Elective Non-Payers Press Release

May 25, 2020

Eviction Bans Are Leading to Delinquent Rent and Non-Payment
Housing Providers Ask for Changes to Evict People With Income, but Not Paying Rent
Contact: Roger Valdez, 206-427-7707, Roger@seattleforgrowth.org

While most housing providers and their residents in Washington are working
together to deal with the impacts of COVID-19 response, eviction bans have
complicated not helped this effort.

While income support has been offered, and many residents have applied for
unemployment, eviction bans have signaled to some residents, “don’t pay your
rent!”

Ginnie Hance, manager and partner owner of the Ivy Court Apartments in West
Seattle, is facing real problems because of the eviction ban.

The eviction ban has caused one of her residents to shut down and stop paying. No
rent has come in for April or May. And there is no communication.

“As a family we have never followed through on an eviction in 47 years of providing
housing in Seattle,” says Hance. “We have started it on rare occasion for behavioral
issues or for non-payment of rent, but that’s rare”

When a resident simply stops responding and isn’t paying rent, state and local
moratoriums have left no options for housing providers including asking for some
communication about why rent isn’t being paid.

Hance believes her resident does have income but has simply chosen not to pay.
Other housing providers like Matt Bolin who owns the Ben Lemond on Capitol Hill
says that his residents who can pay but aren’t are creating a serious problem.

“If I lose rent from people living in the building who can’t pay, and from those who
can but choose not to, I’m facing a problem in covering increased operating
expenses for the building,” says Bolin, “including maintenance and other necessities
residents depend on.”

Bolin has offered to pass on any savings he gets from property tax relief to residents
who truly cannot pay.

State and local bans are set to expire on June 4th and Seattle for Growth and Seattle
Grass Roots Landlords have the Governor and Mayor to allow those bans to expire
or if renewed, that housing providers be able to pursue eviction for residents who
can pay but are not paying (Elective Non-Payers). Below is an outline of that
request including a survey of almost 4,000 apartments across 6 Puget Sound
counties.

May 25, 2020

Extension of Eviction Bans Beyond June 4, 2020

If the current eviction ban were extended, we request the following changes to the
moratorium.

Allow Eviction of Elective Non-Payers
Exclude people with income who are not paying, from the eviction ban. Elective
Non-Payers (ENPs) are people who have income but who aren’t paying rent. These
ENPs are adding to a growing delinquency problem. This group is growing
exponentially and will cause a crisis if the blanket eviction ban continues*. Housing
providers are working with residents impacted by COVID-19; that is made more
difficult when providers are subsidizing people who can pay rent but choose not to
pay (see a survey of almost 4,000 units across 6 Washington counties on page 2).

Housing providers and commercial property owners should be able to proceed with
eviction against residents and tenants for non-payment unless:

• A resident can show that they have experienced a lay-off, loss of hours, or
other income reduction resulting from COVID-19;
• A resident has verifiable documentation (e.g. termination notices, lay-off
notice, an email, from an employer or supervisor), to support the tenant’s
assertion of an inability to pay.
• This documentation must be provided as soon as possible to the housing
provider.
• A commercial tenant can show evidence of ongoing loss of business income
due to COVID-19 and document efforts to seek help.

See California’s requirements for documentation (attached).

Measure Delinquency and Plan for Compensation
Housing providers need to be compensated for delinquent rent caused by the
blanket eviction moratorium in response to COVID-19 response.

• This money is legally owed to housing providers – There are no strings that
should be attached to retiring this delinquency;
• Quantify and qualify COVID-19 rent delinquency – How much is owed, where,
and among what sorts of residents? How many people are waiting for
benefits, how many have no income, and how many are Elective Non-Payers
(ENPs);
• Negotiate an agreed settlement to housing providers
o X% -- Direct payment to housing providers from recovery dollars
o Y% -- Property tax relief (e.g. Allow back rent to be deducted from
property tax bill, or lowering of assessed value)

May 25, 2020

Survey of Delinquencies in 3963 Units in 6 Puget Sound Counties
(There are approximately 360,000 apartment units in the Puget Sound)

*The Problem of Elective Non-Paying Residents is Growing Exponentially

Elective Non-Payers Press Release

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