04/10/2022
The ERAP Program Is Not Eviction Insurance
Are you a landlord whose tenant has a pending application through the Emergency Rental Assistance Program? Until recently, having an ERAP application pending protected a tenant from eviction. Of course, that also meant a huge economic risk to the landlord who might or might not ever see rental income from this tenant. But now there is good news: Having an ERAP application pending no longer a complete block to the eviction process.
There is recent precedent for that allows landlords to request a hearing based on a due process claim. This hearing gives the landlord the opportunity to examine the ERAP documents and dispute them. Without this hearing, landlord would be denied a chance to prove that the ERAP application is merely a delaying tactic.
To uphold the protection against eviction that comes with a pending ERAP claim, the tenant must prove all three of the following to demonstrate their eligibility for the ERAP program:
1. That the tenant or someone in the household has experienced a loss or significant reduction in income due to the Covid-19 pandemic,
2. That the household income is below 80% of the area median income, and
3. That an individual in the household can demonstrate a risk of homelessness or housing instability.
The landlord’s duty at this hearing is to show only one of the following:
1. A bad faith reason for the tenant’s ERAP application,
2. That the tenant has no real possibility of the tenant being eligible for assistance, or
3. That there is no realistic possibility of the landlord receiving payment from the ERAP funding pot.
Depending on the individual situation, a landlord may be able to prove any of the three points above and proceed with an eviction. Notably, data published on the ERAP program website indicate that the program has already spent nearly all its allocation and may in fact be underfunded.
If you are a landlord with a tenant who is delaying an eviction, you should seek legal assistance immediately. If you allow the tenant’s application to remain pending, you will likely keep losing rental income and there is a good chance that you will never be compensated.
