LIHU‘E — Throughout the COVID-19 pandemic, Kaua‘i Federal Credit Union’s Coronavirus Rental and Utility Assistance Program has distributed more than $25 million in federal funds to 2,400 Kaua‘i households struggling to make ends meet.
With additional Federal funding up in the air, the program is scaling back and limiting the pool of renters eligible for relief.
This November, the rental assistance cap will be lowered to $1,500 per month, down from $4,500.
And in December, the program will be limited to only include the most vulnerable populations — households facing imminent eviction, with combined income at or under 50% AMI ($39,900 for an individual and $57,000 for a family of four) kupuna over age 62, or domestic violence survivors.
New and existing applicants may also be asked to provide documentation to support their claims about their income and financial hardship during the pandemic.
“The continuation of the program is currently dependent on receipt of additional federal funds, and we are still awaiting clear information on the amount of additional funds that will be forthcoming,” said KFCU Community Development Officer Dana Hazelton. “We are so grateful that the program is continuing and evolving. It is a great reminder that the public should start to prepare now to adjust to the new normal of our rental housing marketplace.”
Since its launch in May 2021, the program has accepted a broad range of participants. Currently, anyone who makes 80% area median income or below is eligible — this is $63,850 for an individual and $91,200 for a family of four.
Funding, which came through the federal Consolidated Appropriations Act and later through the federal American Rescue Plan Act, was originally limited to renters and landlords who suffered financial hardship due to the pandemic. But in May 2022 it expanded to accommodate renters or landlords who have experienced financial hardship anytime since the beginning of COVID-19, regardless of the cause. Applications require information from both tenants and landlords, but tenants with non-cooperative landlords can apply to receive funds directly without landlord involvement.
This has led to a program that has accepted most applications, with TGI reporting in March 2022 that about 75% of applicants had been accepted.
“The shift from pandemic to endemic means the program also must shift and change,” said Kaua‘i Credit Union Program Director and Grants Administrator Hazelmae Overturf, who took the reins of the CRUA program this July. “We do remain steadfast in continuing the prioritization of our most vulnerable populations on Kaua’i, and as a credit union, bettering the financial health of all people of Kaua’i. We want the public to know that funding for this program is still available and we will continue working diligently to provide as much aid to those that need it most.”
Rising rents and evictions
Housing costs have skyrocketed during the pandemic, leaving the prospect of homeownership more and more out of reach for many renters.
According to data published by Hawai‘i Realtors, the median price of a single-family home on Kaua‘i through June 30 increased by 11.52% compared to that time frame last year, from $1.08 million to $1.2 million.
With this comes a steady increase in rents. Higher home valuations lead to higher property taxes, and pandemic-related supply chain issues add costs for landlords. These costs are passed down to tenants in the form of rising rents.
“When housing prices go up, that represents our property tax. They go hand in hand,” said Sarah Corbett, owner and operator of Island Rentals and Real Estate property management company that oversees more than 100 units. “I have one client whose property taxes went from $8,000 to $13,000.”
With these rising rents comes the risk of increased evictions, which are kept at bay by rent assistance programs like CRUA. Hazelton said the program, along with the eviction moratorium “prevented widespread evictions and houselessness.”
Data provided by the 5th Circuit Court on Kaua‘i shows 39 eviction cases initiated in 2020, followed by 70 in 2021 and 46 in 2022 so far.
Without rental relief, these numbers would likely have been much higher.
Corbet said she had personally seen the program help more than 20 tenants at risk of eviction.
“The CRUA program is amazing,” said Corbett. “It has definitely helped a lot of families stay in homes and has helped get a lot of families housed.”
With the changes to the program, Corbett said she is worried about more evictions on the horizon.
Hazelton urged renters to use their assistance wisely and utilize the free financial education programs offered through Hawai‘i Community Assets, and Kaua‘i FCU.
“We know that there are fewer rentals than pre-pandemic, we know rental prices have soared in some areas of the island, and we know that inflation affects us all,” said Hazelton
“As this funding source winds down, I strongly urge the general public to prepare for the economic realities of our current rental marketplace.”
Sept. 15 COVID update
Kaua‘i’s seven-day average COVID-19 case count is seven cases a day, down from 13 cases last week. The test positivity rate is 7.9%.
No fatalities were reported on island.
Statewide COVID cases also declined from an average of 195 a day to 161 a day, with a test positivity rate of 6.7%.
New boosters targeting Omnicron subvariants are now available on Kaua‘i. Scheduling of booster appointments can be done by individual vaccine providers, and most pharmacies. For info on where the bivalent booster is available on Kaua‘i, visit the vaccine finder map at hawaiicovid19.com/vaccine.
For more information about providers and the services they offer, people can visit the vaccine finder map at hawaiicovid19.com/vaccine.
For a list of vaccination locations on Kaua‘i, visit Kaua‘i.gov/vaccine or call the Kaua‘i District Health Office at 808-241-3495.
