Launching a Lifeline: Colorado's New Rental Assistance Program Battles Rising Evictions

• Author: Bobby Kub
• Posted: 2024-02-21

In response to the alarming surge in eviction filings across the state, Colorado has taken decisive action to keep residents in their homes.

The Colorado Department of Local Affairs has launched a groundbreaking temporary rental assistance grant program, backed by $30 million in funding approved by the Colorado legislature.

This initiative aims to provide crucial support to those facing eviction, offering a lifeline during these uncertain times.

The program, known as the Temporary Rental Assistance Grant, opened its first round of pre-applications on Thursday, allowing Coloradans to apply for rental assistance funds.

The pre-application process will remain open until 5 p.m. Tuesday.

Those who are not initially selected or miss the deadline will have another opportunity to apply when the program reopens on the fifteenth day of each month - a day often associated with rent-related notices.

Under House Bill 1001, the $30 million must be distributed to eligible Coloradans by June 30. The state plans to review and approve rental assistance for approximately 3,700 households before the program's end.

This emergency relief aims to provide stability for individuals and families who have fallen into financial hardship through no fault of their own.

The eligibility criteria for the Temporary Rental Assistance Grant require that applicants earn no more than 80% of their area's median income and are at risk of eviction or displacement.

Applicants must also intend to use the grant funds to remain in their primary residence, have a notice of late rent from their landlord, not have received rental assistance in the past year, and report other factors that increase the risk of eviction or displacement.

To manage the high demand and reduce the burden on applicants, the Department of Local Affairs has implemented a pre-application process rather than a full application.

Pre-applicants will be randomly selected to fill out a longer application, which will be reviewed by five nonprofits involved in distributing the funds.

These organizations, including the Community Economic Defense Project and La Puente Home, aim to complete an initial review and approve funds within seven to 14 days.

While this new program offers much-needed support, the scale of the eviction problem remains significant.

As of October, over 63,000 Colorado households were behind on rent, highlighting the urgent need for assistance. Nonprofits like the Colorado Economic Defense Project have already been working tirelessly to provide emergency rental assistance, legal aid, and eviction prevention services.

However, with the introduction of the new grant program, they expect an influx of applicants seeking rental assistance, marking a pivotal moment in stabilizing renters statewide.

The $30 million allocated to the Temporary Rental Assistance Grant signifies a crucial investment in supporting struggling renters.

However, it is clear that more resources will be necessary to address the immense scale of this crisis. State leaders are committed to tackling these challenges head-on and ensuring that Coloradans have access to the stability and support they deserve.