Tide of evictions on hold

A COVID-19 induced moratorium has protected Americans from eviction litigation since September, but without further action by Congress, millions of dollars in unpaid rent will be due Jan. 1.

Effective Sept. 4, the moratorium halted residential evictions for eligible renters for the nonpayment of rent and other fees until Dec. 31. The order was an attempt by the Centers for Disease Control to quell the further spread of the novel coronavirus.

Statewide there have been over 800 eviction cases filed between March and October this year. Based on the data obtained by Idaho Legal Aid Services, Kootenai County has seen 104 filings since May.

When Idaho entered mandated isolation, courts were hearing only emergency matters, stopping eviction cases until May when the state reopened. At that time, the CARES Act was still in effect, Idaho Legal Aid Services statewide advocacy attorney Martin Hendrickson said, which contained provisions prohibiting the eviction of renters who possessed some kind of federal support.

"We were successful in asserting that as a defense in numerous matters," Hendrickson said. "In doing so, we were able to help a number of tenants to work out more favorable agreements and have more time to find opportunities to have a living situation."

When the CARES Act expired in late June, Idaho Legal Aid Services saw an increase in eviction filings, Hendrickson said. However, that changed when the CDC issued its moratorium through December. To be covered by the declaration, people had to prove their efforts to receive government assistance, a loss of household income, medical expenses, and the likelihood that eviction would lead to homelessness or endangered residence.

Idaho Legal Aid Services handles a large portion of eviction cases around the state, he said, and has been heavily involved in the process for years. Hendrickson is anticipating a significant backlog of cases that will be filed once the CDC order expires in January but said it would depend on the landlord.

"Most landlords, particularly during COVID-19, have been understanding and have been willing to wait for tenants to receive their stimulus payments or unemployment benefits," he said. "The vast majority believe that we are all in this together, but there are a lot of landlords that are aggressive when it comes to evictions."

When the pandemic began progressing in Idaho this spring, Brady Ellis, Idaho Housing and Finance Association's Vice President of Housing Support Programs, said they recognized the looming economic impact residents were likely to face.

"For a lot of people, it meant a loss of a job or reduced income, so we started to talk about the need for a backstop for those needing assistance with housing costs," Ellis said.

With $15 million of state CARES Act funding, IHFA started the Housing Preservation Program to assist renters struggling to pay rent and bills. As with the rest of the attributed CARES Act dollars, the $15 million expires Dec. 30.

The program is available to those who make under 80% of the area median income and are experiencing COVID-related challenges. In Kootenai County, that means it applies to a range of tenants from a one-person renter with under $39,050 in annual income to a five-person household with $60,250.

"Even before the pandemic, there were tens of thousands of households at or below the income level for this program," Ellis said. "Idaho is a low-population state, and it is a very rural state, so I think income levels are just the nature of that."

Of the $15 million awarded by the state, Ellis said the Housing Preservation Program had distributed $8.3 million statewide to over 10,000 people. In what IHFA calls Region 1, the five Panhandle counties have received over $600,000 in funding through the Housing Preservation Program, capturing 7.5% of total funds distributed.

One of the struggles for tenants in Idaho is the massive inflow of state population and migration overwhelming the housing market and increasing prices, Ellis said. Due to the lack of affordable housing across the state and the pandemic's impact, those who fall under the area median income will continue to struggle.

"Here in Boise, you can't find a place to purchase or rent. One becomes available and is immediately off the market and spoken for," he said. "Housing prices are increasing, rent rates are increasing, vacancy rates have gone down, and that was a big challenge prior to COVID."

Kootenai County has also experienced an unprecedented boom in housing prices and turnover rates. Zach Froehlich, the owner of Coeur d'Alene Real Estate Investment and Property Management LLC, said that what the area is seeing is a simple case of supply and demand.

"The market supply is at an all-time low, and demand is surging," Froehlich said. "Finding real estate and rentals is more difficult now than it has been ever."

Eviction is a last resort for the company, Froehlich said, as they recognize the profound impact that can have on Kootenai residents' lives. Due to the CDC moratorium applying to federally backed tenants only, he said the LLC had performed a few evictions, but most were not because of a failure to pay, but for breach of contract.

"Most people won't rent to someone who has been evicted before. It almost prohibits people from being able to find housing," Froehlich said. "If they are getting to the point where they aren't paying rent, we try to work with them so it doesn't have to go to court."

There hasn't been an uptick in evictions as far as he can tell, which he attributes to Idaho's and Kootenai County's strong rebound after closures earlier this year. However, he does believe that as winter hits, there will be an uptick in cases when government surpluses and loans run out.

Without another COVID-19 relief package passed by Congress, housing experts like the National Low Income Housing Coalition and Aspen Institute predict over 30 million people could face eviction by the end of the year.

Info: https://www.idaholegalaid.org