Rental assistance during the COVID-19 crisis
Here’s one thing this week to watch in city hall… a presentation in the Budget, Finance, and Economic Development Committee on the state of the Lexington rental assistance programs.
Watch this presentation live during the Budget, Finance, and Economic Development Committee meeting on Tuesday, February 19th, at 1:00pm.
If you are looking for rental assistance, you can access these programs at covid19renterhelp.org.
Why should you care?
As we discussed in our coverage of the city’s potential new housing department, Lexington has three linked housing crises - affordable housing, homelessness, and evictions. Each has been exacerbated by the COVID-19 crisis. The city has utilized Federal and State funding to create new emergency programs to respond to the COVID-19 eviction crisis, but housing justice advocates say the programs do not go far enough to protect renters.
While these assistance programs have helped hundreds of residents, there is no publicly available data on the number of people evicted weekly or monthly in Lexington. This makes it difficult to know how large the scale of the problem is and how effective local solutions are.
If you are concerned about residents being evicted during this crisis, you should pay attention to this presentation.
What assistance programs exist in Fayette County?
There are three main programs in Fayette County that utilize Federal, State, and Local funding to assist renters.
Rental Hardship to Impacted Service Employees - utilizes Federal Community Development Block Grant funding.
Housing Stabilization Partnership Program - which utilizes both LFUCG and Federal funding.
Healthy at Home Eviction Relief Fund - a statewide program utilizing Federal funding.
These programs have invested over $14M into rental assistance. We’ll detail them below.
Rental Hardship to Impacted Service Employees (RHISE)
The RHISE program is designed for employees or independent contractors who have experienced involuntary job loss.
Individuals earning under 60% of the Area Median Income (equivalent to $47,640 for a family of 4) and who work in select sectors are allowed to apply for up to $4,000. Individuals can use these funds for rental costs up to equivalent of 6 months and utility costs up to $1,500.
Eligible sectors include:
Community Service Organizations (non-profit)
Child Care and Health Care
Educational (Schools, Colleges and Universities)
Retail and Customer Service
Food, Hospitality and Entertainment
The budget for this program is $500,000. It is operated by the Division of Community & Resident Services (formerly Adult & Tenant Services).
Funding for the program comes from two federal sources:
Community Development Block Grants (CDBG); and,
Coronavirus Aid, Relief, and Economic Security (CARES) Act funding.
The program started in September of 2020 and will close on June 30.
119 Fayette County individuals have received funding assistance out of 372 that have applied.
These 119 residents have received (in total) $238,048 in assistance through the RHISE program.
Housing Stabilization Partnership Program
The HSPP is for any individual or household impacted by COVID-19 and has taken place in two phases.
Phase One
Fayette County residents who earn less than 80% of the Area Median Income ($63,500 for a family of 4) and have been financially impacted by COVID-19 can apply. Funds can be used for rent payments, utility assistance, or other expenses related to maintaining housing.
The budget for this first phase is just under $1.5M. It’s operated by the Office of Homelessness Prevention and Intervention.
Funding for this program came from the LFUCG General Fund, much of which came from federal CARES Act Funding.
The program began in September of 2020 and runs through the end of February 2021.
622 Fayette County residents have received funding through this program out of 727 that have applied.
The 622 residents that have successfully applied have received just over $1.2M in assistance.
Phase Two
Fayette County residents who earn less than 80% of the Area Median Income ($63,500 for a family of 4) and meet specific financial hardships are allowed to apply for up to $4,000. Money can be used for rent payments in arrears or for relocation costs.
The budget for this second phase is over $9.6M. It’s operated by the LFUCG Division of Grants and Special Programs.
Funding for this program came from the US Department of Treasury Coronavirus Relief Funds.
The program began this month, February 2021, and will be closed on December 31, 2021.
11 Fayette County residents have received funding through this program out of 1,256 that have applied. Keep in mind this program just started.
The 11 residents that have applied have received $67k in assistance.
HSPP moving forward
Moving forward, Community Action Council (CAC) has been awarded $5M of the $9.6M to implement the program.
CAC has hired a Project Manager to coordinate/oversee the program and develop a plan for using the balance’s remainder.
All funds must be expended by December 31, 2021.
Healthy at Home Eviction Relief Program
The Healthy at Home Eviction Relief Program is a statewide program operated by the Kentucky Housing Corporation. The program has served 683 Fayette County households with just over $2.5M in rental assistance.
Updates 2/28/21
After hearing Charlie Lanter’s presentation, Council was generally supportive of the city’s renter assistance programs. Questions focused on the eviction moratorium, the timeline to receive aid, who could receive it, and how the relocation program works.
Vice Mayor Kay wanted to know more about the eviction moratorium and how the courts are handling evictions. Charlie Lanter clarified that there is an eviction moratorium currently in place, though evictions due to anything other than nonpayment are still allowed to proceed. Renters facing eviction due to nonpayment must provide a form from the CDC detailing their circumstances and their plan to seek aid. Since the city is managing a backlog of aid requests, it is issuing letters to renters that they can take to court judges showing that they’re in compliance with CDC protocols and are in the process of obtaining rental assistance. Lanter said the city is encouraging anyone who has received an eviction notice for nonpayment to go to their court date. A city representative, Polly Ruddick, is attending eviction court every day to help catch any eviction cases that might qualify for aid, but who haven’t contacted the city yet.
CM Lamb asked about the time it takes to receive assistance once the intake process has begun. Commissioner Ford explained that it takes several weeks for the renter to receive financial aid. He said that while his staff has tried to streamline the process as much as possible, there’s still a lot of paperwork for the city and the applicant to submit before any aid can be issued. Mr. Lanter added that a temporary clerk position had been added and funded by stabilization funds and will remain until the allocated funds run out. He also said the process is different based on the applicant’s situation. Tier one applicants, those at 50% AMI, or who are within 90 days unemployed, are prioritized and receive aid within a few weeks. Those designated to lower tiers may wait longer.
CM James Brown asked if the RHISE funds would need to be replenished or will those who need assistance fall into the larger program once those funds run out. Mr. Lanter said he recommends they fall into the larger program at this time. The benefit standard is higher - RHISE sets a limit at $4,000, while the Treasury’s program doesn’t have a limit. Also, the Treasury’s program requires less paperwork and so puts less strain on Commissioner Ford and his staff.
CM James Brown then asked if any income less than 80% AMI qualifies and if homeowners could apply, as well as renters. Mr. Lanter answered that yes, any income below the 80% qualifies for the Federal program and that right now the program is only available to renters. Asked if he knew if there was a need for assistance from homeowners, Mr. Lanter replied that he hasn’t seen it, but that doesn’t mean it isn’t there. CM Brown answered that that was concerning and he would have more questions about how that population is being serviced.
Finally, CM Moloney asked about the relocation aspect of the rental assistance program. MR. Lanter explained that the trigger for relocation would be if the amount owed is greater than the cost of relocation. He said the Housing Stabilization Partnership Program can only provide $4,000. If the renter owes more than that, there’s nothing more the program can do for them. At that point, the goal is to salvage the situation and get the renter into housing they can afford, rather than finding them a nicer place, per se. CM Moloney then asked if the city is working with renters who are being evicted due their lease being terminated or not renewed. Mr. Lanter said the relocation program would apply to them, since they are still being evicted. He stressed the importance of renters going to court if they’re facing eviction, no matter the reason, because, he says, “if they don’t show up, the city can’t help them”.
Want to get involved? Here's how.
Reach out to relevant service or advocacy organizations -good options for this issue would be: Lexington Fair Housing Council, Community Action Council, the Kentucky Housing Corporation, or the Lexington Housing Justice Collective.
Apply to be on a Board or Commission - good options with vacancies (as of 2/19) for this issue would be: Downtown Development Authority, Homelessness Prevention and Intervention Board, Neighborhood Action Match Program Review Board, Social Services Advisory Board, & Vacant Property Review Commission.