Governor Northam, You’ve Got the Money for Eviction Relief — Do Something!

by James A. Bacon

Virginia is in the midst of a housing eviction crisis arising from the economic disruption caused by the COVID-19 epidemic. Here in Virginia, governments have responded through three major initiatives: The federal government distributed one-time $1,200 stimulus checks to American households and funded a $600-per-week supplement to state unemployment benefits through July 31. And Governor Ralph Northam has allocated $62 million to help families facing evictions.

With all that public assistance, how it is possible that tens of thousands of Virginia families are on the brink of being thrown out of their houses? Nearly 2,000 eviction judgments were rendered in Richmond, Henrico, and Chesterfield counties alone in September and October, according to the Richmond Times-Dispatch. 

One answer is that the people who need the money aren’t getting it. The federal government managed to blast out its stimulus checks, but Virginia’s unemployment insurance agency has been overwhelmed by the spike in unemployment and can’t keep up. As Don Rippert pointed out a week ago, 70,000 Virginians had yet to receive their unemployment checks. Now we find out that the Northam administration has dispensed only $33.6 million of the $62 million set aside specifically for eviction relief.

Those numbers are buried deep in an article in today’s RTD describing the challenges facing the Area Congregations Together in Service (ACTS), a nonprofit that has been inundated with requests for help on back rent. The article details the obstacles to providing immediate relief. Before handing out money, ACTS requires proof of a tenant’s lost income — a defensible measure to ensure that the people who get money actually need it. However, processing the applications requires collecting documentation and making follow-up calls, often resulting in phone tag with tenants and landlords, sometimes leading to lengthy delays.

Northam’s relief program using federal CARES dollars has spent $33.6 million so far to settle balances for about 11,000 households, reports the RTD. That leaves $26.4 million yet to be distributed, along with $25 million in the Affordable Housing Trust Fund monies and $30 million in federal Community Development Block Grant funds which can be tapped. In other words, while thousands are being evicted, the Northam administration has some $80 million yet to be spent to help them.

Even allowing for the fact that state agencies might encounter the same due-diligence issues as the nonprofit ACTS program, the state has been shamefully slow in dispensing eviction assistance. Getting a relief check a month or two after a being thrown out of its dwelling does not do a family much good.

The nation has responded compassionately to the COVID eviction crisis. But between failures in state unemployment-insurance and eviction-relief programs, the money is not getting to people in time to save them from the turmoil of being thrown out of their homes. Some of the damage from this unfolding humanitarian disaster still can be averted. Northam needs to prioritize fixing the administrative logjam, put people in charge of getting the job done, and holding them accountable for results.

The RTD and other establishment media can help by drawing continued attention to these administrative failures — as they assuredly would do if the governor were a Republican.


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10 responses to “Governor Northam, You’ve Got the Money for Eviction Relief — Do Something!”

  1. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    The delay is not too surprising. There are three pots of money. Probably, each has somewhat different rules–eligibility requirements, application procedures, etc. The CARES pot was new, requiring time to write the procedures and get up and running. For some programs, landlords can request the payments on behalf of the tenants. For others, the tenants have to request the funding. In order to request the funds, the tenants have to know the money is available and how to request it.

    The administration did take one step to make the process a little more efficient. Instead of trying to gear up the state bureaucracy, it elected to use existing nonprofit organizations that had experience in working with tenant relief programs. The RTD story makes it clear, however, that these nonprofits were not prepared, staffing wise, to cope with the surge in requests for help.

    One other problem: A grant from the CARES funding stream is a one-time grant. It can be used to clear up back rent, but, if one is out of work, there is still the problem of the current and future rent payments.

    It would have been much more efficient to have used the available funding for expanded unemployment benefits, getting the money directly to individuals without their having to go through additional application processes. Of course, there is that problem of VEC being behind with the current program

    1. Reed Fawell 3rd Avatar
      Reed Fawell 3rd

      Then we must conclude that there is so much incompetence in Virginia’s state government, its appointed non profit agents, and its delinquent tenants, that federal relief money cannot be given away, either to the landlords or the tenants. So everybody gets screwed, except the state that keeps the money. What a government! What a system! What a culture!

      1. Dick Hall-Sizemore Avatar
        Dick Hall-Sizemore

        It is not a question of incompetence. It is the nature of the beast, unless you want the government to start handing out money to whomever shows up, without developing criteria as to who should get it and checking to see if people asking for a grant deserve it. Actually, as far as grant programs go, this one got up and running fairly quickly.

        1. Reed Fawell 3rd Avatar
          Reed Fawell 3rd

          “In other words, while thousands are being evicted, the Northam administration has some $80 million yet to be spent to help them.”

          Or, I should think it would be very easy to determine from the landlord court records who was owed the money, and how much, and pay it to bring leases current. This is not rocket science. Perhaps the state government and their non profit agents asked themselves why pay the landlords at all, or who really cares, they’re just private business, like shop owners, why now just let them wait in line, or not pay them at all until they are bankrupt, or just keep the money, like tried with Trumps tax rebates. The one thing this government values in taxpayer money, especially from the federal government, and likely at this point loves from public housing for itself too. Here in this case, I see no valid reason to withhold monies, and indeed quite the opposite, save for hidden agenda to affirm and enlarge power of state over people.

          1. Dick Hall-Sizemore Avatar
            Dick Hall-Sizemore

            It is not as easy as it would seem (things seldom are). A landlord may be able to prove that she was owned money, but how is the government agency/nonprofit to know if the tenant qualifies for the grant/subsidy? The landlord may be just taking the easy way to get her money, rather than going after a scofflaw that does not qualify.

          2. LarrytheG Avatar

            People without permanent careers tend to not live as stable a life. They may have several jobs and change jobs and have credit issues, etc… and the agencies that provide assistance to them have to keep up.

            I know some ACA “navigators” who work to provide health insurance to folks whose lives and jobs are not stable and it’s a problem. The same thing happens with Medicaid – the entitlement is based on your financial and family situtation and if that changes, then your qualifications change.

            When people become unemployed, they may move in with others or have others move in with them or their kids may go to live with grandma, etc…

        2. Reed Fawell 3rd Avatar
          Reed Fawell 3rd

          I thought this was an emergency. These landlords are being bled to death by their state government, even when the Feds pay the money to avoid the so called emergency. The state is wiping property rights of certain groups in Virginia along with much else, becoming Venezuela.

  2. TooManyTaxes Avatar
    TooManyTaxes

    One would think that most caring people, be they in state government or a nonprofit, would quickly figure out how to advertise the availability of the aid and process requests in compliance with the rules. Too many people fail as they strive to be mildly mediocre.

  3. LarrytheG Avatar

    The pandemic has been pressure on staffs of many agencies. They were never designed nor staffed to deal with the numbers they are now seeing.

    Sort of another irony for the unemployed – the agencies to help them need more staff!

    😉

    1. TooManyTaxes Avatar
      TooManyTaxes

      Record the steps necessary to process and application. Prepare a checklist. Have an experienced person make a video. Help new people process applications.

      Back in the summer of 1983, during a strike of the Bell System by the CWA, managers, even lawyers, learned to be long distance and directory assistance operators. Did I mess up a few calls? Yes. Did I get the hang of it by the second day? Yes.

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