The effects of quarantine and stay-at-home orders are becoming more evident by the day, as so much of the population has been out of work for weeks – with worker displacement certain to extend well into April, and for some, beyond. As people practice safe distancing and prioritize community health, they grasp for tangible relief. One such form of relief is the CARES Act: the Coronavirus Aid, Relief and Economic Security Act was signed into law on March 27, 2020 to assist individuals and families, small and large businesses, nonprofit organizations, and even homeowners and renters.
The CARES Act allows people residing in federally-backed housing 120 days to live without the worry of eviction. An individual cannot be served with an eviction notice until July 25, 2020 – and a 30-day notice is required. This includes all federally designated housing, those under the rural housing voucher program, and housing under the Violence against Women Act of 1994. For homeowners, it includes those with federally backed mortgages. Under these benefits, an individual must still meet rental/mortgages obligations, but they cannot be evicted or foreclosed for not paying in the short term.
During the COVID-19 outbreak, many states have enacted special legislation to prevent all landlords from evicting their tenants. Some states have no end dates, and others have specific dates. At the time of this writing, Pennsylvania indicated an end date of July 10. It is imperative that the Pennsylvania State Legislature extend this window in order to protect displaced workers.
Northeast Pennsylvania is home to a large number of vulnerable individuals who could be subject to housing insecurity. Although median rents are aligned with median incomes, about one quarter of the region’s households still earn less than $25,000 per year. Furthermore, renter-occupied households with lower incomes (less than $35,000) are significantly likelier to be cost-burdened than owner-occupied households with comparably low incomes, or renters with incomes higher than $35,000 per year.
In Lackawanna and Luzerne Counties and Pennsylvania, renter-occupied households are more than twice as likely as owner-occupied households to have incomes under $35,000 per year. Throughout the Commonwealth, about 20 percent of homeowners have incomes in this range, compared to 44 percent of renters. This trend is reflected in the two counties. Renters also tend to be younger; more than a third of Lackawanna County renters are under 35 years old, compared to only seven percent of homeowners. Meanwhile, 19 percent of renters and 37 percent of homeowners in the county are over the age of 65.
The contrast is similar—but somewhat less severe—in Luzerne County and at the state level. Renters are also likelier than homeowners to be members of racial or ethnic minorities; in both counties, renters are likelier to be Black or of Hispanic or Latino origin, or to identify as ‘some other race.’ In Lackawanna County, renters are likelier than homeowners to be Asian.
The Institute, along with the University of Scranton, published an update to its Living Wage Study in 2019. It examines regional costs to live a modest but dignified life (ensuring that basic necessities like housing, food, medical care, utilities, and transportation are met). The livable wage for a single person is $22,152, and the livable wage for a single parent of one child is $46,842 – yet a person working a full-time minimum wage job only earns about $15k per year. Further, a little over one third of the households in Lackawanna and Luzerne Counties, and the Commonwealth of Pennsylvania, earn under $35,000 per year. That is more than 71,500 households in Lackawanna and Luzerne Counties alone.
Housing is a critical element in a family’s overall well-being. It is pivotal to physical and mental health, as well as the ability for children to thrive. This is especially true considering the stressors and the trauma of the COVID-19 pandemic. However, the economic uncertainties of the present moment have made housing security less attainable, particularly for lower-income households and those who have lost their primary income source due to business closures. Our region’s leaders must continue to work to keep families in their homes so they can focus on staying safe and healthy instead of burdened with looming eviction or foreclosure.
Teri Ooms
Guest Contributor
Executive Director at The Institute for Public Policy & Economic Development
ooms@institutepa.org
