Emergency rental assistance programs are falling short in Alabama even as tens of thousands of renters remain at risk of eviction. The Alabama Housing Finance Authority (AHFA) has received more than 70,000 applications for federal rental assistance. But fewer than 4,000 households had been helped as of Oct. 31. The AHFA has distributed only about 17% of the state’s federal rental aid dollars.
Horne LLP, the AHFA’s third-party application processor, stated on Sept. 24 that bank account verification was the only step necessary to bring Alabama’s number of assisted households from 3,300 to more than 10,000. But the delays have continued. Problems have plagued the state since the AHFA signed its no-bid contract with Horne. As of Sept. 24, the company had received more than $2 million for administration while paying out less than $20 million in assistance.
Alabama’s statewide payout rates lag significantly behind neighboring states. Alabama Arise and partner groups are building public and legislative pressure on the AHFA to speed fund distribution. We have driven news coverage on the issue, and we testified at a legislative oversight hearing in September.
Several local ERA programs have performed much better than the statewide program. Jefferson and Mobile counties have done particularly well, distributing more than 80% of their available funds. AHFA distribution also increased significantly in October after a troubling slowdown in September. These increases must continue to reduce the application backlog ‒ and to keep Alabamians housed during a pandemic winter.