The beginning of a new month is here, and for more than 1.5 million Pennsylvania households, that means the rent is due. But paying rent and bills is not a simple task for many residents impacted by the COVID-19 pandemic. As a result the rental housing sector is struggling to maintain its financial balance.
The state took proactive steps to effectively contain the spread of the coronavirus, but the shutdown caused a spike in unemployment. Some hard hit sectors, including entertainment, travel and manufacturing, have many employees who are hourly and more likely to be renters.
A good portion of Pennsylvanians were not prepared to weather the financial storm created by the COVID pandemic, and it only magnified the harsh financial realities for those already struggling, including the more than 1 million Pennsylvania families who pay high percentages – defined as more than 30 percent – of their income for housing.
It is estimated that at least 15 percent of renters will be impacted by COVID-related job loss. That’s over 200,000 Pennsylvania renter households.
But renters are not alone in this issue, landlords also are also feeling pressures. A recent survey of landlords completed by the Housing Alliance of Pennsylvania showed concerns about their ability to meet financial obligations. Landlords are grappling with reduced revenue from rental payments and concerns about completing emergency repairs – a situation that is further complicated by concerns about mortgage payments.
The stress related to these concerns will only elevate as the pandemic continues and recovery starts, and these effects are being felt by small business owners. The Rental Housing Finance Survey shows the majority of rental properties are owned by individual investors. It is for this reason we believe it is critical to understand the immediate short and long term needs of these small operators as they are the crux of the American rental market.
Even with temporary eviction moratoriums in place and landlords taking steps to assist tenants, many are still confronted with financial burdens resulting from the shutdown. Action must be taken to help alleviate the pressures currently facing the rental housing sector.
We require a comprehensive plan to aid those affected by this crisis. As our state and national leaders explore programs and services that will be beneficial during the recovery phase, we need to also consider how to best support the housing sector.
Working with landlords, tenants and legislators, the Housing Alliance of Pennsylvania is developing proposals that could alleviate financial burdens and stabilize the rental housing sector. We recommend establishing an emergency rental assistance program to protect hard hit families from getting behind in their rent and consequent eviction from their homes as well as a landlord loan and support program to stabilize landlords and relieve pressure to evict their tenants when the eviction moratorium expires.
It is unclear when and how the economy will recover from the devastating impact of COVID-19. Unemployment numbers are likely to remain high and households that struggled to make ends meet before the pandemic will face additional financial challenges after the pandemic.
Landlords and renters alike need meaningful assistance supporting a return to economic stabilization. We do not yet know the extent of the economic damage resulting from the pandemic, but we do know it will be a long journey back to normalcy.
Phyllis Chamberlain is executive director of the Housing Alliance of Pennsylvania.
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May 02, 2020 at 08:26PM
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The rent is due but thousands can’t pay it thanks to COVID-19 | Opinion - pennlive.com
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