Housing Justice
Holding California Accountable for Its Failures in Implementing the COVID-19 Rent Relief Program
Case Overview
our Clients
The COVID-19 rent relief program was created by the federal government to keep low-income tenants housed if they faced difficulty paying rent because of the COVID-19 pandemic. California identified over $6 billion in state and federal funds, and the California Department of Housing & Community Development (HCD) was charged with creating an application process, screening tenants for eligibility, and distributing the program funds.
However, the application process for California’s COVID-19 rent relief program (Housing Is Key) was burdensome for many of the most vulnerable people who needed such assistance. It required extensive paperwork and documentation, access to email and the ability to check it regularly, and the ability to navigate the system in English, even if it was not the tenant’s preferred language. If they managed to apply, tenants still waited months for a response and received a variety of vague responses, including approval for partial payments or a full denial of payment without adequate explanation.
The process was profoundly unfair, didn’t meet constitutional standards, and failed to achieve its most basic aim in many instances: keeping Californians housed. That’s why community-based tenant organizations ACCE and SAJE, along with research and action institute PolicyLink, filed a lawsuit against HCD for administering COVID-19 rent relief in a way that is opaque and disproportionately harms tenants on the basis of race, color, and national origin. The suit also challenges HCD’s refusal to provide public records that would shed light on its administration of the program.
Public Counsel, Western Center on Law & Poverty, LAFLA, and Covington & Burling LLP joined forces to represent the Plaintiffs and, in May 2023, reached a historic agreement with the State of California to settle the COVID-19 rent relief cases. The settlement will bring resolution and hope to over 100,000 households who have been waiting for a year or more for the chance to receive support from the State of California. The settlement will provide new opportunities for those denied rental assistance to appeal, will add clarity to application denials, and will expand a network of community partners to assist tenants in responding to denials and appeals. People who still have pending applications as of the date of the settlement should expect to receive a new series of communications from the State and, if their applications are denied, will have 30 days to file an appeal to receive rental assistance.
Because of this lawsuit, the State of California will improve its administration of a crucial pandemic relief program to comply with due process. As a result, low-income Californians will have a better shot at receiving the rental assistance they need to avoid eviction and stay housed.
Court
Superior Court of the State of California, County of Alameda
Status
Settled
Case No.
22CV012263
Filed
06/06/2022
PUBLIC COUNSEL Legal Team
Senior Policy Counsel
Managing Attorney
our Co-Counsel
Case Developments
Settlement
05/30/2023
Parties Reach Settlement
Plaintiffs and Defendants have reached a landmark settlement on behalf of Californians struggling with pandemic rent debt. The agreement holds HCD accountable for failures in implementing the Covid-19 rent relief program. The settlement will provide new opportunities for those denied rental assistance to appeal, will add clarity to application denials, and will expand a network of community partners to assist tenants in responding to denials and appeals. People who have pending applications as of the date of the settlement should expect to receive a new series of communications from the State and will have 30 days to file an appeal to receive rental assistance if their application is denied.
ruling
01/19/2023
Court Orders State to Create Denial Notices that Satisfy Due Process
In modifying the preliminary injunction to comply with the Court of Appeal order, Judge Roesch said the State’s denial notices must “specify the facts supporting the denial” to satisfy due process, meaning the notice must provide enough information for applicants to understand why the State does not believe their application meets program requirements. The Court acknowledged that being told why tenants are being denied is important to allow applicants a meaningful opportunity to appeal and correct their paperwork.
Ruling
12/20/2022
Court of Appeal Orders Superior Court to Narrow Preliminary Injunction
In November 2022, HCD filed a petition for an extraordinary writ with the Court of Appeal asking the Court to overturn the preliminary injunction. The Court of Appeal issued an order in December 2022 ordering the Superior Court to modify the scope of the preliminary injunction. However, the Court’s order said the preliminary injunction could only be modified in a way to still ensure due process so that “it prohibits the Department from denying applications for rental assistance only if the applicant has not been informed of the specific reason(s) for the denial or provided with the documents that the Department relied upon in denying the applications.”
Ruling
07/08/2022
Court Grants Preliminary Injunction
The Court sided with tenant advocates and ordered HCD not to deny any pending rental assistance applications until the Court can determine if HCD’s process meets constitutional due process standards. Judge Roesch said the State’s denial notices are too vague, do not tell applicants which of their documents led to denial, and make it difficult for denied applicants to appeal.
Filing
06/06/2022
Plaintiffs File Complaint
Three community groups sued the State of California over its COVID-19 rent relief program. The lawsuit said the program operates in an unclear and discriminatory way and does not provide adequate explanation to renters who are denied help, violating due process and fair housing laws.
Press Releases
Press Release
06/05/23
Press Release
03/03/23
Press Release
01/24/23
Press Release
07/08/22
Media
- LA Times, State reaches settlement over pandemic rent relief: What tenants and landlords need to know, 6/9/23
- Capital & Main, Pandemic Relief Program Left Many California Renters Struggling, 6/8/23
- CALMatters, California rent relief is still available for thousands of Tenants who were denied covid assistance, 6/6/23
- Telemundo 52, Investigan casos de inquilinos que no recibieron ayuda monetaria, 6/6/23
- Politico, Rent Repair, 6/5/23
- LAist, Tenant Groups Reach Settlement with State of California Over Applicants Stuck in Rent Relief Limbo, 6/5/23
- NBC4, Tenants and Landlords Call State’s Multi-Billion Dollar Rental Assistance Program a Failure, 3/13/23
- Sacramento News & Review, Holiday abandonment: More than 100,000 COVID-impacted renters tell state ‘Thanks for nothing’, 11/24/22
- OC Register, Court Orders California to Pause Denying Pandemic Relief Aid, 7/13/22
- KTVU, Judge orders California to stop denying rent relief applications, 7/12/22
- Sac Bee, A fighting chance.’ California can’t deny rent relief after tenants sued state over program, 7/8/22
- Mercury News, Court orders California to pause denying pandemic rent aid, 7/11/22
- KRON4, Judge orders CA to stop denying rent relief applications, 7/13/22
- KQED, Thousands of California Tenants Still Waiting on Rent Relief Can Be Evicted, 6/30/22
- KTVU, 1 in 3 applications denied California rent relief money, thousands still waiting, 6/28/22
