Washington Governor, Jay Inslee, has issued a proclamation expanding the eviction ban he imposed in March. The ban means that no evictions can proceed through June 4 of this year. You can read the press release here and the full proclamation here. There is also a requirement to let residents pay down their back rent over time. This is a catastrophic intervention as we pointed out in a letter to state leaders last week. I managed to do some last minute advocacy with the Governor’s staff. Here’s what we talked about. We think income is the issue, not eviction.

Thank you for taking my call. I appreciate all the work you are doing now to help keep people in the state safe and figuring out how we recover from this economically. 

First, as I said, we’d like all bans to expire. This is an income issue not an eviction issue. We need to get as much help as possible to people who have lost their jobs and sources of income. 

Second, if this is moving forward, we’d ask that it end on May 31st. This sends a signal to people who can, that they should plan to pay June’s rent. With rents generally due, in effect, on the 5th, non-payment of rent would still trigger issues in June like a pay or vacate notice. Again, someone who can pay might if they see May 31st. 

Third, anything that the Governor can say to emphasize that this is not intended as a “rent holiday” or to support a “rent strike” but for people who have been materially affected by COVID-19. California has required documentation and even Seattle has some requirement in its proposal to show documentation of loss of job. Even a determination of application for unemployment benefits would be a useful way of distinguishing non-payers from people who can’t pay. 

Fourth, we need relief from delinquencies. The idea we discussed about matching pay back with state and/or federal funds is one that would send positive signals to lenders, housing providers, and residents. Residents will have some hope of paying back rent, protecting their credit and tenancy history and providers will be able to plan for pay back of the lost money.</q>

Then we elaborated on the idea of using relief funds to pay down delinquencies in a communication to legislators.

We don’t think that residents or housing providers should be left to pay for the logical outcome of eviction bans, a huge balance due of rental delinquencies. If state and local government is encouraging lack of payment of rent during this time, then there needs to be help paying the rent back.

We propose,

Some portion of dollars allocated for COVID-19 recovery either in packages passed by congress or by the legislature be set aside to cover the costs of unpaid rent;

To qualify for the program, residents would have to demonstrate simply that they lost their job and that they applied for some form of relief (i.e. unemployment);,

Such a program would match tenants repayment dollar for dollar, encouraging payment and avoiding defaults;

This would send a signal to lenders and banks that multifamily projects will recover big losses in rent revenue; and

The program would ensure many families would avoid bad credit and the consequences of default.

Finally, the Governor and the legislature should resolve that not paying rent while having income during this period amounts to theft, and those residents won’t be compensated. This should be a bipartisan effort. The consequences of not doing this will be a destabilization of the housing market when lenders and investors avoid building new housing because of the possibility that risk will be dramatically increased by government fiat without recourse.

Banning eviction at this period is like suspending the enforcement of shoplifting laws when people can’t put groceries on the table; it misses the point — lost income — and it encourages people to not fulfill their obligation to pay for services and goods rendered. It is a terrible precedent. But if the Governor has chosen this course, then there must be come compensation for the risk and costs being taken on by property owners who are providing housing for millions of people in our state.

The problem for many housing providers is lack of payment but it is compounded by the implicit encouragement by state and local leaders to prioritize other financial obligations. “Don’t worry about rent, there’s no way to evict you.” It’s a leap that makes no sense. If elected officials are going to impose these, along with rent freezes, they need to find a way to pay for it.