A Message From The CT Fair Housing Center

June 25, 2021

Below I have forwarded a message from the CT Fair Housing Center:

On June 24, 2021, the Centers for Disease Control extended its eviction moratorium until July 31, 2021. At the same time, the Federal Housing Finance Agency, HUD, the Department of Veterans Affairs, and the USDA extended their foreclosure moratorium until July 31. The State of Connecticut has not yet decided if it will extend its eviction moratorium. Most places that lifted their local and state eviction moratoriums have seen a surge of evictions. Indiana had a 658% increase in new evictions filed the week after it lifted its moratorium. Delaware had a 1806% increase in its first quarter without a moratorium. A similar increase would see Connecticut go from 670 monthly filings to between 4,408 and 12,093 monthly filings.
 
The State’s UniteCT program has done little to stem the tide of evictions having assisted 2,444 applications at the same time 2,403 new eviction cases were filed and 1,092 people entered homeless shelters.
 
The Governor still has the power to prevent the consequences of mass evictions by 1) extending the eviction moratorium; and 2) requiring landlords and tenants to apply for UniteCT before any action is taken to evict a tenant. Please join us as we work to help vulnerable Connecticut residents from losing their homes. 
 
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In today’s update:

  1. Additional resources
  2. Addressing UniteCT Issues
  3. Applying for UniteCT
  4. Consequences of Eviction
  5. Eviction/mortgage delinquency statistics
  6. Help for homeowners
  7. Help for tenants
  8. Moratorium status
  9. Mortgage foreclosure updates
  10. New federal efforts to stop displacement
  11. Tech bus schedule
  12. UniteCT Updates

Since March 15, 2021, when UniteCT began accepting applications:

  • 2,444 applications or 24.5% of the total fully submitted applications have been approved for payment of a rental and/or utility arrears. This represents $18 million in expenditures or 4.5% of the total funding allocated to Connecticut;
  • 1,092 people have entered homeless shelters. Only 25.1% of those exiting shelter went into permanent homes;
  • Landlords have filed 2,403 new summary process (eviction) cases; 
  • Courts have issued 962 executions—once a court issues an execution order, the landlord can hire a state marshal to remove the tenant and their belongings from the unit.

 
Racial and ethnic disparities continue in recovery from pandemic-related economic hardship: According to the latest data from the Household Pulse Survey, 11% of Latinx renters, 24% of Black renters, and 40% of people of two or more races are not caught up on their rent compared to 6% of white renters.
 
In addition, 16% of Black homeowners and 26% of Asian homeowners are not caught up on their mortgage payments compared to 10% of white homeowners. 
 
Consequences of Eviction
The nearly 65,000 tenants who currently owe rent as the result of the COVID-19 crisis are likely to suffer the following consequences when evicted:

  • Homelessness. With 1,092 people already living in shelters, many tenants who are evicted will double up with friends or family, or sleep in cars, parks, or other outdoor settings.
  • Spread of COVID-19. Recent studies have shown that neighborhoods with the highest eviction rates have the lowest levels of COVID-19 vaccinations. Evictions will result in spreading the virus and its newest variants throughout the State.
  • Inability to find another home. Since 2017, the Center has been evaluating the effect of eviction when people search for new housing. The testing reveals that an eviction is almost certain to lead to the denial of a new unit. More than 39% of landlords indicated they would not rent to someone with an eviction record while 61% said that if the tenant could prove the eviction was withdrawn or that the tenant was permitted to stay in the unit, they would overlook the eviction record.
  • Premature birth, low birth weight, and higher infant mortality. A study of mothers evicted during their pregnancies revealed that eviction harms infant health and development.

President Biden announces initiatives to support vulnerable tenants and homeowners: Today, the Biden-Harris Administration announced a series of actions to help state and local governments prevent evictions and foreclosures and promote housing stability. The Administration is calling for an acceleration of the distribution of ERA funds to renters and landlords in addition to an all hands-on-deck effort by local governments, courts, community organizations, and the legal community to create alternatives to evictions. The strategies deployed by the Biden administration include asking state and local courts to participate in eviction diversion efforts; using ARP money to prevent unnecessary evictions; accelerate and broaden state and local delivery of emergency rental assistance; ensure the 30-day eviction notice requirement for Federally-backed properties is enforced; make clear the Fair Housing Act must be followed; and, leverage government channels to reach vulnerable tenants and landlords. 

To prevent foreclosures, the Biden administration is extending the foreclosure moratorium for mortgages backed by HUD, the VA, USDA, and the FHFA until July 31, 2021. Once the moratoria end, HUD, VA, and USDA will take additional steps to prevent foreclosures on mortgages backed by those agencies until borrowers are reviewed for COVID-19 streamlined loss mitigation options that are affordable. The FHFA will continue to work with Fannie Mae and Freddie Mac to ensure that borrowers are evaluated for home retention solutions prior to any referral to foreclosure. 
 
Eviction and foreclosure moratorium status:
 Connecticut Eviction Moratorium expires June 30, 2021. This means that landlords cannot start most new eviction cases untilJuly 1, 2021, with four major exceptions. Review our fact sheet on the exceptions to the moratorium and make sure to respond to any eviction papers you receive. More information about the eviction process is available here.
 
The national Centers for Disease Control and Prevention’seviction moratorium has been extended to July 31, 2021. This protection is NOT automatic. It only applies to tenants who cannot pay full rent or other housing payments because they have lost income or have very expensive medical bills. To receive this protection, you must provide your landlord with a signed copy of the CDC declaration form. More information about eligibility requirements and how to complete the CDC declaration is available here.
 
Federal housing agencies extend their foreclosure moratorium until July 31, 2021:  HUD, Department of Veterans Affairs, the Department of Agriculture, and the Federal Housing Finance Agency (which backs mortgages by Fannie Mae and Freddie Mac)  will extend their foreclosure moratorium until July 31, 2021. In addition, these same agencies have extended their ability to get a forbearance through September 30, 2021. Finally, tenants living in multifamily properties with a Fannie Mae or Freddie Mac backed mortgage cannot be evicted for nonpayment of rent through September 30, 2021. Additional tenant protections include not charging tenants late fees or penalties for nonpayment of rent and allowing tenants flexibility in repayment of back rent over time and not demanding a lump sum payment. Finally, landlords evicting for reasons other than nonpayment of rent must give a 30-day notice.
 
No foreclosure moratorium on mortgages that are not “federally-backed” or non-mortgage foreclosures: Homeowners whose mortgages are not “federally-backed” or who owe condominium fees, real estate taxes, or other real estate related taxes are not protected from foreclosure. 
 
UniteCT Updates
On May 7, 2021, the U.S. Treasury sent out new guidance on nine enhanced policies to directly aid renters, prevent evictions, and help tenants transition to secure housing. In response to the new guidance, DOH has announced that it will make the following changes to the UniteCT program:

  • $15,000 in rental arrearage payments: Tenants will now be eligible to receive up to $15,000 in rental arrearage payments for any rent owed after March 13, 2020 regardless of the number of months owed;
  • No need to write-off 15% of arrears:  Landlords will not be required to write-off 15% of the rental arrearage;
  • Tenants not obligated to contribute to future rent for 3 months: If tenants are eligible for prospective rental payments through UniteCT, the tenant will not be required to contribute any rent for the first three months of prospective payments;
  • Income proxies reduce need for documentation:  UniteCT will use income proxies to determine eligibility. If an applicant lives in a low-income census block, the applicant will not be required to submit income verification. Instead, the applicant can sign a self-attestation that they have income at or below 80% of AMI and will not have to submit paystubs or tax returns;
  • Participation in other benefit programs qualify a tenant for UniteCT:  Applicants who receive benefits from Medicaid, SNAP, TANF, State Administered General Assistance (SAGA), and the state supplement will be eligible for UniteCT without additional income verification;
  • Public and subsidized tenants eligible:  UniteCT will provide benefits to tenants who live in public or subsidized housing. Anyone who has been denied benefits because they live in public or subsidized housing should contact doh-unitect@ct.govimmediately;
  • Landlord trainings on UniteCT: DOH is holding meetings with landlords to inform them of the changes in the program and to encourage them to participate. Go to www.unitct@ct.gov to see the latest training or to sign up for the next available training.

 
Applying for UniteCT/advice for completing an application: 

  • Application form:  UniteCT’s emergency rental and utilities assistance is available for individuals with a household income at or below 80% of AMI who have experienced a financial hardship due to the COVID-19 pandemic. Applications must be made on-line. A list of the documents which must be included with an application can be found here.  Visit https://portal.ct.gov/DOH/DOH/Programs/UniteCT to apply or call 1-844-864-8328 to get a referral to a community agency who may be able to assist tenants and landlords in applying.
  • Appealing a denial:  Tenants denied assistance from UniteCT will receive notice with instructions on how to appeal the denial. A tenant has 14 days from the date of denial to appeal by sending an email to unitectappeal@ct.gov stating the reason for the appeal.
  • Lack of confirmation email:  Tenants who have not received a confirmation email once their application is submitted should email: doh-unitect@ct.gov or call 1-844-864-8328.

 
The UniteCT mobile tech bus will be at the following locations for the week starting 
June 28, 2021:
UniteCT’s tech bus provides the necessary technology to apply for rental assistance. Tenants and housing providers who may not have access to the technology required to complete an application for rental assistance are encouraged to visit the bus. To learn more about the bus please contact the host agencies. 
 
Pawcatuck, CT
When:        Monday, June 28, 10am – 12 pm
Location:   Stonington Social Services, 166 S Broad St. Pawcatuck
Contact:    Leanne Theodore, Phone: 860-535-5015
 
Jewett, CT 
When:        Monday, June 28, 1 pm – 3 pm
Location:   United Family & Community Services (UCFS)- Griswold, 226 E Main St. Jewett City
Contact:    Pam Kinder, Phone: 860-822-4146
 
Norwich, CT
When:        Tuesday, June 29, 10am – 3pm
Location:   United Family & Community Services (UCFS) Norwich, 47 Town St. Norwich
Contact:    Pam Kinder, Phone: 860-822-4146
 
New Haven, CT
When:       Wednesday , June 30, 1 pm – 4 pm
Location:  Fair Haven Library, 182 Grand Ave, New Haven, CT 06513
Contact:    Gina Bingham, gbingham@nhfpl.org

Addressing UniteCT Issues
Complex program eligibility requirements, the voluminous required documentation, and technical challenges make it unlikely that UniteCT will successfully distribute its more than $400 million in federal rental assistance. The Center recommends the following changes to UniteCT to ensure stability and safety for Connecticut’s families: 

  • Under UniteCT, tenants must have written rental agreements to be eligible. If there is no written rental agreement, the landlord and the tenant must sit down together and write one. The rental agreement must have a holdover clause in it meaning that it has to say that the tenant has the right to stay after the agreement expires. Treasury guidance states that tenants who do not have adequate documentation of the amount of the rental obligation or the terms of their rental agreement may submit a written attestation. 
  • People who are paid in cash may have difficulty qualifying for UniteCT if they do not live in a low-income census tract and if their employer does not wish to provide the documentation. Treasury guidance states that if an applicant cannot provide written documentation of income, an attestation form can be used. 
  • Eviction filings are increasing and move outs that can be avoided are still happening because rental assistance is not getting distributed quickly or broadly. Tenants are in danger of losing their homes to eviction while they await a decision on their UniteCT applications. 
  • Tenants cannot edit incorrect contact information for their landlord making it impossible for some landlords to know about UniteCT and their tenant’s application.
  • The UniteCT website contains a button to translate all information into Spanish when the site is accessed on a computer, but not when accessed by phone or tablet.  The landlord and tenant FAQson the UniteCT website cannot be translated into Spanish.
  • The online application portal is not fully accessible for tools used by individuals with hearing and vision impairments. In addition, the UniteCT website does not provide reasonable accommodations for tenants with disabilities who cannot access the UniteCT website or application.
  • Translate the online application’s “Help Portal” into languages other than English. 
  • Provide assistance directly to tenants whose landlords refuse to participate in UniteCT as required by the Treasury guidance; 
  • Prohibit evictions and executions for any tenant who has a pending or approved UniteCT application; 
  • Conduct adequate tenant and landlord outreach;
  • Provide more intake support for tenants and landlords so that they can navigate the complex UniteCT system;
  • Ensure that tenants are approved, and appeals granted using equity-based strategies that are not based on whether the tenants “deserve” to be helped:
  • Include data on all information collected in the UniteCT application down to the census tract level so that everyone will know if the program is reaching the tenants who are most in need;
  • Require landlords to use an attestation form or check off list that states the monthly rental amount, amount owed, and a statement that the tenant has the right to stay in the unit as opposed to a written rental agreement; 
  • Fix the technical problems raised above including providing reasonable accommodations for tenants with disabilities who cannot access the UniteCT website or application;

 
Help for tenants
Visit the Center’s website for fact sheets on the Connecticut and CDC eviction bans and available rental assistance programs. FAQs about evictions, rental assistance, and housing discrimination during the Covid-19 pandemic are also available. 
 
Mortgage Foreclosure
 The CFPB’s research brief, “Characteristics of Mortgage Borrowers During the COVID-19 Pandemic,” shows the impact of the COVID-19 economic crisis on homeowners of color:

  • Borrowers in forbearance or delinquent are disproportionately Black and Hispanic. For example, 33% of borrowers in forbearance (and 27% of delinquent borrowers) are Black or Hispanic, while only 18% of the total population of mortgage borrowers are Black or Hispanic.
  • Loans in forbearance or delinquent are disproportionately likely to have limited equity, leaving those borrowers close to underwater and unable to easily sell their property. For example, half of all loans in forbearance have a loan-to-value (LTV) greater than 60%, compared to only 34% of current loans.  Borrowers who are behind on their payments but not in forbearance are more than five times as likely to have an LTV greater than 95% than borrowers who are current on their payments.
  • Forbearance and delinquency are significantly more common in communities of color (defined as majority minority census tracts) and lower-income communities (defined by census tract income quartiles).

For older mortgage news and data, please visit our website.
 
Help for homeowners
Connecticut is using federal Homeownership Assistance Funds to assist homeowners delinquent on payments: The American Recovery Plan included funding for homeowners in danger of losing their homes to foreclosure. Connecticut will receive approximately $123 million. DOH is working with CHFA to pilot a program that will provide up to $20,000 in grants to homeowners whose income is at or below 80% of AMI and who are socially or economically disadvantaged. A pilot program is expected to begin in July 2021. Details will be posted on the DOH and CHFA websites.
 
Foreclosure advice: The Center is holding Foreclosure Advice Virtual Sessions. Homeowners facing foreclosure can sign up for advice sessions over video or phone. These Sessions are in addition to the considerable number of videos and materials available at www.ctfairhousing.org.
 
Additional resources
 Payments to help with internet access:  The Federal Communications Commission has launched a temporary program to help families and households struggling to afford Internet service during the COVID-19 pandemic.  The Emergency Broadband Benefit provides a discount of up to $50 per month toward broadband service for eligible households and up to $75 per month for households on qualifying Tribal lands. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers. Eligible households can enroll through a participating broadband provider or directly with the Universal Service Administrative Company (USAC) using an online or mail in application.
 
VISIT OUR WEBSITE FOR MORE INFORMATION ABOUT YOUR FAIR HOUSING RIGHTS IN ENGLISH, SPANISH, MANDARIN, VIETNAMESE, FARSI, RUSSIAN, ITALIAN, KREYOL, ARABIC, KHMER, AND TAGALOG. 
 
Outreach:  To schedule trainings on COVID-19 protections for tenants, foreclosure prevention, fair housing or constituent outreach please contact Rashida Rattray, at rrattray@ctfairhousing.org