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New rental assistance program will help, but it’s likely a drop in the bucket

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Illinois

* You gotta figure this money will go fast. Like lightning fast…

Illinois residents struggling to pay their rent because of a lost a job or reduced income due to COVID-19 can now apply for state assistance through the Emergency Rental Assistance program.

“For too many people weathering this crisis begins with keeping a roof over their family’s heads,” Gov. J.B. Pritzker said Monday. “Even before this pandemic, over 70% of low-income families dedicated more than half (of their) income to rent, and now nearly 1 in 3 renters are worried about (their) ability to pay August rent.”

The Illinois Housing Development Authority has set aside $150 million in federal funds to help approximately 30,000 residents pay their rent due to a pandemic-related loss of income. To be eligible for the grant, renters must have fallen behind on rent on or after March 1 and have a household income at or below 80% of the area median income. Interested renters can also check their eligibility online.

The one-time $5,000 grants will be paid directly to a renter’s landlord to pay back missed rent and cover rent payments through December.

I mean, before this crisis began, 450,590 Illinois households were classified as “extremely low income,” which is 27 percent of the approximately 1.8 million renting households in this state.

I don’t know how many times I have to say this, but the federal government really needs to get its act together.

posted by Rich Miller
Monday, Aug 10, 20 @ 1:25 pm

Comments

== I have to say this, but the federal government really needs to get its act together. ==

Sure, but so does the state. Pritzker campaigned on lifting the ban on rent control, but hasn’t lifted a finger to make it happen, either unilaterally or via legislation. Extending the eviction moratorium isn’t a permanent solution. We need long-term relief.

Comment by Quibbler Monday, Aug 10, 20 @ 1:31 pm
You mean get its act together beyond providing the hundreds of millions of dollars for this and other relief programs that the state can’t or won’t provide?

Comment by Captain Obvious Monday, Aug 10, 20 @ 1:57 pm
do property owners get property tax control when we institute ‘rent control”?? just asking.. how about utility price control??

Comment by NotRich Monday, Aug 10, 20 @ 2:00 pm
@Quibbler - There are plenty of drawbacks to rent control. See Stanford Grad study on San Fran rent control. Policy from the state for rent relief will likely backfire. Majority of neighborhoods want a “community process” when it comes to new buildings or zoning changes. I don’t see a top down approach having a lot of support. Chicago is the 17th most expensive city for rent but is the 3rd largest. For some reason groups compare Chicago rents to NYC, San Fran, LA, Seattle, etc.

https://www.aeaweb.org/articles?id=10.1257/aer.20181289

https://www.zumper.com/blog/rental-price-data/

Comment by 1st Ward Monday, Aug 10, 20 @ 2:01 pm
== how about utility price control?? ==

Utilities should definitely be brought under public control so prices can be made fairer.

== there are plenty of drawbacks to rent control.==

We’re about to see a wave of homelessness and evictions in this state and country like never before in our lifetime. Relief from the feds is not coming before January 2021 at the earliest, if ever.
Whatever “drawbacks” you may be afraid of, they pale in comparison to the reality on the ground.

== Majority of neighborhoods want a “community process”== ==I don’t see a top down approach having a lot of support.==

But a “top down” process is exactly what we have now. The state banned rent control, so there can’t be a “community process” for localities to decide whether they want to make rental prices fairer for their residents.

Comment by Quibbler Monday, Aug 10, 20 @ 2:23 pm
“The state banned rent control, so there can’t be a “community process” for localities to decide whether they want to make rental prices fairer for their residents”

rent control isn’t a neighborhood by neighborhood process. It’s top-down at a city or state level. Again, read the Stanford study lot of unintended consequences. Doesn’t seem successful. Also, need to look at property taxes.

https://www.aeaweb.org/articles?id=10.1257/aer.20181289

Comment by 1st Ward Monday, Aug 10, 20 @ 2:54 pm
== It’s top-down at a city or state level. ==

I mean, if this is your definition of “top down” then every form of legislative activity is “top down.” And again, there’s nothing more “top down” then having it banned at the state level. If the ban is lifted, neighborhoods can have input into the process via their locally elected city council members. But I suspect that your process complaints are contrived here, since it’s clear that you object to rent control on a policy basis and presumably would even if it were implemented neighborhood-by-neighborhood.

== Again, read the Stanford study lot of unintended consequences. ==

Again, we are staring down an unprecedented wave of homelessness and evictions. Time to make a change. And more recent academic work has critiqued the neoliberal consensus that we have to let landlords charge whatever they want or the world will fall apart: https://jacobinmag.com/2019/11/rent-control-housing-crisis-affordability-supply

Comment by Quibbler Monday, Aug 10, 20 @ 4:24 pm
Yes to rent control. Rents are clearly too low. We need a minimum rent level much higher than today. /s

Comment by Last Bull Moose Monday, Aug 10, 20 @ 4:54 pm
“ Yes to rent control. Rents are clearly too low. We need a minimum rent level much higher than today.”
Wow. Where do you live?

Comment by Muddy trail Monday, Aug 10, 20 @ 6:10 pm

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