Tenant advocates, landlords push Minnesota to speed up rent relief payments

(FOX 9) - Minnesota landlords and tenant advocates aired frustrations to lawmakers Wednesday about the state's rent relief program, which has been slow to launch despite the availability of hundreds of millions of dollars.

The federally funded RentHelpMN.org is key to ending Gov. Tim Walz's 14-month-old eviction moratorium, but lawmakers remain far apart on a deal as the rent relief program comes under scrutiny.

More than $1 million has now gone out the door since the program launched April 20, Housing Commissioner Jennifer Ho told a joint legislative hearing Wednesday. That is double Friday's mark but less than 1 percent of the overall amount available.

"We do have a backlog. I'll just say that," Ho told lawmakers.

Minnesota is in line to get $672 million of federal housing assistance this year, including $375 million it received months ago that's earmarked for renters who fell behind on their bills during the COVID-19 pandemic. A second package of relief will help both renters and homeowners.

Ho said more than 20,000 people had submitted applications. She estimated than between 50,000 and 80,000 Minnesotans are behind on their rent. Under the program, tenants can get up to 15 months of past-due rent forgiven, or up to 3 months of future rent.

Some large property owners said dozens of their tenants have applied but none have heard back.

"We have housing in 38 cities. We have not seen one payment. We have not gotten one person approved," said Lisa Marvin of St. Cloud-based Essence Property Management. She said 82 tenants who collectively owe $306,000 in past-due rent had applied.

Tenant advocates also expressed concerns.

"There are people working really hard to make it faster. I am just worried about the realities for the people in Minnesota," said Shana Tomenes of the Housing Justice Center.

Where landlords and tenant advocates split is over the timeline for ending Walz's eviction moratorium.

Ho said the state could not use the federally funding to pay back rents for tenants who have been evicted. Democrats and tenant advocates are seeking a longer wind-down period for the moratorium.

Landlords are seeking to end the moratorium more quickly, saying that some of their renters have refused to apply for rental assistance.

Walz has said he won't end the eviction ban until lawmakers pass off-ramp legislation. It will be a major issue in the lead-up to a June special session over the state budget.