Emergency eviction moratorium on renters now ended, but evictions still drop

Evictions of renters by landlords have dropped sharply in Alaska, and it seems mostly due to emergency federal rental housing assistance rolled out earlier this year to soften the impacts of COVID-19 economic shocks.

Alaska court records show evictions running about half the number in 2019, the last year before the pandemic shook the state’s economy. In 2020 an eviction moratorium was in effect, but that has now ended.

Alaska Housing Finance Corp. is helping coordinate the renter assistance program with federal funds provided to the state, the Municipality of Anchorage and Alaska tribal groups.

To date AHFC has paid $191.6 million in grants to Alaska landlords and utilities on behalf of renter who are behind on rent and utility payments, according to AHFC spokesperson Stacy Barnes. A total of $352 million has been made available to the state for AHFC’s part of the program.

The Municipality of Anchorage and tribal groups receive additional federal funds and have made additional support payments.

“This is a significant benefit to landlords as well as renters because they don’t have to deal with turnover. It means stability all the way around,” Barnes said.

While renters nationally have struggled with financial impacts of COVID-19, the federal Centers for Disease Control and Prevention established an eviction moratorium that was extended multiple times throughout the pandemic. However, the U.S. Supreme Court ended the moratorium in late August.

Following that, financial hardship by renters and landlords alike seemed likely. With federal pandemic aid coming in AHFC prioritized getting rental assistance payments out as quickly as possible. To date, nearly every qualified person who applied for Alaska Housing Rent Relief has had their past due rent and utilities paid, the state housing corporation said in a statement.

“While challenges to the federal eviction moratorium were being addressed AHFC worked closely with Alaska’s courts. Applications for assistance were verified, payments were issued, and for those in process, a commitment letter was made available to tenants who were encouraged to share it with their landlords,” the corporation said in its statement.

“This novel approach provided necessary documentation to both landlords and the courts, confirming that AHFC had funds available to address past due, current, and future rent and utilities up to 12 months,” the statement said.

The Alaska Court System included information about the status of the moratorium and availability of Alaska Housing Rent Relief on its website, and judges are informed of the availability of AHFC’s commitment letters.

“This solution aids not only the tenant, verifying to the court that financial assistance is forthcoming, but is also crucial for helping landlords stay solvent by eliminating unnecessary and costly court proceedings, AHFC said in the statement.

Stacey Marz, administrative director of the Alaska Court System, said Alaska eviction filing rates have remained low after the federal eviction moratorium ended and are less than half what they were in 2019.

“In the past four weeks, there have been 85 eviction cases filed across the state, while in the same time period in 2019, there were 182,” Marz said. The court system had been prepared to see an increase in cases after the end of the moratorium, but that did not happen.

“The federal funding allowed us to address critical needs of Alaskans experiencing financial hardship as a result of the COVID-19 pandemic,” says Bryan Butcher, AHFC’s CEO/Executive Director.

“Stable housing is essential for public health, financial stability, and economic recovery. Our simple commitment letter has proven to be highly effective in reducing pandemic evictions,” Butcher said.

AHFC estimates that most eligible applicants will continue to receive Alaska Housing Rent Relief through spring 2022. Looking ahead, AHFC is continuing its efforts to develop new programs and services that are responsive to the diverse housing needs statewide.

The imminent threat of eviction compounds stress-related issues that may arise in households experiencing financial difficulties, and data confirms there are huge emotional and physical benefits to keeping people housed during times of stress, AHFC said in its statement.This is especially relevant to the long-term impacts of COVID-19 when many have experienced job loss and reduced incomes.

“Too often people forget about the cost of owning and maintaining properties. Landlords know too well about these financial obligations and when their tenants struggle, landlords do too.”

Throughout 2021, AHFC has worked to mitigate impacts of COVID-19 and to keep Alaskans housed. In addition to targeting elements of eviction diversion, AHFC’s efforts include implementing “Safety Net,” a program providing temporary rent reductions to families living in public housing or with a housing voucher through increased federal subsidies.

This can include suspending late rent fees for public housing residents; and forbearance for AHFC mortgage holders.