Biden issues targeted eviction moratoriums, but money to pay the rent is just sitting there

From COVID-19 to the collapse of the economy that followed, the nation has had plenty of disasters for which it was caught unprepared. But the brewing eviction crisis is not one of them.

Even as President Joe Biden took the legally questionable step Tuesday of partially reinstating a federal moratorium on evictions that had expired last weekend, the money for months has been there to pay the rent.

Congress allocated $25 billion in rental assistance in December and an additional $21.55 billion in March.

The problem – quite simply – has been getting the cash from A to B. Only $3 billion has gone out to renters since states received the first tranche of funds Feb. 10, and there's more than enough blame to go around. That leaves $43.55 billion unspent.

Lack of awareness, confusion about aid, how program works

The Biden administration and state governments could have done a better and more creative job of making Americans aware of the relief. Even as late as May, more than half of renters and 40% of landlords didn't even know the program existed. And among those aware of the program, there was confusion about how it worked.

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The federal government took weeks to notify states they could ease back on some of the onerous paperwork the previous administration required to apply for relief. 

And while it certainly isn't easy for any state to quickly implement a new federal benefit, some seemed to have moved at a glacial pace. Dozens of state and local governments didn't begin disseminating funds until May. Rhode Island, to name one, started issuing relief payments in May, but only to six households. By contrast, Virginia and Texas moved more rapidly, and had doled out tens of millions of dollars by early July.

In recent weeks, as a new variant of the coronavirus has caused the pandemic to come roaring back, liberal Democrats have angrily demanded that Biden issue an executive order extending the moratorium on evictions. It was originally issued by the Centers for Disease Control and Prevention last year, at a time when the viral outbreak was decimating the economy and nearly 30 million risked losing their homes for lack of rent money. The moratorium was extended several times since.

Biden initially complained that his hands were tied after a majority of the Supreme Court, in responding to a lawsuit by landlords in June, indicated the CDC exceeded its authority and the moratorium must end July 31.

But under intense pressure from his party's liberal wing and a plea from House Speaker Nancy Pelosi, Biden acquiesced Tuesday and the CDC issued a new moratorium through Oct. 3 targeting “counties experiencing substantial or high rates of transmission” of COVID-19.

If that holds up in court, which is open to question, the new eviction ban will allow additional time for rental relief payment to reach tenants. But through all this, the rights of landlords should not be dismissed. They have lost money for nearly a year under the previous moratorium. Forty-one percent of individual rental units are mom-and-pop operations, and many rely on that income to pay their own bills. In Arizona, 11% of landlords have been forced to sell property and 12% have gone out of business, according to an advocacy group.

Stakes are high, solution is waiting

The bottom line is that this is a crisis with a solution waiting in the wings. Federal and state governments could do a better job of raising awareness of the rental relief program. Biden could talk about it. Alerts could be issued at vaccination sites, or people could be informed about it when they visit food pantries and shelters, or through programs administering Medicaid or food stamps.

In communities where the new moratorium doesn't apply, or should it expire or be struck down by the courts, judges handling eviction cases could divert them until landlords and tenants cooperate to seek federal rental assistance – certainly the most effective way for property owners to recoup missed payments. 

The stakes are high. More than a million people fear eviction without a moratorium.

Biden stood before a joint session of Congress in April to make the case that government can still get things done for the American public. "We have to prove democracy still works," he said, "that our government still works and we can deliver for our people."

This eviction crisis could very well be a crucial test of whether the president's right.