Advocacy, legal, and governmental organizations are warning that the COVID-19 public health crisis could result into a full-blown homelessness crisis. Among the negative impacts caused by eviction are homelessness, damaged credit ratings, difficulty in obtaining future housing, and job loss. Families and individuals forced to seek public shelter due to eviction will only further strain the nation's attempt to curtail the pandemic because social distancing and staying home, two of the most effective tools available to prevent viral spread, becomes exponentially more difficult for those who have been evicted.
There is a direct correlation between eviction rates and homelessness rates. Before the COVID-19 pandemic hit the national eviction rate was 2.3%. The national homeless rate was similar at 2.7%. The highest eviction rate in the nation was the city of North Charleston, SC at 16.5%. Hartford's eviction rate is 5.73% and Waterbury's is 6.1%. Because Windham County is so sparsely populated there is no easily accessed eviction data, but the neighboring counties of New London and Tolland average 1.75% eviction rates. Experts have predicted the COVID-19 pandemic may result in eviction rates climbing as high as 7%, nationwide.
Connecticut is ranked 17th in the nation for eviction rates. Thirty three percent of Connecticut's households are renters, with a median monthly rent of $1075.00, or 31.7% of the average monthly income. Connecticut's poverty rate is 7.6%. In recent years, Connecticut has decreased its homelessness rates by 23.7%, with a statewide eviction rate just under 3%, the homeless population is less than 1%. Killingly remains one of the towns in the state that sees higher than average homelessness rates.
In Connecticut, Governor Lamont halted residential evictions until August 25, 2020 for all renters who were current on their rent as of February 29, 2020. Tenants may also request that any security deposit held, including interest, that is greater than one month's rent be applied to any rent due. There are a number of protections granted and extended for renters and homeowners in Executive Order 7DDD. The recent legal protections granted by Governor Lamont does not guaranty that irresponsible landlords won't try to pressure tenants. Representative Rosa DeLauro is working hard for tenant protections, you can call her office at (203) 562-3718 or Statewide Legal Services at 1-800-453-3320 for assistance and information.
Landlords are also finding themselves in a tough position as a result of the pandemic. When their renters lose their sources of income, a landlord loses her/his source of income, as well. It is important to note that the stimulus checks issued in the CARES Act, were intended to help tenants pay their rent. Those who qualified for unemployment are still receiving an extra $600.00 weekly to help with housing costs. The Federal government has not only made some temporary relief available to individuals, but has also provided relief for landlords who hold mortgages backed by Fannie Mae, Freddie Mac, or HUD on multifamily properties by allowing a 90 day forbearance due to any COVID-19 financial difficulties. Landlords are small businesses and can qualify for the Paycheck Protection Program, and SBA Disaster Relief Loans. Additionally, special tax provisions have been made to help all small businesses weathering these uncertain times.
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