Attorney Explains Why Emergency Rental Assistance is Delayed

It has been over two months since the federal government distributed $25 billion in rental assistance to states and local governments. Yet, most of that money has yet to be distributed landlords and tenants. Find out why in this video!

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At the end of 2020, approximately 10 million renters were behind on their rent with an average rent arrears of $5,600 and a total back rent burden of $57.3 billion.

On December 27, 2020, President Donald Trump signed into law the Consolidated Appropriations Act which appropriated $25 billion dollars in federal funds toward rental and utility assistance. The money was distributed to all States and local governments which have populations of two hundred thousand residents or more in January of 2021.

On March 11, 2021, President Joe Biden signed into law The American Rescue Plan of 2021, which included an additional $21.55 billion in additional emergency rental assistance.

Despite these appropriations from the federal government, most landlords and tenants have yet to receive any funds. As of April 1, 2021, approximately 50% of all local governments and states have begun accepting applications, and many of those are still weeks or even months away from distributing the funding.

What is causing the delay? There are three main reasons:

1. Lack of Infrastructure
- states and local governments do not have the systems in place to process the huge volume of applications and payout millions and billions of dollars to recipients
- they have outdated technology or no technology at all
- in many instances they either have to build it or outsource this task to a contractor
- depending on the state and local law requirements, local governments have to go through a tedious RFP, or request for proposal process, in order to legally contract with a private company to do this work
- this requires a bidding and review process which takes time

2. Insufficient staffing
- even when the local governments decide to handle the application process themselves, they often have insufficient staff to accomplish the task
- remember in order to pay the money to those who qualify, someone needs to review each application and make a decision on qualification
- in many cases there are tens of thousands of applications and it takes a lot of man hours to review them all
- the governments are allowed to use up to 10% of the funds they receive to hire more staff, but that process takes time as well

3. Political Gamesmanship
- it's no secret that politics always plays a role whenever government tries to give out money
- it's not different in this case

- for example, in New York, the more progressive wing of the democratically-controlled legislature wanted to include a "for cause eviction" requirement as well as a complete cancellation of outstanding rent, as part of the bill that would authorize the state to distribute the federal rent assistance money, despite the fact that the federal law required no such limitations in order for the state to distribute the funds
- just today, several Republican lawmakers held press conference and criticized Governor Cuomo for failing to move forward to make the funds available to those who desperately need them

The bottom line is that States and local governments need to do everything in their power to move as quickly as possible and to avoid unnecessary delays and bureaucratic nonsense. There are millions of renters who are behind on rent and at risk of eviction and hundreds of thousands of landlords who are unable to pay their taxes, utilities, and mortgages. The states and local governments have the money in hand. No excuses. Get this shit done. Period. Get the money out to people who need it.

#RentalAssistance
#EmergencyRentalAssistance
#SucceedREI

[SucceedREI]

Did your state and/or local government open the rental assistance program? Let me know what states/counties you are watching from! Like and subscribe if you find this video interesting 🙏

[tunatic]

Would the last person out of New York please turn off the lights

[gregorsonrider]

🤣😂love the introduction! Shame this is not in the news

[christelthrasher]

So because of some politics you know untaken care of business that was concerning the American people and the landlords that a mortgages I think that they should be ashamed of themselves they should be ashamed of themselves just right here in Texas there are over 3, 000 evictions right now as we speak because of that issue because they're taking 90 days to 120 days to get the money to the landlord which is absolutely ludicrous it is unfair and it's politically cynical they should be ashamed I know so many people that are in the street because of that now and it just it's unacceptable I don't understand how our Republicans and our Democrats cannot agree on anything and the American people are the ones that suffer in the end they still got money in their pocket they still live in their homes and these people in people with small children outside in the street shame straight up shame I think everybody should withhold their taxes don't pay another Penny taxes until these are asshole government gets their stuff together and takes care of their people

[luisayala]

California, los angeles county is accepting applications but is taking a long time to answer, I applied three weeks ago, And I have not yet get an answer

[andreaw.]

Florida has a program called "Our Florida" that has been giving the Florida Residents the run around for months!!!

[lj]

In NJ some counties have a waiting list Lottery, is that even legal?
They get to play games with who gets the help or not!? 🤨

[GoddessBr]

I still haven’t received my funds. I’ve been calling at least 4 times a year since 2020 and I all get is “ it’s still under review” I don’t know what to do at this point.

[deweyLangford]

La county ca here my boyfriend's status has said funded for a long time now but still not distributed how is that ?

[joycemayo]

Thank you so much for addressing this topic.

[mohammedislam]

I am uber DRIVER, I applied rent relief program and they denied, my income is low

[anwarmohamed]

I requested one time and they help me out one time am I qualified for rent

[christyb]

Im in West Virginia. I applied 2 weeks ago when the program finally opened up. Have not heard a thing about it. I chatted online with them..they said they have no timeline.

[HopeRanch]

Covid rent relief funds are sitting in the accounts of counties and community organizations. Something needs to happen to get them to start sending money to landlords or renters. I applied for help months ago earlier than most, and they say I am on a "wait list". Marion County, Oregon

[janeenmoore]

Mississippi has started the process but have not released any funds yet. This is a joke. The states are keeping the money.

[marier]

CA opened 3/15/2021, I applied 3/16/2021 but no update no phone call or email it’s just crazy and stressful.

[williamsignorile]

Well we’re from the same state New York. The apartments in Queens Forest Hills. How can I The landlord file to get emergency rent relief when the tenants do not want to cooperate anymore

[genevievelovell]

Are landlords allowed to ignore non-paying tenants? Aren’t leases still valid with non paying tenants? My neighbors violate noise levels almost every night after 10PM. I’m positive not all them are up to date rent wise except me, and yet nothing changes about them breaking the noise ordinance in the lease! Outrageous, it really is true some people only care about money, and not even when or where it came from!

[rgcwow]

Vitali,
I think you replied to my prior comment while I was editing the local info you asked for into it, which I did not finish and post before your reply to it. No further reply from you expected.

[waynecmontgomery]

Great video!!! I always enjoy your videos. Can you do a video on the Corporate Transparency Act 2021? Also the 2019 New York corporate disclosure law? I hear that if you are publicly traded company in California you have to have a woman on your board of directors