California rent relief settlement
Tenants’ Rights Advocates Reach Landmark Settlement on Behalf of Californians Struggling With Pandemic Rent Debt
The agreement requires the California Department of Housing & Community Development to give pending and denied applicants a fair chance to receive Covid-19 rental assistance
June 5, 2023 – A landmark settlement has been reached in a case brought by tenants’ rights advocates alleging that the California Department of Housing & Community Development (HCD) unconstitutionally operated the state’s Covid-19 Emergency Rental Assistance Program (ERAP or Housing is Key), which has led to qualified applicants missing out on the assistance they were promised after the pandemic destroyed many Californians’ livelihoods. More than 100,000 households are still waiting for a decision on their applications—and many of them are being served with eviction notices and being harassed by their landlords for rent they still owe. The settlement agreement will offer a renewed chance for applicants who remain in limbo to receive Covid-19 rental assistance, which remains essential to supporting and stabilizing families as the housing and homelessness crisis worsens in California.
California’s Covid-19 Emergency Rental Assistance Program was created to provide direct assistance to low-income families struggling to pay rent during the pandemic. The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), and PolicyLink—represented by Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP—sued HCD in June 2022 for several systemic failures in the program, including a confusing application process that led eligible tenants to be wrongfully denied assistance.
As part of the settlement, HCD has agreed to take several steps to improve its process for the remaining ERAP applications, including:
- Providing tenants who are going to be denied all or part of the assistance they requested with a detailed explanation of the reason for denial, so they can address issues with the application and have a fair opportunity to appeal;
- Ensuring that tenants subject to “recapture” of rental assistance funds have a fair opportunity to challenge the state’s decision;
- Providing better access to the appeal process;
- Expanding funding to the Local Partner Network, which will assist tenants with navigating their pending applications and appeals;
- Conducting an audit of prior denials to correct wrongful denials of assistance; and
- Providing greater transparency about who is receiving rental assistance and who is not, with data about the race, ethnicity, and zip code of people denied assistance.
Tenants who have been waiting for a decision on their applications will receive an update in the coming months and should regularly check their email, application portal, and postal mail for notifications. Tenants who have been evicted or moved since they applied for rental assistance should contact the Housing is Key program to update their contact information and ensure they receive any important notices. Those who receive a denial will have 30 days to file an appeal.
California identified more than $6 billion in rental assistance from the state and federal government for the Housing is Key program, which came at a critical time and should have made a profound difference for the hundreds of thousands of families impacted by the economic fallout of the pandemic. More than half a million households applied to the program. Thus far, HCD has denied nearly 30 percent of applicants, according to an analysis of program data conducted by the National Equity Atlas (a research partnership between PolicyLink and the USC Dornsife Equity Research Institute). The vast majority of those denied (93 percent) have incomes below 80 percent of the area median income—the income threshold to be eligible for the program. Tenants did not receive any meaningful explanation of why they were being denied the help they needed to avoid eviction, and many had difficulty accessing the appeal process.
Frequently Asked Questions (FAQs)
On May 30, 2023, tenant advocates settled a major lawsuit against the State of California over due process issues in the administration of the State’s COVID-19 Rent Relief Program, also known as the Emergency Rental Assistance Program (ERAP) or Housing Is Key, which resulted in eligible tenants being denied assistance. As a result, the California Department of Housing and Community Development (HCD) has agreed to several important reforms to the procedures around denials and appeals in the program.
This FAQ provides an overview of the lawsuit settlement and what it means for tenants. For more information about the lawsuit and a complete copy of the settlement, use the tabs on this web page to access more information. To spread the word about this settlement, share this web address: CARentRelief.org
For questions on the status of an application, tenants should contact the State’s Housing Is Key call center at (833) 430-2122. To check the status of their application in the Housing Is Key application portal, tenants can visit: https://hornellp-ca.neighborlysoftware.com/CaliforniaCovid19RentRelief/Participant.
To connect with a community organization that can provide application assistance, tenants should call the Local Partner Network at(833) 687-0967.
FAQ translations
- Spanish: Haga clic aquí para leer esto en español.
- Chinese (simplified): 点击这里阅读中文简体版本。
- Chinese (traditional): 點擊這裏閱讀中文繁體版本。
- Korean: 한국어로 읽으시려면 여기를 클릭하세요.
- Japanese: 日本語で読むにはここをクリックをして下さい。
- Tagalog: Mag-click dito para basahin ito sa Tagalog/Filipino.
- Vietnamese: Bấm vào đây để đọc bằng tiếng Việt.
1. Who does this settlement impact?
This settlement impacts tenants who applied to Housing Is Key on or before March 31, 2022, and who still have pending applications or were denied on or after June 7, 2022. The settlement may also help some tenants who were denied prior to June 7, 2022 or have other application statuses as detailed in this FAQ.
This settlement only applies to the State of California’s Housing Is Key program. It does not apply to any local rental assistance programs run by a city or county. The settlement also does not reopen the Housing Is Key program to new applications.
Tenants can check their status in the Housing Is Key application portal here: https://hornellp-ca.neighborlysoftware.com/CaliforniaCovid19RentRelief/Participant.
2. What will happen next for tenants who have been waiting for decisions on their rent relief applications?
HCD will resume processing outstanding applications and appeals. Tenants should expect to receive new communications from the State soon, whether it is an approval or denial.
Under the settlement, the State has revised the denial notice so it provides more specific information to tenants on the exact reason for the denial. The tenants that will receive new denial notices are:
- Tenants who received a denial notice on or after June 7, 2022;
- Tenants who never received a denial notice;
- Tenants who submitted an appeal but have not received a decision on their appeal as of May 30, 2023.
The new denial notices will restart a new 30-day period to submit an appeal. The new denial notices will also include information about how to contact an organization who can help tenants with the appeal.
Tenants who are not sure of the date of their denial can call the Housing Is Key call center at (833) 430-2122 to ask for their date of denial.
3. What will new denial notices look like?
All new denial notices will now have more information about the specific reason for the denial so that tenants can address any identified issues and prepare a useful appeal to challenge the decision. Notices will be in English and in any other language the tenant requests. Under the settlement, the State must upload all denial notices to a tenant’s Housing Is Key application portal so it is readily accessible.
If the denial was based on something submitted by the tenant’s landlord, the tenant will have the right to request the document or information provided by the landlord. The tenant will then have 30 additional days to submit their appeal. If HCD does not get permission to provide the document to the tenant, the document will be disregarded during the tenant’s appeal.
4. How will the new denial notices be sent to tenants?
Under the settlement, HCD can no longer send denial notices only by email. Any new denial notices will be uploaded to the Housing is Key application portal, emailed to the tenant and any third-party advocates listed in their application, and mailed to the tenant’s address listed on the application.
We expect new denial notices to be sent on a rolling basis over the next few months.
5. Does this settlement make any changes to the appeal process?
The settlement expands access to the appeal process. Tenants will now be able to appeal by calling the Housing Is Key call center at (833) 430-2122, emailing Appeal@ca-rentrelief.com, or contacting their case manager directly. HCD will also put a link to the appeals portal in the application portal. HCD will also work to find an alternative way for tenants to access the appeals portal if they no longer have access to the email address they originally used for their application.
With an improved denial notice that states the specific reason for a denial, tenants will be able to address the exact issue in an appeal. As was the case before, tenants have 30 days after receiving a denial notice to submit an appeal or the denial will be considered final.
6. What if a tenant was only approved for part of the assistance they applied for?
During the lawsuit, we learned that it was common for HCD to only approve tenants for part of the assistance they applied for without providing an explanation to the tenant (aka “partial payments”). The settlement now requires HCD to send out these partial payments to approved applicants within 30 days of May 30, 2023.
Going forward, if a tenant is awarded only a portion of the rental assistance they applied for, HCD will send them a notice explaining why they were denied the full amount. Additionally, HCD will automatically open an appeal on the tenant’s behalf. Tenants will be able to request additional information and documents that HCD used to make the decision, and to submit new evidence to support the appeal. Tenants should keep an eye out for these “partial payment” notifications and respond promptly if they want to challenge the decision.
7. How does this settlement impact tenants who previously received “recapture” notices?
Some tenants who received rental assistance were later sent “recapture” notices saying that they must return some or all of the money they received. Under the settlement, HCD must provide these tenants a new notice explaining the reason HCD wants them to return the money and give the tenant the right to appeal. After receiving the new notice, the tenant will have 30 days to appeal the recapture. If the appeal is approved, HCD will cancel the recapture notice and the tenant will be able to keep the funds.
If HCD finds during the appeal process that the recapture notice was incorrect but there is still a problem with the application, HCD will notify the tenant of the specific problem and give them 45 days to update their application.
If the appeal is denied, HCD will send another notice providing options to repay the funds, such as through a payment plan. HCD agrees that they will not sell this debt to debt collectors and will allow low-income tenants at least 3 years to repay the debt.
8. What happens if a tenant submitted multiple applications and one of them has been marked a “duplicate”?
If a tenant submitted multiple applications, HCD may have marked one of them as a “duplicate” in the application portal with no notice to the tenant. The settlement now requires additional notice to be provided for applications considered duplicates.
For any tenants who are denied, the denial notice will include a section identifying whether there are any applications that were not processed because they are considered duplicates. HCD must also send a notification by email and by posting in the application portal that an application has been marked as a duplicate. These notices will inform tenants to take action if they believe an application has been marked as a duplicate in error.
HCD will allow tenants with duplicate applications to call the Housing Is Key call center at(833) 430-2122 and speak to trained staff to help make sure their duplicate applications are combined into one.
9. Will this settlement help a tenant who was previously denied rental assistance?
Except as detailed in this FAQ, the settlement does not reopen denial decisions for most tenants who were denied rental assistance before June 7, 2022.
However, under the settlement, the State has agreed to review applications that were denied between March 1, 2022 and May 31, 2022 for being “non-responsive.”
Tenants who were denied between March 1, 2022 and May 31, 2022 for being “non-responsive” can connect with a community organization in the Local Partner Network at (833) 687-0967. Under the settlement, these organizations are able to request that HCD reopen the cases of these tenants, request more information about the denial, and work with the program to add new evidence to try to get the tenant approved.
HCD will automatically review these applications to determine whether any were denied wrongfully. If they find that an application was denied incorrectly, and the applicant is eligible for rental assistance, HCD will issue a payment.
If HCD cannot determine whether the application should have been denied or approved, they must automatically open an appeal. They will also send a notice that clearly explains that an appeal has been opened, that the applicant can provide more information and/or documents to support the appeal, and they may call the Housing Is Key call center at (833) 430-2122 to receive more information about the application. A case manager must contact the applicant directly to request additional information.
10. Does this settlement provide any additional assistance for tenants who do not use English as their primary language?
The settlement requires that the application and appeals portal is translated and that there are staff at the Housing Is Key call center who speak the six most common languages spoken in California. HCD must notify applicants that language services are available in all languages. All letters HCD sends must include a notice informing tenants that language services are available in multiple languages. Denial notices will be provided in English and in the language the tenant requested as their primary language.
11. Where can a tenant go for more information if they’re unsure about the status of their application?
Tenants can call the Housing Is Key call center at (833) 430-2122. As part of the settlement, wait times for the call center must not be significantly longer for tenants than they are for landlords. Applicants are now allowed to add and change contact information over the phone, including to add new third-party representatives. A tenant can also call to find out the date their original denial notice was issued.
12. Where can tenants go to get assistance with their application?
The Local Partner Network is a network of community organizations who can help fix issues with applications and appeals. As part of the settlement, HCD will fully fund this program so that applicants who are denied rental assistance will have access to outside help completing their appeals and navigating the online system.
If you need help with your application or need help challenging a denial, you should call the Local Partner Network at (833) 687-0967 to be connected to a community organization, tenant group, or legal service provider who can help.
13. Where can a tenant go for help if they are still waiting for a decision on their application, but are now facing eviction?
If a tenant has received a notice of nonpayment for rental debt and/or been served with an eviction (unlawful detainer), they can find information for legal services in their area at https://www.lawhelpca.org/issues/housing.
14. How will the settlement be enforced?
The attorneys that filed this case will be checking in on HCD to make sure the settlement terms are being carried out correctly. If HCD doesn’t comply with the settlement, the attorneys will try to work with HCD to find a resolution for any issues that come up. If that doesn’t work, the attorneys can ask the Court to order HCD to comply.
HCD will provide new monthly information about the program publicly on its website, including:
- The number of undecided applications, and their status;
- The number of denials, broken down by zip code, race, and ethnicity;
- The number of appeals still pending;
- The number of appeals denied or approved.
15. Where can I find legal documents and more information about this lawsuit, ACCE v. HCD?
- To view the signed settlement, click here.
- For an overview of case developments and key legal documents, click here.
Tenants’ Rights Advocates Reach Landmark Settlement on Behalf of Californians Struggling With Pandemic Rent Debt
The agreement requires the California Department of Housing & Community Development to give pending and denied applicants a fair chance to receive Covid-19 rental assistance
LOS ANGELES – June 5, 2023 – A landmark settlement has been reached in a case brought by tenants’ rights advocates alleging that the California Department of Housing & Community Development (HCD) unconstitutionally operated the state’s Covid-19 Emergency Rental Assistance Program (ERAP or Housing is Key), which has led to qualified applicants missing out on the assistance they were promised after the pandemic destroyed many Californians’ livelihoods. More than 100,000 households are still waiting for a decision on their applications—and many of them are being served with eviction notices and being harassed by their landlords for rent they still owe. The settlement agreement will offer a renewed chance for applicants who remain in limbo to receive Covid-19 rental assistance, which remains essential to supporting and stabilizing families as the housing and homelessness crisis worsens in California.
California’s Covid-19 Emergency Rental Assistance Program was created to provide direct assistance to low-income families struggling to pay rent during the pandemic. The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), and PolicyLink—represented by Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP—sued HCD in June 2022 for several systemic failures in the program, including a confusing application process that led eligible tenants to be wrongfully denied assistance.
“The rental assistance program was intended to provide housing stability for low-income tenant families who were impacted by Covid-19, but delays and dysfunction left far too many eligible families facing eviction because they could not access this critical assistance,” said Madeline Howard, Senior Attorney at Western Center on Law & Poverty. “We are hopeful that this settlement will create an opportunity for these tenants to finally receive the help they need.”
“This settlement will mitigate some of the worst long-tail impacts of the Covid-19 pandemic on our local communities, and Covington is very proud to partner with our co-counsel and clients in this important work,” said Neema Sahni, Partner at Covington & Burling LLP.
California identified more than $6 billion in rental assistance from the state and federal government for the Housing is Key program, which came at a critical time and should have made a profound difference for the hundreds of thousands of families impacted by the economic fallout of the pandemic. More than half a million households applied to the program. Thus far, HCD has denied nearly 30 percent of applicants, according to an analysis of program data conducted by the National Equity Atlas (a research partnership between PolicyLink and the USC Dornsife Equity Research Institute). The vast majority of those denied (93 percent) have incomes below 80 percent of the area median income—the income threshold to be eligible for the program. Tenants did not receive any meaningful explanation of why they were being denied the help they needed to avoid eviction, and many had difficulty accessing the appeal process.
“We filed this case because we started to see a sharp rise in denials for tenants we knew were eligible, including clients of legal aid organizations across the state, who were relying on rental assistance to stay housed and off the streets,” said Faizah Malik, Senior Supervising Attorney at Public Counsel. “With the settlement of the case, many thousands of families will have another chance to receive the aid that they were promised.”
As part of the settlement, HCD has agreed to take several steps to improve its process for the remaining ERAP applications, including:
- Providing tenants who are going to be denied all or part of the assistance they requested with a detailed explanation of the reason for denial, so they can address issues with the application and have a fair opportunity to appeal;
- Ensuring that tenants subject to “recapture” of rental assistance funds have a fair opportunity to challenge the state’s decision;
- Providing better access to the appeal process;
- Expanding funding to the Local Partner Network, which will assist tenants with navigating their pending applications and appeals;
- Conducting an audit of prior denials to correct wrongful denials of assistance; and
- Providing greater transparency about who is receiving rental assistance and who is not, with data about the race, ethnicity, and zip code of people denied assistance.
Tenants who have been waiting for a decision on their applications will receive an update in the coming months and should regularly check their email, application portal, and postal mail for notifications. Tenants who have been evicted or moved since they applied for rental assistance should contact the Housing is Key program to update their contact information and ensure they receive any important notices. Those who receive a denial will have 30 days to file an appeal.
“SAJE has assisted hundreds of tenants on their rent relief applications, and many of the most vulnerable tenants are still in the waiting pool, confused and scared,” said Cynthia Strathmann, Executive Director of SAJE. “We hope that tenants now will finally get the information they need to get their applications approved so they can pay off their pandemic rent debt, a major source of continued stress and harassment.”
“This case brought us in contact with so many families who were evicted or facing eviction because of the Covid-19 pandemic,” said Jonathan Jager, LAFLA attorney. “We encourage any renters who are still waiting for an ERAP decision to not give up hope. Keep your contact information up to date with Housing is Key and reach out to the Local Partner Network if you have questions about any communications you receive from the program.”
Rent debt across California remains at crisis levels: an estimated 688,000 households across the state remain behind on rent, according to the National Equity Atlas. Altogether, they owe nearly $2.6 billion in total rent debt, with the average rent debt per household hovering around $3,700. The vast majority of these renters are low-income people of color who have suffered job and income losses due to the pandemic. This persistent and mounting debt further illustrates the importance of this settlement to keeping families in their homes and curbing the surge of evictions that have followed the end of pandemic eviction moratoriums.
“I lost everything I had because of issues with the rent relief program. Right before the pandemic, I put my life’s savings into opening a restaurant. I was then forced to close down, and as a result lost my income, my business, and my entire savings trying to hold on to what I had. I applied for rent relief and at first was denied without explanation. Then I appealed, got approved, but have now been waiting for nearly 2 years for the money to come through. I tried calling the program for help dozens of times but got no help. A year into waiting for the funding, my landlord pressured me to move out, and I became homeless. Thousands of lives have been destroyed because of the failure to get the money out to families that they are due. I am hopeful that this settlement will finally bring us closer to some relief,” said Blake Phillips, former resident of Los Angeles.
“In creating the Covid-19 rent relief program, the state promised to cover 100 percent of pandemic rent debt for tenants in California. We brought this case to ensure that the state lived up to that promise so hundreds of thousands of Californians could survive the pandemic,” said Jefferson McGee, State Board Chair of the Alliance of Californians for Community Empowerment (ACCE). “Housing is health and housing is a human right and we will keep fighting to make that a reality for our members.”
More information on the details of the settlement can be found at: http://CARentRelief.org
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For media inquiries, email Alex Comisar here.
About the Groups Who Brought this Lawsuit
The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), and PolicyLink—represented by Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP—sued HCD in June 2022 for several systemic failures in the program, including a confusing application process that led eligible tenants to be wrongfully denied assistance.
Petitioners
Alliance of Californians for Community Empowerment Action (ACCE Action)
- The Alliance of Californians for Community Empowerment (ACCE) Action is a grassroots, member-led, statewide community organization working with more than 16,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future.
Strategic Actions for a Just Economy (SAJE)
- SAJE is a 501c3 nonprofit organization in South Los Angeles that builds community power and leadership for economic justice. Founded in 1996, SAJE focuses on tenant rights, healthy housing, and equitable development. SAJE runs a regular tenant clinic, helps connect local residents to jobs, organizes for tenant rights, and fights for community benefits from future development through private agreements and public policies. We believe that everyone, regardless of income or connections, should have a voice in creating the policies that shape our city, and that the fate of city neighborhoods should be decided by those who live there in a manner that is fair, replicable, and sustainable.
- PolicyLink is a national research and action institute advancing racial and economic equity by Lifting Up What Works®. With local and national partners, PolicyLink works to ensure all people in America — particularly those who face the burdens of structural racism — can participate in a just society, live in a healthy community of opportunity, and prosper in an equitable economy. PolicyLink is guided by the belief that the solutions to the nation’s challenges lie with those closest to these challenges.
Counsel
Western Center on Law & Poverty
- Western Center on Law & Poverty fights in courts, cities, counties, and in the Capitol to secure housing, health care, and a strong safety net for Californians with low incomes, through the lens of economic and racial justice.
- Public Counsel is a nonprofit public interest law firm dedicated to advancing civil rights and racial and economic justice, as well as to amplifying the power of our clients through comprehensive legal advocacy. Founded on and strengthened by a pro bono legal service model, our staff and volunteers seek justice through direct legal services, promote healthy and resilient communities through education and outreach, and support community-led efforts to transform unjust systems through litigation and policy advocacy in and beyond Los Angeles.
Legal Aid Foundation of Los Angeles
- Legal Aid Foundation of Los Angeles (LAFLA) is a nonprofit law firm that seeks to achieve equal justice for people living in poverty across Greater Los Angeles. LAFLA changes lives through direct representation, systems change, and community empowerment. It has five offices in Los Angeles County, along with four Self-Help Legal Access Centers at area courthouses, and three domestic violence clinics to aid survivors.
- In an increasingly regulated world, Covington & Burling LLP provides corporate, litigation, and regulatory expertise to help clients navigate their most complex business problems, deals, and disputes. Founded in 1919, the firm has more than 1,300 lawyers in offices in Beijing, Brussels, Dubai, Frankfurt, Johannesburg, London, Los Angeles, New York, Palo Alto, San Francisco, Seoul, Shanghai, and Washington. Since its founding, Covington has demonstrated a strong commitment to public service. The firm is frequently recognized for pro bono service, including 11 times being ranked the number one pro bono practice in the U.S. by The American Lawyer.
Tenants’ Rights Advocates Reach Landmark Settlement on Behalf of Californians Struggling With Pandemic Rent Debt
The agreement requires the California Department of Housing & Community Development to give pending and denied applicants a fair chance to receive Covid-19 rental assistance
LOS ANGELES, May 31, 2023 —A landmark settlement has been reached in a case brought by tenants’ rights advocates alleging that the California Department of Housing & Community Development (HCD) unconstitutionally operated the state’s Covid-19 Emergency Rental Assistance Program (ERAP or Housing is Key), which has led to qualified applicants missing out on the assistance they were promised after the pandemic destroyed many Californians’ livelihoods. More than 100,000 households are still waiting for a decision on their applications—and many of them are being served with eviction notices and being harassed by their landlords for rent they still owe. The settlement agreement will offer a renewed chance for applicants who remain in limbo to receive Covid-19 rental assistance, which remains essential to supporting and stabilizing families as the housing and homelessness crisis worsens in California.
California’s Covid-19 Emergency Rental Assistance Program was created to provide direct assistance to low-income families struggling to pay rent during the pandemic. The Alliance of Californians for Community Empowerment (ACCE Action), Strategic Actions for a Just Economy (SAJE), and PolicyLink—represented by Western Center on Law & Poverty, Public Counsel, the Legal Aid Foundation of Los Angeles, and Covington & Burling LLP—sued HCD in June 2022 for several systemic failures in the program, including a confusing application process that led eligible tenants to be wrongfully denied assistance.
“The rental assistance program was intended to provide housing stability for low-income tenant families who were impacted by Covid-19, but delays and dysfunction left far too many eligible families facing eviction because they could not access this critical assistance,” said Madeline Howard, Senior Attorney at Western Center on Law & Poverty. “We are hopeful that this settlement will create an opportunity for these tenants to finally receive the help they need.”
“This settlement will mitigate some of the worst long-tail impacts of the Covid-19 pandemic on our local communities, and Covington is very proud to partner with our co-counsel and clients in this important work,” said Neema Sahni, Partner at Covington & Burling LLP.
California identified more than $6 billion in rental assistance from the state and federal government for the Housing is Key program, which came at a critical time and should have made a profound difference for the hundreds of thousands of families impacted by the economic fallout of the pandemic. More than half a million households applied to the program. Thus far, HCD has denied nearly 30 percent of applicants, according to an analysis of program data conducted by the National Equity Atlas (a research partnership between PolicyLink and the USC Dornsife Equity Research Institute). The vast majority of those denied (93 percent) have incomes below 80 percent of the area median income—the income threshold to be eligible for the program. Tenants did not receive any meaningful explanation of why they were being denied the help they needed to avoid eviction, and many had difficulty accessing the appeal process.
“We filed this case because we started to see a sharp rise in denials for tenants we knew were eligible, including clients of legal aid organizations across the state, who were relying on rental assistance to stay housed and off the streets,” said Faizah Malik, Senior Supervising Attorney at Public Counsel. “With the settlement of the case, many thousands of families will have another chance to receive the aid that they were promised.”
As part of the settlement, HCD has agreed to take several steps to improve its process for the remaining ERAP applications, including:
- Providing tenants who are going to be denied all or part of the assistance they requested with a detailed explanation of the reason for denial, so they can address issues with the application and have a fair opportunity to appeal;
- Ensuring that tenants subject to “recapture” of rental assistance funds have a fair opportunity to challenge the state’s decision;
- Providing better access to the appeal process;
- Expanding funding to the Local Partner Network, which will assist tenants with navigating their pending applications and appeals;
- Conducting an audit of prior denials to correct wrongful denials of assistance;
- Improving language access and reasonable accommodation procedures; and
- Providing greater transparency about who is receiving rental assistance and who is not, with data about the race, ethnicity, and zip code of people denied assistance.
Tenants who have been waiting for a decision on their applications will receive an update in the coming months and should regularly check their email, application portal, and postal mail for notifications. Tenants who have been evicted or moved since they applied for rental assistance should contact the Housing is Key program to update their contact information and ensure they receive any important notices. Those who receive a denial will have 30 days to file an appeal.
“SAJE has assisted hundreds of tenants on their rent relief applications, and many of the most vulnerable tenants are still in the waiting pool, confused and scared,” said Cynthia Strathmann, Executive Director of SAJE. “We hope that tenants now will finally get the information they need to get their applications approved so they can pay off their pandemic rent debt, a major source of continued stress and harassment.”
“This case brought us in contact with so many families who were evicted or facing eviction because of the Covid-19 pandemic,” said Jonathan Jager, LAFLA attorney. “We encourage any renters who are still waiting for an ERAP decision to not give up hope. Keep your contact information up to date with Housing is Key and reach out to the Local Partner Network if you have questions about any communications you receive from the program.”
Rent debt across California remains at crisis levels: an estimated 688,000 households across the state remain behind on rent, according to the National Equity Atlas. Altogether, they owe nearly $2.6 billion in total rent debt, with the average rent debt per household hovering around $3,700. The vast majority of these renters are low-income people of color who have suffered job and income losses due to the pandemic. This persistent and mounting debt further illustrates the importance of this settlement to keeping families in their homes and curbing the surge of evictions that have followed the end of pandemic eviction moratoriums.
“I lost everything I had because of issues with the rent relief program. Right before the pandemic, I put my life’s savings into opening a restaurant. I was then forced to close down, and as a result lost my income, my business, and my entire savings trying to hold on to what I had. I applied for rent relief and at first was denied without explanation. Then I appealed, got approved, but have now been waiting for nearly 2 years for the money to come through. I tried calling the program for help dozens of times but got no help. A year into waiting for the funding, my landlord pressured me to move out, and I became homeless. Thousands of lives have been destroyed because of the failure to get the money out to families that they are due. I am hopeful that this settlement will finally bring us closer to some relief,” said Blake Phillips, former resident of Los Angeles.
“In creating the Covid-19 rent relief program, the state promised to cover 100 percent of pandemic rent debt for tenants in California. We brought this case to ensure that the state lived up to that promise so hundreds of thousands of Californians could survive the pandemic,” said Jefferson McGee, State Board Chair of the Alliance of Californians for Community Empowerment (ACCE). “Housing is health and housing is a human right and we will keep fighting to make that a reality for our members.”
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For media inquiries, email Alex Comisar here.
