Rent and bills are likely due for Whatcom residents. What if you can’t pay?
As thousands of Whatcom County residents file for unemployment due to the new coronavirus, many feeling the financial strain are wondering how to pay rent and bills as the first of the month arrives.
More than 4,400 Whatcom County residents filed for unemployment benefits for the week ending March 21, according to data from the Washington State Employment Security Department. The week prior saw 238 claims filed.
As bills and rent loom, several resources have been put in place for both tenants and landlords. On March 27, President Donald Trump signed the CARES Act into law, which gives $1,200 to most Americans. It also put a 120-day moratorium on residential evictions for certain types of housing and allows landlords with federally-backed mortgages to ask for forbearances.
In Washington state, Gov. Jay Inslee put a 30-day moratorium on residential evictions, which ends April 17. This means a tenant cannot be served a notice for not paying rent, or a notice that terminates a month-to-month lease, according to Sallye Quinn, a managing partner at Barron, Smith, Daugert, a Bellingham law firm focused on business, real estate, employment and estate planning. She said there are certain exceptions, such as when it’s for the immediate health and safety of others or the tenant, where an eviction could move forward. There are also state Supreme Court and Whatcom County court orders barring civil actions in court from taking place until after April 24, except in cases of an emergency.
Quinn said there’s no guidance as to whether a tenant could be evicted after the statewide eviction moratorium lifts. She said the hope is that the unemployment programs and stimulus package money will create enough time for people to have enough money to pay current and back-rent. She said once the moratorium lifts, eviction proceedings could begin, and that tenants should not assume there’s a situation where they might not be evicted for not paying rent. Quinn said landlords should be aware of how serious violations of the moratorium could be taken, and that there are consumer protection laws that are also involved.
“I want both landlords and tenants to know that this is an entirely unprecedented situation and that it’s important to take the time to understand what your rights and obligations are on both sides of the issue,” Quinn said. “Ultimately conversation is going to be the best approach at this time, because it’s a complete trickle-down situation. Tenant’s can’t pay landlords, landlords can’t pay banks, so really it’s a three-party conversation as to how this is all going to work and what it might look like in the future.”
A local moratorium
Locally, Bellingham Mayor Seth Fleetwood is ready to enact an eviction moratorium if Inslee does not extend the statewide one, according to Rick Sepler, Planning and Community Development director for the city. He said the local eviction moratorium would likely be in place until the public health emergency ends.
In a memo sent last week to City Council members, Sepler said the local moratorium being considered would likely waive late fees, and that when it ended, tenants would be expected to pay any debts they had, which would also allow landlords to evict those who don’t pay.
“In many cases, temporarily halting evictions will only serve to delay displacement. It is important to couple any action proposed with expanded rental assistance to keep people in housing during the recovery period,” Sepler’s memo states.
Sepler said roughly 10 days ago, the city and county agreed to use funds from House Bill 1406, which allocates about $680,000 a year for rental assistance. How that money may be distributed is not yet clear, Sepler said.
Sepler said several city programs that were planned for later in the year have also been advanced due to the coronavirus outbreak and the economic toll it’s taking. The programs, which are a partnership between the city and Opportunity Council and Lydia Place, provide rental assistance and case management to vulnerable seniors and households with children. Sepler said they’re looking at expanding the program to provide assistance to households earning more than 50% of the average median income, or those that don’t fall into the categories already served.
“The bottom line is to keep folks in their homes until employment catches back up with them and the economy restarts,” Sepler said in an interview with The Herald.
Whatcom County Executive Satpal Sidhu said he is working closely with the city and Whatcom Unified Command, the multi-governmental agency directing the local pandemic response, to look at what programs can be expanded and what resources can be made available to Whatcom residents.
“I would like people to know that the government is concerned about the situation. We are very much aware of the situation and may not have a solution right now, but they are not forgotten,” Sidhu said. “Please stay calm and work with your landlord and explain your situation and work out whatever best arrangement you can.”
So what should you do?
Most officials say the best thing a tenant can do is reach out and be open and honest about their financial situation.
Doug Wight, owner of Windermere Property Management, said it’s best to put something in writing that lets the property manager know the circumstances of how the tenant is impacted and what they can realistically afford to pay. Wight said tenants should have their budget figured out before they reach out for any rental forgiveness. He encouraged those uncertain about their job future or financial stability to reach out and be proactive about the situation.
Wight then takes the information from the renter to the landlord, or person who owns the property, to see what they might be willing to do. He said every situation is different and is a negotiation between the tenant and the property owner. Wight said as a property management company they look after the property, collect rent to give to the landlord, handle inspections and determine which tenants move in, but don’t own the properties.
Across the roughly 1,600 homes in residential properties Winderemere manages in Whatcom County, about 62 people have called to say they’ve been impacted in some way by the coronavirus, according to Bethany Aldrich, residential operations manager with Windermere. She said it’s nearly 4% of the company’s local rental inventory.
Wight said the majority of property owners have been sympathetic when confronted with the dilemma. Some have offered rent relief to all tenants, while others are considering payment plans with tenants, he said. Most owners have said if there’s a dollar amount someone could pay, they feel they should pay it, as owners have their own debts too, Wight said.
Kimberly Huizenga, director of property management for Landmark Real Estate, echoed Wight’s statements. Landmark manages around 2,100 homes in residential properties in Whatcom County and had 113 requests as of Tuesday for people who are worried about making rent payments, she said.
Huizenga said Landmark sent out a two-page list of resources, including unemployment and food bank information, to tenants to help them find assistance from various programs. Huizenga said those who’ve said they’re worried about rent fill out a form that asks the tenant to provide a brief description of their circumstances, what resource they’ve attempted to get and a layout for a payment plan. Huizenga said Landmark then takes those forms to the property owners to see if they’d be willing to work with the tenant.
Huizenga said the majority of property owners are willing to at least do payment arrangements with the tenants, but some have said they’re not providing relief or discounts at all. Huizenga said Landmark has waived late fees for rent payments as long as the tenant makes a good faith effort on paying rent and has communicated with them. Huizenga said while they have to honor the property owner’s wishes, they are not recommending evictions when the moratorium lifts for those who couldn’t pay during this time.
Huizenga said Landmark also provided resources to landlords to see if they have federally-backed mortgages and could qualify for relief on payments themselves.
“We’re the middle man, we’re trying to make a compromise for both sides,” Huizenga said. “I want to reiterate that we just want tenants to have dialogue and communicate with us. That’s the best thing they can do, instead of not paying rent and not communicating with us. It’s frustrating for both sides, and we want to find mutually beneficial compromises.”
The best way to communicate with landlords or property managers is to have something in writing, said David Henken, a staff attorney at Law Advocates, which provides free civil legal assistance to low-income people in Whatcom County, and also runs a tenant clinic. While Law Advocates isn’t holding its tenant clinic right now due to Inslee’s order requiring residents to stay home, people can still call the office phone number to see if they qualify for legal advice. Henken said they’d be available to help people after the eviction moratorium lifts too.
Henken said tenants need to realize there are protections, but there is no rent forgiveness. Henken said landlords should contact an attorney if they have questions about the rules that are in place.
“It’s pretty clear the government says people need to stay put for now to keep them and their families safe,” Henken said.
Helpful links and phone numbers
▪ Law Advocates: Call 360-671-6079 and dial extension 15 to leave a message. Someone will get back to you to see if you qualify for free legal advice as a tenant in Whatcom County. You can also find more information at lawadvocates.org.
▪ CLEAR Hotline: Toll-free legal hotline for low-income people, and is part of the Northwest Justice Project. If living outside of King County, call 888-201-1014 weekdays between 9:15 a.m. and 12:15 p.m. Seniors statewide age 60 or older can call 888-387-7111. If you’re facing foreclosure, call 800-606-4819. Deaf, hard of hearing or speech impaired callers can use the relay service of their choice to call 211 or the hotline. Interpreters will be provided for other callers as well. More information is available at nwjustice.org/clear-hotline.
▪ Washington LawHelp: Provides free civil legal services for low-income people and seniors in Washington state. The website provides legal education materials and tools, including those specifically for renters, on a variety of legal problems. It’s also part of the Northwest Justice Project, and more information can be found at washingtonlawhelp.org.
▪ Washington Low Income Housing Alliance: Provides links to resources for individuals looking for help, ways for advocates to get involved and for people and organizations providing homelessness services or affordable housing. More information can be found at https://bit.ly/3dOrGmI.
▪ Eviction complaint form: If you or someone you know has been threatened with an eviction, you can report the complaint to the state Attorney General’s office at https://bit.ly/341LSNm.
▪ Washington unemployment: Here’s where to go to file for unemployment: esd.wa.gov/unemployment and you can find more information, including frequently asked questions, for workers and employers, about unemployment resource as esd.wa.gov/newsroom/covid-19.
▪ Washington state financial resources: The Washington State Department of Financial Institutions has put out a list of financial resources for Washington residents impacted by the coronavirus outbreak. The resources are for those who need unemployment assistance, have trouble paying credit cards, mortgages, rent, student loans, as well as assistance with short term and emergency loans and utilities. More information can be found at dfi.wa.gov/coronavirus/financial-resources#utilities.
▪ National Housing Law Project: Provides resources on how the national eviction moratorium and CARES Act works and who is covered. Find out more information at https://bit.ly/39BagGX.
Other bills and services
As for other bills, such as electric, gas or internet, this is what local service providers are saying:
▪ Puget Sound Energy won’t disconnect customers during the pandemic emergency, the utility company said on its website. PSE also will waive late fees.
▪ Cascade Natural Gas won’t be disconnecting customers for nonpayment during the pandemic crisis, the company said at its website. Officials have asked utility regulators for permission to waive late fees, and the company said it would work with its customers on payment plans.
▪ Bellingham water and sewer customers won’t face water and sewer shutoffs and late payment penalties will be waived, the city said at its website. .
▪ Whatcom County is extending the first half property tax due date to June 1 for individual and commercial accounts who pay property taxes themselves, said county Treasurer Steve Oliver. Accounts for those in the Autopay program will be debited June 1. Due date remains April 30 for mortgage companies, banks and other financial institutions that pay taxes for their lending or leasing customers. No additional interest will be charged to individual taxpayers who pay by June 1.
▪ Lake Whatcom Water and Sewer district won’t turn off water service for delinquent accounts in occupied buildings through July and the agency has suspended late fees temporarily, it said at its website. The district will not charge customers for voluntary suspensions of service.
This story was originally published April 2, 2020 at 5:00 AM.
