LOCAL

The eviction moratorium has ended. What that means for Kentuckians behind on rent

Bailey Loosemore
Louisville Courier Journal

A national moratorium on evictions for non-payment of rent has ended. But Kentucky is in good shape to keep people in their homes, advocates and officials say.

The moratorium — enacted by the Centers for Disease Control and Prevention in September — expired Saturday, allowing courts to proceed with eviction filings against tenants who owe rent.

In Kentucky, about 81,000 households owed more than $217 million in rent as of July 5, according to Surgo Ventures, a data-driven nonprofit based in Washington, D.C.

In Louisville, about 21,000 households owed nearly $63 million as of that time.

Advocates say the moratorium's lapse could lead to an increase in evictions as judges make their way through new and delayed cases.

But state and city employees are continuing to dole out financial assistance to renters who've experienced coronavirus-related hardships, with the goal of preventing people from reaching court.

Get help:How to get rent assistance in Louisville, Lexington and Kentucky

"I want to think that we are prepared for this moment," said Marilyn Harris, director of Louisville's Office of Housing. "... I believe we are in a pretty good place. I'm not going to say somebody's not going to fall through the cracks. But we are doing our damnedest to make sure that doesn't happen."

Since February, Kentucky has received nearly $475 million from the federal Emergency Rental Assistance Program, while Louisville has received about $41 million and Lexington more than $17 million.

Combined with money from the CARES Act, the total assistance available to people statewide has been a whopping $570 million.

Officials say that amount should be enough to help everyone who's experienced financial setbacks because of the coronavirus pandemic.

Receiving assistance has been a slow process as city and state workers attempt to keep up with the overwhelming demand.

In Louisville, appointment slots for the latest round of assistance filled within four days. New appointments won't open until Aug. 16.

And the Kentucky Housing Corporation — tasked with distributing funds to renters outside Jefferson and Fayette counties — had to take time to train 80 new employees to manage a program built from scratch.

Background:How Kentucky is pushing out more than $300M in rent assistance

But both the city and state have begun chipping away at backlogged applications. 

The housing corporation currently has a waitlist of about 2,000 applicants, down from 3,000 a few weeks ago, said Wendy Smith, deputy executive director for housing programs.

"We're getting faster and faster," she said. "I would expect within a month, it's very likely we'll be processing in real time, we'll get completed (applications) paid in two to four weeks."

Since March 2021, the quasi-governmental corporation has distributed more than $36.3 million in rent and utility assistance to nearly 7,000 households, said Crystal Staley, a spokesperson for Gov. Andy Beshear.

"With about $167 million remaining in the relief fund, Gov. Beshear encourages Kentuckians in need to apply so more of our neighbors emerge from this pandemic without burdensome debt," Staley said by email.

When renters use the Bilt Mastercard, on-time payments will be reported to the credit bureaus. This can help renters build credit. Plus, paying the credit card bill on time and in full can help increase your credit score.

The moratorium and rent assistance programs had not stopped all evictions from occurring through the pandemic.

Landlords could continue to file evictions against tenants who violated their leases or whose leases had ended.

According to state court records, more than 26,500 evictions have been filed statewide since June 2020 — including 10,300 in Jefferson County.

More:The eviction crisis is here: Loopholes let landlords force renters from their homes

It's possible Kentucky will see a massive increase in filings this week with the end of the moratorium, said Adrienne Bush, executive director of the Homeless and Housing Coalition of Kentucky. But her "hope, given that we have enough money in Kentucky to take care of everyone's back rent, is we wouldn't use the courts as a collection system."

Through the state and cities' current programs, tenants can receive up to 12 months of past due rent plus three months of future rent, giving them time to stabilize financially.

"For people who lost their jobs, if they went from a decent income to half or none, even if they're currently working again, it doesn't mean they're capable of catching up with arrears," Smith said.

Paying rent forward, she added, "gives folks stability so they can get back on their feet, and it makes it worth the landlord's while to keep that tenant. They've got that security."

Generally, tenants must pay the rent due as stated under a lease agreement.

Harris, at Louisville's Office of Housing, said some landlords have refused to accept rent assistance payments, but the programs are now allowed to issue checks directly to renters, letting them find housing elsewhere — something federal officials didn't previously permit.

"We're trying to assist everyone we can to make sure everybody has housing," she said. "... Our ultimate goal is to provide housing stability and prevent homelessness."

Reach reporter Bailey Loosemore at bloosemore@courier-journal.com, 502-582-4646 or on Twitter @bloosemore.

HOW TO GET RENT RELIEF

Kentucky residents can apply for assistance through one of three programs, depending on where they live.

Lexington and Louisville have their own programs, while the Kentucky Housing Corporation runs one for the rest of the state.

All three programs provide the same level of assistance, granting applicants up to 100% of past-due rent owed since April 1, 2020, as well as up to three months of future rent.

To be eligible for assistance, tenants must:

  • Have experienced income reduction/loss or other economic hardship as a result of the COVID-19 pandemic;
  • Be at risk of eviction or homelessness;
  • Earn a household income up to 80% of the area median income;
  • And pay rent that is not subject to change based on income, such as Section 8.

To apply for assistance in Louisville, schedule an appointment online at stopmyeviction.org or by phone at 502-308-3344. New appointments open Aug. 16.

Priority will be given to households that are considered very low income and households with members who have experienced three or more months of unemployment.

To apply in Lexington, visit covid19renterhelp.org, email housingstabalization@lexingtonky.gov or call 859-280-8424.

To apply elsewhere in Kentucky, visit teamkyhherf.ky.gov.