Without objection, members of the full committee can participate in todays hearing. Members are reminded to keep their video function on mute even when they are not recognized by the chair. Members are reminded they are responsible for muting and on muting themselves and to mute themselves after they have finished speaking. Consistent with the regulations accompanying staff will fully give members and witnesses as without any inadvertent background noise, like i am hearing now. All formse reminded relating to order and a quorum prior to this remote hearing. It is entitled the rent is still due. Andicas renters, covid19 the eviction crisis. Myself to give an opening statement. You for ourll of. Irst virtual hearing during this challenging and difficult time for homeowners, and for the Housing Market as a whole. At todays hearing, we will focus on how the covid19 pandemic is impacting our rental market. Thisarmful effects of pandemic are physical and mental. Financial stability and our way of being can be even more devastating when you are unable to pay your rent. When everyone is being told to stay inside to avoid getting sick, now is one of the worst times for families to lose their homes to eviction. Families that experience eviction are likely to experience greater poverty and a host of other negative outcomes that make it harder for their family to get back on their feet, especially during a time when our country faces a growing economic crisis. And worst cases, these families may fall into homelessness. Lets be clear. Werelow income families already struggling to pay their housing cost before the pandemic. Pandemic, 23he paid more than half their income in rent across the country and have become increasingly unaffordable. Many of these people work in jobs that do not allow them the flexibility to save and stash reserves for a rainy day. Because as many can attest, it always seems to be raining down become and covid19 has an unrelenting storm. We also know the economic effects of covid19 are disproportionately being felt by people of color. In the month of april, latinx unemployment was over 18 while the Census Bureau reports latin and black households are struggling to pay rent at higher rates than white households. Congress acted quickly to pass the cares act that included language from a bill i mortgaged to provide forbearance, including for singlefamily rental Property Owners. There is much more that needs to be done. The urban institute estimates as to 17. 6emic goes on, up million households could need rental assistance at a cost of 96 billion dollars for six months to be able to remain in their homes. To further respond to the crisis, the house passed a act which includes 100 billion for emergency protections against eviction and other resources to support hud and usda programs. The senate must get to work and i call on my colleagues to pass this bill, to bring muchneeded relief to families across the country, including struggling renters. I look forward to hearing testimony about Witnesses Today and i now recognize the ranking for an opening statement. Thank you, chairman clay. I appreciate you holding this hearing. I apologize for the video. Im on a cell phone today. In on the to be hearing. I appreciate that. Todays hearing will evaluate the impact of covid19 on housing security, which is an important topic. Ts important to focus on it our committee has highlighted the link between housing security and outcomes of health, education, and career prospects. At a time with such economic volatility, it is right to focus on this topic. As i mentioned, congress has taken steps to deal with the unprecedented Public Health crisis and its impact on our economy. The 2 trillion spending in the cares act combined with the Federal Reserve would have been unthinkable at the start of 2020. There has been consensus on those items because of the severity of the problem. The cares act has not been perfect. With respect to housing security, it is clear the provisions provided with Unemployment Insurance programs helps sustain individuals through the last few difficult months. All 50 states have begun to reopen and the bureau of labor statistics reported the economy 2. 5 million jobs. Unemployment remains unacceptably high. We find ourselves in a situation in congress and the Administration Must evolve our response to meet those demands. I am keeping an open mind about what that should look like. We should focus on the formulas that worked, number one on real problems that are demonstrated by the most appropriate data. Previous policy goals by republicans or democrats that predate the pandemic. Help the housing and rental market, not harm them. And it should be bipartisan. Memow that the democrat points to a note statistic on payments of rents. One data suggests higher payment toes, so i think we need keep that in mind and sort out the facts. New forbearance requests have slowed. That is good news. I am grateful to hear from our witnesses and i look forward to working together on underlying problems. I have enjoyed the discussions with chairman clay on the need to address Racial Disparities in homeownership. That is something we should be looking at. There have been items outside the jurisdiction of our in theee that are Judiciary Committee we cant turn a blind eye to, including the injustice in minneapolis. George floyd should still be alive. Show should other africanamericans. We need to Work Together regardless of the fact this is in the Judiciary Committee to root out injustice. I look forward to working with republicans and democrats on these issues and hearing from our Witnesses Today. Thank you for holding this hearing. Yourank you for encouraging words. I look forward to working with you also. To tackle these issues as they come before this committee and before congress. At this time i recognize the chairperson, the gentlewoman from california for one minute. Good afternoon and thank you. I want to thank you. We are dealing with a rental crisis before the pandemic. This pandemic has only made it xorse with black and latin renters overrepresented among the populations that have been affected by covid19. 28 . G up to even though they only comprise 18 and 12 of the u. S. Population. While the cares act included an Eviction Moratorium, it provided no rental assistance for people struggling to pay their rent. I am pleased to be heroes act includes a proposal to provide 100 billion for emergency rental assistance. And so i am looking forward to hearing from our witnesses about the importance of keeping during and after this crisis. Thank you and i yelled back. Forhink you madam chair your steadfast leadership in this area on housing and how we make people secure in their housing. I appreciate the working relationship that we have. Today we welcome the testimony of the executive director of louisiana, cashauna hill. The visitinga, and andor on budget and policy, Jenny Schuetz. Testimony will be two to five minutes. A chime will go off at the end of your time. I ask you respect the members and other witnesses time by wrapping up your testimony. Your written statement will be now,part of the record and ms. Hill you are recognized for five minutes to give an oral presentation of your testimony. Ms. Hill thank you and good afternoon. I name is cashauna hill. For welcoming all the witnesses here. To center was established eradicate segregation. We are based in new orleans and serve all of new orleans. Our work includes across four outreach,cation and foreclosure prevention, free legal representation, and policy advocacy at the state and local levels. Fair housingr the act, housing discrimination remains a force that perpetuates poverty and segregation and limits access to opportunity. The work of our center is dedicated to eradicating this scourge and addressing the legacy of policies that feed unjust outcomes. In the louisiana we have a lot of experience recovering whether from Hurricane Katrina that devastated south louisiana, where the great flood of 2016, we know disasters are often an opportunity to imagine a different future. Its imperative we take the chance to deploy the resources to write past wrongs that made our community vulnerable in the first place. I want to illustrate the challenges we face through one story. Daniel seymour was working three jobs when the pandemic hit. Her job waiting tables on bourbon street and helping to run a cafeteria disappeared within the same week. At the time she was staying in an extended stay hotel. Despite a local eviction a Security Guard barged into rooms with a gun drawn. Swift workly only be of one attorney that capped the situation from deteriorating. I wish this story was an outlier. Nearly half of everyone was they could than before covid19. The effects have fallen disproportionately on black households. Majority black neighborhoods have seen the highest eviction rate. Without additional assistance, we expect the reopening of reeviction courts to only deepen this disparity. Short of rent and mortgage cancellation, renters need a massive Assistance Program like the 100 billion sent aside. Another crucial element of the act is the extension of the cares act moratorium to cover all renters. It was an important step in the right direction, but has proved difficult to implement at the local level and leaves too many out. Because the last four digits of Social Security are required to lookup a mortgage, most renters wont have a way to determine whether they are covered and it has proven very difficult to plan for enforcement of the act and to educate the public. The courts decided to do the right thing. Courts were doing research on each property where an eviction was filed to make sure they are not federally subsidized. In louisiana, most restrictions jurisdictions injustice of the peace courts. Justices of the piece have little staff and it is common for court to be held in a garage, living room, or kitchen. I openedd to a point with, if we do not address disparities, we are destined to amplify them. Black homeownership in new orleans has declined since katrina. Segregation has increased and africanamericans have been displaced from communities and susceptible. As we continue a long overdue about racism, i offer we sit at a similar Decision Point in history before the Fair Housing Act. Fair housing advocates understand providing a just path forward is necessary. Thank you for the opportunity to testify. I am sorry. Thank you for your testimony. Now we recognize Mike Kingsella for five minutes. Esteemed members of the subcommittee, thank you for inviting me to provide testimony at this important hearing. Advocacy groupal focused on a limiting structural barriers to housing. The covid19 crisis has exposed the fragility of Critical Systems in our country and the housing ecosystem is no exception. Failure to address the rent crisis will have dire consequences for millions of americans and for a healthy ecosystem that underpins our economy. It was already under strain from a shortage of homes. Emergency rental assistance is the most important Action Congress can take. It is essential to ensure stability for the millions of americans affected by covid19. For thessential providers that rely on these payments. We commend the committee for its work so far including emergency rental assistance that is included. These measures are needed now more than ever. We need to understand the severity of the existing crisis. Are 7. 3 million home short of where we need to be. Deficits in every region. Some spend 30 or more of their income on rent. Low income renters fare the worst. Pay half of their gross income on rent. Africanamerican and hispanic households are more likely to be cost burdened than their white neighbors. People having to travel longer distances to find. Mployment have a mismatch a 1. 6 billion dollar jog on the economy, causing the government to forgo tax revenue. Further has destabilized the market. Millions are living in households where one person works in an industry likely to be affected by covid19. Many of these households were cost burden. They cannot absorb a loss of income. It is vital these families stay in their homes. Rent is the cornerstone of the housing ecosystem. Large andg investors small. The housing sector contributes 18 of gdp. 17 million jobs are tied to the industry. Rent paymentrable sustain the system. If it is interrupted, we will virtually eliminate the capital necessary for more housing. State and local coffers are nearing their breaking point and cannot sustain a drop in tax inenue resulting from a drop rent payments. Emergency assistance is vital, for millions of americans struggling to pay rent while unemployment benefits, onetime stimulus payments, and limited rent moratoria were necessary, they are not equipped to address the longerterm problem. That is why we support the emergency rental assistance act representative haack. We were pleased with this legislation and its appropriation in the heroes act. Thebill needs meets principles set forward by advocates and consumer groups. Though the focus is on the rent crisis, i urge you to use the opportunity to advance solutions to solve the crisis, driven by a shortage of homes. I outline some of this in my written testimony including the bipartisan act. Both have been reported favorably by this committee. Covid19 affects every system. Just and create a more equitable housing ecosystem. Hosting this hearing. I look forward to answering your questions. Thank you. , thee go to ann oliva center and budget on budget and policy priority. Oliva members of the subcommittee, my name is ann oliva and i am a visiting senior fellow. Thank you for the opportunity to testify today on this important topic. I want to acknowledge the events of recent weeks and the systemic racism that led to the death of george floyd, ahmaud arbery, and many other black americans. Because it relates to lead topic we are discussing today. We must embrace social justice. Housing justice must be part of the discussion. Intemic races and results the disproportionate impact of covid19 on communities of color. The data is clear. 2. 4 times the rate of white people. Unemployment in may was high overall. It fell among white workers and rose among black and latin workers. Black people account for 40 percent of those experiencing homelessness. 13 of the overall population. For 22 of those experiencing homelessness. Crisisur response to the follows the same policy as the past, we will do too little to stop the spike in evictions and black and American Indian communities will suffer the most. Thet lets talk about Public Health impact. Covid19 shows housing is a form of health care. , released from jail without a place to go, people on the street cannot socially distance. Many of them are older or have disabilities or Health Conditions that make them more susceptible to getting sick. Emergency rental assistance will be key in helping people in vulnerable situations get into safe housing. Lets talk about the Economic Impact. Before the pandemic, to many households were paying too much of their income in rent, making it harder to bounce back after a cut in income. Experts expect the economic downturn will haunt us for some time. Bemployment is estimated to far more than double the precrisis level and history shows the labor market can remain weak longer for black workers than white workers. Many black households will struggle with low or no earnings. If additional rental assistance is not made available, communities will struggle to address the impact of covid19. Thousands of Vulnerable People will be at risk if people wind up back on the street because they cant get rental assistance to transition. Large numbers of unsheltered people who want to come inside will be criminalized and underserved. If growing numbers of households cant pay rent, we might see a wave of evictions. Rent butolks will pay stopping other bills which will put them up high risk of losing their housing. These indicators of what might come highlight an important point. Covid19 has created a perfect storm of problems that will widen disparities with unlesssting effects assistance is available. It includes options communities need to form a covid19 response to a variety of demands and that benefit households and landlords that own rentals. Led the design and implementation of the Rapid Rehousing Program that served 1. 3 Million People during the Great Recession and is the closest model to what we need now. Here is what we have learned since the implementation, a new program should incorporate several elements. Community should use a Racial Equity and equity approach in their program. They should and homelessness for as many people as possible. Community should focus on prevention and remove barriers that prevent historically marginalized populations from accessing these funds. They should work with partners that can reach these neighborhoods and recipient should work with landlords to implement the program. Have showed us funding can immediate benefits in addressing the crisis and longterm benefits by leveraging funding and innovation to achieve change. Thank you again for the opportunity to testify. Testimony. U for your now we recognize Jenny Schuetz from the brookings institution. Members of the subcommittee. Thank you for the opportunity to testify today. It is honored to be here before you. I am grateful for your leadership to the issue of housing and security. Policy tools available to congress. It is vital to understand housing insecurity was a problem among lowincome renters before the covid19 pandemic. Even before the crisis, 10 million households spend half their income on rent. They devote too much of their budget to housing and cannot pay for food, health care, or other necessiti