San Diego City Council approved the creation of a rent relief fund Tuesday that could potentially help thousands of out-of-work renters.
The council unanimously approved the fund, saying renters likely owe thousands of dollars because of economic woes from COVID-19, and could be at risk of eviction because of rent not paid during the crisis. However, exactly how much will be in the fund and where the money will come from will take several weeks to hammer out.
City budget hearings are scheduled for next week and whatever comes out of that discussion will ultimately have to be approved by Mayor Kevin Faulconer, as well as a second vote by the council. Creation of the fund was proposed by Councilman Chris Ward who put the price tag at $61.9 million.
He suggested money for the program come from $248 million given to the city from the federal Coronavirus Aid, Relief and Economic Security, or CARES, Act. Requirements for how to use the money are open-ended, with rules saying it can be used to assist in recovery efforts.
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Ward said his office has heard from many diverse groups — from property owners to nonprofits — concerned that a large portion of San Diegans owe so much in back rent that they are at risk of becoming homeless.
“This is exactly the sort of thing that the (CARES Act) funding is intended to be used for,” he said.
However, some council members — minus Councilman Chris Cate, who was absent — questioned if using so much of the CARES Act money was a good idea and if funding should come from other sources.
“While I understand the concept, I want to caution against rushing to a temporary $62 million solution that would lead us to addressing only a fraction of those affected by their loss of income,” said Councilwoman Jennifer Campbell.
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The city has already enacted an eviction moratorium lasting until June 30 to prevent renters from being thrown out if they can’t pay rent due to COVID-19. The concern is once that it expires many San Diegans will owe more money in back rent than they can afford.
Ward’s plan called for money to be distributed by the San Diego Housing Commission and paid directly to landlords. Residents who qualified would be entered in a lottery.
His program would be for households that were making 60 percent or lower of the county’s area median income, about $92,700 a year, before the virus struck. That’s roughly $69,300 for a family of four. City staff says the program could potentially assist up to 15,000 San Diego households.
Unemployment in San Diego County was 15 percent in mid-April, its highest ever recorded, said the state Employment Development Department. The San Diego Association of Governments estimates it is closer to 30 percent now.
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Public support for the measure was strong among roughly 70 callers that phoned into the meeting. Many of the callers were active in the Black Lives Matter movement and spoke of a desire to use money for housing rather than law enforcement.
“With a 30 percent unemployment rate in San Diego, I think it is frankly unrealistic to expect people to be able to pay their rent,” said Lauren Sanchez from the District 3 area, which includes Hillcrest and North Park. “I think it is incredibly important to fund this program through the CARES Act, or . . . taking money from police. They have way too much anyways. Safety is more than just police safety, it is people having a place to live.”
Ward’s plan earmarked money for people specifically impacted by COVID-19. It gave priority to families with young children, seniors and those who are unemployed. San Diegans already receiving some type of housing assistance, such as Section 8 vouchers or living in subsided housing, would not have been eligible for the program.
This is San Diego’s first attempt at a rent relief program, although many states and communities are gearing up for similar proposals. For example, Los Angeles is considering an $100 million program and New Jersey is considering an $100 million fund for the entire state.
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The average rent in San Diego County was around $1,840 a month last week, said real estate tracker CoStar. Rent has only dropped about $15 so far, but CoStar predicts a 10 percent drop by the end of the year.
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