Running Out of Money: California’s COVID-19 Rent Relief Program at Risk
More than 100,000 renters in California are anxiously waiting for assistance from a program that ceased taking new applications over a year ago. However, they may be out of luck due to the program’s dwindling funds.
In early September, the state Housing and Community Development Department sent an alarming email to lawyers representing anti-poverty groups that previously settled a legal dispute over the program. The email revealed that as of July 31, 2023, there was only $128,940,473 left in the program’s funding. The next payment round would aid approximately 5,521 households, but it was unlikely that the remaining funds would be enough for more than one additional payment.
The program’s cash reserves are running low, although there is uncertainty about when they will be depleted. Department spokesperson Pablo Espinoza acknowledged the contents of the email but affirmed that funds are still available for the time being. Nevertheless, he noted that the program was always intended to be a temporary emergency measure, and it remains unclear if there will be sufficient funding to cover all eligible applicants.
Ironically, these statements contradict previous assurances from the department. In March 2022, department spokesperson Nur Kausar stated that the program would continue until all complete applications were processed and eligible applicants were paid. Furthermore, the program’s website, now removed but archived on the Internet Archive’s Wayback Machine, made a similar claim that all eligible applications received on or before March 31, 2022, would be paid.
The program was established to assist tenants struggling with rental debt accrued during the pandemic until March 2022. However, the housing department has faced challenges in processing a backlog of applications and resolving rejection appeals for the past 19 months.
Espinoza acknowledged the previous statements and emphasized that the inaccurate information had been rectified. He expressed gratitude for the opportunity to provide accurate details now.
Currently, 92,713 Californians are still awaiting a decision on their financial assistance applications, while an additional 34,751 have appealed rejected applications. It is uncertain how many of these nearly 130,000 applications will ultimately be denied.
As the state’s COVID relief funds reach their limit, eviction moratoriums implemented during the pandemic are expiring across California. This has resulted in a surge of eviction proceedings in cities like Los Angeles and Alameda County.
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