The details of Councilmember Lorena Gonzalez’ efforts to extend and expand the COVID-19 eviction ban have emerged. She’s proposed two pieces of legislation. Here’s a description of the first proposal extending the ban (full text here).

Her legislation adds a defense to evictions if the tenant cannot pay rent because of the COVID-19 crisis, including a tenant’s illness; loss or reduction of income; loss of employment; reduction in compensated hours of work; business or office closure; a need to miss work to care for an immediate family member or child, where that care is uncompensated; or other similar loss of income due to the civil emergency proclaimed by the Mayor on March 3, 2020. The defense is applicable for unpaid or late rent for a period up to six months after Mayor Durkan declares the conclusion of the civil emergency. 

City Council Website

Nobody knows when the civil emergency declared by the Mayor will end. But if it continues to say the end of April, COVID-19 related issues can serve as a defense until November and perhaps beyond.

And what about the second proposal mandating payment plans (full text here)?

The second bill, Council Bill 119762, allows tenants who cannot pay rent during the COVID-19 emergency to pay late rent on a payment schedule during the crisis. The payment plan must be made in a written agreement with their landlord, and gives the tenant a year to become current on full rent payments after the date Mayor Durkan declares the civil emergency to have ended.

City Council Website

Gonzalez claims that this somehow helps housing providers by creating more certainty. It doesn’t. On the contrary it creates an interest free loan; it’s making housing providers a non-profit bank. Shouldn’t the City be doing this financing? Why are housing providers supposed to make these loans without any interest? Couldn’t the City partner with a bank or the federal government to pay the rent and have the resident pay the bank back — or not if this is going to be a grant.

The problem with the City of Seattle, including Gonzalez and Mayor is that they don’t see housing providers as small businesses, but as large pools of cash. As we already pointed out in our letter, it doesn’t take much for a project to get into financial trouble. All this legislation does is create a big balance that a hard hit and hurting resident doesn’t have much rational self-interest in paying. It doesn’t solve anyone’s problem but it makes it worse.

Send and Email to the City: COVID-19 is an Income Crisis