Colorado Allocates $30 Million for Temporary Rental Assistance by July 2024
In January, Colorado had 5,682 eviction filings. In Denver alone, the count surpassed 1,500. Based on the most recent data, it is projected that the state could see unprecedented eviction rates in 2024.
Zach Neumann, co-founder of the Community Economic Defense Project (CEDP), shared his worry regarding the adverse effects of evictions on individuals. “It’s spreading more and more throughout the state by now.”
In October 2023, the Department of Local Affairs (DOLA) in the state announced that 63,000 households were behind on rent.
The state plans to distribute $30 million in rental assistance through the Temporary Emergency Rental Assistance Grant Program by June 30, 2024. The original deadline passed on Tuesday at 5 p.m.
Tenants can submit their applications monthly for the next three months, with the process open until April and possibly May, depending on funding availability.
According to DOLA, applicants are required to have an income level that falls below 80% of the average median income (AMI) or lower. People may also have to deal with the risk of eviction or being compelled to vacate their primary residence.
Court-Summoned Tenants Top Priority in $30M Rental Aid
Tenants who have received court summons will be given priority. “Rental assistance is currently focused on individuals who are at high risk of losing their homes,” Neumann explained.
There are more applicants expected than there are funds available. Five nonprofit organizations have been selected to distribute the funds: The Community Economic Development Project, La Puente, Total Concept, Neighbor to Neighbor, and Brothers Redevelopment.
The anticipated $30 million in funds is set to help at least 3,700 households.
After all the funds have been depleted, they must be allocated in accordance with state regulations. “The funds must be fully withdrawn by June 30th,” Neumann declared.
Given the timing, resources are anticipated to be limited towards the end of the year.
Eviction filings are increasing. We have yet to come to an agreement as a state on a long-term strategy for dealing with evictions and high rent. “Until we tackle the core issue of affordability, this conversation will continue,” Neumann said.
There is still over $10 million in Emergency Rental Assistance available in the state, sourced from a separate funding stream.
Around 100 households benefit from rental assistance every week from the fund, with a deadline set for September 30, 2025. The state plans to offer rental assistance next year using funds designated by Proposition 123, which was approved by voters.
