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.
BY DOM DIFURIO
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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