A crisis is coming for NC renters and landlords

It is becoming increasingly clear that far too many North Carolina families are at risk of displacement as a result of an inability to pay rent, without any means of assistance. Unless Gov. Roy Cooper, the General Assembly and local governments act in a concerted and coordinated way, housing providers and the residential tenants who rely on them will face dire economic circumstances that could jeopardize the stability of the rental housing supply in North Carolina.

We are writing as leaders of North Carolina groups that represent or work with apartment owners, affordable housing developers, tenants, homeless families, and individuals and homeless/housing service providers. We know all too well the critical role the apartment industry in North Carolina has played in responding to the COVID-19 outbreak in communities across the state. Rental housing owners and operators provide homes for nearly 1.5 million families and take seriously the responsibility to ensure that residents are safe and secure.

Our organizations, alongside many others, are working alongside public officials to put residents and employees at ease, pointing them to existing assistance and working to provide direct support. Unfortunately, the need is too great, and resources need to be made readily available to help alleviate the financial burdens caused by COVID-19.

Fortunately, much needed and critical efforts to create emergency assistance funds to help renter households are in the works at the legislature, such as House Bill 1200, “Foreclosure Prevention Grants/Rental & Utility Assistance.” There are also funds available to the Governor and the agencies he oversees that should have been deployed by now.

Eviction and summary ejectment hearings have been postponed since March 13. During this time, many housing providers have offered payment plan options, moved to electronic payments and waived late fees to accommodate the circumstances of this pandemic. Unfortunately, these efforts by one segment of the economy are not sustainable and cannot replace the type of aid that is required to mitigate the loss of income tenants have experienced.

A record 1 million North Carolina workers — approximately 20 percent of the state’s workforce — have applied for unemployment benefits since March. Given that number, we expect a significant number of residents will be affected by furloughs or job loss, which will inhibit their ability to pay their rent.

Our state should be gravely concerned about rental housing providers’ ability to keep up with their financial responsibilities and the uncertainty that faces individuals and families who rent. Owners and operators rely on rental income to pay employee payroll, mortgage payments, taxes, insurance and, importantly, use these funds to maintain continuity of essential services for apartment communities and rental homes as many renters must shelter in place.

In addition to those pressing concerns, there is an ongoing housing affordability crisis — brought on by a housing supply shortage and crumbling infrastructure — that existed long before the onset of the COVID-19 crisis. If lawmakers do not act, this crisis, paired with the current economic downfall, will only worsen. Residential rental owners and operators’ employees and residents need additional economic relief.

This story was originally published June 21, 2020 at 12:00 AM with the headline "A crisis is coming for NC renters and landlords."