Treasury data shows Denver has spent only 2.7% of ERAP Funds as moratorium is lifted

By Robert Davis

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New data from the Treasury Department shows Denver has distributed just 2.7% of the $21.9 million in Emergency Rental Assistance Program (ERAP) funds it has received from the federal government.  

According to the data, Denver has distributed more than $800,000 in ERAP payments to a total of 126 households to date. All the distributions came between June and July.

Meanwhile, the Supreme Court ruled in an unsigned opinion that the Centers for Disease Control lacks the authority to impose the federal eviction moratorium, saying it must be done by an act of Congress. The move puts more than 42,000 families across the state in jeopardy of being evicted, according to the latest weekly Household Pulse Survey from the Census Bureau.

“Nobody should be evicted into a global pandemic, especially when there are millions in rental aid available to make all parties whole,” Sam Gilman, co-Founder of the COVID-19 Eviction Defense Project, said in a social media post.  

For its part, Denver is under contract with five nonprofit groups to administer its ERAP funds. The organizations include Brothers Redevelopment, Jewish Family Service, The Salvation Army, The Community Firm, and the Northeast Denver Housing Center. Combined, the five contracts are valued at more than $14.6 million, according to Denver City Council records. 

However, some service providers are struggling to reach qualified families who need assistance.

Shelly Hines, the director of community resources for stability at Jewish Family Service (JFS), told Denver VOICE in an email that her organization began processing applications just three weeks ago. The process is going smoothly she says, but most of the backlog stems from “getting required documents from the landlords and participants.”

“Sometimes leasing offices are short-handed, and it can take a while to get a response,” Hines said. “This is a considerable effort, and agencies are working diligently to get these funds out as quickly as possible. We believe the process will continue to speed up as agencies understand the funding guidelines and work out the bottlenecks.”

Both tenants and landlords can submit applications for ERAP payments through the Department of Local Affairs (DOLA) website. Parties in certain cities and counties can also apply for aid directly with local government or community organizations. 

According to the website, tenants need to provide documentation for five items: 

·       The landlord’s contact information

·       A government-issued ID for primary applicant and anyone over 18 who has zero income

·       Lease or other document showing you live at the property

·       Rent statement or ledger showing what you owe for rent

·       Income documentation for all adult household members

On the other hand, landlords need to provide documentation for the following:

·       Tenant’s name and contact information

·       A copy of the rental lease

·       A statement or ledger of rent owed

·       A completed IRS W-9 form

Once accepted, ERAP will pay all back rent owed since the pandemic began, the current month’s rent, and two months of future rent, according to DOLA’s website. 

However, this timeline cannot exceed 15 months in total, meaning the program won’t cover any rent from April 2020. 

Denver VOICE