HomeMy WebLinkAboutMemo - Mail Packet - 9/15/2020 - Memorandum From Jc Ward And Leo Escalante Re: Legal Defense Fund For Eviction Protection
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
Planning, Development & Transportation
MEMORANDUM
DATE: September 9, 2020
TO: Mayor Troxell and City Councilmembers
THRU: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Caryn Champine, Director, Planning, Development & Transportation
FROM: JC Ward, Sr. City Planner, Neighborhood Services
Leo Escalante, Public Engagement Specialist, CPIO
RE: Legal Defense Fund for Eviction Protection
This memo aims to provide information on City staff efforts to explore CARES Act funding to
support families in Fort Collins with eviction resources, and provide an update on strategies City
staff is exploring to help families in the short term and long term in response to City Council’s
request on August 18, 2020.
Background:
The COVID-19 pandemic has deepened America’s housing crisis. According to the latest U.S.
Census data analysis, as federal, state, and local protections and resources expire, an
estimated 30 to 40 million people could be at risk of eviction in the next several months. On
average locally, statewide, and nationally fewer than 10% of renters are represented by legal
counsel when defending or negotiating against an eviction compared to 90% of landlords. In
addition, communities of color are disproportionately at risk of eviction as studies from cities
around the country show that people of color comprise approximately 80% of people facing
eviction.
In Colorado, 50% of households are renter cost-burdened and 26% are severely renter cost-
burdened. The U.S. Department of Housing and Urban Development defines “renter cost-
burdened families” as those “who pay more than 30% of their income for housing” and “may
have difficulty affording necessities such as food, clothing, transportation, and medical care.”
Severe renter cost-burdened is defined by HUD as “paying more than 50% of one's income on
rent.” In the absence of clear and robust federal or state intervention, the state could see a
surge in evictions and foreclosures and a surge in people experiencing homelessness in the
next several months. As of May 27th, the COVID-19 Eviction Defense Project estimated nearly
420,000 Coloradans (25% of renters) would be at risk of eviction by September 2020, having
accumulated nearly $765 million of rent debt over the summer of 2020.
Housing conditions in Fort Collins closely approximate state conditions with a larger percentage
of households being renter cost-burdened at approximately 59% and severely renter-cost
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burdened at 25%. As such, there is a high likelihood that the city’s housing insecurity trends
parallel state and national trends and will disproportionately impact the most vulnerable
residents.
The Centers for Disease Control and Prevention eviction moratorium order that is effective from
September 4 – December 31, 2020 offers limited protection for Fort Collins residents. The
legality of the Order is under review by attorneys at the state level and City Attorney’s Office for
applicability. Only evictions for nonpayment of rent are prohibited under the Order and local
service providers report landlords avoiding earlier eviction moratoriums by filing the eviction for
reasons other than nonpayment of rent. Without legal representation, residents are often unable
to successfully defend against the allegations and are evicted on grounds other than
nonpayment of rent. The past due rent is then collected by the landlord through the small claims
process, skirting the eviction moratorium. Eviction from manufactured housing community lots
may also be excluded from protection by the CDC eviction moratorium where the rent paid is for
the property but the resident owns the home. Additional requirements for this version of the
federal eviction moratorium include submitting proof that the resident previously sought federal
housing aid. Residents without reliable access to internet or technology may be unable to
access online forms for federal housing aid or to provide proof of submission of paper copies of
documents to housing programs.
Under previous federal and state eviction moratoriums during the summer of 2020, local low-
income legal service providers reported an approximately 50% increase in requests for services.
Based on the level of current economic recovery in the region, they are still anticipating a 30-
40% increase in community need from 2019 numbers for the remainder of 2020. Current annual
capacity for legal representation by a single attorney for low-income clients is approximately
225. Pre-COVID, low-income legal service providers were operating at 100% capacity, creating
a widening gap in resources during COVID recovery. Local legal service providers work with
residents from all of Larimer County, not just Fort Collins and without additional resources, the
unmet need for our residents will continue to increase exponentially over the next quarter.
Legal Defense Fund
City staff is exploring solutions for the short term to mitigate current risks using CARES Act
funding. Some of the strategies underway involve:
Allocating CARES Act funding for a mini-grant program with a competitive application
process seeking community partners for eviction legal clinics and direct client
representation for Fort Collins residents. The mini-grant program will be aligned with
Neighborhood Services’ existing mini-grant structure and processes to operationalize
quickly.
Allocating funding to increase community partners’ capacity for education through “Know
Your Rights” training for landlords and tenants.
Allocating funding for outreach and educational materials, as well as for translation and
interpretation services.
Advocating for and working with Larimer County Court to require printing of low-
income/income-qualified legal resources for defendants on the eviction summons that is
served to increase the time to connect with attorneys prior to filing deadlines.
Information regarding the legal defense fund will be included in regularly scheduled reporting on
CARES Act-funded projects and programs through the City Recovery Manager.
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Next Steps
Staff will launch a mini-grant application using Neighborhood Services existing model. The
application will be promoted among community partners. Staff will also collaborate with grant
recipients and community partners on a public engagement plan to promote events and
distribute information to residents. As these events and activities take place, staff will identify
components of these efforts that could be implemented as long term strategies. Additionally,
staff is exploring long term options for delivery and funding models for a City-managed legal
defense fund.
CC: Jacqueline Kozak-Thiel, Chief Sustainability Officer
Beth Sowder, Director, Social Sustainability
Paul Sizemore, Interim Deputy Director, CDNS
Marcy Yoder, Sr. Manager, Neighborhood Services
Amanda King, Director, Communications
Tyler Marr, Deputy Director, Information & Employee Services
SeonAh Kendall, Sr. Manager, Economic Sustainability/City Recovery Manager
Carrie Daggett, City Attorney
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