Recent research from Urban Institute and Avail demonstrates that as awareness of emergency rental assistance increases, existing relationships between small landlords and tenants influence applications for assistance from the Treasury Emergency Rental Assistance (ERA) program. The research found that although the share of landlords and tenants aware of ERA has significantly increased since the program launched in February 2021, applicants are still confused about eligibility guidelines and what the program covers. As local renter protections are lifted and eviction filings resume nationwide, additional outreach around eligibility and coverage of ERA funds is urgently needed.
Urban Institute and Avail surveyed over 1,000 small landlords and 1,300 tenants in May to investigate barriers to the Treasury ERA program. Awareness of ERA continues to increase due to the steady ramp-up of ERA distribution and increased outreach by the Department of Treasury and state and local governments. Thirty-six percent of landlords and 45% of tenants indicated hearing about ERA through word of mouth as more funds began to reach households. Over half of all landlords and 56% of tenants, however, were still not aware of what the program provides, and 57% of landlords and 63% of tenants did not know if they qualified for assistance.
The research found that existing landlord-tenant relationships significantly influence ERA applications. For tenants, the nature of their relationship with their landlords impacts the ease of application for assistance. Thirty percent of tenants who reported they were “very dissatisfied” with their landlord said it was “very difficult” to apply for assistance, whereas only 2% of those who reported they were “very satisfied” said application was “very difficult.” For landlords, the quality of their relationship with their tenants determined the likelihood of applying for assistance, where landlords with better tenant relationships were more likely to apply for ERA and less likely to evict their tenants. Only 45% of landlords who were “very dissatisfied” with their tenants said they would continue to rent to them even after receiving full back rent from the ERA program. Fifty-four percent of all landlords with tenants who missed rent payments considered evictions. The research highlights that these landlords are also less likely to apply for assistance due to Treasury guidance that prevents them from evicting tenants after accepting assistance dollars. Additionally, a greater share (69%) of landlords who were “very dissatisfied” with tenants considered evictions, compared to those who were “very satisfied” (29%).
This research underlines the importance of robust outreach around the ERA program, types of assistance offered, and eligibility criteria. The findings demonstrate that ERA programs need to account for differences in landlord-tenant relationships. Flexibilities such as providing direct-to-tenant assistance when landlords refuse to participate or providing a combination of forward-rent and relocation assistance when landlords are likely to evict can keep more low-income tenants stably housed. The American Rescue Plan Act of 2021 made an additional $21.55 billion available for assistance under the Treasury Emergency Rental Assistance program (ERA2). Guidance for ERA2 does not require grantees to seek cooperation of a landlord before they provide assistance directly to tenants. As programs begin distributing ERA2 funds, states and localities have more leeway to use funds flexibly and prevent all unnecessary and harmful evictions. NLIHC continues to monitor best practices among ERA programs and compile resources for programs looking to adopt critical flexibilities.
Read more about the research from Urban Institute and Avail at: https://urbn.is/31mX6if