Agenda - 06-02-20; 6-a - Eviction Diversion Program and Approval of Budget Amendment #9-A

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2 Eviction destabilizes the lives of families and has consequences for the entire community. Those most affected by evictions are the most vulnerable populations. Numerous studies show the negative impact of eviction on health, child development and achievement, and well-being.' There is also research showing that preventing eviction can reduce costs to the health care system, lower costs and reduce the burden on shelter and other emergency housing programs, ease the administrative burden on the courts, reduce job loss, reduce negative educational outcomes, and prevent the decline of communities that occurs when people are displaced.2 A 2018 study by the Philadelphia Bar Association found that if the City of Philadelphia allocated $3.5 million per year to fund counsel for eligible low-income tenants facing eviction, the city would save $45.2 million per year, a return of $12 for every $1 spent.3 Research also shows that housing assistance, such as that provided through the Risk Mitigation and Housing Displacement Fund, reduces hardship and increases economic opportunity for low-income families.4 The Risk Mitigation and Housing Displacement Fund currently, and the Eviction Diversion Program when in operation, will provide cost savings to the community, help stabilize and preserve the housing market in Orange County5, and most importantly help Orange County residents remain in their homes and avoid the negative impacts of eviction. The Departments of Human Rights and Relations and Housing and Community Development have been working toward bringing forward a proposed Eviction Diversion Program to the Board of County Commissioners since last year. In light of the COVID-19 pandemic and its economic impact on the community, there is a critical need for this program now. Eviction diversion programs were started around 2010 to address the number of evictions from the recession. The Human Rights and Relations, Housing and Community Development (HCD), and Criminal Justice Resource Departments, along with the Clerk of Court, the Chief Magistrate, Carolina Student Legal Services, NC Pro Bono Resource Center, Orange Chatham Legal Aid, Commissioner Mark Marcoplos and Jamie Paulen met to discuss the impending eviction crisis and potential solutions. The group determined an eviction diversion program would offer the best solution. The two most pressing issues are: (1) ensuring attorneys are available to meet the demand; and (2) identifying funds to enable tenants to stay in residence once they have demonstrated some financial capacity to meet rental obligations going forward and the landlord has agreed to let the tenant stay. Selected examples include: - Desmond, M. and Tolbert Kimbro, R. (2015). Eviction's fallout: Housing, hardship, and health. Social Forces, 94(1): 295-324. - Cookson, T., Diddams, M., Maykovich, X., and Witter, E. (2018, September). Losing home: The human cost of eviction in Seattle. Seattle Women's Commission and King County Bar Association. https://www.kcba.org/Portals/0/pbs/pdf/Losing%2OHome%202018.pdf - Butera, C. (2018, January 23). The burden of a late rent check can harm the health of both parents and kids. Pacific Standard https://psmag.com/social-justice/late-rent-payments-family-health 2 Stout Risius Ross. (2018, November). Economic return on investment of providing counsel in Philadelphia eviction cases for low-income tenants. Philadelphia Bar Association. https://www.philadelphiabar.org/W ebObjects/PBA.woa/Contents/W ebServerResources/CMSResources/Philadelphi a Evictions Report.pdf. 3 Ibid. 4 Center for Budget and Policy Priorities (2019, December 5). Research Shows Rental Assistance Reduces Hardship and Provides Platform to Expand Opportunity for Low-Income Families. https://www.cbpp.org/research/housi ng/research-shows-rental-assistance-red uces-hardship-and-provides-platform- to-e xpand 7 Urban Institute. (2020, April 14). "The Future Is Shared": Why Supporting Renters during COVID-19 Is Critical for Housing Market Stability. https://housingmatters.urban.org/feature/future-shared-why-supporting-renters-during- covid-19-critical-housing-market-stability