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City Council proposal would extend contracts for Denver emergency rental assistance

The Denver City Council housing committee approved several contracts Wednesday to extend services for the emergency rental assistance program, passing the proposal to the full council for a final vote in the coming weeks.

Committee approval comes as the federal eviction moratorium is set to expire Saturday, leaving tenants unable to pay rent because of the COVID-19 pandemic vulnerable to eviction.

“A letter recently went to the governor asking him to execute an executive order that would allow an application for rental assistance to be a defense to eviction,” Melissa Thate of the Department of Housing Stability said. 

Denver’s emergency rental assistance program began in June, using $21.88 million in federal funding from the Department of Treasury to help pay rent and utilities for residents unable to make payments because of the pandemic. The funds that can provide up to 15 months of assistance expire on Sept. 30, 2022.

Program recipients must qualify for unemployment, have a reduced income or have increased financial hardships related to the pandemic. They must also be at risk of housing instability and have a household income of below 80% of the area median income, which is $73,360 for one person, according to city data

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Wednesday’s proposal would add $7 million and extend the end dates of two contracts for companies that administer the rental assistance program. It would also approve three new contracts totaling $10.68 million, using the federal funds.

“I’m very excited to see bigger numbers coming through given the need,” Councilwoman Amanda Sawyer said in support of the proposal.

If approved, contracts with Brothers Redevelopment, Inc. and Northeast Denver Housing Center, Inc. would increase by $3 million and $4 million respectively, and nine months would be added to the contract lengths, for a new end date of Sept. 30, 2022.

Thate said the contract extensions would allow the companies to administer the rental assistance program to 995 households. Since beginning in June, the contracts have served 120 households to date. Both contracts are set to expire on Dec. 31, 2021.

The new contracts would give $3.5 million to Jewish Family Service of Colorado, Inc., $3 million to The Salvation Army and $4.17 million to The Community Firm to administer the program until it expires. These contracts would serve 903 households total, Thate said.

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The proposal for the five contracts was unanimously passed by the committee, but Councilman Kevin Flynn questioned giving so much funding to The Community Firm, which has only operated for just over a year.

“Based on existing contracts with the state Division of Housing and the additional contract they’re working on with another locality, we do believe they’ll be able to meet, and likely exceed, the expenditure of these funds,” Thate said in response.

Thate added the department hired two new staff members in June to focus only on the rental assistance program. The department also is working on increasing public awareness of the program through outreach and engagement, as well as expanding direct-to-tenant payments for when landlords are unresponsive to the program, she said.

Denver residents can apply for the rental assistance program at cdola.colorado.gov/rental-mortgage-assistance or call 1-888-480-0066 for assistance.

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