As the economic fallout of the COVID-19 pandemic continues to worsen, millions of renters across the United States find themselves at risk of losing their homes once the eviction moratoriums are lifted. With unemployment rates soaring, many tenants have been unable to keep up with their monthly payments, leaving them vulnerable to eviction and homelessness. In response, various state and local governments are working on implementing new measures that would create a safety net for at-risk renters, as they brace for a potential wave of evictions. In this article, we will explore the different safety net proposals being considered, and the impact they may have on vulnerable renters.
The Irish government has announced new measures to protect renters who are at risk of homelessness when the eviction moratorium is lifted on April 1st. The move follows a proposal put forward by the Green Party and includes a “safety net” for at-risk renters. The range of proposals includes a tenant-in-situ scheme, whereby councils will purchase private rental properties currently occupied by tenants in receipt of Housing Assistance Payment (HAP) and these properties will be converted into social housing. For those not in receipt of state support but at risk of homelessness, an Approved Housing Body (AHB) or council will be able to purchase the home and rent it to them on a not-for-profit basis. This has been dubbed a cost-rental backstop.
The ABH or local authority will intervene if a tenant cannot afford to buy the home themselves, and this intervention will be operated administratively until legislation is passed. The measures aim to prevent homelessness and ensure that there is “no gap” between the unwinding of the eviction ban and the introduction of “innovative measures to increase and improve tenants’ rights”, according to Green Party leader Eamon Ryan.
The government has also introduced a third option for renters who are in a position to purchase their rental homes if they go up for sale. This group of people will be given the first refusal on buying their home and can apply for the State-backed shared equity scheme, which will reduce the up-front cost of purchase by up to 30%. Alternatively, they can apply for the Local Authority Home Loan, a subsidized mortgage targeted at low and middle-income households. However, it is expected that this measure will take longer to implement and will not be in place from the beginning of next month.
The Sinn Féin motion on the eviction ban, which calls for the ban to be extended until the end of January next year, is to be debated later on Tuesday, but all parties agree that the ban cannot be extended indefinitely. Additional government funding will be rolled out to back up these schemes, which are aimed at preventing homelessness.
The tenant-in-situ scheme involves councils purchasing homes currently occupied by tenants in receipt of Housing Assistance Payment, effectively converting private rental properties into social housing. This move is intended to address several issues faced by renters, including the unaffordability of rental properties and the instability of renting, as tenants are often forced to move out of their homes when the property is sold, or the landlord decides to end the lease.
The cost-rental backstop will make it easier for those not in receipt of State support but at risk of homelessness to find housing. The ABH or local authority will be able to purchase the home and rent it to the tenant on a not-for-profit basis if they cannot afford to buy it themselves. The scheme will be operated administratively until legislation is passed.
The shared equity scheme and the Local Authority Home Loan are designed to provide first-time buyers, who are often struggling to secure financing or find affordable homes, with the support they need to purchase a home. The shared equity scheme reduces the up-front cost of purchase by up to 30%, while the Local Authority Home Loan is a subsidized mortgage targeted at low and middle-income households.
The government’s measures are designed to prevent homelessness and provide support to those who are struggling to find affordable and stable housing. The introduction of these innovative schemes is welcome news for many renters who have been struggling to make ends meet over the past year.
