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Zillow: 50,000 NC renter households at risk of eviction, now that moratorium ended

In the Triangle, rental demand - and also the price of renting a comparable residence - has increased since the onset of the global coronavirus pandemic.

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By
Jason Parker
, WRAL contributor
RALEIGH, N.C. — More than 7 million American households are behind on rent, according to the Census Household Pulse Survey, and that puts North Carolinian renters at risk of eviction, a new report from Filterbuy finds.

The Filterbuy researchers note that while 6.2% of North Carolina's adults are behind on either their rent or their mortgage, putting them at risk of eviction or foreclosure, 35.7% of those adults are directly at risk. North Carolina ranks as the 11th highest state in the country for evictions.

The Centers for Disease Control and Prevention (CDC) had placed what it called a "Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19" that was in effect through July 31, 2021.

In the Triangle, rental demand – and also the price of renting a comparable residence – has increased since the onset of the global coronavirus pandemic.
Zillow researchers estimated that as of July 28, 209,675 renter households in North Carolina were behind on rent, which was 41,274 households fewer than the number of households reported behind in June. The Zillow report on evictions was originally released in June, but the company updated the report with more recent data, as of July 28.

"When the CDC signaled there would be no more extensions, it gave landlords and tenants more certainty, and valuable time to figure out a path forward, whether through repayment plans or applying for federal aid for the most vulnerable renters," said Tyrone Law, a spokesperson for Zillow, in an email to WRAL TechWire last week. "However, the path forward remains uncertain as that time comes to an end."

The company's projection is that 50,413 renter households in North Carolina were at risk of eviction, as of July 28, said Law in the email. Due to added uncertainty, said Law, Zillow estimated there "will be 7,843 eviction filings in North Carolina and 5,139 are likely to result in eviction."

For tenants, there still remains confusion and uncertainty, said Sarah Dixon, supervising attorney in the Housing Unit of the Raleigh office of Legal Aid, in an interview with WRAL TechWire on Monday.

"We have a lot of very anxious clients," said Dixon. "There is some uncertainty about how quickly that landlords are going to get down to the courthouse and begin to file those nonpayment cases."

Tenants are also feeling confused about whether there could be an additional extension of an eviction moratorium, noted Dixon. "We have folks scrambling to get their rental assistance applications in."

Legal Aid is a nonprofit law firm that provides free civil legal aid to low-income and vulnerable residents of North Carolina.

Dixon works with clients in Raleigh, Wake County, and Johnston County, many of whom are earning income at or below the federal poverty line, she noted.

"We're anticipating an influx of new applications," said Dixon. "We are expecting that our help line is going to receive thousands of calls from folks who need help, and legal help and advice, about their particular situation."

Dixon stressed that, for tenants, it is critical to understand that a landlord must file an eviction case in a courthouse in order to begin the eviction process. "Tenants have the right to be represented by an attorney," said Dixon. "And the right of an appeal."

In 88 of 100 North Carolina counties, tenants who are behind on rental payments or utility payments can apply to the Housing Opportunities and Prevention of Evictions Program (HOPE), which according to the program website "provides rent and utility assistance to low-income renters that are experiencing financial hardship due to the economic impacts of COVID-19."

North Carolina Gov. Roy Cooper announced the program opened applications in October 2020, noting that the program would include $117 million for rent and utility assistance. Governor Cooper followed that announcement with Executive Order No. 171 later that month.

Earlier this year, the program re-opened applications, and as of June 2, 2021, Gov. Cooper's office noted in a press statement that in the two prior weeks, $9.5 million had been awarded following more than 8,000 applications. According to that statement, during the initial application period, "the program awarded $133 million to more than 36,000 applicants."

In the 12 counties where the HOPE Program is not available, including Wake County, according to Dixon, the program is referring callers to local existing rental assistance programs, like the Raleigh-Wake Partnership to End Homelessness, Dixon said.

According to Law, Zillow's research found that, in North Carolina, for those behind on rent, nearly half (48.6%) believe they're not at all likely to be evicted, with zero respondents indicating a belief that they would be very likely to be evicted. According to Law, 30.1% responded that eviction was somewhat likely and 21.3% responded that an eviction was not very likely.

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