Millions of tenants are even further behind with rent as they await federal assistance from Covid-19

California has until March 15 to set up a registration system. In New York, funds are captured in the state’s budget process, which may extend until April. The Michigan legislature plans to approve its share of the money only in installments.

The delays partly reflect the complexities of starting a new system from scratch and the difficulty of withdrawing money quickly and, at the same time, preventing fraud.

“At the moment, he’s stuck in most states,” said David Dworkin, president and chief executive officer of the National Housing Conference, a nonprofit group that advocates for affordable housing. “The reality is that these things take time and you want to do well and not make mistakes because it was too fast.”

Texas opened its application portal with $ 1.3 billion in rental assistance on February 15 and hopes to start releasing funds later this month, said Kristina Tirloni, a spokeswoman for the Texas Department of Housing and Community Affairs.

The state will first distribute aid to lower-income tenants. It will take about two weeks for landlords and tenants to receive the money as soon as they place the order, she said, and the orders will be accepted as long as the money lasts.

Congress is expected to approve an additional $ 20 billion in rental assistance as part of the $ 1.9 trillion aid package supported by the Biden government. President Biden on Saturday called on the Senate to take swift action on the package after it passed the House in a largely partisan vote.

Together, the nearly $ 45 billion in aid is expected to help a lot of backward tenants, many of whom have lost their jobs as a result of the pandemic, as well as landlords who owe money.

An analysis by Urban Institute, a Washington think tank, found that the amount of unpaid rent could exceed $ 52 billion. He estimated that the average defaulting family owed $ 5,586.

According to a survey by the Census Bureau conducted last month, about 17% of renters are behind on their payments – three times the normal rate.

Many state and local governments cut staff during the pandemic and are ill-equipped to build and manage rental assistance programs, said Brad Gair, senior managing director at Witt O’Brien’s emergency services consultancy.

“You need the team to design the programs and implement them. Case management, call centers – that’s a little more than a lot [local governments] can handle, ”said Gair. His company was hired to help administer rental assistance and other forms of pandemic relief in Kansas and other states and by local governments, including King County, Washington, where Seattle is located.

States and localities generally have until September 30 to use the rent aid money.

The delays are partly due to the Treasury’s efforts to establish fraud protection guidelines. This was a problem last year with more than $ 520 billion in forgiveness loans from the Payment Protection Program for small businesses, which were distributed quickly but required little documentation.

State and local officials said they struggled with the guidelines initially issued by the Treasury on January 19, the last full day of the Trump administration in office, which they deemed excessively complicated. The Biden administration clarified the guidelines last week, allowing self-certification for tenants who cannot document loss of income.

The delay is making it more difficult for Laura Carrion, a single mother who works in Houston, to regain her financial balance.

A home care nurse, Ms. Carniça was out of a full-time job for six months and ended up owing the landlord more than $ 8,000. A federal moratorium on evictions, in force until at least March, kept her in her home.

In February, she got a nursing job. She now works up to 72 hours a week trying to earn enough to cover her monthly bills and pay off her previous debts – all while raising her teen.

“I feel like I’m going to drown because I’m 49,” she said. “I’m not 30 anymore.”

Owners are also under pressure.

PJ Calello, whose family-owned business manages about 1,000 rental units in Newark, NJ, said about 120 tenants were behind on rent or making partial payments – triple the number before the pandemic.

Meanwhile, costs are rising. Water use on their properties has increased by a third, as tenants stay at home during the pandemic. The amount of garbage to be collected has doubled and wear and tear is affecting the maintenance and janitorial staff, who cannot work remotely.

“We have some tenants who have not paid rent since March last year,” said Calello.

Write to Andrew Ackerman at [email protected] and Will Parker at [email protected]