The city of Denver’s first foray into cutting checks on behalf of residents who face a rent hike, past-due utility bills or another housing crisis was nearly overwhelmed by the demand.
After 486 low-income households received about $1,200 on average in rent assistance in late 2017 and early 2018, the City Council on Monday approved a $1 million extension of the program through the end of this year.
City officials tapped into the city’s affordable housing fund in November with the aim of providing limited assistance to individuals and families who need short-term help. The idea was that the assistance would help avert some evictions amid Denver’s ongoing housing affordability crisis.
“This is the next frontier of housing policy,” Councilwoman Robin Kniech said. “Over the past 12 months and in the future two years, you’re going to see us focus more on policies that keep people in place.”
Data provided by the city shows the program served as a stop-gap in most cases, with more than 95 percent of participating households receiving rent assistance for just one month.
The pilot phase ended in February, after the Temporary Rent and Utility Assistance program exhausted $865,000 set aside last fall from the city housing fund, which largely is fed by property taxes.
A total of 570 households received rental assistance or help with water and energy utility payments — far exceeding the 182 households that the city had estimated the pilot would serve. All payments go directly to landlords or utility providers, the city says.
Another renter-friendly program is in the offing. As soon as June, the city and Colorado Legal Services plan to publicly launch an eviction legal defense pilot offering attorney advice to renters facing eviction. That program was spurred by donations from City Council members totaling $130,000, mostly from their office budgets.
With Monday’s unanimous approval of more money for the rent and utility assistance program, the city’s nonprofit partners will resume accepting applications soon, though a date hasn’t been announced. To qualify, applicants must meet household income limits that amount to 80 percent of the metro area median income (AMI) — or $50,350 a year for an individual and $71,900 for a family of four.
During the pilot, two-thirds of households that received help had incomes at or below the 30 percent AMI level, or about $27,000 for a family of four, according to the city’s Office of Economic Development.
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The city has granted separate $500,000 contract extensions to Brothers Redevelopment and Northeast Denver Housing Inc. Those groups also recently received $125,000 in grants from the Wells Fargo Foundation, money that the city says will help pay for added support services for program beneficiaries.
City officials estimate that more than 770 households will receive rental payment assistance during the second phase, and another 118 applicants will qualify for utility assistance. Applicants must provide evidence that they are facing a financial crisis, such as a lost job or a notice of rent increase that makes their housing unaffordable.
Residents also could qualify if they face unsafe housing conditions or an energy shutoff notice.
Here is a presentation given earlier in May to a City Council committee:
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