Emergency Rent Assistance Programs: Cities & States Supporting Renters During COVID-19

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UPDATED October 2020 — As the COVID-19 pandemic continues testing the economic strength of the multifamily industry, state and city legislators across the nation are rallying support for emergency rent assistance programs in the form of rent relief funds and other financial resources. The relief comes on top of a national push to establish emergency rental assistance including a new Senate bill that proposes $100 billion in rent relief, as well as the CARES Act which offers renter protections for federally funded rental housing.

Local and state governments have been proactive in implementing eviction moratoriums and passing security deposit replacement legislation, and apartment operators have devised rent relief programs for their communities. However, there is still a critical need for emergency rent assistance funding to directly aid the rental housing industry. Several cities and states have already launched emergency rent relief funds and are providing financial resources for America’s renters, but a handful do not yet offer dedicated rent assistance programs. 

Are Renters Paying Rent During COVID-19?

This begs the question—are renters paying rent? April rent payment data showed a slight downward trend but was otherwise not far off the mark from normal rates pre-COVID. Heading into May, initial data suggested the renters were prioritizing paying rent despite gloomy industry forecasts, and a full analysis of payment behavior during the May grace period revealed renters who could pay were doing so, while operators continued to offer payment plans. Ultimately, rent payments are holding steady compared to the average, but the months ahead are less clear.

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The multifamily outlook from here on out is rooted in economic uncertainty, both when it comes to renters’ ability to pay rent and operators’ ability to remain flexible with renters. Even though the government is supplying affected renters with stimulus payments and supplemental employment benefits, there’s no telling whether they will continue to put that money toward rent or other essentials, not to mention that funding will eventually run dry.

As Doug Bibby, president of the National Multifamily Housing Council (NMHC), explains,

“For that reason, lawmakers need to act now to enact a direct renter assistance program.”

More than ever, it’s imperative that cities and states prioritize emergency rent assistance programs.

Are Governments Providing Emergency Rent Relief Funds & Financial Assistance Resources?

As the economic effects of COVID-19 rumble through the multifamily housing industry, local and state governments — as well as various organizations and communities — are taking measures to establish emergency rent assistance programs and direct other financial resources to operators and renters. 

This ever-changing patchwork of local emergency rent relief solutions has created some confusion among apartment operators and renters alike, further underscoring the need for federal funding programs to directly support the rental housing industry and its residents. While not every city and state has created COVID-19 emergency funds for rental assistance specifically, we’ve aggregated a list of state and city emergency funds so that operators are more informed when it comes to the rental relief available to them and their communities. 

Cities & States Offering Emergency Rent Assistance Programs & Rent Relief Funds

*NOTE* The emergency rent assistance funds on our list may no longer be available, depending on how quickly the funds were distributed. Visit the sources we provide below to find more information on whether government rental assistance funding is still accessible or if other funding programs exist. To ensure the rental housing industry receives more direct funding, consider contacting your senators and representatives to urge them to support the “Emergency Rental Assistance and Rental Market Stabilization Act.” 

Alabama: Rental Assistance Program and Non-Profit & Short-Term Housing Assistance

The JCCEO CSBG Rental Assistance Program was established to meet the emergency needs if households facing a financial crisis due to pandemic-related events. This program provides one-time financial assistance to those who qualify and covers expenses such as rent, water, or prescription medication. Applications are processed within 30 days.

A statewide nonprofit called Alabama Arise directs people to the statewide helpline if they need help paying rental deposits and first month’s rent. Individuals seeking rental assistance should ask for a referral to an agency that receives Homeless Prevention and Rapid Rehousing funds. In addition, the Alabama Department of Human Resources (DHR) Alabama is offering short-term assistance to individuals with low income and who need help paying rent. The Community Action Agency of Northeast Alabama also has a benefit program that offers rent assistance.

Alaska: COVID-19 Housing Relief Fund

For Alaskans struggling to make rent payments, a $10 million rent relief fund was administered by the Alaska Housing Finance Corp with an application deadline of June 26.

Headed by the Rasmuson Foundation and Wells Fargo Foundation, a relief fund was established in partnership with the Alaska Community Foundation and the United Way of Anchorage. The fund will help families pay rent in light of unexpected housing emergencies surrounding the coronavirus.

Anchorage passed an emergency ordinance that will put $1 million toward a housing costs relief fund for residents affected by COVID-19. Juneau has an emergency appropriation in place that sets aside $200,000 for residents who have been laid off or are unable to work due to the pandemic.

Arizona: $5 Million Rental Assistance Funds

The Arizona governor Doug Ducey announced $5 million in rental funding as part of a Rental Eviction Prevention Assistance Program launched by the Arizona Department of Housing. The rental assistance is made available to households on following conditions: 1) primary residence is a rental located in Arizona and 2) have seen a reduction in income due to COVID-19, that when annualized, does not exceed 100 percent of the area median income adjusted for family size for the county in which they reside. As of May 8, the rent relief funds had only been made available to fewer than 400 applicants out of nearly 11,000 renter applications. As of late August, the program is still accepting applications.

Arkansas: Community Rent Assistance Fund

There is currently no statewide emergency rental assistance. However, a community relief fund was set up at First Security Bank to collect donations and an allocation committee will distribute the funds over a 60-day period. The program has since closed.

California: $25 Billion Rental Relief Fund & COVID-19 Emergency Rental Assistance Programs

As of August, California lawmakers still hadn’t come up with an emergency rent relief plan. In May, California State Senator Lena A Gonzalez introduced a Senate Bill in May to protect both renters and rental property owners from financial hardships brought on by COVID-19. The COVID-19 Emergency Rental Assistance Program would provide direct rental payment relief to renters who are unable to pay rent due to the pandemic, as well as property managers who agree to specified terms (i.e., forgoing rent increases and late charges). California lawmakers are also working on two proposals—one is a $25 billion economic relief fund for rent payment assistance and the other is a renter assistance program in which property managers would be asked to forgive rent payments in exchange for tax credits.

A few counties have also allocated or proposed funding for rental assistance. Los Angeles approved a $1+ million program to provide rent subsidies of up to $1,000 per month for up to three months for families who have recently lost jobs, which they hope to be provided as part of the next round of the CARES Act. As of May 13, over $3.7 million was available to residents in designated unincorporated areas. Applications must be received by May 31, 2020.

In addition, the income-based L.A. County COVID-19 Rent Relief program will remain open until Aug. 31. Up to $10,000 will be given to households that meet the program’s income guidelines. Financed through $100 million in federal CARES Act money, its goal is to assist about 9,000 households with half of the available money being directed to residents who live in high-risk eviction ZIP Codes

In Northern California, the city of San Jose, the county, and nonprofits and companies have contributed $11 million to the Santa Clara County Fund to help low-income households pay rent and other crucial bills.

Colorado: $23M Emergency Housing Assistance Program & Property Owner Preservation Program

In Gov. Jared Polis’s executive order, $3 million in state funds was allocated for short-term rental and mortgage assistance. The Colorado Department of Local Affairs’ Division of Housing launched the Property Owner Preservation program to allocate up to $20 million in federal CARES Act funds for rental assistance to landlords on behalf of their tenants. Both programs are accepting applications as of late August.

Earlier this year, Colorado property managers raised $74,000 for a rent relief fund to help renters who lost income or suffered illness due to the pandemic. The Colorado Apartment Association is asking for others to contribute to the national Resident Relief Foundation’s $10 million fund, which will ensure donations from Coloradans will help Colorado residents. In addition, the Colorado Association of REALTORS Foundation announced $125,000 in grants to three Colorado nonprofits to assist residents with housing-related emergencies.

Out of $20 million in CARES Act funds being deployed in Denver, $4 million will support rent and utility assistance 

Connecticut: Rental Assistance Program (RAP)

The Connecticut State Department of Housing created the Rental Assistance Program which assists low-income families to afford safe and sanitary housing in the private market, and is designed for families to choose which private rental housing so long as it meets the program requirements. The waitlist is currently closed, but people can register to be notified when it reopens.

District of Columbia: $1.5 Million Federal Home Funds & The Emergency Rental Assistance Program (ERAP)

D.C. Mayor Muriel Bowser announced a new rental assistance effort in which the Department of Housing and Community Development will put $1.5 million in federal home funds toward providing rental assistance funding to low-income renters living in properties financially impacted by COVID-19. There’s also the Emergency Rental Assistance Program provided by the Department of Human Services which helps pay overdue rent, security deposits for new residences, and first month’s rent. Most recently, the D.C. Council passed an emergency coronavirus relief bill on May 19 that requires property managers with five or fewer units to offer alternative rent payment plans.

Delaware: $2 Million Housing Assistance Program

Governor John Carney and Delaware State Housing Authority (DSHA) Director Anas Ben Addi announced a new program to provide $2 million in emergency rental assistance to those affected by the COVID-19 crisis. The Delaware Housing Assistance Program (DE HAP) was structured to provide eligible households up to $1,500 for rent or utility payments made directly to their property owner or utility company. 

Florida: $1.8 Million One-Time Rental Assistance & Renters Relief Program

Up to 1,500 families in Orange County, Florida had access to $1.8 million in funding for one-time rental assistance, although the program has since ended after processing applications and paying out benefits. The cities of Hialeah and Miami currently offer a temporary emergency program for renters who lost their jobs due to the pandemic. In Hialeah, a forgivable loan of $1,000 will be given over a 3-month period to 1,000 qualified households.

The city of Miramar is offering an emergency rent and utility assistance program for low income residents dealing with unemployment or pay cuts. Relief payments are to cover a maximum of three past-due rent and utility costs (up to $7,000 per household) and are not required to be repaid by residents.

Georgia: Rent Assistance

Organizations in Atlanta, Decatur, and DeKalb County offer assistance with rent, rental deposits, and food. These organizations include St. Vincent de Paul Georgia, Decatur Emergency Assistance Ministry, and Decatur Cooperative Ministry.

Hawaii: $1.25 Million COVID-19 Rent & Utility Assistance Program

The Aloha United Way organization launched a rent and utility assistance program which has $1.25 million in initial funding. At that amount, it’s estimated to help about 900 families.

Idaho: $825K COVID-19 Response and Recovery Fund

The COVID-19 Response and Recovery Fund for Idaho approved nearly $825,000 in grants for organizations throughout Idaho helping low income individuals and those experiencing housing instability. The grants will go to multiple organizations that will disperse the funds to help with rent assistance among other needs.

Illinois: Emergency Housing Bill & $2 Million Housing Assistance Grant Program

Illinois proposed an emergency housing bill that would cancel rent payments for those experiencing coronavirus-related hardships while also establishing a fund for property managers to recoup lost rental income—the funding would come from the CARES Act. In Chicago, Mayor Lori E. Lightfoot and the Department of Housing created a COVID-19 Housing Assistance Grant program to assist residents who lost their jobs or have otherwise been financially impacted by the COVID-19 pandemic. DOH will deploy $2 million from the Affordable Housing Opportunity Fund to disburse one-time grants in the amount of $1,000 to help with rent and mortgage payments. The fund will award 2,000 individual grants, half of which will be awarded through a lottery system, while the other half will be distributed by non-profit community organizations.

Indiana: Proposed Rental Assistance Program

While there is currently no known statewide programs, a group of Indiana organizations are calling for a rent assistance program to be created from the state’s CARES Act funds in order to help residents with long-term needs.

Iowa: No Known Statewide Programs At This Time

Kansas: $3.2 Million COVID-19 Response & Recovery Fund

The Kansas City Regional COVID-19 Response & Recovery Fund announced that $3.2 million in funding would be released to 72 local nonprofits. Each nonprofit is responsible for handling assistance with housing, including rent, utilities, and other critical human services.

Kentucky: $500K COVID-19 Relief Fund

Mayor Greg Fischer and the Louisville Metro Council allocated $500,000 toward the One Louisville: COVID-19 Relief Fund for rental assistance. Qualified renters could get up to $1,000 per household for rent or utility payments.

Louisiana: $14.7 Million Rental Assistance HUD Grants

From the nearly $15 million in funding awarded by the U.S. Department of Housing and Urban Development (HUD), the Louisiana Housing Authority is providing housing assistance payments for rent, mortgage, and utilities for up to 24 months. The city of New Orleans will receive $10 million in community development block grant funds to help provide rental and utility assistance to low-income residents.

Maine: $5 Million Rent Relief Program

Gov. Janet Mills created a $5 million rent relief program, offering a one-time payment up to $500 in rental assistance for those struggling to pay rent during the pandemic. Funding would be available to households that meet certain income and eligibility requirements and the aid would be paid directly to property managers. 

Maryland: Coronavirus Relief Funding

The city of Baltimore will use $13 million in federal relief funding to create a rental assistance program that helps renters pay past-due rent. Howard County will also receive rental relief, with $800,000 in county funding going towards rental assistance and eviction relief.

Massachusetts: $3 Million Rental Relief Fund

While applications may be closed, Boston has dedicated $3 million in City funds to help residents at risk of losing their rental housing due to COVID-19. The funds will help those who do not have access to expanded employment benefits, or experience a significant reduction in their actual income despite receiving unemployment benefits. 

Michigan: $1 Million Emergency Rent Assistance Fund

Michigan League for Public Policy has laid out housing policy recommendations, one of which is to “establish a rental assistance fund and manageable provisions for the repayment of rent arrearages to avoid a wave of evictions once the moratorium expires.” Further, the League calls for the state to provide at least $1 million in state funding for emergency housing needs. 

Minnesota: $100 Million Emergency State Housing Assistance Grants

The Minnesota House committee approved a $100 million COVID-19 aid program which aims to help low-income renters as well as property managers pay their bills. Minneapolis implemented a $5 million Gap funding plan which allocated $3 million for its emergency rental program to assist low-income residents impacted by the pandemic. The program stopped accepting applications at the end of April.

Mississippi: $1.25 Billion Federal Rental Assistance & Relief Distribution

Mississippi legislators are considering how to distribute $1.25 billion in federal funding to provide rental assistance. A week in May, rental assistance payments were still not operational. Alternatively, renters can seek assistance from the United Way of Southeast Mississippi COVID-19 Relief Program, which awards aid to households to pay rent and utility bills that are past due at the time of application. 

Missouri: $9 Million Rent Assistance

Governor Mike Parson announced that Missouri would receive federal funding to support renters impacted by COVID-19. The Missouri Housing Development Corporation is working out details on providing an additional $9 million dollars in rent assistance to those who have experienced an economic setback from COVID-19.

Montana: $430K Emergency Housing Assistance Program

Montana launched a state Emergency Housing Assistance Program to allow families apply for rental and security deposit assistance. Families must have at least one child under the age of 18 and a substantial loss of income due to COVID-19 in order to be eligible. Monthly rental payments or security deposits are to be mailed or deposited directly to the applicant’s property manager. A federal assistance fund will use about $430,000 to launch the relief program.

Nebraska: COVID-19 Relief Fund

The Nebraska Impact COVID-19 Relief Fund was formed to provide direct aid to communities and organizations, including assistance for rent. In the counties of McCook and Red Willow, renters who need help making payments due to losing their job or having their work hours reduced are eligible for assistance from Community Action Partnership.

Nevada: $2 Million Emergency Rental Assistance

Nevada has access to $2 million in settlement funding for emergency rental assistance which will go directly to Nevada families in need of emergency assistance. The funding will go to United Way of Southern Nevada and United Way of Northern Nevada and the Sierra to be distributed to families in need.

New Hampshire: Welfare Program

The New Hampshire Legal Assistance organization advises renters who are unable to pay rent to apply for help at their city’s welfare office. While no statewide programs offer rental assistance, there are proposals for rent assistance payments being considered by the Governor’s Office for Emergency Relief and Recovery.

New Jersey: $100 Million Rental Assistance Program & Rent Suspension

The State Senate passed the 2020 New Jersey Emergency Rental Assistance Program which sets aside $100 million to aid residents affected by coronavirus in satisfying their rental obligations. New Jersey also introduced a bill ensuring residents who ask their property manager for rent relief won’t be denied—renters who request payment suspension need to come to “reasonable repayment structure with their landlord.” The mayor of Newark announced on May 18 the launch of its COVID-19 Tenant Based Rental Assistance Program which is accepting applications for emergency rent grants of up to $1,000.

New Mexico: $1.6 Million Rental Assistance HUD Grants

The U.S. Department of Housing and Urban Development (HUD) awarded $1.6 million to public housing authorities in 14 counties in New Mexico for rental assistance. Additionally, in support of community initiatives, New Mexico Bank & Trust committed $10,000 to the Santa Fe Community Foundation for its response fund, which provides help for emergency rent and utilities assistance.

New York: COVID-19 Emergency Rent Assistance Program

New York State legislators proposed a three-bill package that would waive or suspend rent for individual renters impacted by this crisis, and allocate funds to support small property managers. One bill would suspend rent payments for renters who lost income and also establish a coronavirus rental assistance fund. New York City proposed an $8 million “Renter’s Relief” plan that would require property managers  to offer renters the option to put security deposits toward April rent. Participants would have 30 days to start paying back their security deposits.

North Carolina: $117 Million Rental & Utility Assistance Program, $9+ Billion Federal Housing Assistance

In mid-October, the N.C. Housing Opportunities and Prevention of Evictions (HOPE) Program made $117 million in rental and utility assistance available to help North Carolinians. The application is open to renters facing financial hardship as a result of COVID-19. More information on the program as well as the application can be found here. In addition, the North Carolina Housing Coalition has outlined housing priorities and advises that a significant amount of the $9 billion housing funding be put towards emergency rental assistance. Housing advocates are also calling for part of the $5 billion in Community Development Block Grants be allocated to provide rental payments.

In Charlotte, city council members approved plans to set aside $1.05 million from the $5.7 million of federal stimulus funding from the CARES Act for rent relief. The program includes funds for three months of rent for 350 households earning up to 80% of AMI. In partnership with The Housing Partnership, the city of Charlotte also set up an Emergency Rent Assistance Program for those experiencing a delay in paying rent due to COVID-19. If eligible, the funds will be sent directly to the property management company.

North Dakota: COVID Emergency Temporary Rent Assistance

The North Dakota COVID Emergency Rent Bridge program gives temporary assistance to renters suffering financially due the pandemic. The program will pay up to 70% of the lease for up to three months and aims to be available through the summer

Ohio: No Known Statewide Programs At This Time

Oklahoma: No Known Statewide Programs At This Time

Oregon: $8.5 Million Rental Assistance

The Oregon Legislature’s emergency board released $12 million in housing assistance, $8.5 million of which goes to people who lost income and need help paying rent — the funding will go directly to property managers. The remaining money will pay for hotel or motel rooms for specific individuals, such as farmers or those without stable housing. In Portland, $500,000 in emergency federal grants are available to help those who can’t pay rent or utilities due to loss of income.

Pennsylvania: ~$400 Million CARES Act Funds

While nothing is currently in place, Pennsylvania housing advocates have called on the Legislature and Gov. Tom Wolf to prioritize housing assistance in deployment of the $4.9 billion in federal CARES Act funding and allocate at least $400 million for similar housing needs. Alternatively, renters can get help through various emergency funds including the Pennsylvania Apartment Association’s Coronavirus Emergency Assistance Fund, or the PHL COVID-19 Fund.

Philadelphia launched an emergency rental assistance program with the hope of keeping 3,000 families in their homes amid the pandemic. The application window is between May 12 and May 16, and renters must rent an apartment in Philadelphia, have a valid lease signed by the property manager, and have lost income due to COVID-19.

Rhode Island: No Known Statewide Programs At This Time

South Carolina: $5 Million COVID-19 Rental Assistance & $150K Emergency Housing Assistance Fund

South Carolina Housing is providing $5 million in emergency rental assistance to residents facing financial hardship as a result of the pandemic. Eligible households can receive up to $1,500 in relief payments that will be sent directly to property managers. Additionally, United Way of Greenville County launched an Emergency Housing Assistance Fund to help families struggling with unemployment and housing needs. The fund gained an initial investment of $150,000 from the COVID-19 Community Relief Fund. 

South Dakota: No Known Statewide Programs At This Time

Tennessee: No Known Statewide Programs At This Time

Texas: $11.3 Million Coronavirus Relief Fund 

The $11.3 million in rent assistance has been made easier for residents to access after Gov. Greg Abbot asked HUD to waive some requirements. Rent assistance providers, including nonprofits, local governments, and housing authorities, will be able to apply for the funds to then distribute to renters in need. 

Austin’s $1.2 million Relief of Emergency Needs for Tenants (RENT) Program provides one-time emergency rental assistance to renters experiencing financial hardship due to COVID-19. Dallas City Council passed a $13.7 Million Rent Relief Fund to provide rental, mortgage, and utilities assistance. The Houston Mayor proposed $15 million in emergency rental assistance for low-income-to-moderate income residents. San Antonio’s City Council approved a $25 million COVID-19 Emergency Housing Assistance Program to aid residents who need help with rent.

Utah: No Known Statewide Programs At This Time

Vermont: No Known Statewide Programs At This Time

Virginia: $52+ Million Rental Assistance HUD Grants

Over $52 million in federal funding will be spread across Virginia to go towards supporting residents with affordable housing during the pandemic. At the local level, Loudon County residents have access to a $200,000 rental assistance program. In Alexandria, short-term emergency rental assistance is available to renters experiencing housing insecurity due loss of income caused by COVID-19. The funds provide $600 a month for up to three months and go directly to property owners.

Washington: $9 Million Rental Assistance Funds

The Washington State Department of Commerce is providing $9 million to help low-income households pay their rent and energy bills. Benefits give qualified renters up to $1,000 in rental assistance. The Rental Housing Association of Washington provides information on the Low-Income Home Energy Assistance Program (LIHEAP), which is a federally funded block grant meant to assist low-income households meet their home energy needs.

West Virginia: Pandemic Diversionary Cash Assistance (PDCA)

West Virginia is offering a one-time special assistance payment called the Pandemic Diversionary Cash Assistance which provides financial support to families who have temporarily lost or experienced reduced incomes. 

Wisconsin: $25 Million Wisconsin Rental Assistance Program & Emergency Rent Fee Suspension Rule

Wisconsin implemented an emergency rule that prohibits property managers from charging late fees for 90 days after the termination of the public health emergency. The city of Milwaukee offers help paying rent to those who lost their job or whose hours were cut through Community Advocates. On May 20, Gov. Tony Evers announced the launch of a $25 million Wisconsin Rental Assistance Program for those who have experienced income loss due to COVID-19. Fueled by the CARES Act dollars, the program will provide up to $3,000 in direct financial assistance for rent and security deposits to be paid directly to property managers.

Wyoming: $500 Million CARES Act Distribution

Gov. Mark Gordon called for a special session on May 15 to distribute federal funding where they are likely to deliberate distributing $500 million of the $1.25 billion the state received through the CARES Act. On the table for discussion is a program that would compensate property managers for unpaid rent.

The Need For Emergency Rent Assistance Nationwide—And Industry Support For Rent Relief Programs

It’s an encouraging sign that many cities and states have implemented or proposed emergency rent assistance programs to aid renters and apartment operators—but local and state funding only goes so far. In fact, NLIHC research estimates that between $76 billion and $100 billion in emergency rental assistance is needed to maintain stable housing among the lowest-income households for the next year during the COVID-19 pandemic. Simply put, more funding is needed on a national scale. 

There is currently no federal emergency rental assistance funding in place to address the rental housing industry’s unprecedented financial stresses. The NLIHC, NAA, and NMHC, as well as various other housing advocates, have been proactive in encouraging Congress to address the rent crisis by enacting rental assistance programs to preserve the housing industry. 

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In their joint letter, NAA and NMHC have outlined provisions that go beyond the CARES Act in providing relief to millions of American renters, including:

  • create an Emergency Rental Assistance Program for those who are impacted by the crisis and do not already receive federal housing subsidies;
  • clarify that all multifamily firms with 500 or fewer employees may access the Small Business Administration’s (SBA) Paycheck Protection Program (PPP); While the CARES Act is clear in its intent that all small firms should be eligible for PPP loans, the SBA’s implementation guidance has created uncertainty for the real estate industry;
  • revise the National Eviction Moratorium to be limited to those negatively impacted by COVID-19;
  • expand mortgage forbearance protections to all multifamily properties, not just those with federally backed mortgages; and
  • provide financial assistance and protection for all property-level financial obligations such as property taxes, insurance payments and utility services.

The NLIHC is calling on the rental housing industry to urge senators and representatives to cosponsor the “Emergency Rental Assistance and Rental Market Stabilization Act” so that the next stimulus package helps the lowest-income renters. 

Additionally, the Resident Relief Foundation, a nationwide nonprofit, has set a goal to raise $10 million in funding to provide rental aid to renters across the U.S. The program also provides financial education to help renters who receive assistance become better prepared for future emergencies. 

How To Ask Congress For Emergency Rental Assistance for Renters and Property Owners

The collective effort of organizations like NAA, NMHC, NLIHC, and RRF to name a few, are helping bolster emergency rent assistance programs on the whole, but it’s more important than ever for industry-wide support. Apartment operators, housing professionals, and rental housing organizations need to band together in calling on Congress to immediately pass additional federal relief and stimulus legislation. You can do so by visiting the advocacy calls for action from the NAA and NMHC.

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COVID-19 May Rent Payment Report: Payments Remain Steady—Multifamily Braces For Uncertainty

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As the COVID-19 pandemic continues to wreak havoc on the U.S. economy, apartment operators are paying attention now more than ever to rent payment behavior trends. We’re reporting on May rent payment behavior to provide a clearer picture of how COVID is affecting renters’ ability to pay rent. Below is a brief summary of key takeaways.

May Rent Payments Hold Surprisingly Steady But Renters Face Ongoing Financial Challenges

Overall, full rent payments made on May 1 showed stronger results than anticipated. This is likely due to residents accessing funding sources and prioritizing paying rent, as operators work hard to create payment plans.

That said, the total percent of rent collected during the May grace period was 6 percentage points down from the pre-COVID three month trailing average, compared to a 7 percentage point decline in April.

Class C properties have seen the most notable drop in rent payments, while metro areas including Atlanta and Dallas also experienced a decrease. Evidence of payment plans deepened across Seattle and Los Angeles, proving that apartment operators are still working to provide renter relief in areas that need it most. Despite concerted efforts to support renters, there’s still a critical need for state and federally-funded rental assistance programs.

Our full COVID-19 Rent Payment Report uncovers insights on:

  • Comparisons to April rent payment data
  • Acceleration toward payment plans
  • Trends across major metro areas
  • Behavior and impact by asset class

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Breaking News: Proposed Pennsylvania Bill Makes Major Leap Towards Eliminating Deposits

Security deposits have long been the bane of renters and apartment operators alike, and a recently proposed Pennsylvania bill has taken a giant step towards eliminating them entirely.

What Does New Pennsylvania Security Deposit Legislation Mean for Operators?

Building off the recent Cincinnati Renter’s Choice Law, which requires landlords to offer deposit alternatives, a new Pennsylvania bill goes further to lay the groundwork for total deposit replacement.

In light of mounting renter affordability concerns in the face of COVID-19, this foreshadows a flood of deposit replacement laws to come. Here’s what this bill means for multifamily operators and their residents, and how it compares to other deposit regulations we’re seeing sweep across the country.

The Rising Tide of Deposit Laws 

Legislators have been tightening the law around security deposits for years now. There are two forms of laws governing security deposits:

  1. Deposit restrictions: These laws involve tightening caps on deposit amounts, requiring deposit installment plans, and regulating how quickly deposit funds must be returned.
  2. Deposit replacement: These laws seek to replace security deposits with new solutions, such as lease insurance. Cincinnati began this movement by mandating deposit alternatives. However more recent legislation, such as the Pennsylvania bill, shows a growing movement toward replacing security deposits entirely.

While deposit restrictions have escalated for years, more recent deposit replacement laws signal a future where residents, operators, and property owners all benefit from a wholesale move away from deposits completely.

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What Operators Need to Know About the Pennsylvania Bill

Similar to the Cincinnati law that recently went into effect, if an apartment operator requires a security deposit, a deposit alternative or payment plan must be offered as well. However, this bill also gives operators the choice to eliminate security deposits entirely through lease insurance.

Choices include:

  • Deposit installment plans: The resident can pay the security deposit over the course of three months, at minimum.
  • Lease insurance: Operators may offer lease insurance, which effectively eliminates security deposits entirely and insures the property on every new lease (although residents may still elect for a deposit). Unlike a deposit or surety bond, the typical lease is protected with over $5,000 coverage for rent loss and damage. Because the property is the insured party (not the resident), regulatory burdens are eliminated for operators at the site level.
  • Surety bonds: Residents may bring their own deposit alternative, the primary example being a bond in which the renter is party to the insurance contract. With a surety bond, the renter pays a non-refundable percentage of the bond amount at move-in, which goes into a claims fund (where losses are managed at the property or carrier level). Bonds typically cover up to the amount of the deposit. With the renter party to the insurance contract, operators must manage additional consumer regulatory requirements related to insurance.

Additional requirements:

Security Deposit: For security deposits and installment plans, properties cannot collect more than two months’ rent upfront, which must then be held in escrow. The property is required to return remaining funds (and any interest acquired in escrow) to the resident within 30 days.

Lease Insurance: There are no such additional requirements for lease insurance, as no deposit is collected and the property is the insured party.

Surety Bond: Resident-sourced insurance products (such as surety bonds) create additional administrative requirements for apartment operators. Upon move-out, property managers must provide residents with:

  • A copy of any claim filed
  • Statements of the claims status

How This Bill Differs from Other Security Deposit Regulations

Both lawmakers and the multifamily industry have spent years putting band-aids on the broken security deposit system.

Cities like Seattle, Portland, and Chicago have aimed to treat symptoms of the problem by passing tighter restrictions on security deposits, requiring installment plans and lowering security deposits caps.

The Cincinnati Renters Choice law, as suggested by its namesake, was focused on giving renters choices. While inching closer to the goal line, the Cincinnati law fell a bit short of eradicating security deposits at-large.

Why Pennsylvania Bill Marks Growing Movement Towards Deposit Replacement

The next phase of legislation we see in Pennsylvania is now moving closer toward treating the root problem (rather than just the symptoms) by laying the groundwork to eliminate deposits entirely.

Renter affordability was already top-of-mind for lawmakers prior to COVID-19, and will undoubtedly accelerate this movement as the economic impact of the crisis ripples across the country.

The new Pennsylvania security deposit legislation shows lawmakers are paying attention and continuing to evolve legislation toward full replacement of security deposits as a financial instrument in rental housing. There is agreement among residents, operators, and owners that deposits need to go. Recent legislation suggests that deposits may be headed toward extinction faster than we all thought.

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COVID-19 Rent Relief Programs from NMHC Top 50 Apartment Operators

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As the world continues to combat the spread of COVID-19, non-essential businesses are being forced to shut down and civilians are being ordered to shelter-in-place across the US. Inevitably, the unemployment rate has sky-rocketed, leaving many renters, legislators, and multifamily operators worried about rent.

President of the National Multifamily Housing Council, Doug Bibby, recently wrote an opinion piece making a plea for renters to be accountable and make their payments to prevent a potential housing catastrophe.

According to National Apartment Association President and CEO, Robert Pinnegar, “To minimize the damage, NAA is urging those of our nation’s 40 million renters who’ve been financially unaffected by COVID-19 to make their rent payments in full and on time. Paying rent ultimately keeps people in their homes by ensuring housing providers can meet their own financial obligations and keep the entire apartment community afloat in these troubling times.”

In Response to Downward Trend in April Rent Payments, Operators Work to Provide COVID-19 Rent Relief

We’ve tracked April rent payment data closely, and observed a nationwide decrease in full rent payments in April compared to the average, along with growing movement towards partial payments and deferred payment plans. Many apartment operators are working hard to support renters in making their payments, and devising creative solutions to keep reliable residents in place.

How are top operators ensuring those financially impacted by COVID-19 will receive the necessary rent relief? And how are they providing that rental support to better safeguard their entire community?

How the Rental Housing Industry Has Responded to the COVID-19 Crisis

Operators have spent the last several weeks preparing for the sudden hardship that their communities now face. Across social media, email, discussion forums, and the press, we’re seeing an overwhelming response from property management companies, apartment associations, state governments, and many other rental housing organizations to assemble and circulate COVID-19 resident support resources.

We’ve rounded up key COVID-19 rent relief programs being implemented by several of the NMHC Top 50 apartment managers, as well as organizations such as the NMHC and NAA.

COVID-19 Rent Relief Programs & Flexible Payment Plans

As recommended by the NMHC, implementing customized payment plans has been a popular strategy among top apartment firms. NAA has also released a set of best practices on rent collection amid COVID-19, including templated forms for a payment plan agreement and notice of temporary waiver of late fees.

Lincoln Property Management, for example, mentioned in a letter to its residents that rent relief efforts included payment plan options and other policies designed to alleviate financial burdens for those affected.

Irvine Company is enabling renters to defer 50% of their April and May rent payments over a six month period, interest-free. All they have to do is “request rent assist” to create a new payment schedule. In addition, Irvine Company froze rents and renewal increases through June 1, 2020, is offering short-term lease extensions, and temporarily halted all eviction activity through June 1, 2020.

Equity Residential halted evictions for 90 days for those who can document that they’ve been financially harmed by the COVID-19 crisis, and is offering lease renewals with no rent increases over the next three months as well as payment plans to help those in need of assistance.

Essex is another operator that allows renters to fill out a request form if they have a COVID-19 related financial hardship that inhibits their ability to pay rent.

RAM Partners made a statement asking those experiencing financial hardship to reach out to their community manager to discuss options.

AvalonBay outlined new options to help renters through financial hardship, including account credits, flexible transfers without penalty, and payment plan options.

The Bainbridge Companies has contacted all their residents to discuss alternative payment plans and is waiving late fees for those who experienced financial loss as a result of COVID-19, and has paused rent increases. They have also shared valuable resources for residents seeking assistance.

Bridge Investment Group has developed a COVID-19 Financial Hardship Assistance Program in which residents can work with their property’s staff to develop a rent payment plan that will permit a deferral of a portion of April and/or May rent with payment due over the remainder of their lease term. Bridge will also not pursue eviction filings for the non-payment of rent during the pandemic.

Unique Rental Assistance Initiatives

Village Green has implemented its Exclusive Frontline Program which grants move-in discounts for renters who are members of the essential workforce. By waiving move-in fees and deposits for those working on the frontline, Village Green is proactive in supporting the essential workforce.

In a charitable move, Camden Property Trust established a $5 million Resident Relief Fund for COVID-19 Pandemic under which residents who can show COVID-19 related income losses are eligible for up to $2,000 per household. The fund intends to provide financial assistance for living expenses like food, utilities, medical expenses, childcare, insurance, or transportation.

Federal/State/Local Community & Financial Resources for COVID-19 Rent Relief

Many apartment firms have been diligently providing residents with information on government resources regarding direct payments, unemployment benefits, and food banks. They’ve also provided community and financial resources including mental health help, small business loans, children programs, job opportunities, internet access, insurance options, work-from-home tools, and more.

Alliance Residential created a hub for federal, state, and local resources including government relief programs and COVID-19 resident resources. FPI Management also has a list of government resources specifically addressing wage replacement.

BH Management Services created a COVID-19 Resource Page with links to unemployment materials, economic impact payment information, coronavirus information by state, and links to local (Florida) resources.

In Equity Residential’s dedicated blog post, the firm outlines various community non-profits and financial resources offered by the state and federal government, including links to financial assistance programs and unemployment benefits information.

Pegasus Residential created a one-sheet detailing how the government can help those concerned about rent. It outlines information on direct payments and enhanced unemployment benefits.

JMG Realty put together a Resident Resource List linking to different non-profit organizations, as well as a directory of relevant CDC information.

General COVID-19 Resident Resources

WinnCompanies has a website popup informing residents that they can type in their zip code to perform a localized search for COVID-19 related resources. This quickly narrows down resources based on a renter’s geographical location.

Bridge Investment Group said in its COVID-19 Update that they’re monitoring resources available to impacted renters by maintaining a list for each of the states they operate in.

On top of building an extensive hub for Coronavirus Resources for Apartment Firms, the NMHC has rallied industry support around its COVID-19 Rental Relief campaign. In the NMHC resource center, operators can find helpful templates for communicating with residents regarding rent flexibility, federal assistance, and rent obligations.

The NMHC also released a document that aims to help residents understand the newly passed federal resources available to help them meet their financial obligations (and it can be customized by apartment operators).

Calls for Congressional Action

Both the NMHC and NAA have been proactive in fighting to protect both renters and apartment operators. In their March 13th letter to the House and Senate, they called upon lawmakers to provide direct financial assistance to renters.

Nearly a month later, the two organizations sent another letter to Congress regarding COVID-19 Relief Phase 4 which called out the need for additional relief and stimulus legislation, including help for rental housing providers, housing professionals, and residents. The NMHC is urging people to tell Congress that COVID-19 rent relief for the housing industry and residents is essential.The NAA’s positioning statement echoes this sentiment, and is encouraging others to contact their Member of Congress and demand Congress protect apartment communities.

Congress is also considering a $100 billion rental assistance fund to support renters in making their payments, which would also ensure owners can continue paying their mortgages. We will continue to monitor this bill and provide updates as we learn more. The more resources we share in times of uncertainty, the better off all our communities will be.

One thing is certain: the more information we share in challenging times, the better off all of our communities will be. “One of the really powerful things we’re witnessing is the way the industry is coming together,” says Dana Caudell, President of Property Management at The Bainbridge Companies. “It’s not about competition right now, it’s about how we can best help our residents and operate our businesses in these uncertain times – and if someone has a great idea or resource, we’re going to share it.”

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The Top 4 Benefits of Lease Insurance for Rental Housing

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As almost anyone who has worked in multifamily will tell you, this industry can be very slow to embrace change.

Security deposits – and, to a lesser extent, surety bonds – have long been part of apartment operations, and it’s difficult for many property managers to imagine life without them.

However, some forward-thinking operators across the country have eliminated security deposits and surety bonds entirely. In the face of unpredictable events, such as the coronavirus pandemic that has cast the multifamily industry in a cloud of uncertainty, operators have been forced to adjust their current operations in order to better protect both their renters and properties. Subsequently, many have turned to lease insurance.

Lease insurance provides long-term, reliable protection, putting multifamily operators in a stronger position than either security deposits or surety bonds can provide. Especially in these unprecedented times, multifamily operators must adapt quickly with long-term solutions that protect themselves and support their residents.

Why Apartment Operators Should Replace Security Deposits and Surety Bonds with Rental Lease Insurance

Below are the top four benefits of using lease insurance for rental housing:

  1. Better Protection Against Unexpected Events and Market Disruptions

The COVID-19 pandemic has brought a great deal of uncertainty to the multifamily industry as the economy screeched to a halt and left many residents jobless. Lease insurance provides owners and operators with the financial protection needed when unexpected events hamstring residents’ ability to pay their rent.

On the other hand, operators often find that security deposits and surety bonds are inadequate resources in the face of severe rent loss and physical damage caused by residents. As an example, while the average security deposit in the US is roughly $500-750, the standard LeaseLock lease insurance plan provides $5,000 of coverage against missed rent and damage on every lease.

  1. More Traffic and Higher Conversion Rates

Security deposits require applicants to make a large upfront payment – one that can easily total thousands of dollars – before moving in. But in today’s environment of flat incomes and meager personal savings, that’s something many applicants simply can’t afford. Others may have to delay their move-in to save or borrow the needed funds.

Communities that reduce the cost of moving into a new home gain a real competitive advantage, especially those that clearly market themselves as a Zero Deposit community. Properties with no upfront deposit required at move-in experience more prospect traffic, faster move-ins, and higher conversion rates. For example, since ROCO Real Estate replaced security deposits with lease insurance, the company has seen an increase of 10 to 20 leads per property per week, while First Communities saw a 9-day faster lead-to-move-in cycle with lease insurance.

  1. Reduced Administrative Headaches for Onsite Staff

Managing security deposits and surety bonds can be a serious hassle for community associates. In the case of security deposits, state regulations may require them to be kept in separate bank accounts and reconciled every month.

Additionally, when a resident is moving out, associates spend a considerable amount of time determining the amount of the security deposit refund and then dealing with the renter when the resident is inevitably upset about the refund amount. Surety bonds must be sold by onsite staff, and don’t eliminate deposit administration costs. Lease insurance, on the other hand, eliminates deposit administration.

  1. Improved Online Reputation

It’s one of the laws of physics in multifamily: most residents get upset about deductions from their security deposit. Even with surety bonds, the bonding company will seek payment from the renter for any missed rent or damages to their apartment, which will likewise cause frustration.

And when renters are disgruntled about their deposit deductions or having to repay a bonding company, they take to Yelp, Google, Facebook, ApartmentRatings.com, ILSs, and other sites to post angry and negative reviews.

By eliminating security deposits entirely and replacing them with lease insurance, renters are more likely to write positive reviews touting the simplicity and affordability of a Zero Deposit move-in, and the ease of their move-out experience.

Protect Your Apartment Communities With Lease Insurance

Lease insurance is gaining popularity in the apartment industry as more operators begin to truly understand the benefits of moving away from security deposits and surety bonds completely. When it comes to protecting your properties, lease insurance offers the financial protection apartment owners need while also providing affordable living options for renters.

Just as operators have come to embrace renter’s insurance, we believe lease insurance will emerge as the leading replacement to security deposits. And as nationwide momentum moves towards Zero Deposit communities, the mutual benefits for both renters and operators will increase with it.

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