Fiscal Federalism
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Eviction filings in several Texas cities are among the highest in the nation — even as millions of federal dollars aimed at helping struggling renters have sat unspent so long in some counties that the federal government is taking the money back.
As the omicron surge is again forcing many workers to choose between a paycheck and the risk of COVID-19 exposure, the U.S. Treasury Department seized $1.9 million in unspent rent relief from five Texas counties — Jefferson, Brazoria, Hays, El Paso and Nueces — as well as the city of Laredo because local officials didn’t spend the money fast enough, the agency said earlier this month.
The money is instead being sent to other parts of the state or the country where local governments have distributed rental assistance more quickly.
The seizure of those funds comes as the reserve of rent relief dollars in Texas has emptied and eviction filings in the state’s major metropolitan areas have steadily neared pre-pandemic levels — all while state and federal bans on evictions have expired.
“We're reaching a critical moment for low-income people who may be struggling to stay in their homes while many of the safeguards are collapsing at the same moment,” said Ben Martin, a senior research analyst for the nonprofit advocacy group Texas Housers.
The amount of federal rent relief dollars clawed back by the Treasury is a small fraction of the nearly $1 billion in federal dollars sent to local governments in Texas to help keep tenants in their homes. That money, meant to help struggling renters, is already becoming scarce in Texas.
The state agency in charge of Texas’ separate $1.9 billion rent relief and eviction diversion program stopped taking new applications in November, citing overwhelming demand.
Locally run rent relief programs also are tightening their purse strings. Houston and Harris County’s joint $283 million rent and utility assistance program — paid for with federal dollars — is soon expected to get a $13 million injection from the federal government. The program had $7.6 million left as of Wednesday — and only applicants who have an active eviction case have a shot at getting help.
The surge of evictions and the growing scarcity of emergency rental assistance funds for renters are “directly related,” said Dana Karni, an attorney for Lone Star Legal Aid, which provides free legal services to low-income Texans.
“I think what motivates landlords is the fact that the hope for rental assistance funds to basically fill the void is gone,” Karni said. “And so they really have the choice of having to decide whether they want to become charitable and let someone stay there for free or a significantly reduced rent or evict them so they could bring in a new tenant.