Housing Advocates Push for a Rent Freeze During Covid-19 Pandemic

Graffiti in support of a rent strike in Seattle. In the absence of state or federal action on a rent freeze, some organizers say tenants need to unite in a rent strike.

Graffiti in support of a rent strike in Seattle. In the absence of state or federal action on a rent freeze, some organizers say tenants need to unite in a rent strike. AP Photo/Ted S. Warren

 

Connecting state and local government leaders

As layoffs and unemployment claims due to coronavirus skyrocket, some say paying rent is untenable for many and must be put on hold.

As millions of Americans struggle to manage their expenses on a reduced—or nonexistent—  income due to layoffs and furloughs, the chief concern for many is a looming bill on May 1: rent. Even before the pandemic, almost 50% of the roughly 43 million renters in the country were rent burdened, meaning they spent more than a third of their income on rent, while about a quarter of renters spent over half their income each month on housing. Most of these households don’t have a month’s worth of rent in reserve.

Though many states and local governments have instituted eviction moratoriums to prevent renters from ending up on the streets during the pandemic, housing advocates insist this won’t be enough. Instead, they want to see a national rent moratorium, essentially relieving people of the responsibility to pay rent for some period of time instead of just allowing tenants to put off payments. This will free up cash for households that are already rent-burdened, allowing them to spend money on groceries, medicine, and other essential needs, they argue.

“People are afraid,” said Jesse Connor, an organizer with the Autonomous Tenants Union, an advocacy group based in Chicago. “A huge number of people are already living paycheck to paycheck. When you lose two weeks, or three weeks, or a month of pay, most people could make something work for April but have no idea what they're going to do for May.”

Of the 13.4 million rental households tracked by the National Multifamily Housing Council, only 69% paid their rent for this month by April 5, a decrease of 12 percentage points from the month before. This figure, paired with two consecutive weeks of record-setting unemployment claims, makes the push for a rent freeze starting in May more urgent, advocates say. 

The ATU has collected over 16,000 signatures on its petition that asks Illinois Gov. J.B. Pritzker to use his emergency executive powers to enact a rent freeze. While the ATU normally works locally, they had to take their fight to state level because Chicago Mayor Lori Lightfoot is preempted from issuing a freeze by a 1997 state ban on rent control in Illinois, a policy that the ATU has been working to repeal for years. At a press conference last week, Pritzker said that the rent control ban is “not something that under an executive order I can overturn,” but lawyers working with the ATU and other housing advocates disagree. 

A coalition of city council members, county officials, and state legislators issued a joint plea to Pritzker asking him to freeze rent, mortgage, and utility payments during the pandemic, and at least one lawmaker, state Sen. Robert Peters, plans to sponsor a bill to achieve the same thing once the Illinois legislature determines a process for meeting virtually. Renters in his district, which includes Chicago’s Hyde Park, say they are out of options and are currently organizing what could be the largest rent strike in the state against a management company that owns 32 properties in the area.

Though some property associations across the country have shown support for a rent freeze, most landlords have not been receptive to the idea, even as advocates also push for mortgage freezes that would ease the burden on property owners. Paul Arena with the Illinois Rental Property Owners Association,said that a rent freeze would be “completely unnecessary.” He noted that the majority of tenants in his 50 units are still employed, while those who aren’t can file for unemployment or find opportunities in grocery stores and other industries that are hiring. 

“Industries that are still able to function shouldn't be interfered with. It makes no sense to impose a rent freeze,” he said. “It would be devastating if you shut off the entire revenue stream for our business but obligations like maintenance, property taxes, and utility bills continue to accrue.”

But the calls for rent cancellations are picking up steam across the country, with city officials attempting to put pressure on state lawmakers and governors to act. Supervisors in San Francisco argued last week that an immediate rent and mortgage moratorium is necessary to stop “a level of debt, homelessness, evictions, and foreclosures” akin to “the Great Depression.” City councilmembers in Portland, Oregon warned that without a rent moratorium, “those who defer rent payments may accumulate significant personal debt” and “may ultimately face eviction” once the pandemic is over. The Boston City Council approved a symbolic resolution calling for the governor to enact a rent and mortgage moratorium.

Many officials have expressed frustration with governors, like those in Washington, New York, and Connecticut, who have created mortgage moratoriums or adjusted payment schedules for homeowners, but have not issued the same protections for tenants. H. Jacob Carlson, a professor at the School of Labor and Urban Studies at the City University of New York, said lawmakers can’t assume benefits will trickle down to renters. “I’m worried that the direction we’re taking with all the focus on mortgage forbearance and things for homeowners distracts us from the renters most in need,” Carlson said. 

Instead, Carlson is among a growing number of housing scholars who argue there should be a national 90-day rent moratorium—an idea already supported by some members of Congress, like U.S. Sen. Rick Scott, a Republican from Florida who last month called for a moratorium on rent, mortgages, fees, utilities. Carlson said that the moratorium should be universal, not just for those who have lost their jobs or otherwise suffered financially during the pandemic, because “means-testing policies tend to be administratively burdensome and can exclude some of the most vulnerable people.” He believes that the federal government will need to step in on the issue because they have financial powers that state and local governments lack—powers that would allow them to enact graduated policies where profitable institutional landlords would bear some of the burden of a rent moratorium, while small-scale landlords could receive rent reimbursements from the government. 

Some are afraid that a recession similar to the one in 2008 could have ripple effects where renters are unable to pay bills, and mom-and-pop landlords who rent one or two units lose their homes. When that happened in the Great Recession, investors bought foreclosed properties and raised rents significantly while adding new fees. “Investors with capital reserves could snatch up those properties the day after this pandemic is over,” Carlson said. “We’re worried that a crisis like this potentially puts small-scale landlords out of business.”

Those who support a rent moratorium argue that housing investors and landlords are businesses like any other, and should expect to have lower revenue in the coming months. “They can take a haircut on profits to ensure that their tenants aren’t all going to get evicted in three or four months,” said Connor from the ATU.

Carlson agreed that everyone will “bear a bit of a burden” during the fight against the coronavirus, but that renters need to be prioritized because they are disproportionately represented on unemployment rolls. “People losing their jobs and unable to make rent are getting hit twice,” he said. “Stabilizing this group of people keeps the whole ship as steady as possible. If we take fear of rental payments off the table, it allows them to spend money elsewhere in the economy.”

OTHER STORIES on Route Fifty:

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.