Three Million Dollar Federal Stimulus Fund Program for Renters Facing Eviction: Applicants Face Bizarre Government Guidelines, Red Tape


For those who believe the federal government will effectively manage American’s healthcare and healthcare insurance availability, there’s a cautionary tale out of Contra Costa County, California, involving $3 million in federal stimulus funds which are supposed to be used to “prevent tenants from being evicted because of the recession“. Sounds simple, right? Helping tenants who are about to be evicted “because of the recession“. Simple unless the federal government is involved, and, you were one of the 574 who inquired about the assistance and were about to be evicted, or, the 71 out of 87 who actually applied and who were turned down because they “earned too much”, or, “too little”, weren’t employed, or, they worked in a industry that isn’t currently hiring, most likely, due to the recession.

According to the Contra Costra Times, the agency involved in doling out the $3 million in rental assistance funds is Shelter, Inc. of Contra Costra County, California. So far, Shelter has received 574 inquires and 87 applications with a whopping 16 approved.

According to Shelter, the problem is HUD’s “guidelines” on who qualifies for help. In order to receive rent assistance, you must have a job, or an “income” of “at least 120%” of your rent. And, your income must be “at or below 50 percent of the area median income”.

There are two more federal guidelines which we found listed on a Shelter, Inc. HPRP (The Homelessness Prevention and Rapid Re-Housing Program) flier. Applicants must:

-Lack the financial resources to remain in housing, and,

-Can develop a reasonable and achievable plan to adjust the household income and expenses to remain in housing.

Put all three guidelines together and you’re stuck with very contradictory guidelines: You must, first, “lack the financial resources to remain in housing”, while you must also have income of at least “120%” of your rent. Plus, while facing eviction, you must also “develop a reasonable and achievable plan” to adjust your household income and expenses” to “remain in housing”.

Got it? Good, because it gets even more confusing when you read what Jennifer Baha, director of program services, told the Contra Costa Times:

“Many people are contacting us because they are desperate,” Baha said. “But this isn’t supposed to be long-term. You have to have a reasonable plan to get yourself out of your situation. You can’t be unemployed and in an industry that is not currently hiring.”

Common sense would seem to dictate that people who are of out of work because of the recession could use some financial help from getting evicted. Not so, according to Baha, in order to get assistance, you “can’t be unemployed” and you “can’t be in an industry that isn’t hiring”.

Baha went on to “clarify” the program:

“This program is not designed for everybody,” he said. “HUD makes it clear that they have to be directly impacted by the economy. Some people need to realize that housing in California is too expensive.”

We’re shaking our heads on this one. Those seeking assistance have to be directly impacted by the economy, but, those who qualify have to have an income of “120%” of their rent, have a job, and, be working in an industry that is currently hiring. Which kind of implies those type of applicants are less likely to have being “impacted” by the economy than those who lost their jobs, or their income due to the economy, which, to us common folk, the economy is directly related to the recession.

We’re not sure just what Baha implied by stating “some people need realize housing in California is too expensive”. Here’s a thought for Baha, when you’ve lost your job due to “economy” which is in a recession, then rent is “expensive” because you no longer have a job to pay it.

So far, Shelter, Inc., has approved 16 applications for rent assistance. One recipient received $1,000 for one month’s rent. We have no clue as to how much the other 15 applicants received from Shelter, Inc., even so, if each received $1,000, then so far, $16,000 of $3 million in stimulus funds has been used to “save” people from eviction due to the recession.

By LBG

http://deathby1000papercuts.com/2009...ines-red-tape/