Health Care

McKee announces “Landlord Challenge”, will pay landlords to rent to formerly homeless

“Winter shelter subsidies are expiring, which means that hundreds more are likely to be living outside in the next few months,” said Professor Eric Hirsch. “The state must provide temporary emergency shelter with a path to permanent housing now for at least 500 individuals and families. Landlord incentives will not solve this problem.”

Rhode Island News: McKee announces “Landlord Challenge”, will pay landlords to rent to formerly homeless

May 11, 2022, 1:19 pm

By Steve Ahlquist

“I moved to the state of Rhode Island from New York City, where I worked as a nurse for several years, about a year ago. Unfortunately, with housing costs and family matters, I wasn’t able to establish a home for me and my son,” said Virgina, holding her son Jayden. Virginia is a formerly unhoused mother who secured an apartment through the landlord incentive program the first time it was implemented, during the pandemic. “I was pretty much hopping from couch to couch, house to house, and it was overwhelming for me and my son. Fortunately I was able to find house shelter where they took me in and they made me feel like family – made me feel like home – and was very respectful, even when I felt I was at my lowest.

“I was grateful that they found me an apartment. which I can finally call home,” concluded Virginia. “I can go home every day to my son and I was blessed to have a three bedroom where all my kids can have their own room. All the staff from Amos House has been nothing but a blessing to me and that’s something that I will be always remember and I will never forget. I’m very grateful.”

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Rhode Island Governor Daniel McKee kicked off a statewide landlord challenge effort on Tuesday to provide permanent housing for Rhode Islanders who have been experiencing homelessness and staying in hotel shelters since the onset of the pandemic.

Under the program, landlords will receive a $3,000 signing bonus for the first unit signed on for a one year lease and $1,000 for each additional unit. Up to $3,000 per unit is available for reimbursement of necessary repairs. The program, when possible, will provide rent for up to one year.

“Over 150 Rhode Island households will soon be transitioning out of hotel shelters and seeking available rental housing,” said Governor McKee, speaking at a press conference held at Amos House. “The rental market is tight and the need is urgent. We are calling on landlords across the state to step forward to provide housing to keep Rhode Islanders safely housed.”

The cost of the program will be up to about $453,000. Program funding for incentives comes from the State Office of Housing and Community Development, Amos House is administering the program and the Rhode Island Realtors “have been really great partners in getting the word out,” said Deputy Secretary of Housing Josh Saal.

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“Rhode Island has, for a long time, neglected building affordable housing and building enough units,” said Lieutenant Governor Sabina Matos. “The problem isn’t occur overnight, and it’s going to take a long time for us to address the problem.” Lieutenant Governor Matos stressed that the Landlord Challenge is only one part of the solution.

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As federal funding provided by the Federal Emergency Management Agency (FEMA) to provide hotel shelters is winding down, state leaders and housing partners are seeking landlords with available rental units to step forward to house families experiencing homelessness and staying in hotel shelters during the pandemic. These individuals and families will soon be transitioning out of hotel shelters and require housing.

According to the state’s Homeless Management Information System, over the two weeks ending April 16, 255 individuals have been reported as living outside in Rhode Island. This number will increase as people are forced to leave winter shelter. Those evicted from those beds have nowhere to go, as there are 932 individuals on waiting lists for individual and family shelter including 544 adults, and 388 individuals in 117 families with children.

Housing advocates are doubtful this approach will have much impact.

“While those of us trying to end homelessness in Rhode Island appreciate trying to enlist landlords to provide some permanent housing, there are several problems with relying on this approach,” said Professor Eric Hirsch, Professor of Sociology and Anthropology at Providence College.

  1. Homelessness is being caused by a private rental market that has a historically low vacancy rate. Recently, it’s been as low as 2.8%, but needs to be at around 6% or 7% to function effectively. Due in part to the low supply of available units, rents have skyrocketed. The average rent in Providence is now over $2,000 per month requiring an annual household income of $80,000 to be affordable. Rhode Island must quickly build housing units with deep subsidies built into the projects themselves. The private sector will not solve the problem.
  2. There are over 200 people, individuals as well as those living in families, currently staying outside. Winter shelter subsidies are expiring, which means that hundreds more are likely to be living outside in the next few months. The state must provide temporary emergency shelter with a path to permanent housing now for at least 500 individuals and families. Landlord incentives will not solve this problem either.

“Homelessness is an issue that requires immediate action. As we propose a historic investment of a quarter of a billion dollars to expand overall housing supply, we must not forget the critical role of landlords and the existing housing stock in addressing the here and now,” said Deputy Secretary Josh Saal. “The Landlord Challenge is a call to work together as a community and create mutually beneficial opportunities for both landlords and prospective tenants experiencing homelessness.”

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The Landlord Challenge builds upon similar programs launched in 2020 and 2021, which attracted participating landlords across Rhode Island to provide available rental units to Rhode Islanders seeking rental housing. All participating units must be available, safe, habitable and rent reasonable. Program partners are seeking available units in a variety of sizes (studio, one-bedroom, and more) in locations across the state for both individuals and families, including ADA accessible units.

HUD is proud of our continued partnership with the State of Rhode Island to work toward the goal of making sure that every Rhode Islander experiencing homelessness has a place to call home,” said Bob Shumeyko, Regional Director of Community Planning and Development in the HUD Boston Office. “This is a perfect example of how HUD funding can be leveraged with state, nonprofit, and private sector resources to meet a crucial community need and, in this case, will also provide a benefit to landlords.”

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“Hotel shelters are not a long-term solution to homelessness,” said Eileen Hayes, president and CEO of Amos House. “This effort seeks to provide a more permanent solution by engaging landlords and matching their available rental units to individuals and families currently experiencing homelessness. With the financial incentives available, and rent, this program is a win-win for families needing housing, landlords with available units and our state.”

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For more information on the program or to sign-up for the program, please visit the Amos House website or call 401-272–0220, ext. 254.