Almost half of people who rent their homes in the state of Alabama are in danger of losing them, due to the continuing economic peril wrought by the COVID-19 pandemic.
That’s according to a new study by global advisory firm Stout Risius Ross. But it’s not the only dire estimate of how many Alabamians might be in danger of losing their homes.
Today President Donald Trump urged Congress to extend a ban on eviction for renters who live in buildings with federally backed loans - a ban which ended last week. The Aspen Institute estimates up to 23 million Americans could face eviction by October.
“You gotta work on the evictions, so people don’t get evicted,” Trump said, while urging Congress to also work on passing a second round of stimulus checks. Republicans debuted a $1 trillion aid package this week, but negotiations are continuing. Democrats in the House approved a $3 trillion aid package in May.
Gov. Kay Ivey allowed a statewide eviction moratorium to end on June 1.
There are several estimates for how many Alabamians may face eviction caused by the consequences of the COVID-19 lockdown, which shuttered businesses and left many out of work. Since the coronavirus pandemic began in March, 669,727 Alabamians filed for unemployment, although it’s unclear how many of those filers have since returned to their jobs.
About 31 percent of Alabama’s housing is rental properties.
The Stout Risius Ross study says 48.25 percent of Alabama renters face eviction, or about 246,000 rented households unable to pay rent. That adds up to about $214 million in rent shortfalls. The study estimates the potential for 166,000 eviction filings within the next four months in Alabama.
Alabama Arise, a non-profit organization working to promote policies for the poor, puts the eviction number higher - at 361,600 people. It calculates that number based on figures from the Center for Economic Policy Research and the Center for Budget and Policy Priorities.
Dev Wakeley, a policy analyst with Alabama Arise, said the total in jeopardy adds up to about 8 percent of the state population facing the loss of their home.
Another analysis, by the Aspen Institute, estimates about 291,000 Alabamians face eviction by the end of the year.
Regardless of which study one pays attention to, the numbers are dire. Wakeley said it’s a wholly different magnitude compared to the Great Recession of 2008.
“This is a drastic difference,” he said. “It’s just a perfect example of the policy failings we’ve seen over the years, the failure to address home ownership ever since the recession.”
Wakeley said some of the sting could have been avoided if the state had allocated more money for the Alabama Housing Trust Fund. It was created in 2012 to collect and distribute funds to support affordable housing for those with incomes at or below 60 percent of their area’s median family income.
“Short-term planning in appropriation is coming back to bite us right now,” he said. “We should plan for bad times when times are good.”
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July 30, 2020 at 04:01AM
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Up to 48 percent of Alabama renters in danger of eviction, study says - AL.com
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