Key points:
Colorado Rental Assistance Fund is Closed as of November 15, 2022
A total of $466 million was provided to tenants
Denver, Larimer, and Boulder counties still have remaining funds
Colorado renters that were financially impacted by COVID during the past 2 years were able to apply for rental assistance through the Colorado Rental Assistance Fund. This fund was a federally funded program that helped tenants in need of financial assistance. This program has used most of the funds and is now closed to new applicants.
History:
The financial impact of COVID on some renters was very harmful. In addition to outlawing evictions in most situations, the federal government pledged funds to each individual state to be used to pay rent.
Colorado received a total of $466 million in funds, which came from three primary sources:
Covid Act: $255 Million
American Rescue Plan: $196 Million
Other jurisdictions: $14.9 Million
Total: $466 Million
Colorado has provided rental assistance funding to 36,000 households from this program, providing the payments directly to landlords. Colorado has determined that the balance of remaining funds is low enough that they are closing the program to new applicants.
As of November 15, 2022, the state has closed the new tenant application process for the Colorado Rental Assistance Fund. For existing applications and Colorado renters already approved in the program or receiving funds - they may remain in the program.
The counties of Denver, Larimer, and Boulder were large enough to receive funds directly from the federal government and remain open to new renter applicants. Denver is anticipating closing their application process to new applicants around April 2023 as that is when they anticipate their funds to be depleted.
Colorado still offers multiple housing rental assistance providers to renters in need.
We expect to see renter delinquencies increase as these funds, and others like them, come to an end. In a recent national survey of tenants, 31% of tenants self-reported that they were behind in their rent payments. With tenants losing access to the funds, a slowing economy, and job layoffs, rental delinquencies will increase in 2023. While this is not good news for renters in need, it may also result in rents declining in 2023.
