California Cities and Counties Awarded Federal Funding That Could Be Used to Provide Millions of Ren

Multiple Municipalities Have Funds Available That Could Be Dedicated for Rental Relief

Local municipalities across California have been given Federal grants that serve as an immediate source of rent for low and moderate-income renters who are undergoing immense financial pressure amid this global health pandemic. Recently the U.S. Housing and Urban Development Department (HUD) issued COVID-19 Community Development Block Grants (CDBG) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to multiple cities and counties that are home to millions of California renters.

HUD entitlement cities and counties can use the COVID-19 block grant funds to help low and moderate-income households pay up to three (3) months’ rent. In addition, California received $19 Million from HUD for non-entitlement smaller cities and counties. Also, under the CARES Act, the usual 15% limitation for use of funds for “services” has been waived. Cities and counties may also reprogram existing CDBG funds for renter assistance.

Residential rental property owners throughout California have been working alongside renters to find financial agreements that work for both parties, leaving property owners with a limited monthly income but with the same financial obligations. Rental housing providers understand the burden many renters are encountering, as they themselves face financial challenges at home. Small rental property owners rely on rent payments to pay for property taxes, mortgage payments, utility bills, maintenance repairs, and insurance payments.

The Apartment Association of Greater Los Angeles along with affiliated associations comprising the California Rental Housing Association (CalRHA) have proposed a statewide Renter Assistance Program, which would provide up to three (3) months of rental assistance for renters experiencing financial loss due to COVID-19. If implemented, the program would receive funding through the state, using Federal and/or state funds, to stabilize the rental housing industry and protect renters facing financial hardship while staying sheltered-in-place.