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HomeMy WebLinkAboutMemo - Read Before Packet - 2/16/2021 - Memorandum From Jc Ward And Leo Escalante Re: Legal Defense Fund For Eviction Protection (Resending Memo Dated September 9, 2020)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 request on August 18, 2020. Background: The COVID- 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 - burdened families % 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 Re-sent to Council on 2/16/21 per LPT request. /sek sing 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 legali 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 existing mini-grant structure and processes to operationalize quickly. education s 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. 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