PROVIDENCE – With the end coming soon for a federal moratorium on evictions – a measure put in place amid the coronavirus pandemic – more than one-quarter of Rhode Island renters may be at risk of losing their homes, according to a new study.
But help is on the way, said a spokesperson for a state program offering homeowner assistance and rental resources.
A new study by QuoteWizard, an online financial service marketplace owned by Lending Tree, found that 26% of Ocean State residents are at risk of losing their homes in the next two months due to rental eviction. That’s above the national average of 25%, according to the study.
The study also examined the impact of high housing costs and prolonged unemployment during the coronavirus pandemic on homeowners, finding 7.6% of Rhode Island homeowners are at risk of foreclosure. About 6.3% of Ocean State homeowners are now behind on their mortgage payments, which is above the national average of 4.5%, the QuoteWizard study shows.
This comes as R.I. Gov. Daniel J. McKee said in June that the state needs to “up our game” when it comes to pandemic-related renter and homeowner relief, lamenting how not enough people were aware of the RentReliefRI program.
After a sluggish launch in April that was mired by tech glitches, leading the state to distribute just $1 million of a $352 million fund in its first two and a half months of operation, the RentReliefRI program has since provided $7.05 million to families to pay their landlords for past due rent as of July 26, according to R.I. Housing and Mortgage Finance Corp.
In total, the state has now received 2,652 applications for relief through the federally funded program, with 1,141 approved, with an average payout of $6,183 per case.
This comes as rent continues to rise in Providence, according to a new study by Apartment List, showing that there has been a 10.4% increase in rent costs in the past year, with median rents in Providence currently standing at $880 for a 1-bedroom apartment and $1,196 for a two-bedroom apartment.
The state is also working on the launch of a separate $50 million program aimed at assisting homeowners avoiding property foreclosure over missed mortgage payments during the pandemic, said Christine Hunsinger, a spokesperson for R.I. Housing. Late summer or early fall is likely the soonest it could come, as the federal government is yet to approve the plan to distribute these funds.
Overall, Hunsinger said Rhode Island is in a good position to help renters and homeowners keep their homes.
“I think Rhode Island is very lucky to have these resources available to renters, landlords and, pretty soon, homeowners,” Hunsinger said. “We are doing our best to get the word out and make our way through these applications as fast as we can.”
Hunsinger said the state is working hard with partner organizations stationed in county courthouses to provide help to renters, including legal assistance, in last resort efforts to stave off evictions. They do that by meditating with landlords and judges, providing them updates on financial assistance that tenants are eligible for and waiting to receive, Hunsinger said.
“We work closely with courts to intervene at that last point when evictions will happen,” she said. “And we’re not slowing down. We’re going to keep going until we’ve assisted every person who is eligible to receive assistance.”
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com.
