The state-run pandemic rent relief initiative, Housing is Key, is facing intense scrutiny due to prolonged delays in approvals and the imminent risk of depleting funds. This situation leaves numerous Californian renters in a state of uncertainty, as reported by CalMatters.
Introduced in 2021 by Governor Gavin Newsom, Housing is Key was designed as an emergency housing assistance, intended to alleviate the rent burdens of Californians who could not meet their rent cost obligations due to pandemic-related hardships.
Funded by billions of federal dollars, the program initially promised payment to all timely and eligible applicants, targeting to prevent widespread evictions following the expiration of state and local emergency eviction bans.
To date, Housing is Key has distributed over $4.7 billion to nearly 370,000 low-income households, as per the state’s Department of Housing and Community Development. However, despite the application window closing in March 2022, more than 70,000 households are still awaiting decisions for nearly two years.
Many residents have resorted to borrowing funds, negotiating with creditors, and missing payments to navigate the program’s complexities, CalMatters reported.
The urgency for those awaiting aid has intensified as Housing is Key nears its funding limit. While California’s Housing and Community Development department has identified additional funding sources, it remains uncertain whether these will suffice to cover all valid claims, CalMatters notes.
The department has not provided estimates on when funds might be exhausted or the number of people likely to receive assistance before that occurs. As of early November, however, at least 33,658 initial applications were pending, with another 39,401 in appeal following initial denial, totaling 73,059 applications, according to the data published by the housing department.
To extend its resources, the program redirected funds from administrative overhead and local programs into renter assistance, leaving an estimated balance of approximately $171 million. However, given the average payout of $12,018, this sum might only cover around 14,000 applicants, potentially leaving 58,830, or 80% of the total applicant pool, without support, CalMatters estimated.
“Tens of thousands of people are at risk of being evicted or made homeless, not because they were ineligible, but because the state ran out of money.”, said Anya Svanoe, a spokesperson for Alliance of Californians for Community Empowerment.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
