‘No pay, no stay.’ Coronavirus may force renters from their homes.
With coronavirus shuttering businesses and putting droves out of work, significantly more people won’t be able to pay rent on April 1, affordable housing advocates say.
North Carolina Chief Justice Cheri Beasley issued an order March 13 halting eviction and foreclosure court hearings for 30 days. A later order relieved county sheriffs’ obligations to execute eviction removals already underway.
But while some landlords are allowing payment arrangements, waiving late fees or even foregoing April’s rent, others plan to file for eviction against those who don’t pay, property managers and others said. That could mean a torrent of evictions in Mecklenburg County once the court’s moratorium ends next month, housing activists and others said.
In Mecklenburg, 44% of renter households spend more than 30% of income on housing costs, the federal definition of being “cost-burdened,” according to a report prepared by UNC Charlotte’s Urban Institute for Mecklenburg County.
Housing experts say cost-burdened families often struggle to meet other basic needs such as food, medication or transportation. This is especially true for low-income, African-American and Latino households, which have higher rates of being cost-burdened by rent than the overall population.
Now, a sudden loss of income for many low-wage workers working in restaurants, retail and other industries temporarily shuttered during the coronavirus response could significantly worsen the already dire affordable housing crisis here.
‘Our expectation is that rent will be paid on time’
A letter sent to tenants of properties managed by Bowman Property Management highlights this challenge, according to a resident who shared a copy with The Observer.
“We empathize with any of our tenants who have experienced hardship during this season in the form of medical or financial,” the letter begins. “With this being said ... we want to remind you that the terms of the lease are in effect in good times and bad, and our expectation is that rent will be paid on time, with no questions asked.”
Delinquent tenants would be subject to standard late policies, “which include a 5% late fee being added to your account, and eviction proceedings taking place,” according to the letter.
The tenant called it “tone-deaf.”
The resident, who rents a Bowman-managed property near UNC-Charlotte and did not want to use his name for fear of retribution, said he was offended by the lack of flexibility offered.
Though he has a stable job now, he said he “grew up with not a lot” and knows most people don’t have the savings to handle a massive economic upheaval like the coronavirus pandemic is creating.
”These are not people who are making poor life choices, these are everyday, working people,” he said. “To have that lack of empathy is upsetting to me.”
Judy Seldin-Cohen, an affordable housing advocate, blasted Bowman Real Estate for sending the letter.
“So many employers and vendors such as banks and utilities are responding with flexibility to this crisis,” Seldin-Cohen said. “It is unimaginable that this property management company is conducting business as usual.”
Michael Bowman, founder of Bowman Real Estate, said he was justified in sending the letter to tenants. The company manages 500 rental properties for landlords, primarily in the Charlotte metro area.
Bowman said as a property manager he represents landlords, who must pay mortgages and other expenses. He said he is simply following the “letter of the law.”
“It’s important in times of uncertainty to make our expectations very clear,” Bowman said. “The terms of the lease still apply.”
He said that rent is typically due on the first of the month and considered late on the sixth of the month. He said he typically does not file eviction papers until the 15th or 20th.
Bowman acknowledged that some landlords are handling the coronavirus in different ways, but said he has been successful in business by sticking to his philosophy: “No pay, no stay.”
“I can’t just sit by while my delinquencies go up and people live in the house for free,” he said. “This is an imperfect situation. ... (Landlords) need money to pay their bills too.”
Landlords are facing similar problems others have endured because of the coronavirus, said Kim Graham, executive director of the Greater Charlotte Apartment Association.
Some might lose their jobs or have trouble scraping together enough money to pay for their own housing, Graham said. In response to so many people being put out of work, Graham said some landlords are allowing tenants to make payment arrangements and waiving late fees.
Tenants who have a history of on-time payments are more likely to get a break than those who already have missing payments or pay late, she said. Landlords want to avoid eviction proceedings because they are costly and time consuming.
“Everyone in some way is financially hurting,” Graham said. “We’re all trying to not drown in the coronavirus sea.”
‘The balances will pile up’
Despite a temporary pause in evictions, advocates, nonprofit leaders and some public officials expressed concern about the long-term effects of the pandemic for the area’s housing crisis.
Crisis Assistance Ministry, which provides clients with payment assistance for rent and utilities, typically helps 72 people a day avoid eviction or having their utilities turned off. The average assistance payment is $400.
“Even with the temporary reprieve, the balances will pile up,” spokeswoman Liana Humphrey said. “So many people have seen a drop or total loss of income.”
The nonprofit expects that number to double or triple in the coming months, Humphrey said. In addition to halted eviction proceedings, Charlotte Water, Duke Energy and Piedmont Natural Gas are currently not disconnecting service for nonpayment.
“We understand the fear and uncertainty in people’s lives right now, but we want them to know they are safe for now,” Humphrey said.
Mecklenburg County Commissioner Mark Jerrell, who has been a staunch advocate for affordable housing, said he anticipates that local government may have to take role in helping renters to ease hardships caused by the coronavirus.
“Right now we are drinking through a fire hose,” Jerrell said, referencing myriad of issues coronavirus has presented. “We’re going to have to do something about this, so that we don’t have mass evictions.”
Area government and nonprofit leaders must proactively help people pay their rent before a surge of eviction filings overwhelm the court system, said Isaac Sturgill, supervising attorney of the housing unit for Legal Aid in Charlotte.
Financial hardship is not a legal defense to prevent eviction in North Carolina even if judges are sympathetic to a job loss or other emergency, he said.
An eviction filing is public record, and even if the landlord drops the claim or the tenant is victorious in court, that record can have lasting effects on people’s credit and ability to find future housing, he said.
Plans for rental assistance and other housing-focused relief are starting to emerge.
Organizers of the COVID-19 Response Fund on Friday announced nearly $3 million would be given to 14 nonprofits in the first wave of grant awards for rent subsidies, no-interest loans and other housing stipends for agencies including Men’s Shelter of Charlotte, Crisis Assistance Ministry, Charlotte Family Housing and the Salvation Army.
Donors have committed more than $13 million to the fund, helpcharmeck.org.
This work was made possible in part by grant funding from Report for America/GroundTruth Project and the Foundation For The Carolinas.
%20Cropped.jpg)