Mitigating the risk for landlords renting to subsidized tenants

If you are a landlord who has avoided renting to someone receiving rental assistance money, this column is for you.

If you are a landlord who has avoided renting a house or apartment to someone receiving rental assistance money, this column is for you.

Recently, two laws went into effect that directly affect landlords. Designed as a pair to help combat homelessness, they tackle the problem from two different angles.

The first one, RCW 59.18.040, makes it illegal to discriminate against tenants or potential tenants based on their source of income. The second, RCW 43.31.605, established the Landlord Mitigation Program. This offers some financial protection for landlords renting to people receiving rental assistance.

In our Nov. 17 column, we discussed the first law, with the help of Cassie Lentz, the housing coordinator of Grays Harbor County’s Public Health and Social Services Department.

Today, we will describe the other side of the coin.

LANDLORD MITIGATION PROGRAM

As homeless advocates talked with landlords both locally and throughout the state, they discovered that many landlords were nervous about renting to people who received rent subsidies — such as Section 8 or the Coastal Community Action Program’s rental assistance program.

“With the CCAP rental assistance or Section 8 funding, the landlords were being paid directly for the rent, but they had other concerns,” said Lentz. “They didn’t want unusual or illegal behaviors going on that would keep the neighbors up at night or cause other problems.”

Much of that has been addressed now through support programs for issues such as mental illness and addiction, as well as aid with getting and keeping jobs, she said.

Still, there were two other major concerns. The landlords were afraid their property might be damaged, or that subsidized tenants might leave them in the lurch with unpaid bills, Lentz said.

The Landlord Mitigation Program addresses both of these issues.

It offers up to $1,000 to the landlord to pay for some potentially required move-in upgrades. It also covers up to 14 days of rent loss and up to $5,000 in qualifying damages caused by a tenant in the program during occupancy.

Any landlord who has been screened and approved, then has offered rental housing to any applicant using any form of housing subsidy, is eligible for the program, with the exception of properties operated by housing authorities. The program is administered through the Washington State Department of Commerce.

“I’m very hopeful that this Landlord Mitigation Program will make a big difference,” Lentz said.

“In Grays Harbor, because the county has chosen to invest staff time to talk to local landlords, we’ve been able to increase the number of interested landlords — those who said they would be willing to consider working with these potential tenants,” she said. “In the last few years, that number has gone from 26 to more than 100. Now, with this legislation, I’m optimistic that the number will increase.”

ARE YOU INTERESTED?

For landlords who may be interested in learning more about the program, call the landlord liaison, Cinnamon Chesterman, at Coastal Community Action Program in Aberdeen: 360-533-5100.

“She is very familiar with the mitigation fund program, and with finding landlords a tenant,” Lentz said.

“Right now, I know we have 10 people who have been approved for funding, have the support services in place and now all they need is a home. We are really looking to open up this process so that we can get people into homes,” she said.

“I’m hopeful that this program will be a helpful tool in alleviating landlords’ fears about losing money through damage caused by one of the tenants in these programs,” she added. “Of course you’d never want to have to use the fund to help with repairs, but it is reassuring that if you did need to use it, you’re ready to go.”

We’re optimistic, too. As we’ve said, homelessness is a big issue with lots of different angles, but these two laws — one protecting potential tenants, and the other taking much of the risk away from potential landlords — are promising parts of the housing puzzle so many are trying to solve.

Dave Murnen and Pat Beaty are construction specialists at NeighborWorks of Grays Harbor County, where Murnen is executive director. This is a nonprofit organization committed to creating safe and affordable housing for all residents of Grays Harbor County. For questions about home repair, renting, remodeling or buying, call 360-533-7828 or visit 710 E. Market St. in Aberdeen. Our office is fully ADA-compliant.