On July 8, 2021,Governor Lamont asked the Connecticut Legislature to extend his emergency powers until September 30, 2021 to address ongoing issues caused by the COVID-19 pandemic. Specifically, he stated:
Extending [Executive Order 12D] for a short time will mean more landlords are likely to receive unpaid rent and more tenants will stay in their homes. Doing so is critically important not only as an economic relief measure, but also because those at the lowest end of the economic spectrum are the least likely to have already been vaccinated, increasing the risk of infection that is already exacerbated by the rising prevalence of the Delta variant.
On July 14, 2021,the Connecticut House and Senate voted to extend the Governor’s emergency powers to September 30, as he had requested. Currently E.O. 12D is scheduled to expire on July 21, 2021. However, we expect the Governor to extend E.O. 12D. The order includes the following provisions:
- Landlords must complete an application for the State’s UniteCT rental assistance program prior to delivering a notice to quit for nonpayment of rent. The UniteCT case number must be included on the Notice to Quit;
- Landlords must give tenants a 30-day Notice to Quit if they intend to evict for nonpayment of rent, for lapse of time, or because the right to occupy a unit has terminated;
- All Notices to Quit given for any reason must be delivered with information about the State’s UniteCT program and the federal CDC eviction moratorium in both English and Spanish;
- Tenants have an opportunity to continue all terms of their rental agreement by paying outstanding rent within the 30-day Notice to Quit period;
- If during any summary process (eviction) case, a UniteCT application is made, all proceedings in the summary process case must be stopped for 30 days or until a decision is made on the UniteCT application, whichever is earlier. If the UniteCT application is approved, the summary process case must be stopped until the UniteCT payment is made, and the summary process action is withdrawn or dismissed.
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In today’s update:
Eviction/mortgage delinquency statistics
Since March 15, 2021, when UniteCT began accepting applications:
- 3,946 applications or 32% of the total fully submitted applications have been approved for payment of a rental and/or utility arrears. Nearly $31 million has been paid out or about 7.7% of the total funding allocated to Connecticut;
- 1,305 people have entered homeless shelters. Only 26.7% of those exiting shelter went into permanent homes;
- Landlords have filed 2,800 new summary process (eviction) cases;
- Courts have issued 1,176 executions—once a court issues an execution order, the landlord can hire a state marshal to remove the tenant and their belongings from the unit.
A new survey from the Urban Institute showcases the urgent need to raise awareness about emergency rental assistance. One key finding suggests that less than 6% of landlords and 11% of tenants have applied for emergency rental assistance.
Racial and ethnic disparities continue in recovery from pandemic-related economic hardship: According to the latest data from the Household Pulse Survey, 49% of Latinx renters, 42% of Black renters, and 18% of people of two or more races who rent have little or no confidence they can pay next month’s rent compared to 11% of white renters. In addition, 12.2% of Latinx homeowners, 15.8% of Black homeowners, 10% of Asian homeowners, and 12.5% of people of two or more races are not caught up on their mortgage payments compared to 5% of white homeowners.
Eviction and foreclosure moratorium status:
Connecticut Eviction Moratorium expired June 30, 2021. However, Governor Lamont has issued Executive Order 12D which we expect will remain in effect until September 30, 2021.
The national Centers for Disease Control and Prevention’s eviction moratorium has been extended to July 31, 2021. This protection is NOT automatic. It only applies to tenants who cannot pay full rent or other housing payments because they have lost income or have very expensive medical bills. To receive this protection, you must provide your landlord with a signed copy of the CDC declaration form. More information about eligibility requirements and how to complete the CDC declaration is available here.
Current foreclosure moratoriums:
- Fannie Mae and Freddie Mac: (essentially) until August 31, 2021
- HUD, Department of Veterans Affairs, the Department of Agriculture: until July 31, 2021
- CFPB Final Servicing Rule: The CFPB final servicing rule will implement a foreclosure moratorium from August 31, 2021 until December 2021 that applies to most mortgages, not just federally-backed mortgages. Under the rules, servicers can only start a foreclosure if the borrower:
- Has abandoned the property;
- Was more than 120 days behind on their mortgage before March 1, 2020;
- Is more than 120 days behind on their mortgage payments and has not responded to specific required outreach from the mortgage servicer for 90 days; or
- Has been evaluated for all options other than foreclosure and there are no available options to avoid foreclosure.
Tenants living in multifamily properties with a Fannie Mae or Freddie Mac backed mortgage cannot be evicted for nonpayment of rent through September 30, 2021. Additional tenant protections include not charging tenants late fees or penalties for nonpayment of rent and allowing tenants flexibility in repayment of back rent over time and not demanding a lump sum payment. Finally, landlords evicting for reasons other than nonpayment of rent must give a 30-day notice.
No foreclosure moratorium on mortgages that are not “federally-backed” or non-mortgage foreclosures: Homeowners whose mortgages are not “federally-backed” (except as they might be covered in the future by the CFPB announcement) or who owe condominium fees, real estate taxes, or other real estate related taxes are not protected from foreclosure.
UniteCT Updates
DOH continues to make changes to the UniteCT program to meet the needs of tenants and landlords. Check the UniteCT website and the guidance on the program frequently to get the latest updates. Currently, tenants eligible for UniteCT are entitled to:
- Reasonable accommodations: People with disabilities who need assistance filling out an application for UniteCT or with any other aspect of the program, should send an email to UniteCTReasonableAccommodation@ct.gov or call 1-844-864-8328 and ask for a reasonable accommodation such as someone to help fill out an application, or upload documents, or any other change in the application process or program that will help the person who is disabled participate in the program.
- $15,000 in rental arrearage payments: Tenants will now be eligible to receive up to $15,000 in rental arrearage payments for any rent owed after March 13, 2020 regardless of the number of months owed. If, based on the application, it is clear the tenant needs more than $15,000 to clear their arrearage, UniteCT will review the application and determine if additional funds will be paid;
- No need to write-off 15% of arrears: Landlords will not be required to write-off 15% of the rental arrearage;
- Tenants not obligated to contribute to future rent for 3 months: If tenants are eligible for prospective rental payments through UniteCT, the tenant will not be required to contribute any rent for the first three months of prospective payments;
- Income proxies reduce need for documentation: UniteCT will use income proxies to determine eligibility. If an applicant lives in a low-income census block, the applicant will not be required to submit income verification. Instead, the applicant can sign a self-attestation that they have income at or below 80% of AMI and will not have to submit paystubs or tax returns;
- Participation in other benefit programs qualify a tenant for UniteCT: Applicants who receive benefits from Medicaid, SNAP, TANF, State Administered General Assistance (SAGA), and the state supplement will be eligible for UniteCT without additional income verification;
- Public and subsidized tenants eligible: UniteCT will provide benefits to tenants who live in public or subsidized housing. Anyone who has been denied benefits because they live in public or subsidized housing should contact doh-unitect@ct.gov immediately. At present, UniteCT staff are working with housing authorities to determine if there is a way for housing authorities to submit bulk applications on behalf of their tenants for the program;
The UniteCT mobile tech bus will be at the following locations for the week starting
July 19, 2021:
UniteCT’s tech bus provides the necessary technology to apply for rental assistance. Tenants and housing providers who may not have access to the technology required to complete an application for rental assistance are encouraged to visit the bus. To learn more about the bus please contact the host agencies.
Groton, CT
When: Monday, July 19, 10 am – 3 pm
Location: Groton Public Library, 52 Newtown Road, Groton
Contact: Jennifer Blanco, jennifer.blanco@uwsect.org, 860-464-3227
Stonington, CT
When: Tuesday, July 20, 10 am – 3 pm
Location: North Stonington Public Schools, 298 Norwich Westerly Road. North Stonington
Contact: Jennifer Blanco, jennifer.blanco@uwsect.org, 860-464-3227
Norwich, CT
When: Wednesday, July 21, 10am – 3pm
Location: Three Rivers Community College, 574 New London Turnpike, Norwich
Contact: Jennifer Blanco, jennifer.blanco@uwsect.org, 860-464-3227
Old Saybrook, CT
When: Thursday, July 22, 10 am – 3 pm
Location: Grace Church, 336 Main St. Old Saybrook
Contact: Susan Consoli, susan.consoli@oldsaybrookct.gov, 860-395-3188
Waterbury, CT
When: Friday, July 23, 10 am – 3 pm
Location: Martin Luther King Jr Park, 449 North Main St, Waterbury, CT
Contact: Emmanuel Cruz, ecruz@nhswaterbury.org, 203-558-4547
Help for tenants
What does E.O. 12D mean for tenants:
- https://ctlawhelp.org/en/evictions-during-coronavirus-crisis to get information about what to do next.
- https://portal.ct.gov/DOH/DOH/Programs/UniteCT. Write down your application number so you can share it with the court. Then notify your landlord by phone, email, and text that you have applied to UniteCT and ask them to complete their part of the application.
- https://portal.ct.gov/DOH/DOH/Programs/UniteCT-Check-Status-of-Application to check the status of your application and to determine if your landlord has completed an application.
If the landlord refuses to participate in UniteCT, tenants should do the following:
- Call the Connecticut Fair Housing Center at 860-247-4400 to do an intake. The Center is reviewing cases where the landlord refused to participate in UniteCT to determine if there is a violation of the Connecticut’s requirement that landlord’s accept housing assistance.
- On the UniteCT application, tenants can now apply for a security deposit and up to 12 months future rent to be paid to a new landlord.
Help for homeowners
Fannie and Freddie expand use of interest rate reductions: On June 30, 2021, Fannie Mae and Freddie Mac announced that they would expand their interest rate reduction programs. Flex Modification terms will be adjusted for COVID-19 hardships making interest rate reduction possible for eligible borrowers, regardless of the borrower’s loan-to-value ratio.
FHFA closes gap between Fannie and Freddie moratorium and CFPB servicing moratorium: On June 29, 2021, FHFA announced it would extend its moratorium to protect borrowers until CFPB moratorium starts. The CFPB final rule prohibits servicers from making a first notice or filing for foreclosure in most cases covered by the rule before December 31, 2021. Servicers will still be able to make a notice or filing for foreclosure on abandoned properties and those that had a foreclosure referral prior to March 2020, along with certain other exceptions. CFPB’s final rule will take effect August 31, 2021.
CFPB issues rules to facilitate transition as federal protections expire: On June 28, 2021, the CFPB issued rules to transition as federal foreclosure protections expire. The rules take effect on August 31, 2021 and ends on December 31, 2021. Under the rules, servicers can only start a foreclosure if the borrower:
- Has abandoned the property;
- Was more than 120 days behind on their mortgage before March 1, 2020;
- Is more than 120 days behind on their mortgage payments and has not responded to specific required outreach from the mortgage servicer for 90 days; or
- Has been evaluated for all options other than foreclosure and there are no available options to avoid foreclosure.
This protection applies to many, but not all, mortgages.
Connecticut is using federal Homeownership Assistance Funds to assist homeowners delinquent on payments: The American Recovery Plan included funding for homeowners in danger of losing their homes to foreclosure. Connecticut will receive approximately $123 million. DOH is working with CHFA to pilot a program that will provide up to $20,000 in grants to homeowners whose income is at or below 80% of AMI and who are socially or economically disadvantaged. A pilot program is expected to begin in July 2021. Details will be posted on the DOH and CHFA websites.
Foreclosure advice: The Center is holding Foreclosure Advice Virtual Sessions. Homeowners facing foreclosure can sign up for advice sessions over video or phone. These Sessions are in addition to the considerable number of videos and materials available at www.ctfairhousing.org.
Additional resources
Payments to help with internet access: The Federal Communications Commission has launched a temporary program to help families and households struggling to afford Internet service during the COVID-19 pandemic. The Emergency Broadband Benefit provides a discount of up to $50 per month toward broadband service for eligible households and up to $75 per month for households on qualifying Tribal lands. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers. Eligible households can enroll through a participating broadband provider or directly with the Universal Service Administrative Company (USAC) using an online or mail in application.
VISIT OUR WEBSITE FOR MORE INFORMATION ABOUT YOUR FAIR HOUSING RIGHTS IN ENGLISH, SPANISH, MANDARIN, VIETNAMESE, FARSI, RUSSIAN, ITALIAN, KREYOL, ARABIC, KHMER, AND TAGALOG.
Outreach: To schedule trainings on COVID-19 protections for tenants, foreclosure prevention, fair housing or constituent outreach please contact Rashida Rattray, at rrattray@ctfairhousing.org
