Indiana boosts funding for rental assistance during coronavirus pandemic

Alexandria Burris
Indianapolis Star

The state's rental assistance program is getting a $15 million boost.

Gov. Eric Holcomb announced the additional funding for the Indiana COVID-19 Rental Assistance Program during his weekly coronavirus press conference Wednesday. The state's moratorium on evictions and residential real estate foreclosures will end Aug. 14.  

Holcomb's administration initially set aside $25 million in federal CARES Act funding for the program. The boost will make a total of $40 million in assistance available to Hoosiers in 91 counties who are unable to pay rent due to the novel coronavirus pandemic. Renters outside Marion County can apply for assistance at IndianaHousingNow.org

Marion County has its own separate rental assistance program, funded at $15 million. High demand overwhelmed the program, and the county temporarily suspended receiving new applications within days of making the assistance available. Marion County residents can visit indyrent.org for more information.

Some Indiana residents are struggling to pay their rent because of pandemic-related job losses and pay cuts. Housing advocates fear an avalanche of evictions when the statewide moratorium enacted to keep renters in their homes during the public health crisis expires. 

Jacob Sipe, executive director of the Indiana Housing and Community Development Authority, said renters have submitted more than 24,000 applications for a program designed to support 12,000 households. Most of the applications have come from Lake (4,427); St. Joseph (2,593); Allen (2,074); Tippecanoe (1,011); and Vanderburgh (957) counties. 

The five counties represent 45% of the applications submitted for the program, Sipe said. 

With the increase in funding, the program would now be able help more than 19,000 Indiana households. Holcomb is encouraging Hoosiers to work with their banks or landlords to establish payment plans.

Andrew Bradley, policy director of Prosperity Indiana, said the advocacy organization is still processing what the additional funding would mean for the big picture crisis looming in Indiana. 

"The first reaction is, of course, it's good to add to that program because we think that there's a lot of need out there for rental assistance that is so far untapped yet," he said. 

But it appears Indiana may be mitigating the crisis rather than getting out in front of it, Bradley added.

Prosperty Indiana and others housing advocates have formed the Hoosier Housing Needs Coalition, which has been sounding the alarm. The coalition developed a housing stability yardstick with several measures that it said should be met before the moratorium is lifted to prevent evictions and homelessness. 

Those measures include a thorough state effort to align and coordinate available funding. Some CARES Act allocations go through the state to cities, while other funding travels directly to cities and can be used for rental assistance. He also notes that renters using the state program can't receive assistance from other sources in the same month. 

The state opened the application portal July 13, initially receiving just over 8,000. New applications have tampered off since then, with the state now averaging about 400 per day, Sipe said. 

Renters are eligible for the Indiana COVID-19 Rental Assistance Program if they have lost income because of the pandemic and they are having trouble paying rent or face eviction. 

Qualifying applicants could receive up to $500 each month for four months, a maximum contribution of $2,000, to cover rents that are current or past due since April 1. The state is still accepting applications. 

The money is paid directly to landlords on behalf of renters. Landlords must agree to participate in the program and to not evict tenants for nonpayment until their rent is more than 45 days delinquent. Some participating landlords began receiving payments this week, Sipe said.

Sipe also emphasized that applicants cannot receive rental assistance from another program during the same month when participating in the state program. Nonprofits, township trustees and faith-based organizations also may be providing assistance, he added. 

Bradley said he understands the thinking behind the restriction, saying money in the state program could stretch further. But there's one problem, he said: The state program only goes up to $500 per household. Median rent in Indiana is $825.

"(A family) may not have a way, even if they get that $500, to make up the balance," he said, adding that families receiving help could still face eviction if they are not able to make ends meet. 

Meanwhile, the state said there also is help for homeowners struggling to pay mortgages. They can contact the Indiana Foreclosure Prevention Network online at https://www.877gethope.org/ or call 1-877-GET-HOPE.

In addition to the state's rental assistance program, Holcomb's administration is preparing to roll out a settlement facilitation program to help landlords and tenants settle disputes after the eviction moratorium ends, Joe Herron, the governor's general counsel, said.  

The program will be available at no cost to tenants and landlords engaged in eviction lawsuits. Specifics of the program will be announced at a future date. 

Settlement facilitations have been used in mortgage foreclosures in Indiana for more than a decade, Herron said.

"They can be a good choice for settling disputes," he said, adding that the program is being developed by Indiana's Office of Judicial Administration with the goal of preserving housing stability.

A neutral person, trained to resolve disputes, would meet with landlords and tenants to settle disputes that a judge would otherwise settle. 

Funding for the program is being provided by the the Indiana Supreme Court, the state of Indiana through the CARES Act and the Indiana Bar Foundation.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or call 317-617-2690. Follow her on Twitter: @allyburris.