely deepen a crisis that is
already testing the resilience of American society, with unpredictable
consequences. At this crucial moment, Congress must do everything possible to
keep people in their homes.
already testing the resilience of American society, with unpredictable
consequences. At this crucial moment, Congress must do everything possible to
keep people in their homes.
To contact the senior editor responsible for Bloomberg
Opinion’s editorials: David Shipley at davidshipley@bloomberg.net .
Opinion’s editorials: David Shipley at davidshipley@bloomberg.net .
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