Pennsylvania Governor Tom Wolf issued an executive order on October 5 extending the application deadline of the Pennsylvania Housing Finance Agency (PHFA) CARES Rent Relief Program and CARES Mortgage Assistance Program from September 30 to November 4. The order only extends the deadlines of the programs and does not lift any of the legislative restrictions preventing renters and landlords from accessing the funds. Advocates from the Housing Alliance of Pennsylvania, an NLIHC state partner, are pushing state legislators to make additional improvements to the mortgage and rent relief program so that $175 million of CARES Act funds are fully utilized.
In addition to extending the application deadline, Governor Wolf announced on October 13new program guidance that allows landlords to ask tenants to enter into repayment plans for any amount owed not covered by the program. Previously, landlords were required to accept the monthly $750 rental aid as payment in full, even if it did not cover all of the monthly rent amount.
To help homeowners and renters affected by the COVID 19 pandemic, the Pennsylvania Legislature passed Act 24, which established the CARES Rent Relief Program and the CARES Mortgage Assistance Program. In June, PHFA quickly developed two programs for distributing financial assistance to renters and homeowners in need, following legislative requirements. The effort included extensive coordination with organizations in all 67 counties that are processing renters’ applications. The CARES Rent Relief Program and the Pandemic Mortgage Assistance Program were both launched on schedule on June 29. A report released by PHFA in mid-October showed the overwhelming majority of program applicants have not been assisted, and of the $103 million in rental assistance requested, less than $10 million has been disbursed.
Advocates have expressed concerns about the ineffectiveness of these programs to the administration and the legislature and requested lifting the program’s restrictions to reduce barriers to access. Feedback from PHFA and its partner organizations indicate that specific adjustments to Act 24 would reduce barriers to participation and allow for more effective and complete utilization of the $175 million. Bills were introduced in each chamber to strengthen the CARES Act Mortgage and Rental Assistance Programs, Representative Helm’s H.B. 2868 and Senator Haywood’s S.B. 1290. The legislation would increase the maximum assistance to 130% of the current HUD Fair Market Rent for a two bedroom unit in the applicable county; eliminate the requirement that households be at least 30 days in arrears to be eligible for the program; remove the requirement that landlords and mortgagers waive their rights to the money owed to them above the program cap limit; and permit the use of a small portion of the allocated funds to cover costs associated with administering the programs.
HB 2868 passed out of committee and was moving quickly to the House floor when the General Assembly recessed for two weeks due to a legislator testing positive for COVID-19. In the wake of the two-week recess, Governor Wolf issued an executive order to extend the deadline of the program from September 30 to November 4, 2020 and removed the obligation that landlords forgive balances owed beyond what the program can cover. However, without other necessary legislative changes, the CARES funding will not help Pennsylvanians stay in their homes.
The Housing Alliance of Pennsylvania is encouraging its members to call their senators and house members to tell them that HB 2868 and SB 1290 (which would protect both renters and landlords from unprecedented economic fallout from the COVID 19 pandemic), should be their top priority upon returning from recess. Pennsylvania is at risk of a drastic rise in evictions, foreclosures, and homelessness.
“Even with the recent changes made by the governor,” said Phyllis Chamberlain, executive director of the Housing Alliance of Pennsylvania, “legislation to amend the CARES Rent Relief Program is still desperately needed. Many renters are still unemployed. Extending the deadline for the program was absolutely needed but we need to increase the total amount of rental assistance per applicant as well. The $750 cap on the amount of assistance per month is considerably less than the median rent in Pennsylvania.”
“Allowing tenants who owe more than $750 per month on rent to enter into repayment plans with their landlords for remaining rent owed, without additional changes to the legislation, has the potential to saddle tenants with significant debt that they will be unable to pay. For many it will only temporarily delay an eviction filing.”
To learn more about the Housing Alliance of Pennsylvania, contact Gale Schwartz, associate director of policy and strategic initiatives at [email protected].