Funds for eviction relief are delayed

An approximately two-month delay in the rollout of a Tennessee eviction prevention program could put pressure on struggling Hamilton County renters as eviction filings return to levels seen before the pandemic.

“There’s been a bunch of different funding sources bailing people out,” Emily O’Donnell, an attorney and co-founder of Chattanooga’s Eviction Prevention Initiative, said in a phone call Wednesday. “It’s like the water hose has a kink in it. The money was flowing before. It will flow again, but right now, it’s just getting held up. So the question becomes, how long can or will the landlords be able and willing to cooperate and wait on payments?”

Chattanooga Neighborhood Enterprise and the Chattanooga Regional Homeless Coalition expect to receive about $500,000 apiece through the Tennessee Housing Development Agency’s eviction

“The Community Foundation recognizes that this is a significant gap. At this moment, we are in discussions with our donors and making internal assessments to see what we may be in a position to do.”

— MAEGHAN JONES, PRESIDENT OF THE COMMUNITY FOUNDATION OF GREATER CHATTANOOGA

prevention program. The state agency’s website says the initiative is designed to help with overdue and upcoming rent, utility deposits, court costs for eviction proceedings and more.

In a memo to local partners on May 18, Cynthia Peraza, the director of community programs at the state agency, said the program was originally expected to launch in June, but because of some changes in the scope — required by guidelines from the U.S. Department of the Treasury — the agency is delaying that launch until at least early August.

“This will give us time to work through some of the treasury guidelines and complete the required updated dedicated grant agreement with the state and prepare the contracts for each of you,” she said.

The additional planning will help the agency ensure a smooth, uninterrupted rollout once the agency is able to start funding programs, Peraza said.

“We are disappointed with this needed delay, as we are sure are you. However, it does come with some very favorable program changes and enhancements that should make your programs more flexible and easier to administer,” Peraza continued.

Asked for more background and further information about the delay, agency spokeswoman Rebecca Anderson sent a link to the program’s webpage. She did not immediately respond to a follow-up message or a voicemail left on her office line.

The Tennessee Housing Development Agency is using $24 million in federal funding to boost housing stability through financial assistance, legal representation and other means. Of that, $12 million has been set aside for eligible nonprofits that can apply for grants of up to $500,000. Money is being distributed over a twoyear period.

Spurred by growth in the cost of living and a tight housing market, Hamilton County has seen a recent rise in eviction filings. The average number of monthly eviction filings dropped from almost 300 in 2019 to around 150 in 2020 due to rent relief and eviction moratoriums enacted during the pandemic. However, they have since steadily increased, reaching nearly 250 in 2022. Officials expect evictions will hit pre-pandemic levels by the end of 2023.

“That’s a nationwide trend,” O’Donnell said. “We’re seeing that all over the country. There’s been a pretty consistent return to pre-pandemic rates of filing.”

On May 23, the Chattanooga City Council heard an update on local eviction prevention efforts, which included a look at the distribution of evictions across the city.

The districts represented by Council Chairwoman Raquetta Dotley, of East Lake; Councilwoman Marvene Noel, of Orchard Knob; and Councilwoman Demetrus Coonrod, of Eastdale, consistently have the highest number of eviction cases, sitting at an annual average of 431, 442 and 338, respectively, between 2016 and 2022.

The three lowest are those represented by Council members Ken Smith, of Hixson; Chip Henderson, of Lookout Valley; and Jenny Hill, of North Chattanooga — 119, 117 and 102, respectively.

Maeghan Jones, president of the Community Foundation of Greater Chattanooga, told council members evictions tend to be filed more frequently in majority Black areas than white ones.

Evictions disproportionately affect lowincome neighborhoods, but residents with legal representation are much more likely to have their cases dismissed — 67% of tenants with a lawyer versus 27% of those without.

Until now, Jones said, the Tennessee Housing Development Agency has administered federal rent relief funds out of Nashville, but organizations have been in conversation with the agency about moving those duties to the local level with the goal of increasing efficiency — getting funds to landlords quicker and keeping families in their homes.

The homeless coalition and Chattanooga Neighborhood Enterprise were the organizations chosen to handle those funds, but Jones said the state agency is expecting a two-month delay in the distribution of that money.

“I mention this to you because this can be troublesome and confusing for landlords and tenants in your districts, and you may be hearing from them,” Jones told council members, “so I wanted to bring that to your attention.”

Martina Guilfoil, president and CEO of Chattanooga Neighborhood Enterprise, confirmed in a phone call Thursday that the delay will likely result in tenants missing out on relief that would allow them to avoid eviction. She said the Community Foundation has been exploring the option of providing some stop-gap funding.

“The Community Foundation recognizes that this is a significant gap,” Jones said in an emailed statement Friday. “At this moment, we are in discussions with our donors and making internal assessments to see what we may be in a position to do.”

Guilfoil said she also had a conversation with officials at the state housing development agency, who said they’re looking at options for bridging the funding gap over the next couple months — possibly in the form of reimbursements to organizations.

Looking forward, Guilfoil is unsure what happens after the $1 million dries up.

“I’m afraid,” she said, “because rents keep going up, and people can’t afford it.”

O’Donnell echoed that the goal of bringing the funding to a local level is to improve the speed and efficiency of aid.

“I think THDA has done a very good job of talking to service providers and figuring out where the pain points are, so to speak, so I don’t think there’s any blame,” O’Donnell said. “When there’s federal money, there’s a whole lot of restriction around it, so they have to make sure all those qualifications are met and jibe among the various laws.

“There’s a lot of questions,” she continued, “and anyone giving out public money is going to be very careful to make sure they’re not running afoul of the law.”