HousingLink Blog

How to Help a Renter in a Financial Crisis

Jul 7, 2017, 12:26 PM by Josh Dye

The rental housing market has been an owner’s market since 2011, and sustained vacancy rates of less than 3% throughout the Twin Cities Metro Area are unprecedented. In addition to high occupancy rates, the majority of new construction is for luxury rental units affordable only to households earning a minimum of $60,000 per year. Although a strong apartment market is promising, it leaves some at-risk families struggling to retain their units as rents rise.

One program in Anoka County (that also operates throughout all of MN) is working hard to educate owners on the services available to help renters who run into a financial crisis. The Family Homeless Prevention and Assistance Program (FHPAP) is a state program that is implemented through local county governments. In Anoka County, the FHPAP Committee is concerned about the squeeze on renters who are struggling to get by and living paycheck to paycheck. Many of these renters have barriers to financial success including poor credit, evictions, limited income, or criminal backgrounds.

Starting earlier this year, a special project reached out to owners to request input on whether or not they were working with (or willing to rent to) individuals with some of these barriers.

The work had the following goals:

  1. Raise awareness about financial supports that exist to help a struggling renter prevent an eviction

  2. Learn from owners directly about their concerns regarding renters with barriers

  3. Engage owners in helping to shape the community response to renters with barriers

To achieve the first goal and raise awareness, a single phone number was created for struggling renters to receive assistance. In Anoka County, renters can call 763-324-1215, and they will be directed to the proper services. This single point of contact has made it possible for renters to easily access resources to help them avoid eviction.

An online survey was utilized as the initial step in gathering information from owners regarding renters with barriers. The survey asked owners when they might consider making an exception to their rental selection criteria. Sixty percent (60%) of owners responded that they would need access to a financial guarantee of rent; additional security deposit; and regular, ongoing case management as the main resources in order to consider renters with more than one barrier in their background. In addition to this, the survey results show that 63% of the owners are willing to accept renters with vouchers similar to the Section 8 Housing Choice Voucher as part of renting to households with barriers in their background.

To engage owners in the community, a “Landlord Lunch & Learn” session was held in April. There were over fifty owners who attended the session, and several connections were made between owners and human services providers.Some feedback included: “Good mix of business topic and creative value,” “I would be interested in more information regarding legal matters of concern,” and  “I learned that this program was helpful for landlords and tenants.”  Nine owners indicated an interest in learning more about the committee and engaging in discussions to shape the community’s response to ending homelessness. Keep an eye on Anoka County to see the impact of this new engagement.

Minnesota Housing funds 20 FHPAP programs that cover all 87 counties in Minnesota. Please reach out to your local community and get involved!