By Attorney Heiner Giese
The eviction moratorium which ended in August 2021 is still having some aftereffects. A major Milwaukee nonprofit housing provider has gone into receivership. One of Heartland Housing's developments is the St. Anthony's apartments for the homeless at 1004 N. 10th St. Four other apartment complexes are also in the receivership.
A Milwaukee apartment development for homeless people faces questions (jsonline.com, Subscribers Only)
The problems at St. Anthony's are partly tied to the 2020-'21 federal evictions moratorium. It was enacted after unemployment soared during the COVID-19 pandemic. The moratorium, along with property management issues, caused rent collections to fall short, said Don Laackman, chief program officer at Heartland Alliance. The Chicago-based nonprofit social services provider is the parent of Heartland Housing.
The problems at St. Anthony's are partly tied to the 2020-'21 federal evictions moratorium. It was enacted after unemployment soared during the COVID-19 pandemic.
The moratorium, along with property management issues, caused rent collections to fall short, said Don Laackman, chief program officer at Heartland Alliance. The Chicago-based nonprofit social services provider is the parent of Heartland Housing.
HACM (Housing Authority of the City of Milwaukee) provided a handout on inspections during their Section 8 Providers meeting on 6/29/23.
General Info
Common Items that Cause an Inspection to Fail
What Qualifies as a Bedroom?
How to Schedule an Inspection?
Press Release from SDC (Social Development Commission):
The Social Development Commission will no longer be accepting applications as of Saturday, July 1st for the Milwaukee Emergency Rental Assistance Program, also known as MERA, due to funds exhausting. SDC will continue to process applications that have been received up to June 30th on a first come, first serve basis.
However, no new applications will be accepted starting July 1st.
The MERA Program is funded by the Federal Government through the State of Wisconsin and the City of Milwaukee to help Milwaukee residents recover from the impact of COVID. SDC is proud to say that we have helped over 10,000 households in the city of Milwaukee.
Putting out more than $90 million dollars in the community helping families stay in their homes. On average SDC paid $4,000 in rent and utilities and on some occasions up to 8 months. This support has helped many Milwaukee residents restart their lives, regain employment, and come out of the pandemic with a better outlook.
As these funds diminish, SDC recognizes the continued need for assistance and the many people who are still unable to pay their monthly rent and utilities. The impact of the pandemic is still being felt to this day. We look forward to more transformative approaches as we continue to empower Milwaukee County residents with the resources to move beyond poverty.
By Dawn Anastasi, RPA Board Member
This morning I went to the Section 8 Housing Providers meeting hosted by Steve Fendt and Jacqueline Martinez of Housing Authority City of Milwaukee. Alexi Millard, Landlord Engagement Coordinator for Milwaukee County Rent Assistance, was also there. I would say there were about 100-130 landlords and other attendees there (including Mediate Milwaukee for example).
Here is a summary of the notes I took during the meeting as well as some of the information from the handouts.
Housing Statistics by the Numbers
Issues Landlords Reported working with HACM in the Past
How HACM is Working to Resolve these Issues
Rental property owners help make housing affordable by partnering with HACM and the Milwaukee County Rent Assistance programs.
1) Communicating with HACM
2) Inspections
3) Rent Reasonableness
4) Tenant Accountability
HACM hopes to have more of these meetings between rental housing providers and their staff in the future, in order to improve communication and transparency.
In addition, a new landlord portal is launching soon with some features landlords should find helpful.
Have you worked with Rent Assistance in the past? If not, would the information above encourage you to work with them again?
Connor Goggans, the Lead Community Intervention Specialist for the Milwaukee County Housing Division, recently shared with RPA the upcoming proposed changes for calculating Fair Market Rents (FMRs).
This is a 17-page document, so to summarize for our members, here are some of the notable points:
The primary uses of FMRs are to determine payment standards for the Housing Choice Voucher (HCV) program, to determine initial renewal rents for some expiring project-based Section 8 contracts, and to serve as rent ceilings for rental units in both the HOME Investment Partnerships Program and the Emergency Solutions Grants Program and a primary rent standard option for the Housing for Opportunities for Persons With AIDS (HOPWA) program. To better determine payment standards and related parameters for HUD programs, HUD proposes changes in how FMRs are calculated in this notice and seeks public comment on the proposed changes.
The primary uses of FMRs are to determine payment standards for the Housing Choice Voucher (HCV) program, to determine initial renewal rents for some expiring project-based Section 8 contracts, and to serve as rent ceilings for rental units in both the HOME Investment Partnerships Program and the Emergency Solutions Grants Program and a primary rent standard option for the Housing for Opportunities for Persons With AIDS (HOPWA) program.
To better determine payment standards and related parameters for HUD programs, HUD proposes changes in how FMRs are calculated in this notice and seeks public comment on the proposed changes.
Interested persons may submit comments electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Comments submitted electronically through the website can be viewed by other commenters and interested members of the public.
Note that in order to submit a comment, you'll need to reference Docket No. FR-6401-N-01.
Back in September 2022, HUD published a similar notice to the above and solicited feedback. Here is some of the feedback they received:
Many commenters expressed that recipients of Housing Choice Vouchers are facing decreasing success rates in finding housing at the current FMR rates due to steep rent increases. Some commenters stated that the gaps between the FMR and market rates are making it harder for assisted families to find affordable housing because FMRs fail to reflect actual rent prices and, as a result, more voucher holders are priced out of local rental housing inventories.
In years past, I also saw the same issue where rent amounts that were allowed by the Section 8 program did not match that of market rents.
Commenters also suggested additional transparency about the use of private data sources when calculating the gross rent inflation adjustment factors. These commenters specifically recommended that HUD publish reports documenting FY2023 FMRs that were adjusted using private sector rental data as well as the geographies and the prior inflation adjustment where the private data are used. One commenter said that the average person cannot understand HUD’s methodology for calculating rent and that rents should be based on advertised housing prices. Another commenter stated that the FMR does not consider actual rent prices and requested that HUD abandon their current FMR calculation method.
Commenters also suggested additional transparency about the use of private data sources when calculating the gross rent inflation adjustment factors. These commenters specifically recommended that HUD publish reports documenting FY2023 FMRs that were adjusted using private sector rental data as well as the geographies and the prior inflation adjustment where the private data are used.
One commenter said that the average person cannot understand HUD’s methodology for calculating rent and that rents should be based on advertised housing prices. Another commenter stated that the FMR does not consider actual rent prices and requested that HUD abandon their current FMR calculation method.
I have to say that I agree with the commenters above. In the past, it wasn't clear how HUD was directing the housing authority to determine the maximum allowed rent since it seemed so far below market rent.
So how does HUD calculate FMR (fair market rent)? Based on the document provided, it's actually a 7 part process. Here's a summary of the parts evaluated:
Base Rent. First, HUD establishes a “base rent” for two-bedroom units from the 5-year 40th percentile estimates of gross rent from the ACS.
Recent Mover Adjustments. HUD then adjusts the base rent using a “recent mover adjustment factor” that is based on the ratio of the estimate of gross rent paid by recent movers from the 1-year ACS (American Community Survey) to the estimate of gross rent paid by all renters from the 5-year ACS for the smallest level of geography containing the FMR area that contains statistically reliable 1-year data.
Inflation Adjustment. HUD then accounts for inflation from the ACS year by applying a “gross rent inflation factor,” which is calculated from the Consumer Price Index (CPI) as produced by the Bureau of Labor Statistics (BLS).
Trend Factor. Because it calculates FMRs ahead of each fiscal year, HUD provides a further inflation adjustment in the form of a “trend factor.” The trend factor represents the expected future level of the gross rent CPI for the upcoming fiscal year compared to the most recent actual gross rent CPI.
State minimum FMRs. Additionally, HUD calculates state minimum FMRs based on the median FMR for non-metropolitan portions of each state.
Bedroom Ratios. HUD calculates FMRs for unit sizes other than two bedrooms by applying “bedroom ratios” calculated from the relationships between rents for units of different sizes according to the 5-year ACS.
Limit on Decreases. Finally, HUD does not allow an area’s FMR to decline by more than 10 percent.
Whew! Did you get all that? Now I can understand the statement "One commenter said that the average person cannot understand HUD’s methodology for calculating rent and that rents should be based on advertised housing prices."
Interested in reading the full document? Click here to visit HUD's website.
Do you have any tenants on Section 8 / Rent Assistance?
Have you faced any of the issues described above?
Share your experiences in the comments below!
Milwaukee County is making their "last call" for applications for ERA (Emergency Rental Assistance) funds. In just one week, submitting new applications will be put on hold while existing applications are processed, to see if there will be any funds left to continue.
The Emergency Rental Assistance (ERA) fund was funded by the federal government. Milwaukee County has spent about $70 million of what it was allocated since 2021. Just $8 million remains. "It is for households that were experiencing hardships during the pandemic," said Community Advocates CEO Andi Elliot. Elliot said now is the time for people to be proactive about their home circumstances. "My advice would be looking at your current situation and thinking about it now. This is maybe the time that you need to move on to something that's a little bit more affordable," she said.
The Emergency Rental Assistance (ERA) fund was funded by the federal government. Milwaukee County has spent about $70 million of what it was allocated since 2021. Just $8 million remains.
"It is for households that were experiencing hardships during the pandemic," said Community Advocates CEO Andi Elliot.
Elliot said now is the time for people to be proactive about their home circumstances.
"My advice would be looking at your current situation and thinking about it now. This is maybe the time that you need to move on to something that's a little bit more affordable," she said.
See full article here
This is per Directive issued by Chief Judge Carl Ashley.
Note that the form must be attached to the summons and complaint copy being served on the tenant/defendant and that it must be printed on yellow paper.
You can download the form here.
An article recently appeared in the Biz Times by Milwaukee-area rental property owner Berrada Properties.
In it, Berrada Properties writes:
Evictions cost money, and not only in court costs. In many cases, evictions also result in unrecoverable rent payments and/or property damage to the apartment itself. It is truly in the landlord’s and the tenant’s best interest to avoid eviction.
Compiled by Dawn Anastasi, RPA Board Member
Here are a couple recent articles relating to Wisconsin based housing news.
Bipartisan Housing Bills Aim to Close Wisconsin’s Massive Affordable Housing Gap
To address its growing shortage of affordable housing, Wisconsin needs to build 120,000 additional rental units, Elmer Moore Jr., CEO of the Wisconsin Housing and Economic Development Authority (WHEDA), told an Assembly committee at a public hearing Thursday.
In an effort to encourage the massive increase in construction of affordable and workforce housing that is required to close that gap, a bipartisan group of legislators introduced a package of bills last week that would provide low or zero interest loans for several types of housing projects and take steps toward making it easier for developments to be approved at the local level.
The set of four bills establishes programs meant to increase the state’s housing stock but does not include any appropriations to fund those programs. Rep. Robert Brooks (R-Saukville), the chair of the Assembly Committee on Housing and Real Estate and an author of all of the bills, said at Thursday’s hearing that he was hoping the budget-writing Joint Finance Committee would allocate up to $850 million for the programs in the bill package.
$80 Million Emergency Rent Assistance Goes To 22,600 Households
The Milwaukee County Housing Division was the local government agency that passed the money along to organizations like Community Advocates to disburse to residents.
County residents could apply for assistance to pay back rent or to make future rent payments. Residents could meet the criteria for assistance if they or someone in their household qualified for unemployment, lost income or experienced financial hardship due to the pandemic.
But, unfortunately, the funding for the program is running out. The funding came from two pandemic stimulus bills passed in 2020 and 2021 respectvely. Funds from the first bill expired at the end of 2022 and it’s expected that the county will exhaust funds from the second bill by the end of August, Mathy said. The division will primarily focus on responding to applications that have already been filed and disbursing funds using until the money is gone.
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