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The Scott administration announced $50 million in housing assistance Wednesday as part of the state’s $400 million Covid-19 economic relief and recovery package.
The plan includes $42 million in assistance for renters and landlords and an $8 million housing rehabilitation program aimed at fixing up substandard units to house individuals currently experiencing homelessness.
Josh Hanford, commissioner of the Department of Housing and Community Development, announced the program during a press conference led by Gov. Phil Scott. During the pandemic, tenants have struggled to pay rent, and landlords have had a hard time paying bills, he said.
“If we don’t act, there could be immediate harm to Vermont households, and long-term harm to health and availability of rental housing,” Hanford said. “By providing $42 million in direct financial assistance to landlords and tenants, we can stabilize the rental housing industry and prevent tenants from experiencing eviction and possibly homelessness.”
The program will provide up to three months of rental assistance and rental arrearage payments to landlords whose tenants are struggling to keep up. Payments will be limited to a maximum of 20 units per property owner and will be awarded based on need, Hanford said.
More than 13,000 Vermont households could benefit from the program, which will be operated by housing service providers, he said.
The $8 million program will rehabilitate units that are vacant and that do not meeting minimum housing standards for sheltering individuals who are homeless. The state is aiming to renovate 250 units of housing under the program, Hanford said.
“Returning to the old norm is not an option,” Hanford said. “Additional housing will be needed quickly to help our neighbors and community members currently sheltering in motels and temporary housing.”
The package needs legislative support before it can go into effect.
Burlington Mayor Miro Weinberger said that he was happy to see a substantial part of the relief package going toward housing relief and serving the homeless.
“I see in the governor’s announcement today a commitment to make sure there is a real safety net in place to help renters as we come out of this, and to ensure that people don’t lose their homes if they’ve been impacted by this emergency,” he said.
The city is planning to use some of its federal relief funding to aid renters and had been waiting to see the state’s plan, Weinberger said.
Erhard Mahnke, coordinator of the Vermont Affordable Housing Coalition, said he was excited to see that the state’s plan included rental assistance and the rehabilitation of housing stock.
“One of our great concerns all along has been that folks would not be able to meet their rent obligations in spite of the moratorium on evictions,” he said. “We know that rent is still due.”
Chris Donnelly, director of community relations for the Champlain Housing Trust, said the governor’s proposal was a “great first step.”
“Low-income renters across the state, whether they live in affordable housing like CHT’s, or in the private market, are going to need support,” he said. “It’s been two months since people have been needing to pay their rent with less income coming in.”
Many of CHT’s tenants are now unemployed, and CHT experienced an 8% increase in nonpayment of rent in April, Donnelly said.
“We’ve been advocating for over a month now for this back-rent program, I’m glad to see it’s in the plan,” he said. “I think it’s going to be very helpful for people to feel a little more comfortable.”
Weinberger said the state’s response to homelessness during the coronavirus showed promise for overall improvements to the state’s systems.
“There’s an opportunity to build on that, and actually make progress against this terrible, chronic long-term problem we’ve had of a large number of individuals being chronically homeless in Chittenden County,” he said.
Donnelly said he would like to see a long-term proposal from the Scott administration to house the 2,000 individuals in the state who are homeless. The Agency of Human Services has placed people in motels during the pandemic.
“What I have seen so far from the administration is just pieces, and not really a comprehensive plan,” he said. “That’s what I’m hoping to see in the coming weeks.”
Because there are few rental vacancies in Burlington, rehabbing apartments is not a feasible solution for homeless individuals in Chittenden County, Donnelly said. The state should increase housing stock by purchasing existing vacant properties, including some motels, and convert them into small apartments, he said.
The state needs more federal assistance to address housing concerns during the pandemic, according to Mahnke. Covid-19 presents a unique opportunity to use federal funds to help the state’s homeless population obtain permanent housing, he said.
“This is a good emergency plan, but I think our eyes need to look to what we can do long-range to significantly change our system,” Mahnke said. “If anything, what the pandemic has shown us is that we’ve had major systemic deficiencies in our housing and homeless network all along, and now is an opportunity to help make a real difference in that system.”
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