The city is extending the Rental and Utility Relief Program by using $31 million of federal COVID-19 relief funds in hopes of providing more assistance to Oahu renters.
The city’s Rental and Utility Relief Program began in April 2021 and aimed to distribute more than $225 million in pandemic-related federal funding specifically for the program.
The $31 million in additional money comes from the federal government awarding states and municipalities millions of dollars of relief funds through the American Rescue Plan Act, meant to offset the public health and economic impact of the COVID-19 pandemic. Honolulu was awarded $386 million to be received in two installments. The city received the first $193 million in June, and the rest of the funds are expected this summer.
The city administration largely allocated the first tranche, while the Honolulu City Council allocated the second.
Eligible households can receive up to $2,500 monthly in relief funds and stay enrolled in the program for up to 18 months. So far, the program has awarded about $165 million and helped over 13,000 households.
The program was set to end when the funds ran out and the city stopped accepting applications on June 30.
However, Mayor Rick Blangiardi decided to use the city’s American Rescue Plan Act funding to extend the life of the program.
“The Rental and Utility Relief Program was about keeping people in their homes during the pandemic,” Blangiardi said.
“This infusion of funds will continue to provide short-term relief to families while they get back on their feet with their housing and utility expenses.”
The city will be prioritizing the applications it already received by the June 30 deadline for the Rental and Utility Relief Program. In the last two weeks of June alone, the program received 2,400 applications.
A city spokesperson said that after those are evaluated, the city might begin accepting applications later in the year.
The city also estimated that depending on the amount the current applicants need, the extra $31 million could extend the program through the end of the year.
Those in Council District 6, which covers downtown and Punchbowl to Aiea, received the biggest amount of rent and utility relief at about $60.21 million.
District 5, which covers Ala Moana to Palolo Valley, received the second-largest amount of rent and utility relief funds, about $58.63 million.
Council member Calvin Say, who represents District 5, praised the extension of the program.
“I am extremely grateful for the City’s Rental and Utility Relief Program,” he said in a written statement.
“Although the COVID-19 pandemic continues to have economic impacts on our residents and local businesses, there remains an urgent need for housing and utilities to support local families. … This is an important piece in helping our community rebuild in the wake of the pandemic.”
Women were the head of 60% of the households that received rent and utility relief. Eighty-seven percent of the families that received relief funds made less than $61,000 a year.
For a family of four, that is below 50% of Oahu’s annual median income.
Nearly the same percentage of those from Asian communities and Native Hawaiian/Pacific Islander communities received funds from the program. Native Hawaiians and Pacific Islanders made up about 37% of recipients, while Asians accounted for about 36%.
So far, about 7% of recipients of the Rental and Utility Relief program have reached the 18-month limit.
To help alleviate the burden for families maxing out on the rent relief, the city is working with Catholic Charities and the Council for Native Hawaiian Advancement, the same organizations that are processing the applications for the Rental and Utility Relief Program, to develop a housing stabilization services plan. Once it is executed, the organizations will begin to staff financial literacy and case management programs.
The city has also made requests to the U.S. Treasury for additional funding for the Rent and Utility Relief Program, and has yet to hear back. However, the city was previously able to secure $1.8 million in additional funds that the federal government had recouped from less effective programs, making it more likely that it will be awarded even more funds.
