Monday, March 30, 2020

Evictions in Texas are halted, but what happens to renters when the suspension lifts?


Advocates worry Dallas-Fort Worth could see a spike in homelessness once the coronavirus eviction suspensions lift.
By Dom DiFurio and Hayat Norimine 6:00 AM on Mar 30, 2020
The stress that comes with the first day of every month has never been more acute for Dallas Fort-Worth residents forced out of work by the COVID-19 pandemic.
For the week ending March 21, jobless claims in Texas soared more than 860%. And if the swamped phone lines at Texas unemployment offices are any indicator, the state could see those numbers rise even more.
In an attempt to ease the burden on renters, Dallas County, the Texas Supreme Court and Tarrant County have temporarily suspended eviction court hearings with minimal exceptions. The Texas Supreme Court’s suspension runs through April 19, Dallas County’s lasts until May 18 and Tarrant County’s is in place indefinitely.
But a lack of legal protection for Texas tenants might still mean problems down the road for renters who fail to make payments. Even though immediate evictions won’t occur, rent is still due on the first of the month.
“People are extremely concerned about what’s going to happen to their credit and whether or not the eviction suspension is just going to delay and postpone the inevitable,” said Texas Tenants’ Union executive director Sandy Rollins. “It’s a scary situation for many.”
In a letter obtained by The Dallas Morning News, one apartment management company that operates dozens of other complexes in North Texas notified its residents that it would still be filing evictions for late rent and non-payment.
“We understand the virus has directly affected many of our residents, some have experienced a loss of wages or been laid off,” the letter said. “We are sure everyone is concerned about their rent and utilities. For everyone, rent is still enforced to be paid by the 1st no later than the 3rd per your lease contract. Evictions can and will be filed for non-payment or not complying with [the] payment agreement.”
Most states give tenants the right to make good on missed rent payments before an eviction court date, but that’s a protection Texans don’t have, Rollins said.
“[Property managers] have the discretion to be lenient if they want. Right now, unfortunately, they don't have the obligation,” said Rollins.
Amid the anxiety, the president of Dallas-based property management company LumaCorp., Ian Mattingly, sees an opportunity for landlords and tenants to work together to avoid major disruptions to housing.
Rental property companies are facing economic pressure of their own. Less income from renters could mean an inability to pay bills and keep properties afloat.
“We don’t have the ability to shut down or change the way that we deliver services,” Mattingly said. “We have an obligation under state law to provide habitable housing for our residents.”
To combat this, major lenders like Fannie Mae and Freddie Mac are rolling out measures to defer mortgage payments for homeowners, and Texas utility providers are being required to halt disconnections and extend payment deferral plans. But there’s still uncertainty about how those processes will ultimately pan out, Mattingly said.
The Texas Apartment Association consists of more than 11,000 member companies housing an estimated 4.6 million Texans. It provided guidelines to its millions of renters, strongly encouraging them to communicate their financial circumstances with property managers. It’s also working with members to provide late fee waivers and split payment arrangements.
“While there are certainly situations where the stress on some rental housing operators has led to poor communication or a lack of sensitivity, I would just hope that both renters and rental property owners alike try to extend a little bit of grace,” Mattingly said.
Property managers may not be able to take tenants to court during the suspension period, but there’s nothing in place to prevent evictions for failure to pay rent beyond May 18.
The moratorium on evictions should give renters time to file for and receive unemployment benefits or coronavirus-specific aid from the federal government. But property managers might opt to file eviction cases in order to secure their place in line for a hearing when the suspensions lift, Mattingly said.
“They want to make sure that they have their place in line in case there's a situation that cannot be worked out,” he said.
The Texas Workforce Commission will answer questions about unemployment on a live Facebook Q&A Wednesday afternoon.
Last week, Dallas City Council member Adam Bazaldua, who represents South Dallas and parts of East Dallas, urged the county and landlords to protect renters as they face pandemic-caused financial hardship.
The county’s moratorium on evictions is a step in the right direction but only prolongs the process, he told The News. It doesn’t protect people who may not be able to pay later.
“We have nothing in place like other cities ... to stop evictions from being referred in the first place,” Bazaldua said. “There’s a lot of things we could be doing, but we’re not.”
In an email sent last week, Rollins warned city leaders that they could see a massive surge in evictions in a few months if they don’t require property managers to accept rent payments late.
“I’m hoping there won’t be a flood of evictions and homelessness at the first opportunity,” Rollins said.
In a memo sent Saturday to city officials, Bazaldua proposed an emergency ordinance that would require landlords to provide notices of proposed eviction at least 60 days before issuing notices to vacate. He asked Mayor Eric Johnson to place discussion of the proposal on Wednesday’s meeting agenda.
City Hall reporter Hayat Norimine contributed to this report.

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