BEVERLY HILLS—On Wednesday, May 13, Los Angeles County Supervisor Mark Ridley-Thomas announced that he is working with the Los Angeles Community Development Authority (LACDA) for a $1.8 million federally funded Emergency Rental Assistance Program. This decision came as a result of homeowners, renters, and landlords who are struggling to pay their rent and mortgage.
Executive Director Emilio Salas of the Los Angeles Community Development Authority stated:
“The COVID-19 Emergency Rental Assistance Program, is for income-eligible renters that were impacted by the pandemic. It will provide a lifeline to assist in paying their rent.” Salas added, “For our property owner community, many of whom are mom-and-pop providers of rental housing. It will provide help to meet their mortgage obligations on rental properties.”
Within the Coronavirus Aid, Relief and Economic Security Act (CARES Act) one million dollars has been apportioned to renters who are eligible for the grant. If approved one thousand dollars will be applied to their rent for up to three months. The Board of Supervisors voted to extend LA County’s eviction moratorium to June 30, with the hope of extending the moratorium every 30 days under the COIVD-19 crisis.
Christian Weber, a Senior Property Manager of a luxury apartment building in Los Angeles County stated:
“This program is approved with good intention, but there are a lot of nuances to it. For people who take gig work and do not receive unemployment then they could be eligible for the CARES Act grant. Although, receiving unemployment could change their eligibility status. A lack of income means residents are unable to pay their rent during this time, and that puts them at risk for eviction. The moratorium could cover them, but eventually that deferred amount will have to be paid.”
Residents within larger rental properties have decided to go on a rent strike, seeking to gain a discount on their payment amount. Once the Stay-at-Home order has been lifted, they have 12 months to pay the deferred amount they accumulated. Any payments not fulfilled within the allotted time, could go into debt collections and affect their TransUnion score. Without payment from tenants the property will be unable to pay their property tax and mortgage, as a result the property will fall under foreclosure and the bank will hold ownership of the property.
All applications must be submitted by May 31. Applicants can dial 2-1-1 or visit the website 211LA.org/covid-rental-help.