(The following was written while I was on hold, waiting to speak with an ERAP operator.)
“Well, in our country,” said Alice, still panting a little, “you’d generally get to somewhere else—if you run very fast for a long time, as we’ve been doing.”
“A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!
That is the Red Queen and Alice, near the end of Through the Looking Glass. Alice is complaining that they are still where they were several minutes ago, even though they have been sprinting. The Queen says that, well, you have to run faster than fast to get ahead. She could have been speaking about ERAP.
I have written about the New York State Emergency Rental Protection Assistance Program (ERAP) previously. There is a lot to say about it. It is important because it is the only way many property owners will get paid. It is front-of-mind because the problems that residents and property owners have had receiving funds from the program have been used as justification for the eviction moratorium. And it is an interesting policy solution because an effective rental insurance program could help alleviate the current housing crisis.
Problem is – it is badly executed.
Under the law, residents who qualify for ERAP can receive compensation equal to all rental arrears from March 2020 until the date of their application. They may also qualify for up to three months’ prospective rent. Residents and owners must cooperate on the application. Payments, when made, are deposited directly into the landowner’s bank account. This works well in theory; the trouble is that payment is slow, and arrears are a moving target.
So far, five residents of my parks have applied for ERAP. Four applied in early June, when the program first opened. The fifth applied late last month. Two of the original four were paid in early September. These payments were sufficient to bring those two residents into the black. The problems started some time between September 2 and September 15. It appears that during the first half of September, ERAP stopped paying prospective rent. That is a problem, because it takes so damn long for ERAP to process applications.
Tenant Number Three was paid $833 in mid-September. That represented arrears as of June 2, the date on which the application was made. However, she had stopped paying rent when the application was made (rational economic behavior for someone who assumes payment is on the way). Between June 2 and September 15, she racked up $2,297.49 of additional debt in what was prospective rent on the date when the application was made, and what is now arrears. Tenant Number Four has not paid a penny for more than a year. She applied for ERAP in early June. She received $3,558.46 today, October 7. That represents arrears as of the date of her application – but after offset for the ERAP payment, she now has $1,370 of new arrears.
I have raised this issue with the ERAP people. They have said that, so long as the pot of ERAP money lasts, we can appeal the decision for any individual case and ask for additional funds. When I ask them how long the appeal process will last, they say, “We can’t give you a specific time frame.”. When I say, “That will be another three months! They will rack up another five grand of debt! I have my own bills to pay!”, they say, “What a slow sort of country you live in. Off with your head!”
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