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

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3 The second aspect is currently being addressed by HCD's Risk Mitigation and Housing Displacement (RM-HD) fund in helping to pay for arrears so low-income renters stave off eviction and remain in their housing. In order to meet the first need, legal counsel needs to be made available to tenants facing eviction. In most cases, low-income renters either represent themselves in court, or don't show up for their hearing, most often resulting in an eviction moving forward. Providing legal support and counsel will enhance greatly the existing work of HCD and RM-HD fund in paying arrears and will ensure that tenants remain in housing by having legal representation. The Orange County Eviction Diversion Program would bring together an Orange County temporary employed bi-lingual attorney, Legal Aid of North Carolina ("Legal Aid"), and pro bono attorneys to represent tenants in court and to act as in court mediators to negotiate agreements between tenants and landlords to avoid eviction. County staff are working with the 18t" Judicial District Bar and the NC Pro Bono Resource Center to assist with identifying local pro-bono attorneys, including bi-lingual attorneys, to meet additional community needs. Referrals to the program would come through the existing HCD and Orange County Partnership to End Homelessness' Housing Helpline (a.k.a "Coordinated Entry"). Every person who calls into the Housing Helpline goes through a needs assessment that is best practice and evidence based. In addition, outreach offering legal assistance will be made to every individual tenant with a summary ejectment hearing date. As noted, HCD staff will use funds the Board has already allocated for rental arrears for this project through the RM-HD Fund (the sub-fund called "Emergency Housing Assistance", formerly "Housing Stabilization Fund"). The Board approved a one-time transfer of funds ($100,000) from the Local Rent Supplement Program into the RM-HD Fund on April 7, 2020. Since that time, approximately forty thousand ($40,000) in emergency housing assistance has been utilized by Orange County residents experiencing a housing crisis through the Housing Helpline (a.k.a. "Coordinated Entry"). In FY19-20, over one hundred and fifty seven thousand dollars ($157,000) in assistance has been funded. The table below illustrates the increase in funding since January 2020. There are approximately $35,400* in Emergency Housing Assistance funds remaining, but with new requests coming in every day, this estimate changes daily — and sometimes dramatically. At this time, a large majority of requests are coming from low-income residents who have been out of work due to COVID-19 and business closures. The Urban Institute estimates that more than 5,000 Orange County residents lost employment due to COVID-19, and most of those jobs are in the food service, retail, and accommodation industries6, which make up a significant portion of the County's economic base.' Current Emergency Housing Assistance fund criteria is as follows. Full policies can be found here: https://www.orangecountync.gov/2359/Risk-Mitigation-and-Housing-Displacement Assistance is available to households in Orange County that (1) earn no more than 60% of the area median income (AMI)*, (2) can demonstrate urgent need for housing assistance, and (3) do not have adequate savings to cover their housing costs. To be referred for assistance, households must either: 6 Urban Institute (2020, April 24). Where Low-Income Jobs Are Being Lost to COVID-19. https://www.urban.org/features/where-low-income-mobs-are-being-lost-covid-19 Orange County Consolidated Plan. Market Analysis (MA-45): Non-Housing Community Development Assets. http://orangecountync.gov/DocumentCenter/View/10806/Orange-County-NC-Consolidated-Plan-Final-Draft?bid ld=