Landlords Frustrated RI Rent Relief Going Directly to Tenants — Who Still Might Not Pay
Thursday, September 16, 2021
Landlords in Rhode Island are decrying the process by which the state’s rent relief program is allowing some tenants who owe back rent to receive checks directly — who the landlords say might not then ever pay what is owed.
Jeffrey and Andrew Butler with Elmwood Property Management said that they have worked with RentReliefRI to help a number of tenants facing eviction get the assistance they needed.
However, in recent weeks, the Butlers say two tenants received checks of over $11,000 and $12,150 directly, despite the Butlers and their lawyer saying they followed the process required to receive that money directly.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“It appears to me that the tenants can manipulate the system merely by telling [RentReliefRI] they could not reach the landlord or the landlord was being uncooperative,” Jeff Butler told GoLocal.
Now, the Butlers say the tenant who received the check for $12,150 is threatening to not hand it over.
“[The necessary] documentation was hand-delivered to Rent Relief representatives at district court by our attorney and my property manager,” said Butler.
“Also following that, my property manager contacted Rent Relief and they confirmed that there was a notation on the account to send the check directly to us and they made a mistake," he added. "When we asked them to correct the mistake; they refused saying it was too late.”
“In both instances, we obviously applied for the rent relief and supplied all documentation and were cooperative,” said Butler. “Both tenants were under eviction and we met all criteria.”
In June, GoLocal reported that Rhode Island had received $200 million in federal funds for renters during the pandemic in December 2020 — and five and half months later had only distributed $1.2 million.
By August, $8 million had been distributed. RIHousing, who administers the program, says that amount is now over $23 million.
Addressing Relief System
On Tuesday, Andrew Butler sent an email to Debra Devine at RentReliefRI addressing the situation of the $12,150 payment to their tenant.
“On September 1, at roughly 10 am on the 2nd floor of the Kent County District Courthouse, personally handed in the landlord information for [the case]. Our Attorney Stephen Litwin (who is attached to this email) was present while I was handing in the paperwork to the gentlemen that work for RentReliefRI. I confirmed with him that all paperwork was submitted,” wrote Butler.
“On September 9, I called and spoke with Tia who confirmed all of the paperwork was submitted. Tia also noted the account that the landlord is cooperating and should be issued payment directly. On September 13, payment was issued directly to the tenant,” he continued.
“After several conversations with the call center and with Yilmarie Garcia and Mallea Lodge I have been unable to get a clear and accurate answer as to why this mistake was made,” wrote Butler. “I have also been told that you are the only one who knows who the attorney is that represents RentReliefRI and the only person who can stop payment on the $12,150 check issued to [the tenant] to reissue it to the landlord Elmwood Realty LLC directly.”
RI Governor Dan McKee's administration had distributed just $8 million of $200 million in rent relief as of August. Photo: GoLocal File
The Butlers say they have not yet received a response.
When asked when — and how — RentReliefRI provides checks to tenants directly, RIHousing spokesperson Christine Hunsinger said "Treasury requires that rent be provided directly to the tenants in instances where the landlord refuses to participate or is non-responsive to our outreach efforts."
"The new guidance sets the required timeframe for outreach to landlords as five days,” she added. “If our outreach efforts are not successful in five days the program will pay the tenant directly with the expectation that they will then pay the landlord. The tenant signs an agreement stating that that is what they will use the funds for.”
“To date, 2,665 landlords have received $21,681,282 in rental payments and 401 tenants have received $1,534,195 in rental payments,” Hunsinger added.
Jeff Butler said that Elmwood Realty — which owns 50 properties and has 240 units — has to date worked with eight other tenants facing eviction who have sought assistance and that Elmwood received their back rent due directly from RentReliefRI.
“RentReliefRI saying these other tenants who received the checks directly ‘signed a contract’ to pay it back - that’s ridiculous and illogical,” said Butler.
Now, Butler says he expects to see more eviction proceedings with federal pandemic unemployment benefits expiring.
“We had plenty of tenants who have paid us every month [during the pandemic]. Now we have folks with the unemployment benefits running out, they’re suddenly applying for rent relief,” said Butler.
RentReliefRI Responds to Allegations
Hunsinger said that the agency can’t speak to specific cases, but contends “no checks have been issued in error” to date in the program.
For checks issued directly to tenants, Hunsinger says that tenants agree to the following language below is from the agreement the tenant signs when they are paid directly.
• I understand and agree that RentReliefRI funds are being provided to me on the condition that I use such funds only to pay the rent I owe to my Landlord, and that any other use of the funds is prohibited.
• I understand and agree that within seven (7) calendar days of the receipt of RentReliefRI funds, I must make payment to my landlord and provide evidence of such payment to RIHousing.
• I understand and acknowledge that if I do not provide evidence that I have paid my landlord, I will not be eligible for any further RentReliefRI assistance and may be reported to Treasury for investigation.
• I understand and acknowledge that if RIHousing reasonably suspects that I have not used my RentReliefRI payment to pay my landlord I may be reported to Treasury and/or law enforcement for investigation, which may result in a determination of my disqualification for other federal programs among other civil or criminal legal consequences.
Related Articles
- Eviction Crisis: McKee Admin Fails to Distribute Federal Rent Support Money - Just $8M of $200M
- RIHousing: RentReliefRI Provides Support for Rhode Islanders Facing Eviction
- Struggling Rental Assistance Program Has Received a Big Break From Biden Administration
- RI Received $200M in Federal Funds for Renters in Pandemic in December, Only $1.2M Has Been Awarded
- RI Housing Prices Hit Record Highs—43% Increase Over Past Decade
- Providence Police Arrest Real Estate Exec in East Side “Porch Pirate” Case
