Housing Archives – Page 2 of 33 – Western Center on Law & Poverty

Assembly committee okays amending state constitution to add housing as a right

June 8, 2023July 25, 2023, By Seth Sandronsky, The Center Square

The Golden State’s expensive housing prices are stirring state lawmakers to action.

A bill establishing a fundamental right to housing for all Californians passed its first vote 6-2 in the state Assembly Housing Committee on June 7.

Assemblymember Matt Haney (D-San Francisco) introduced the legislation, ACA 10, on March 6, 2023, which would amend the California Constitution. “Access to adequate housing is one of the first steps to guarantee a person’s physical, emotional, and economic well-being,” said Haney in a statement. “Despite a patchwork of resources given to cities and counties across the state to provide affordable and accessible housing, California is still struggling to address its worsening housing crisis.

“Putting this commitment to housing in our constitution brings it up in comparison to other rights that we’ve said are non-negotiable for us and holds governments and elected officials accountable to do their job. This constitutional amendment simply says housing is the highest priority and value in our state.”

Tenant Groups Reach Settlement With State Of California Over Applicants Stuck In Rent Relief Limbo

June 6, 2023July 25, 2023, By David Wagner, LAist

Los Angeles tenant groups announced Monday they have settled their lawsuit against the state of California over how housing department officials handled the state’s rent relief program.

The deal gives tenants another chance to have their rent relief application reviewed or to appeal a denial. An estimated 331,000 L.A. area households remain behind on rent, and many of them are now facing possible eviction.

“Hopefully, people who were quickly denied in the past will actually be approved when the state is forced to look a little bit closer,” said Legal Aid Foundation of L.A. attorney Jonathan Jager. He worked on the legal team that brought the lawsuit forward on behalf of L.A.-based tenant group Strategic Actions for a Just Economy, statewide advocacy organization Alliance of Californians for Community Empowerment and national research institute PolicyLink.

During the pandemic, California’s Housing Is Key program came under fire for being difficult to access, or even understand, especially for low-income tenants who didn’t own computers or speak English. The lawsuit sought to address those disparities, and get eligible tenants connected to the relief they were promised.

California rent relief is still available for thousands of tenants who were denied COVID assistance

June 6, 2023July 25, 2023, By Ben Christopher, CalMatters

More than 100,000 California tenants whose applications for COVID-era rental assistance were denied or delayed by the state’s housing department will get another shot at relief, thanks to a new legal settlement between the state and a coalition of anti-poverty and tenant rights groups.

More aid isn’t guaranteed. But under the terms of the settlement signed at the end of last month, California’s Housing and Community Development Department agreed to audit its past denials and improve multilingual access for tenants who don’t speak English as a first language.

It also agreed to flesh out the appeal process for applicants and provide more detailed explanations when it denies an application. And it committed to providing more data on the race, ethnicity and location of those who were denied help.

California’s housing department received $5.2 billion in federal relief funds in 2021 to help struggling tenants keep up with rent while the state’s economy ground to a halt during the height of the pandemic. The program ended in March 2022.

Tenants’ Rights Advocates Reach Landmark Settlement on Behalf of Californians Struggling With Pandemic Rent Debt

June 5, 2023June 20, 2023, By The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), PolicyLink, Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP

TENANTS’ RIGHTS ADVOCATES REACH LANDMARK SETTLEMENT ON BEHALF OF CALIFORNIANS STRUGGLING WITH PANDEMIC RENT DEBT

The agreement requires the California Department of Housing & Community Development to give pending and denied applicants a fair chance to receive Covid-19 rental assistance

LOS ANGELES—A landmark settlement has been reached in a case brought by tenants’ rights advocates alleging that the California Department of Housing & Community Development (HCD) unconstitutionally operated the state’s Covid-19 Emergency Rental Assistance Program (ERAP or Housing is Key), which has led to qualified applicants missing out on the assistance they were promised after the pandemic destroyed many Californians’ livelihoods. More than 100,000 households are still waiting for a decision on their applications—and many of them are being served with eviction notices and being harassed by their landlords for rent they still owe. The settlement agreement will offer a renewed chance for applicants who remain in limbo to receive Covid-19 rental assistance, which remains essential to supporting and stabilizing families as the housing and homelessness crisis worsens in California.

California’s Covid-19 Emergency Rental Assistance Program was created to provide direct assistance to low-income families struggling to pay rent during the pandemic. The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), and PolicyLink—represented by Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP—sued HCD in June 2022 for several systemic failures in the program, including a confusing application process that led eligible tenants to be wrongfully denied assistance.

“The rental assistance program was intended to provide housing stability for low-income tenant families who were impacted by Covid-19, but delays and dysfunction left far too many eligible families facing eviction because they could not access this critical assistance,” said Madeline Howard, Senior Attorney at Western Center on Law & Poverty. “We are hopeful that this settlement will create an opportunity for these tenants to finally receive the help they need.”

“This settlement will mitigate some of the worst long-tail impacts of the Covid-19 pandemic on our local communities, and Covington is very proud to have partnered with our co-counsel and clients in this important work,” said Neema Sahni, Partner at Covington & Burling LLP.

California identified more than $6 billion in rental assistance from the state and federal government for the Housing is Key program, which came at a critical time and should have made a profound difference for the hundreds of thousands of families impacted by the economic fallout of the pandemic. More than half a million households applied to the program. Thus far, HCD has denied nearly 30 percent of applicants, according to an analysis of program data conducted by the National Equity Atlas (a research partnership between PolicyLink and the USC Dornsife Equity Research Institute). The vast majority of those denied (93 percent) have incomes below 80 percent of the area median income—the income threshold to be eligible for the program. Tenants did not receive any meaningful explanation of why they were being denied the help they needed to avoid eviction, and many had difficulty accessing the appeal process.

“We filed this case because we started to see a sharp rise in denials for tenants we knew were eligible, including clients of legal aid organizations across the state, who were relying on rental assistance to stay housed and off the streets,” said Faizah Malik, Senior Supervising Attorney at Public Counsel. “With the settlement of the case, many thousands of families will have another chance to receive the aid that they were promised.”

As part of the settlement, HCD has agreed to take several steps to improve its process for the remaining ERAP applications, including:

Providing tenants who are going to be denied all or part of the assistance they requested with a detailed explanation of the reason for denial, so they can address issues with the application and have a fair opportunity to appeal;
Ensuring that tenants subject to “recapture” of rental assistance funds have a fair opportunity to challenge the state’s decision;
Providing better access to the appeal process;
Expanding funding to the Local Partner Network, which will assist tenants with navigating their pending applications and appeals;
Conducting an audit of prior denials to correct wrongful denials of assistance;
Improving language access and reasonable accommodation procedures; and
Providing greater transparency about who is receiving rental assistance and who is not, with data about the race, ethnicity, and zip code of people denied assistance.

Tenants who have been waiting for a decision on their applications will receive an update in the coming months and should regularly check their email, application portal, and postal mail for notifications. Tenants who have been evicted or moved since they applied for rental assistance should contact the Housing is Key program to update their contact information and ensure they receive any important notices. Those who receive a denial will have 30 days to file an appeal.

“SAJE has assisted hundreds of tenants on their rent relief applications, and many of the most vulnerable tenants are still in the waiting pool, confused and scared,” said Cynthia Strathmann, Executive Director of SAJE. “We hope that tenants now will finally get the information they need to get their applications approved so they can pay off their pandemic rent debt, a major source of continued stress and harassment.”

“This case brought us in contact with so many families who were evicted or facing eviction because of the Covid-19 pandemic,” said Jonathan Jager, LAFLA staff attorney. “We encourage any renters who are still waiting for an ERAP decision to not give up hope. Keep your contact information up to date with Housing is Key and reach out to the Local Partner Network if you have questions about any communications you receive from the program.”

Rent debt across California remains at crisis levels: an estimated 688,000 households across the state remain behind on rent, according to the National Equity Atlas. Altogether, they owe nearly $2.6 billion in total rent debt, with the average rent debt per household hovering around $3,700. The vast majority of these renters are low-income people of color who have suffered job and income losses due to the pandemic. This persistent and mounting debt further illustrates the importance of this settlement to keeping families in their homes and curbing the surge of evictions that have followed the end of pandemic eviction moratoriums.

“I lost everything I had because of issues with the rent relief program. Right before the pandemic, I put my life’s savings into opening a restaurant. I was then forced to close down, and as a result lost my income, my business, and my entire savings trying to hold on to what I had. I applied for rent relief and at first was denied without explanation. Then I appealed, got approved, but have now been waiting for nearly 2 years for the money to come through. I tried calling the program for help dozens of times but got no help. A year into waiting for the funding, my landlord pressured me to move out, and I became homeless. Thousands of lives have been destroyed because of the failure to get the money out to families that they are due. I am hopeful that this settlement will finally bring us closer to some relief,” said Blake Phillips, former resident of Los Angeles.

“In creating the Covid-19 rent relief program, the state promised to cover 100 percent of pandemic rent debt for tenants in California. We brought this case to ensure that the state lived up to that promise so hundreds of thousands of Californians could survive the pandemic,” said Jefferson McGee, State Board Chair of the Alliance of Californians for Community Empowerment (ACCE). “Housing is health and housing is a human right and we will keep fighting to make that a reality for our members.”

More information on the details of the settlement can be found here.

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About Western Center on Law & Poverty

Western Center on Law & Poverty fights in courts, cities, counties, and in the Capitol to secure housing, health care, and a strong safety net for Californians with low incomes, through the lens of economic and racial justice.

About Public Counsel

Public Counsel is a nonprofit public interest law firm dedicated to advancing civil rights and racial and economic justice, as well as to amplifying the power of our clients through comprehensive legal advocacy. Founded on and strengthened by a pro bono legal service model, our staff and volunteers seek justice through direct legal services, promote healthy and resilient communities through education and outreach, and support community-led efforts to transform unjust systems through litigation and policy advocacy in and beyond Los Angeles.

About Legal Aid Foundation of Los Angeles

Legal Aid Foundation of Los Angeles (LAFLA) is a nonprofit law firm that seeks to achieve equal justice for people living in poverty across Greater Los Angeles. LAFLA changes lives through direct representation, systems change, and community empowerment. It has five offices in Los Angeles County, along with four Self-Help Legal Access Centers at area courthouses, and three domestic violence clinics to aid survivors.

About Covington & Burling LLP

In an increasingly regulated world, Covington & Burling LLP provides corporate, litigation, and regulatory expertise to help clients navigate their most complex business problems, deals, and disputes. Founded in 1919, the firm has more than 1,300 lawyers in offices in Beijing, Brussels, Dubai, Frankfurt, Johannesburg, London, Los Angeles, New York, Palo Alto, San Francisco, Seoul, Shanghai, and Washington. Since its founding, Covington has demonstrated a strong commitment to public service. The firm is frequently recognized for pro bono service, including 11 times being ranked the number one pro bono practice in the U.S. by The American Lawyer.

About the Alliance of Californians for Community Empowerment Action (ACCE Action)

The Alliance of Californians for Community Empowerment (ACCE) Action is a grassroots, member-led, statewide community organization working with more than 16,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future.

About Strategic Actions for a Just Economy (SAJE)

SAJE is a 501c3 nonprofit organization in South Los Angeles that builds community power and leadership for economic justice. Founded in 1996, SAJE focuses on tenant rights, healthy housing, and equitable development. SAJE runs a regular tenant clinic, helps connect local residents to jobs, organizes for tenant rights, and fights for community benefits from future development through private agreements and public policies. We believe that everyone, regardless of income or connections, should have a voice in creating the policies that shape our city, and that the fate of city neighborhoods should be decided by those who live there in a manner that is fair, replicable, and sustainable.

About PolicyLink

PolicyLink is a national research and action institute advancing racial and economic equity by Lifting Up What Works®. With local and national partners, PolicyLink works to ensure all people in America — particularly those who face the burdens of structural racism — can participate in a just society, live in a healthy community of opportunity, and prosper in an equitable economy. PolicyLink is guided by the belief that the solutions to the nation’s challenges lie with those closest to these challenges.

Legislation exempting Chula Vista property from state Surplus Land Act passes Assembly

June 2, 2023July 25, 2023, By Tammy Murga, San Diego Union Tribune

The state Assembly has approved legislation that would exempt 383 acres set aside by Chula Vista for a university and innovation district from the Surplus Land Act.Assembly Bill 837, sponsored by Assemblymember David Alvarez, is now under review by the Senate Rules Committee.The Surplus Land Act requires local governments to offer excess land for sale or lease to affordable housing developers first before allowing other uses. It exempts parcels that are impossible to build on or have legal restrictions.

Chula Vista sought an exemption for the site, located near its Otay Ranch Town Center, because it envisions the property having a university, market-rate housing and research and development companies. The city maintained that it acquired the land through agreements that limited the type of developments that could be built on-site.

The Fresno Housing Authority will reopen the housing voucher list soon. Here’s how you can apply.

June 1, 2023July 25, 2023, By Jeremiah O. Rhodes, Fresnoland

The Fresno Housing Authority will be opening its Housing Choice Voucher Program interest list for the first time since 2019. The list will open June 15 at 10 a.m. and will close July 14 at 5 p.m.

The program, formerly known as Section 8, provides rental assistance to low-income renters in Fresno city and county.

The list has not been opened yet, but potential applicants can start the process by creating an account on the Fresno Housing Authority’s resident portal.

Once the list is open, Fresno Housing Authority “will launch an educational campaign to provide information and resources to the community to spread awareness about the program,” representatives stated in an email to Fresnoland.

California bill aims to rein in high security deposits

May 31, 2023July 25, 2023, By Alejandra Reyes-Velarde, CalMatters

Most renters know securing housing isn’t as simple as finding the perfect place.

California’s renters must save up thousands of dollars to provide security deposits that can legally be as much as two months’ rent, or three months’ for furnished units.

Add in the requirement that renters put up the first month’s rent before they can move in and low-income families are most likely to give up hope of finding a home.

The state Assembly on May 22 passed a proposal that could change that.

Assembly Bill 12 would limit security deposits to one month’s rent, regardless of whether a unit is furnished or not. If the bill passes and gets Gov. Gavin Newsom’s signature, California could become the 12th state to limit security deposits.

“Security deposits present barriers for people to move into apartments, which can lead them to stay in apartments (and) in homes that are too small, crowded or even unsafe,” said Matt Haney, the Democratic Assemblymember from San Francisco who authored the bill. “In other cases, people take on debt or financial burden that leaves them unable to afford other necessities.”

Legislative Survivor: Which big California bills were shelved in ‘suspense file?’

May 19, 2023July 25, 2023, By Alexei Koseff and Sameea Kamal, CalMatters

The potential costs of a new policy or program always factor into the legislative process — but that’s especially true when the state is facing down a $31.5 billion budget deficit.

As the Legislature completed a key milestone this week, deciding the fates of nearly 1,200 measures with significant price tags, California’s looming revenue shortfall was on the mind.

“It is a different time that we have to operate in, so it is a lens that we have to look through all the bills,” said Assemblymember Chris Holden, a Pasadena Democrat who leads the appropriations committee. “To the extent there were some real pressures that we thought we needed to address, we did.”

Analysis Of Governor Newsom’s 2023-2024 May Revision Budget

May 12, 2023May 15, 2023, By WCLP Policy Team

The Newsom Administration released its 2023-24 May Revision budget, projecting a $31.5 billion deficit. After years of a budget surplus, California is forecasting a downturn in funding due to a combination of capital gains losses and delayed tax filings due to natural disasters, but California remains strong. The May Revision reflects a $37.2 billion in total budgetary reserves and additional funds from the Managed Care Organization tax.

Governor Newsom maintains many of the Administration’s and legislature’s previous commitments and proposes no new trigger cuts. He also proposes no new corporate or personal taxes, despite calls from the Senate and advocates to increase taxes on wealthy corporations and the state’s highest earners.

We appreciate that the May Revision maintains past budget agreements including expansion of Medi-Cal to all regardless of immigration status, reforming the Medi-Cal share-of-cost, and on-time implementation of food assistance for Californians 55 years of age or older, regardless of immigration status.

As the fourth largest economy in the world, California has made great strides in addressing poverty and systemic inequities, but there is more work to be done. We look forward to working with the legislature and Administration to protect low-income Californians as the State enters more uncertain fiscal circumstances.

Below are our initial reactions to the proposed budget by issue area, with a focus on changes from the January budget proposal.

HEALTH CARE

Health4All: The May Revision maintains full funding to expand full-scope Medi-Cal eligibility to all income eligible adults ages 26-49 regardless of immigration status on January 1, 2024. The May Revision includes increases for previous expansions for adults 50 and older and ages 26-49 due updated managed care rates, higher share of state-only costs, higher caseloads, and higher acuity members.

Managed Care Organization (MCO) Tax: The May Revision proposes a bigger MCO tax with an earlier start date (April 2023 through end of 2026). This results in $19.4 billion in total funding, including $3.4 billion for 2023-24. $8.3 billion is proposed to offset General Fund and $11.1 billion is proposed to support Medi-Cal investments that improve access, quality, and equity over an 8- to10-year period. These investments include rate increases to at least 87.5% of Medicare for primary care, birthing care, and non-specialty mental health providers and the remainder will be put into a special fund reserve for future consideration.

Covered California Affordability Sweep: The May Revision maintains proposal to sweep Covered California reserve fund to General Fund totaling $333.4 million.

Distressed Hospital Loan Program: The May Revision includes up to $150 million one-time General Fund to provide interest-free cashflow loans to not-for-profit and public hospitals in significant financial distress or to governmental entities representing a closed hospital, for purposes of preventing the closure of, or facilitating the reopening of, those hospitals.

Home and Community-Based Services Spending Plan Extension: The May Revision includes a six-month extension until September 30, 2024 for specified programs such as the IHSS Career Pathways Program and the Senior Nutrition Infrastructure Program to fully spend allocated funding based on critical programmatic needs.

Doula Services Implementation Evaluation: To align with later implementation date, TBL is proposed to extend the timeline of the Doula Stakeholder Workgroup (from April 1, 2022 until December 31, 2023) and to extend the evaluation of the doula benefit implementation in the Medi-Cal program (from April 1, 2023 until June 30, 2025).

Medical Interpreter Pilot Program: Through TBL, the May Revision proposes to extend the expenditure authority of the Medical Interpreter Pilot Project for 12 months, from June 30, 2024 to June 30, 2025.

988 Update: The May Revision includes a one-time augmentation of $15 million for a total of $19 million, from the 988 State Suicide and Behavioral Health Crisis Services Fund for California’s 988 centers. This increase will support workforce expansion to handle increased answered call volume, extensions of service hours, and the availability of chat and text options for callers utilizing the 988 services.

BH-CONNECT Demonstration (formerly referred to as CalBH-CBC Demonstration): The May Revision includes an update to the BH-CONNECT Demonstration to include a new Workforce Initiative and includes $480 million in funding for each year of the five-year demonstration period ($2.4 billion total funding and no General Fund).

CalRX and Reproductive Health: The May Revision includes TBL and $2 million one-time General Fund reappropriation from the Capital Infrastructure Security Program and allows the use of these funds for reproductive health care if necessary.

Community Assistance, Recovery, and Empowerment (CARE) Act: The May Revision includes additional funding to support the implementation of the CARE Act. Compared to the Governor’s Budget, the annual increase is between $43 million and $54.5 million to account for refined county behavioral health department cost assumptions, additional one-time $15 million General Fund for Los Angeles County start-up funding. The May Revision also includes an additional $16.8 million in 2023-24, $29.8 million in 2024-25, and $32.9 million ongoing to double the number of hours per participant for legal services from 20 hours to 40 hours.

HOMELESSNESS

The May Revision preserves the full $3.7 billion in funding for homelessness programs, as committed in previous budgets, including $1 billion for the Homeless Housing, Assistance and Prevention grant program.

May Revision Adjustments:

Behavioral Health Bridge Housing Program: $500 million one-time Mental Health Services Fund in 2023-24 in lieu of General Fund. This investment eliminates the January Budget proposed delay of $250 million General Fund to 2024-25 and restores the $1.5 billion commitment funded in the 2022 Budget Act for the program.

HOUSING

While the May Revision reflects a steady commitment to Homelessness investments, the May Revision also culminated in a weakening of housing investments totaling $17.5 million in General Fund reductions and $345 million in deferrals related to housing programs. Funding for housing programs remains at approximately 88% of the allocations made in 2022-23 and proposed for 2023-24 ($2.85 billion). This outlook could change if there are sufficient General Fund dollars in January 2024. If that occurs, the Governor has committed to restoring $350 million of these reductions. Overall, the proposal includes $500 million continued annual investment in the state Low-Income Housing Tax Credit program, $225 million for the Multifamily Housing Program, and $100 million for the Portfolio Reinvestment Program. These programs have a proven track-record of addressing housing affordability and homelessness across California.

May Revision Adjustments:

Foreclosure Intervention Housing Prevention Program: Provides funds to various non-profit organizations to acquire foreclosed property and operate as affordable housing. Deferral of $345 million of the $500 million one-time General Fund over four fiscal years—for a revised allocation of: $50 million in 2023-24, $100 million in 2024-25, $100 million in 2025-26, and $95 million in 2026-27

Downtown Rebound Program: Funds adaptive reuse of commercial and industrial structures to residential housing. Reverts $17.5 million in unexpended funding that remained in this program after the Notice of Funding Availability.

In contrast, the Senate’s Budget Plan, which was released two weeks ago, both prevents funding cuts and delays, and builds on our progress by including ongoing investment in homelessness and resources for key housing production programs. Notably, that Plan provides $1 billion in ongoing funds to support the Homeless Housing Assistance, and Prevention Program, $1 billion towards the state Low-Income Housing Tax Credit Program, and an additional $300 million flexible allocation towards affordable housing programs.

Western Center is a proud member of a coalition of California’s leading affordable housing, homelessness, and housing justice advocacy organizations championing a comprehensive coalition investment strategy for affordable housing production, preservation, and tenant stability. While the May Revision falls short of our requests to meet the housing and homelessness crisis at scale, we look forward to continuing our budget advocacy and encourage the Governor and Legislative leadership to finalize a budget that includes ongoing, significant resources like those included in the Senate budget plan and our coordinated housing budget letter.

PUBLIC BENEFITS AND ACCESS TO JUSTICE

CalWORKs Grant Increase: The May Revision reflects a 3.6-percent increase ($111.2 million in 2023-24) to CalWORKs Maximum Aid Payment levels, effective October 1, 2023. These increased grant costs are funded through the Child Poverty and Family Supplemental Support Subaccount.

Supplemental Security Income/State Supplementary Payment (SSI/SSP): The May Revision continues to include an 8.6% increase in funding for the SSI/SSP and Cash Assistance for Immigrants (CAPI) program providing a $3.6 billion from the general fund. This allocation provides recipients with an increase in grant levels to $1,134 per month and $1,928 per month for couples.

California Food Assistance Program (CFAP) Expansion Update: The May Revision moves up the issuance of food benefits for older undocumented immigrants to start October 2025, instead of the January Proposal that delayed it until 2027, which we appreciate but we still need Food4All regardless of age and immigration status.

Summer Electronic Benefit Transfer (EBT) Program: The May Revision includes $47 million ($23.5 million General Fund) for outreach and automation costs to phase in a new federal Summer EBT program for children who qualify for free or reduced-price school meals beginning summer 2024.

Safety Net Reserve: The May Revision withdraws $450 million (half of $900 million) from the Safety Net Reserve. The reserve is intended to maintain existing Medi-Cal and CalWORKs program benefits and services when program cost may increase due to economic conditions, which may occur if recession occurs, so we argue it is prudent to not draw from Safety Net Reserve until those conditions are met.

Services for Survivors and Victims of Hate Crimes Augmentation: The May Revision includes an additional $10 million General Fund to support services for victims and survivors of hate crimes and their families and facilitate hate crime prevention measures in consultation with the Commission on Asian and Pacific Islander American Affairs.

For questions, contact:

Health:  Linda Nguy, Senior Policy Advocate – lnguy[at]wclp.org; Sandra Poole, Policy Advocate – spoole[at]wclp.org
Housing and Homelessness: Cynthia Castillo, Policy Advocate – ccastillo[at]wclp.org; Tina Rosales, Policy Advocate – trosales[at]wclp.org

Public Benefits/ Access to Justice: Christopher Sanchez, Policy Advocate – csanchez[at]wclp.org

Will Biden’s Blueprint for a Renters Bill of Rights Be Enough to Fix the U.S. Housing Crisis?

May 8, 2023May 16, 2023, By Tina Rosales, Practising Law Institute

Thirty-five percent of the U.S. population rent their homes. In general, the renting population tends to be younger, lower income and less white than homeowners, a byproduct of redlining. Redlining is commonly referred to as any racially discriminatory housing practice but originated from the government-sponsored exclusion of Black people from homeownership and white communities. Partially due to these practices, Black (58%) and Latinx (53%) people are more likely to be renters than their white counterparts (31%), according to the 2019 census. Since Black and Latinx communities are less likely to achieve wealth through homeownership and more likely to be subject to the rising costs of rental housing and stagnant wages, the average renter in the U.S. is considered rent burdened, meaning they spend more than 30% of their income on rent. Over half of Black and Latinx renters were cost burdened prior to the pandemic compared to 42% of Asian and white households. Black renters were the most likely to be severely cost burdened, spending over 50% of their income on housing. This number rose since the beginning of the COVID-19 pandemic when rental rates soared nearly 25% between 2019 and 2022. In no state can a person afford a two-bedroom apartment at fair market rent on the federal minimum wage. With this bleak outlook on the housing crisis, the Biden-Harris administration, like other administrations in the past, missed the opportunity to step in in a meaningful way to ease the burden on renters by increasing the federal minimum wage.

Category: Housing