New Programs to help Small Business Landlords
Small business landlords (often called Mom and Pop Landlords) own more than 22.1 million rental units in the US, according to the National Apartment Assoc. Most of these small landlords own 1- to 4-unit properties, and are vital sources of affordable housing in our communities. Unlike corporate or LLC landlords, small landlords, which make up approximately 42% of the rental market nationally, often depend on monthly rent payments for income or to pay the mortgages on their properties. The recent pandemic has been particularly difficult for them, as eviction moratoriums have choked off their source of income, capital and sometimes, limited access to their properties.
In the City of Rochester in particular, small business landlords play a critical role in the stability and quality of area housing. The COVID-19 pandemic has put additional pressures on these housing providers - some are now owed thousands of dollars of back rent, while not able to remove delinquent tenants. In addition, the pandemic made it difficult to address repairs in a timely fashion, sometimes leading to larger and more costly repairs, that may also put the health and safety of the tenant at risk. Contractors to make repairs are in short supply, and often, materials and supplies are, too.
Additionally, there is a huge amount of uncertainly around what the results will be when the moratoriums will be lifted. Evictions have negative consequences for everyone, including the landlord as well as the tenant and the community. Orlando Ortiz is a housing provider with several units in the City, who stated, “There were so many unknowns with COVID…it has been a challenge with things changing on the fly. As a housing provider, you kind of feel like your hands are strapped.”
The Housing Council continually strives to provide innovative programming to meet the current housing stability needs of the Rochester and surrounding communities. While the agency has worked with small housing providers for many years, the additional community needs that have emerged, or have been exacerbated as a result of the pandemic, have created new opportunities for collaboration. This forward momentum has allowed for new programs that The Housing Council has recently launched to relieve some of the housing pressure upon our community:
LANDLORD AMBASSADOR EXTENSION PROGRAM: We are collaborating with Enterprise Community Partners to expand our Landlord Ambassador Program - now known as the Landlord Ambassador Extension Program (LAEP) - in the City of Rochester to provide grants to small business landlords who may be struggling due to the recent pandemic. The program is designed for small business landlords who own nine or less units in total, and need assistance with at least one in the City of Rochester, through financial support and repair grants. Funds will be used to address code violations as well as prepare vacant units to be listed. Learn more on our LEAP webpage.
HOUSING STABILITY COUNSELING PROGRAM: As part of the American Rescue Plan Act of 2021, NeighborWorks America was awarded funding to support to housing counseling programs, like those of The Housing Council, to provide eviction and foreclosure prevention services. The Housing Council will use these funds to assist tenants at risk of eviction, and in turn, create more stability for property owners. The program will include partnerships with legal services for referrals as well as small business landlords throughout Rochester and the surrounding area.
WAYNE COUNTY LANDLORD PROGRAM: The Housing Council is partnering with PathStone’s Home Rehabilitation and Energy Services team to provide repair and rehabilitation grants to landlords renting to Newark Housing Authority Section 8 Voucher holders in Wayne County.
The Housing Council has other programs under development with local municipalities to create programs that will assist homeowners and small business landlords with repair needs. We regularly update our website to include a comprehensive list of COVID-related programs and resources from all sources, available to housing providers in the Rochester area, on our COVID-Resources page. And don’t forget that The Housing Council website also has a section specifically for landlords, including a Rental Registry to advertise units and many additional resources, as well as a FAQ page.
Housing stabilization benefits all members of the community, from renters to homeowners to Mom and Pop landlords. Small-scale housing providers will continue to need support in preserving their housing stock as the economic impacts from the pandemic continue to unfold. The Housing Council remains committed to providing support and resources to keep our community’s housing stable for the long-term.