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HomeMy WebLinkAboutMemo - Mail Packet - 2/2/2021 - Memorandum From Jc Ward And Sue Beck-Ferkiss Re: Covid Recovery Systems - Eviction Avoidance And Response281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax Planning, Development & Transportation MEMORANDUM DATE: January 28, 2021 TO: Mayor Troxell and City Councilmembers THRU: Darin Atteberry, City Manager Kelly DiMartino, Deputy City Manager Caryn Champine, Director, Planning, Development & Transportation Jacqueline Kozak-Thiel, Chief Sustainability Officer, Sustainability Services FROM: JC Ward, Sr. City Planner, Neighborhood Services Sue Beck-Ferkiss, Social Policy & Housing Program Manager, Sustainability Services RE: COVID Recovery Systems Eviction Avoidance and Response This memo is a response to the request for information from the January 5, 2021, City Council meeting on proactive eviction avoidance and response plans for Fort Collins residents and the anticipated increased need that will accompany the expiration of state and federal eviction moratoria. This memo provides information on City staff efforts and community partnerships to support residents with ongoing eviction prevention resources and provides an update on short- and long-term proactive strategies to help residents. No immediate action from City Council is requested at this time. Background: As of December 2020, the COVID-19 Eviction Defense Project estimated nearly 336,000 Coloradans (20% of all renters) would be at risk of eviction by the January 31 st federal eviction moratorium expiration already expired on December 31, 2020. The COVID-19 CDC federal eviction moratorium order, effective through the end of March, offers limited protection for Fort Collins residents. Only evictions for nonpayment of rent are prohibited under the order and local service providers report landlords avoiding earlier 2020 eviction moratoria by filing the eviction for reasons other than nonpayment of rent. COVID-19 related funds have recently been made available for rent and utility assistance to local residents. In early December 2020, Colorado state lawmakers approved approximately $54 million for rent and mortgage relief to be distributed through existing state programs. The latest federal COVID relief package funnels $25 billion to states to help renters and homeowners catch up on payments. Colorado will receive an estimated $383.3 million of those funds. However, residents could lose their housing while waiting to be approved for the new assistance funds. Property owners also have an increased assistance program from the State of Colorado to compensate for lost rental income. The Colorado Property Owner Protection saw quadruple the number of applications in December and implementing agencies are struggling to process applications and distribute funds within the three-to-four- week turnaround time. Though eviction cases filed in county courts in Colorado slowed significantly during the first few months of the pandemic, cases spiked again during the summer months when no eviction moratoria were in place. The incoming federal administration may extend the federal eviction moratorium further into 2021 but could opt to end it at any time with little notice. Under previous federal and state eviction moratoria during Q3-4 of 2020, local low-income legal service providers reported an approximate increase in requests for services of 10 times their usual average. Based on the level of current economic recovery in the region, they are still anticipating a minimum 30-40% increase in community need over 2020 numbers for the remainder of 2021, an estimate that relies on an eviction moratorium being in place through at least Q2 2021. All pro bono legal service providers consulted expect to hit the edge of an a expire and are unable to project the need for their services in this unprecedented time. Current annual capacity for legal representation by a single attorney for low-income clients is approximately 225 cases. 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 likely continue to increase exponentially over the course of the pandemic. Current responses: CARES Act Eviction Legal Defense Fund 2020 Coordinated by Neighborhood Services Timeline: Ended December 2020 City staff allocated CARES Act funding in Q3-4 2020 for a mini-grant program with a competitive application process to identify and contract with community partners for eviction avoidance education programs, outreach, legal clinics, and direct client representation for Fort Collins residents. Colorado Poverty Law Project, Fuerza Latina, and The Family Center- La Familia provided outstanding services for the program, keeping an average of four families per week in their homes through direct legal representation and reaching more than 150 additional residents with self-advocacy resources and legal advice clinics in the ten- week program. The community need for this type of programming was evident even with both state and federal eviction moratoria in place throughout the duration of the program. Expanded Rent Assistance Programs Coordinated by Social Sustainability Timeline: Ongoing Per the Colorado Division of Housing, the Property Owner Protection Program has assisted approximately 250 households in Fort Collins, representing 45 properties, with a total assistance amount of $455,265. (81 households applied and received assistance more than once). 82 additional requests are under review seeking another $132,000 in assistance. In Fort Collins, CARE Housing submitted for 42 households in October and 66 combined for November / December for a total of $112,000 in assistance while Neighbor To Neighbor submitted for 11 households and has received $32,216 so far. This contrasts dramatically with the Emergency Housing Assistance Program funds provided directly to households through community partner, Neighbor To Neighbor. Between April 2020 and January 3, 2021, 1,743 Fort Collins households received rent assistance for eviction avoidance or move-in assistance for a total of $1,311,910. The average household income of the Neighbor To Neighbor recipients during this COVID-19 response and recovery is 24% AMI. An additional $3 million in State EHAP was awarded to Neighbor To Neighbor to be distributed through June 2021. Beginning in January 2021, For households unable to complete an application in the online portal, flexible funds will be needed to meet demand. In December, $300,000 in flexible funds/donations were distributed using volunteers to process applications and including 100 undocumented applicants processed by bilingual Neighbor To Neighbor staff. 2020 City Rent Assistance Contributions Type of Assistance Amount Dates Covered by Assistance Funding Source N2N Rent Assistance $163,570 4/1-9/30/20 CDBG-CV (One- time) N2N Salary of Rent Assistance Staff $63,545 4/1-9/30/20 CDBG-CV (One- time) N2N Rent Assistance $67,500 10/1/20-9/30/21 CDBG Annual (One- time, renewable) N2N Salary of Rent Assistance Staff $67,500 10/1/20-9/30/21 CDBG Annual (One- time, renewable) N2N Rent & Housing Assistance $342,782 9/1-12/31/20 CARES Act (One- time) Salvation Army Rent Assistance $17,024 9/1-12/31/20 CARES Act (One- time) Disabled Resource Services Rent Assistance $3,225 6/1-12/31/20 CARES Act (One- time) Salvation Army Rent Assistance $4,507 1/1-12/31/20 General Fund HSP (One-time) N2N Rent Assistance $12,803 1/1-3/31/20 General Fund HSP (One-time) Expanded Utilities Assistance Programs Coordinated by Utilities Customer Connections Timeline: Ongoing In 2020, Utilities staff and local partners implemented a number of measures to keep utilities customers connected and help with past-due utility bills. o City staff allocated CARES Act funding for utilities payment assistance and distributed $547,647.59 to 1,323 residential and 43 commercial customers. o The Payment Assistance Fund distributed $323,591 to 847 income-qualified customers who had past-due bills. o Utilities donation campaign raised $61,380 which was a record amount for the program. o Staff worked to recruit additional Payment Assistance Fund distribution agencies to build capacity for distributing funds. One agency is currently in the process of applying to become a distribution site. o Late fees and reconnection fees have not been assessed since April 2020. o Utilities disconnects have been suspended since April 2020. o Staff have worked with local partners to provide additional who owe more than $1000, which is the maximum amount a customer can now receive via the Payment Assistance Fund. o Payment arrangements allow customers up to six months to pay past-due balances. o Utilities staff created a payment arrangement worksheet to help customers navigate the payment arrangement and assistance process. The worksheet is being distributed via community partners and customer service representatives and will be available in English and Spanish. 2020 City Utilities Assistance Contributions Type of Assistance Amount Dates Covered by Assistance Funding Source Salvation Army Utilities Assistance $975 9/1-12/31/20 CARES Act (One-time) Disabled Resource Services Utilities Assistance $81 12/1-12/31/20 CARES Act (One-time) Salvation Army Utilities Assistance $3,680 1/1-12/31/20 General Fund HSP (One-time) Residential Utilities Customers with Past-Due Balances $510,706 10/1-12/31/20 CARES Act (One-time) Energy Outreach Colorado Utilities Assistance $323,591 1/1-12/31/20 Utilities Payment Assistance Fund (One- time $45,000); CARES Act (One-time) Recommended Eviction Avoidance and Response in 2021 Continue Eviction Legal Defense Fund into 2021 Potential coordination by Neighborhood Services or Social Sustainability Timeline: Once funded, the project would run through FY 2021 Identified as a critical path for the City during the COVID-19 response and recovery, an extended Eviction Legal Defense Fund modeled after the CARES Act funded pilot that was coordinated by the Neighborhood Services Department would assist with meeting numerous City Strategic Goals related to housing stability, neighborhood livability, and equity. Extension or expansion of this project has cross-departmental synergy and is seen as a beneficial complement to ongoing housing stability work by Social Sustainability, Neighborhood Services, and Utilities. External partners, Colorado Poverty Law Project, Colorado Legal Services, Fuerza Latina, and The Family Center-La Familia, have also expressed the pressing need for continuation of this project through the course of the pandemic. 2021 Eviction Legal Defense Fund could follow the application and contracting process of the pilot for rapid deployment and could be housed in the Neighborhood Services as part of the mini-grant program or in Social Sustainability as part of CARES Act or other regular grant-making programs. Administrative support for an extension of the program would require additional resources for the home department of the project. A longer duration for program implementation would also create opportunities for local legal service providers to hire a designated attorney and bilingual paralegal to represent clients at risk of eviction. The approximate annual cost for this program to fund direct legal representation to local clients, educational and self-advocacy resources, and legal clinics to provide situation-specific legal advice is $125,000. This strategy is included as a quick win in the draft Housing Strategic Plan (www.fcgov.com/housing), and staff is exploring if CARES CVRF funding can continue in 2021, or if other funding sources will need to be identified. The project is not currently funded and the longer this unmet need for local residents continues, the more challenging housing recovery will be for the Fort Collins community. Mediation and education support for eviction prevention Coordinated by Neighborhood Services Mediation & Restorative Justice Timeline: Ongoing The City of Fort Collins will continue existing education and outreach programs for landlord- tenant issues and offer dispute resolution services in English and Spanish through the Community Mediation program. Continue rent assistance funding through community partners Coordinated by Social Sustainability Timeline: Ongoing with annual application process Annually upon application, Neighbor To Neighbor has consistently been awarded funding for Grant Commission in the competitive process is from federal and city sources. In 2021, Neighbor To Neighbor has requested $400,000 needed in gap funding from the Community Development Block Grant program and Staff anticipates at least $300,000 available to meet this request. Continue expanded Utilities payment assistance Coordinated by Utilities Customer Connections Timeline: Ongoing throughout COVID-19 recovery City staff will look for additional opportunities to secure funding to offer expanded utilities assistance. Staff will also continue to conduct direct outreach and will work with community partners to connect customers with delinquent accounts to payment assistance programs. Additionally, the process of resuming shutoffs will be evaluated regularly and implemented based on best practices and careful assessment of the local economic situation. Coordinate or assist with staffing/volunteer needs from community partners Coordinated by Social Sustainability, Neighborhood Services, Utilities Customer Connections, and Volunteer Services Timeline: As needed during COVID-19 recovery City Staff will maintain regular communication with community partners and other direct service providers of programs related to housing stability, rent assistance, and utility payment assistance to determine their unmet needs for staffing or volunteers for customer service, application processing, and data entry. Volunteer Services may be able to connect City volunteers with partner organizations or City Staff may provide combined customer services to support and promote available resources. Outreach to community partners Coordinated by Vulnerable & Susceptible Populations Team of cross-departmental internal stakeholders Timeline: Ongoing since March 2020 City Staff will continue to provide outreach to all external stakeholders regarding City resources, programs, and services, with an intentional focus on emerging or expanded programs to meet housing-related community needs. The cross-departmental Vulnerable & Susceptible Populations Team is collecting detailed information on local resources to assure the City is aware of as many resources as possible. The Team will also continue to coordinate outreach material distribution through community partners and local service providers. Eviction avoidance, prevention, and defense outreach materials will be available in English and Spanish, as printed copies, and online. Explore Larimer County Court eviction process Coordinated by Neighborhood Services and Social Sustainability Timeline: Research/Relationship-Building in Q1 & 2 2021; Implementation target Q3 2021 Through research for the CARES Act Eviction Legal Fund pilot, City Staff discovered that a barrier to pro bono legal representation for eviction defendants is the timing of eviction hearings. Currently, no pro bono legal services for civil cases have a regular presence in Larimer County Court to assist eviction defendants with filing a response to the complaint filed against them. Even if pro bono legal counsel was available in the courthouse on the day of the eviction hearing, the 8:15 a.m. start time would not allow defendants to consult with the attorney in order to draft and file a response on the same day. Adams County partnered with Colorado Legal Services to provide an in-courthouse attorney specifically for eviction hearings and worked with the chief judge to delay eviction hearing start times by two hours, which is proving successful in getting tenants legal advice and representation. City Staff is reviewing the Larimer County process, identifying possible barriers, and brainstorming solutions with court staff in the next month. Explore standardized alternative dispute resolution for eviction cases Coordination by Neighborhood Services Mediation & Restorative Justice Timeline: Research Q1 & 2 2021 voluntary landlord- tenant conflict resolution. With recruitment of skilled volunteer mediators for housing-specific issues, this program could be expanded to include a courthouse-based eviction mediation program that judges could offer as an alternative to the eviction hearing. A number of other states already operate in this way through trusted partnerships. Influence Larimer County to include available resource contacts on Summons or Court Instructions served Coordinated by Social Sustainability and Neighborhood Services Timeline: Research Q1 & 2 2021; Implementation Target Q3 2021 As part of the Service of Process required for a legal eviction, the tenant must be served with the Summons and Complaint indicating the time/date/location of the hearing at least seven days in advance. Including contact information and available resources for local pro bono legal services with the Summons or other attached Court Instructions would give residents additional time to contact an attorney for legal advice prior to the hearing, increasing their potential for eviction avoidance or negotiation. Next steps: Staff will continue to monitor the federal eviction moratorium to determine whether it will be extended past March 2021. Staff will continue existing programing to support landlord tenant conflict resolution and will work with partners to systematically improve access to resources, including legal representation, and to prevent unnecessary displacement due to eviction. Although no immediate action is requested from City Council at this time, City Staff from CDNS, Social Sustainability, and Utilities appreciates the continued support and prioritization of projects related to housing stability during COVID-19 community recovery. CC: Beth Sowder, Director, Social Sustainability Paul Sizemore, Interim Deputy Director, CDNS Marcy Yoder, Sr. Manager, Neighborhood Services