SAN DIEGO COUNTY, Calif. — San Diegans struggling to pay rent may be getting a lifeline from the city. On Tuesday, the City Council gave initial approval to $61.9 million rent relief program.
The San Diego City Council directed the Housing Commission to create the program that would help those affected by the economic fallout from coronavirus.
The “COVID-19 Rental Assistance Program” would use money the city received from the Coronavirus Aid, Relief, and Economic Security Act to pay for the program, which received wide support from community and labor organizations.
“We are faced with unprecedented impacts on the economy, labor markets with substantial wage and job loss and every aspect of daily life,” said Councilmember Monica Montgomery, who represents District 4. “We need to preserve the incomes of our working-class families so that all of their income isn't swallowed up on trying to pay rent for a decent place to live.”
The program will allocate $61.9 million to help approximately 15,475 families. Each is eligible to receive a one-time payment of up to $4,000, up to $2,000 may be used to cover past due rent and the remaining balance may be used for upcoming rent payments. All money will be paid directly to the landlord.
“This proposal is an appropriate use of the federal CARES Act funding that will help tenants stay housed and allow rental property owners to fulfill their financial obligations and ultimately help stabilize San Diego's rental housing market,” said Todd Henderson, who owns rental properties in San Diego and is a member of the Southern California Rental Housing Alliance.
The Housing Commission expects it will receive more applications for assistance than it can pay. Nearly half of all San Diego’s housing units are renter occupied. 104,500 households have a family income of less than $57,750, or 50% of the area median income.
“We're looking at thousands of people being homeless if something like this doesn't pass,” said Brigette Browning, President of UNITE HERE Local 30, which represents 6,000 hotel and hospitality workers. “We were already living paycheck to paycheck. We thought we didn't have huge amounts of savings that can cover us. We can't work from home. We're disproportionately in District 4, 8 and 9 where unemployment has skyrocketed.”
The commission estimates it will take up to six weeks for the program to begin. Eligibility is limited to households in the city of San Diego with an income less than 60% AMI and with members who suffered an economic loss due to coronavirus. Priority will be given to families with minor children and seniors.
Those who submit applications within the first two weeks of the program will be prioritized. Subsequent applications will go to a lottery system.
The city initially planned to use the $61.9 million for other purposes. $42.2 million was intended to cover payroll, staffing and supplies for public safety with the money split between police and fire-rescue. $19.7 million came from Operation Shelter to Home.