City of Richmond Eviction Diversion Program - PowerPoint Presentation

City of Richmond Eviction Diversion Program North Carolina Affordable Housing ConferenceOctober 8, 2019 Martin Wegbreit, Esq., Director of Litigation Central Virginia Legal Aid Society 101 West Broad Street, Suite #101 Richmond, VA. 23220 804-200-6045 (V) & 804-649-8794 (F) marty@cvlas.org (E-mail)

The Eviction Problem & Why the Eviction Diversion Program is NeededVirginia has five of the top ten highest eviction rates among large U.S. cities: #2 – Richmond (11.44%) #3 – Hampton (10.49%) #4 – Newport News (10.23%) #6 – Norfolk (8.65%) #10 – Chesapeake (7.9%)Virginia has three of the top five highest eviction rates among mid-size U.S. cities:#2 – Petersburg (17.56%) #4 – Hopewell (15.69%) #5 – Portsmouth (15.07%) 2

The Richmond eviction crisis & its causes● 30.9% of all Richmond renters receive a notice of eviction each year ● Court eviction affects about 40,000 people in Richmond subject to 17,981 eviction lawsuits filed each year● Most eviction lawsuits result in judgments of possession - 10,929 of them● Most judgments of possession result in writs of possession authorizing the sheriff to forcibly remove the tenant - 9,381 of them● Richmond Sheriff’s office evicts 2,688 families each year. A large number of tenants also involuntarily move before sheriff arrives to forcibly evict.● Eviction is not just one problem.  It is a dozen problems.  It affects whether people have access to banks or payday lenders, where children go to school, where their parents get jobs, can buy food, get health care, have access to public transportation, and live in a safe or crime-ridden area.  The stress of eviction also makes it a mental health issue.  3

● Families with children are evicted at double the rate of families without children. Eviction is a child welfare issue. ● Ten out of eighteen Richmond elementary schools in neighborhoods with eviction rates above the City average of 11.44% are unaccredited ● Six out of seven Richmond elementary schools in neighborhoods with eviction rates below the City average of 11.44% are fully accredited● Richmond eviction rate increases as the share of the minority population increases, even when holding income and other factors constant. Eviction is a racial issue.● Eviction poses immediate risk of homelessness & loss of personal property, and families move into poor quality neighborhoods & housing● Likelihood of being laid off is 15% higher for workers who had an eviction● A judgment of possession, or even the filing of an eviction lawsuit, makes it much harder for a family to rent another unit and may make a family not eligible for affordable housing 4

The Eviction Process in VirginiaNon-payment of rent evictionsDay 1: Rent is due.Day 5: Last day to pay to avoid late fee.Day 6: Landlord gives written 5 day Pay or Quit notice. Day 12 or 13: Landlord files Summons for Unlawful Detainer (eviction lawsuit).Day 33 or 34: First court date (return date). If tenant pays all rent, late fees, court costs and attorney’s fees – on or before return date – case dismissed.Tenant may do this only once in a 12 month period of time.Other evictions Day 1 : Landlord gives written 21/30 day Notice to Vacate. If tenant fixes problem, lease continues. If not, lease ends in 30 days. Landlord also may give written 30 day Notice to Vacate if problem cannot be fixed. Lease ends in 30 days.Notice period may be shorter if threat to health or safety.Day 32 or 33: Landlord files Summons for Unlawful Detainer (eviction lawsuit).Day 53 or 54: First court date (return date). 5

The Eviction Process in VirginiaNon payment of rent evictionsDay 33 or 34: Return date. If tenant does not come to court, judgment for possession and rent. Writ of Eviction may issue immediately.If tenant comes to court and no contest, judgment for possession and rent. Writ of Eviction after 10 days. If contest, trial set for 5-10 days later. Day 38 to 44 : Trial. If landlord wins, judgment for possession and rent. Writ of Eviction may issue after 10 days. Tenant may appeal within 10 days, but only by posting appeal bond. Other evictions Day 53 or 54 : Return date. If tenant does not come to court, judgment for possession (and rent, if sued for). Writ of Eviction may issue immediately. If tenant comes to court and no contest, judgment for possession (and rent). Writ of Eviction after 10 days. If contest, trial set for 20-30 days later.Day 73 to 84: Trial. If landlord wins, judgment for possession (and rent). Writ of Eviction may issue after 10 days. Tenant may appeal within 10 days, by posting appeal bond, unless indigent.6

The Eviction Process in VirginiaNon payment of rent evictionsDay 33 to 55: Writ of Eviction. Sheriff gives Writ stating eviction date to Tenant. Must give at least 72 hours before eviction. Usually gives 5-10 days. Day 38 to 60: Last day for tenant to move or be put out by Sheriff, unless extended redemption. Only the Sheriff may actually evict the tenant. This is a typical eviction timeline. Number of days can vary depending on court’s schedule and local practice.Payments to LL after court date not stop eviction, unless extended redemption. Other evictions Day 53 to 95 : Writ of Eviction. Sheriff gives Writ stating eviction date to Tenant. Must give at least 72 hours before eviction. Usually gives 5-10 days. Day 58 to 100: Last day for tenant to move or be put out by Sheriff, unless extended redemption. Only the Sheriff may actually evict the tenant.This is a typical eviction timeline. Number of days can vary depending on court’s schedule and local practice.Payments to LL after court date not stop eviction, unless extended redemption. 7

How the Richmond Eviction Diversion Program (EDP) WorksThe EDP is open only: • To tenants renting in the City of Richmond • After an unlawful detainer has been filed against the tenant• Before a judgment of possession (court order) has been made in that lawsuit • If the sole issue between landlord and tenant is nonpayment of rent • If landlord and tenant agree on the amount due as of the court date 8

How the Richmond Eviction Diversion Program (EDP) WorksTo take part in the EDP, tenant must: • Come to court on the court date & pay 25% of the amount due by cash, certified funds or money order• Explain why he or she fell behind in rent • Be able to pay ongoing rent when due and catch up on the back rent • Have a good rent paying record:  ▪ Not been late more than twice in a 6-month period  ▪ Not been late more than three times in a 12-month period ▪ Not been in an EDP in the last 12 months ▪ Not had an unlawful detainer dismissed by paying current in the last 6 months• To take part in the EDP, landlord also must agree 9

To get financial assistance as part of the EDP, the tenant must:• Have come to court on the court date, paid 25% of the amount due, and entered a payment plan and continuance agreement• Participate in a financial literacy counseling session• Bring to the session the payment plan and continuance agreement, proof of current income, bank statements, and proof of expenses • Have household income not in excess of 80% of Richmond’s median household income (as shown in figures below): HH of 1 HH of 2 HH of 3 HH of 4 each additional $ 46,600/yr $53,250/yr $59,900/yr $66,550/yr $5,350/yr 10

Eviction Diversion Program ProceduresInformation sheet attached to unlawful detainers filed starting September 10, 2019Has a toll-free number to call (833-663-8428, ext. 4) and leave a messageTenant gets a return phone call in 24 to 48 business hours and is asked questions to see if he or she can be in the EDP 11

Screening by Housing Opportunities Made Equal (HOME) • Contact information for tenant• Information about the case – date & time of court return date.• Does tenant qualify for EDP? • Information about landlord’s claim: ▪ Rent and for what period, Late fees, Damages and for what reason, ▪ Court costs, Civil recovery, Attorney’s fees• Contact information for landlord and landlord’s attorney (if applicable ) • Is tenant able to enter into a payment plan and continuance agreement?• What is amount due as of court return date? ▪ Amount claimed on unlawful detainer ▪ Plus charges claimed after unlawful detainer filed ▪ Minus payments made after unlawful detainer filed 12

Referral to Greater Richmond Bar Foundation (GRBF) & Matching with Volunteer Conciliator • HOME refers to GRBF potential candidates for EDP• Volunteers register for JusticeServer – www.justiceserver.org – ­and select Greater Richmond Bar Foundation as a “Preferred Legal Service Organization”• After registration approved by GRBF, volunteers register for shifts by clicking “Volunteer Opportunities” • One (or more) volunteers responsible for all EDP cases on a single court return date, e.g., October 10, October 11, etc.• Volunteer conciliator provided information obtained by HOME • Conciliator contacts landlord to encourage and assist landlord & tenant to agree on a payment plan13

Payment Plan and Continuance Agreement• Tenant pays ongoing rent when due• Tenant makes 3 monthly payments of 25% of the amount due to catch up on the back rent• EDP has resources available to pay some of these 3 payments • To get these resources, tenant must take part in a financial literacy counseling session• Due date for these 3 payments usually the 5 th of the month. If parties agree, this can be a later date in the month.• Case remains on the docket during the payment plan and depending on the parties’ agreement, continuance date set for exactly 6, 10, 14, or 18 weeks later14

What can be conciliated?• Rent: Parties must agree on amount of rent due as of the court date. In general, this is: A mount claimed on unlawful detainer plus Charges claimed after unlawful detainer filed minus Payments made not accounted for in court papers Amount Due as of Court Return Date • Late Fees: By local court rule, late fees not awarded for more than 10% of rent • Damages: If parties cannot agree, conciliation ends & referrals may be offered. If these are not disputed or parties agree, these are part of the amount due as of the court date.15

What can be conciliated (continued)?• Costs: Amount due as of the court date should be $58, with an additional $12 due for each additional defendant• Civil Recovery : If parties cannot agree, conciliation ends & referrals may be offered. If these are not disputed or parties agree, these are part of the amount due as of the court date. • Attorney’s Fees: CVLAS examined attorney’s fees awarded in unlawful detainers for an entire month from May 14 through June 13, 2019. In 460 such cases, the attorney’s fees ranged from a low of $18.73 to a high of $1,050.00, with a median of $136.25. 16

What if landlord is unwilling?• Ask landlord if you could explain the advantages of the EDP• Landlords typically lose between 2-3 months’ rent during the eviction process• Using an average of 2½ months times $942/month median gross rent, the average loss is $2,355, which does not include costs of evicting the current tenant and finding a new tenant• If landlord remains unwilling, ask for the reason why, note the reason, and email that information to HOME, GRBF, and the tenant 17

What if landlord is willing?• Copy of a completely filled out Payment Plan and Continuance Agreement emailed to both parties (and their attorneys, if applicable), and to HOME• Conciliator comes to court on the court date and bring four copies for the parties to sign • P arties and conciliator meet at courthouse 30 minutes before court• Conciliator brings four copies of the agreement to court to be completely executed: ▪ One copy to the court file ▪ One copy to the landlord (or landlord’s attorney). ▪ Two copies to the tenant & tenant gives one copy to HOME18

Materials available from CVLAS – Email to marty @cvlas.org• Information sheet attached to unlawful detainers • Voice mail script for toll-free number to call and leave a message • Tenant screening questions asked by HOME • Volunteer conciliator instructions provided by GRBF• Volunteer conciliator consent form• Payment Plan and Continuance Agreement 19

Inspiring QuoteLow-income tenants do not have any right to counsel in civil courts, unlike in criminal courts. So in many housing courts, potentially 90 percent of tenants are unrepresented while landlords by and large have attorneys.If we invested in a public legal service for indigent tenants in housing court facing the rich, that would curb frivolous evictions, make sure that we stopped illegal evictions and allow a tenant's case to be made — unlike in the majority of cases today. Matthew Desmond, Associate Professor of Sociology, Princeton University