Elora Raymond, PhD

School of City and Regional Planning, Georgia Institute of Technology

Dan Immergluck, PhD

Urban Studies Institute, Georgia State University

Lauren Sudeall, J.D.

College of Law, Georgia State University

Frank S. Alexander, J.D.

Emory Law, Emory University

Michael Rich, PhD

Department of Political Science, Emory University

Dan Pasciuti, PhD

Department of Sociology, Georgia State University

John Travis Marshall, J.D.

College of Law, Georgia State University

Prentiss Dantzler, PhD

Urban Studies Institute, Georgia State University

Allen Hyde, PhD

School of History and Sociology, Georgia Institute of Technology

March 20, 2020

The COVID-19 crisis is a public health and economic emergency. This crisis threatens to overwhelm health care systems and generate high rates of mortality and morbidity. Recent polls estimate that nearly 1 in 5 workers have been laid off or had their hours cut.[1] This crisis demands bold responses, especially to protect the most vulnerable. This includes not just the medically vulnerable but also those at risk of being displaced from their homes due to lost income during the economic fallout.

Housing stability is public health. Key public health measures such as hand-washing and social distancing can only happen in households with stable housing. Eviction, foreclosure and utility shutoffs make it impossible for self-quarantine of individuals with high risk factors such as advanced age, hypertension, diabetes, and heart disease. Evictions and foreclosures during this emergency will contribute to overcrowding in homeless shelters, increase the number of families doubling up during the pandemic, expose high-risk individuals to the virus, and contribute to mortality and morbidity as well as the burden on our health care system.

Housing stability is economic resilience. Housing has been shown to be a key factor in protecting families — and especially children — from economic shocks. Without stable housing, schooling and employment are jeopardized. Eviction and foreclosure predict long term declines in wealth, prolonged unemployment, prolonged housing market turmoil and neighborhood decline. A growing literature documents that major U.S. disasters drive a greater economic wedge between low-income community residents and their neighbors who have greater resources.[2]

Housing stability is essential to protect children during this crisis. Housing instability is traumatic to children, disrupts education, and can have long term effects on educational performance and ability to enter the workplace. Across the nation we have seen a massive shift to online and remote educational practices at every level of the educational system. There is a paramount need for children to have stable homes with regular access to internet for assignments, lessons, and communications with their teachers and peers. Internet providers have moved to provide free internet access to homes that do not have them and a moratorium on terminating service for 60 days. Government must act in concert with private business here to ensure these measures are effective and disruption to the educational process is not further complicated.

Coordinated action is needed from foundations, corporations, and public agencies at the state and local level. States and cities around the country are enacting strong measures to reduce the number of families forced from their homes during this crisis. We are calling on state and local policy makers, foundations, and the real estate community in Georgia, and especially in metropolitan Atlanta, to move boldly and swiftly to mitigate some of the worst harms stemming from the crisis and work to maximize housing stability during this traumatic period.

Speed is of the essence, and the duration of the crisis is unknown. The novel coronavirus spreads exponentially, with the number infected doubling every few days. Protective measures must be delivered swiftly and easily, without bureaucracy or delay, and with the recognition that providing too little assistance, too late is far greater a problem than providing “too much.” We recommend swift adoption of several measures to reduce displacement, eviction and foreclosure, to provide operational support for affordable senior housing providers and homeless shelters, and to provide basic financial assistance for families affected by the crisis. We also recommend extending these protections through the emergency period when quarantine and social distance measures are in place, and then with an additional time to allow families to take advantage of financial resources and assistance, and to re-establish normal economic activity. Throughout this document we’ve suggested policies are put in place for “the duration of the state of emergency plus at least 60 days” but recognize that this timeframe may need to change.

Effective communication to all affected individuals. Many of the issues described above present complicated technical and sometimes legal issues. Individuals affected by these policies have a range of capabilities and will likely have limited or no access to professional or legal assistance during this time. In communicating policy changes, we emphasize the importance of using plain, rather than technical, language and using other best practices for communicating with people with disabilities or limited literacy. It will also be critical to use various channels — including community-based organizations and service providers — to communicate because many households and individuals have limited access to the Internet and may not be able to access electronic information unless on a mobile device (even that access may be limited). Where possible, policy changes should be implemented in ways that do not require affirmative action on the part of affected individuals.

Our specific recommendations include the following:

I. Preserve housing stability during the crisis[3]

Formal Evictions

· We applaud the Supreme Court of Georgia’s 30-day moratorium on non-essential judicial matters, which has been interpreted to include evictions; and Fulton County courts moratoria on landlord tenant cases. However, in many counties around Georgia, magistrate’s courts continue to accept eviction filings and marshals continue to execute completed writs. We urge the Supreme Court to more clearly cover all eviction activity (including eviction filings) for the duration of the state of emergency plus at least 60 days. Failing this, county courts should extend moratoria on both foreclosures and evictions on their own.

· We applaud Mayor Bottoms’s call for affordable housing partners in the City of Atlanta to institute a moratorium on evictions for the duration of the State of Emergency plus at least 60 days. We call for all public housing authorities in the state to suspend filing or completing evictions for the duration of the state of emergency plus at least 60 days.

· The Georgia Department of Community Affairs should urge owners of Low Income Housing Tax Credit affordable housing properties to suspend filing for eviction for the duration of the state of emergency plus at least 60 days.

Foreclosures

· We applaud the federal moratoria on foreclosures for Federal Housing Administration, Fannie Mae and Freddie Mac mortgages. Moratoria on personal property foreclosures are also important as they prevent dispossessory actions against some mobile home residents. Fulton County’s moratorium on personal property foreclosures provides for this protection. However, we understand that despite the Supreme Court of Georgia’s declaration of judicial emergency, non-judicial foreclosures continue to proceed during this state of emergency. We encourage the Supreme Court and/or Governor of Georgia to clearly cover all non-judicial foreclosure sales and to extend a ban on foreclosures for the duration of the state of emergency plus at least 60 days. Failing this, county courts should extend moratoria.

· The Georgia Department of Community Affairs should extend the deadline to apply for HomeSafe Georgia, previously announced as March 31, 2020, and consider using any remaining program funds to help cure mortgage defaults related to Coronavirus-related losses of income.

· The Georgia Department of Banking and Finance should direct state-regulated mortgage lenders to offer permanent loan modifications for borrowers who have experienced a decline in earnings, including lowering monthly payments over at least a six-month period. We suggest, at a minimum, capitalizing arrearages and extending the repayment term, or further modifying the loan to reduce the monthly payment, and possibly the principal balance.

· A moratorium on property tax foreclosures and tax liens sales by county governments for the duration of the state of emergency plus at least 60 days.

Informal evictions

· Establish a fund for small landlords to discourage informal evictions and encourage compliance by defraying the costs of reduced income due to lost rents and deferred evictions during this crisis. This could be in the form of a low interest or no interest loan to cover operational costs which would be forgiven if landlords achieve high rates of housing stability during the state of emergency.

· Consider penalties for landlords who initiate informal evictions during the state of emergency. Consider more serious penalties if tenants include children, those over 60, or residents who are high risk.

Utility Shutoffs

· A statewide moratorium on water shutoffs during the state of emergency plus at least 60 days.

· A statewide moratorium on other utility (electric, gas, oil) shutoffs during the state of emergency plus at least 60 days.

· For all of these moratoria, late fees and interest on arrearages should be prohibited.

II. Ensure swift economic recovery by preventing a wave of evictions and foreclosures after the crisis

Moratoria are not a silver bullet. They can at most defer, and not eliminate, the rent or mortgage payments that accrue during a crisis. Many households are experiencing a permanent loss in income due to cut hours, closed businesses, or layoffs, and will not recover this income. Small landlords may lose rent needed to pay their own mortgages and other expenses. Without preventative measures, we risk a second housing crisis with significant and continued disruption of communities and livelihoods that will prevent or severely lengthen the time for economic recovery.

Lost wages and sick pay

· Emergency financial assistance should be provided to affected families by state and local government and by local and regional foundations and philanthropic organizations.

· Foundation and philanthropic -funded assistance can be delivered by nonprofit agencies and faith-based organizations that already provide emergency financial assistance, including rental assistance and assistance to cure mortgage defaults. If there are qualifications for assistance they should be simple and include loss of wages (either from a layoff, loss of hours, or decline in income from small business).

· Assistance should include help for workers who voluntarily stay home from work due to illness.

· Funds should, at a minimum, cover at least two months of housing costs, including the rent or mortgage as well as utilities, property taxes, association fees and home insurance, up to some maximum amount of assistance per family.

· All indications are that the economic contraction will be severe, involving large percentages of the labor force for a considerable duration. Measures to completely replace wages for all employees who have been laid off or lost wages should be enacted by private sector employers and by state government.

III. Provide operational support to properties receiving Section 8 rental assistance, senior affordable housing providers, and other residences with high numbers of high-risk residents

Seniors are particularly high risk for severe cases of COVID19, with recorded fatality rates of 8% for those 70–79 and 15% for those over 80 years old.[4] Many disabled individuals have hypertension, diabetes, heart and vascular disease and are also high risk for hospitalization from COVID19. Outbreaks within senior and affordable housing must be prevented, and if they occur, immediately contained. We call on state and local government to provide immediate additional operating support for senior affordable housing providers, multifamily properties receiving project-based section 8, and private sector mid- and high-rise affordable housing throughout the state, including:

· Establish a fund to discourage informal evictions by defraying the costs of reduced rental income due to lost rents and deferred evictions during this crisis. This could be in the form of a low interest or no interest loan to cover operational costs which would be forgiven if landlords achieve high rates of housing stability during the state of emergency.

· For Section 8 voucher holders who have lost income during the emergency, establish a speedy process to recalculate rents retroactive to the date income was lost before the moratoria on evictions expires.

· Provide additional operating funds to subsidized senior housing and housing for high-risk groups, particularly elder housing. This includes:

· Funding for sanitization efforts and deep cleaning.

· Funds to support enhanced visitation policies.

· Funds to support routine screening for fever, and for COVID19 testing should tests become widely available.

· Funding to support frontline staff, including hiring additional personnel, personal protective equipment such as masks, gloves and sanitation supplies to prevent the spread of illness among frontline staff; paid sick leave to encourage staff to stay home if ill; and childcare to permit frontline staff to work while schools are closed.

IV. Provide operational support to homeless shelters

People experiencing homelessness in shelters and encampments live in high density with little access to handwashing; and have higher rates of chronic illnesses that puts them at heightened risk of COVID-19. Protecting those who are homeless or become homeless during the crisis will mitigate the spread of disease.

· Locate additional facilities for sheltering the homeless without exceeding social distance recommendations from the CDC.[5] State and local government should assist in identifying facilities for decongestion and social distancing.

· Supply additional sanitization services and supplies for homeless shelters.

· Funds to support routine testing should tests become available.

· Funding to support frontline staff, including hiring additional personnel, personal protective equipment such as masks, gloves and sanitation supplies to prevent the spread of illness among frontline staff; paid sick leave to encourage staff to stay home if ill; and funding to cover childcare costs to permit frontline staff to work while schools are closed

Finally, all these recommendations are intended as complements to a strong federal response, including direct payments to families, increased federal housing assistance, and efforts to reduce evictions and foreclosures. For federal policy recommendations aimed at providing housing stability and affordability during and after the crisis, please see https://nlihc.org/responding-coronavirus and https://www.enterprisecommunity.org/blog/federal-tax-policy-priorities-response-covid-19.

[1] https://www.latimes.com/business/story/2020-03-17/coronavirus-layoffs-work-hours-jobs

[2] https://www.urban.org/research/publication/insult-injury-natural-disasters-and-residents-financial-health/view/full_report, 7–8, 18–19.

[3] https://www.enterprisecommunity.org/blog/03/20/taking-bold-action-to-protect-tenants-during-covid-19-outbreak

[4] https://jamanetwork.com/journals/jama/article-abstract/2762130

[5] https://laist.com/2020/03/13/los-angeles-homeless-coronaviurs-covid.php