RI Received $200M in Federal Funds for Renters in Pandemic in December, Only $1.2M Has Been Awarded
Friday, June 18, 2021
Federal funding approved by the United States Congress in December of 2020 provided for $200 million in rental assistance for Rhode Islanders impacted by the pandemic.
Now, more than five-and-a-half months later just $1.2 million has been distributed to renters in need.
The Rhode Island agency overseeing the distribution of the says there has been a myriad of issues that have delayed the program.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRIHousing is administering the program called RentReliefRI. The agency says it will be able to turn the program around.
The problems stem from delays in signing contracts, failed technology, and a lack of awareness of the program.
Delays and Tech Problems
It took nearly a month for RI Housing to sign a contract with the state of Rhode Island. Then, the first technology partner was hired by RIHousing in February -- and had to be replaced.
According to one RIHousing document, the web portal for landlords to use failed almost immediately after launch. The tech vendor first selected was Allita, a Columbus, Ohio-based vendor.
The portal did not go live until March 31, and by April 8, problems with the site were rampant. “Landlord portal taken down for ten days,” states a RIHousing document. By April 18, “[It] became clear that issue could not be resolved team began exploring options for different platform, Selected vendor in compliance with purchasing requirements.”
The new vendor Yardi launched the replacement platform and that went live on May 20. But, since the launch of the replacement technology, only 0.6 percent of the funds have been awarded. The state faces a critical deadline on ensuring that 60% of the funds or $120 million are awarded by the end of September or the federal government can take back the remaining funds. The program sunset in September of 2022.
Yardi, can make significant fees for their role in the program. It is being paid a $20,000 set up fee and $10 per application and $10 per payment -- this could generate as much as a million or more in total for the tech company.
“We are confident that the money will now flow quickly to those families currently waiting for assistance and urge those families in need that have not yet applied to fill out an application by visiting rentreliefri.com “ Christine Hunsinger, chief strategy and innovation officer RIHousing.
Many renters face a critical date on June 30 -- the expected end-date of the federal eviction moratorium.
Rhode Island Ranked as One of the Worst States in Supporting Renters
In addition to the delays in the distribution of the federal funds, Rhode Island's overall effort to protect renters is rated as one of the worst in the country.
According to the Eviction Lab at Princeton University, Rhode Island ranks amongst the worst.
"As of June 2nd, eviction hearings for cases filed before March 17th, 2020 can resume in Rhode Island. Cases filed during the pandemic will not be heard until after July 2. The Governor has also allocated $6.5 million to provide rent relief to those most affected by the pandemic. Without additional supportive measures, Rhode Island could still see a surge of evictions soon after the state of emergency expires," writes the Eviction Lab.
Connecticut Success
In contrast, Connecticut has registered more than 156,000 renters -- RI only has 150,000 renters in total.
UniteCT is funded by $420 million in grants for rent and electricity payments for households impacted by the COVID-19 pandemic. Fifteen state, county and city government agencies use Rent Relief to administer more than $1 billion in emergency rental assistance funds. Over 156,000 thousand users are registered on Rent Relief and have submitted more than 156,000 applications.
Related Articles
- Pressure Put on RI General Assembly After Federal Court Decision Strikes Down Eviction Moratorium
- CDC Eviction Moratorium Extended in Rhode Island - U.S. Attorney Outlines Penalties and Fines
- CDC Director Orders Extension of Moratorium on Residential Evictions Until March 31
- Short-Term Rental Safety Must be Addressed - Rep. Lauren H. Carson and Sen. Dawn Euer
- State Still Struggling to Regulate Third-Party Rental Platforms - Guest MINDSETTER™ Rep. Carson
- RI Rentals Among Most Unaffordable in US
