State's COVID-19 rent relief program ramps up to pay out $78 million by end of year

Oct. 27, 2020
Almost two months since the launch of the state’s Rent Relief and Housing Assistance Program, only a quarter of the 20,000 applications received have been processed.
 
According to the state, of the $87.5 million in CARES Act money meant for struggling renters and homeowners -- about $10 million has been paid out, $6.4 million in payments are pending, and $16.2 million in payments have been approved, but are waiting for additional verification.
 
That leaves the two administrators of the program -- Aloha United Way and Catholic Charities Hawaii -- more than $55 million to give out in two months time.
 
At this pace, some residents wonder if they’ll see any money at all, and want some kind of notice.
 
“They could give some, maybe some sort of interim email where you're at process, other than just we've received your application," said Waikiki resident TJ Miller, one of thousands of residents waiting for rental assistance.
 
Executives from the two nonprofits blame capacity issues and a cumbersome verification process for delays. They told state House lawmakers they increased manpower so 200 people are now reviewing applications, and updated computer software to get through the backlog faster.
 
“The process has gotten easier as we’ve gotten a better handle on the forms and some of the issues that were problems in the first few weeks but we are still cautiously optimistic that by the second week in December we will be able to distribute all the money at this point in time," said John Fink, Chief Executive Officer of Aloha United Way.
 
State officials say one big reason for the slow disbursement of money is the lag in verifying an applicant’s information.
 
“We're not getting the vendor verification form, such as the form from the landlord that's signed, or the mortgage company that provides the information on now who payments should be made to, what address, what account number, et cetera," said Janice Takahashi, Chief Planner, of the Hawaii Housing Finance & Development Corp.
 
"Once the application is received and approved, we're waiting for the landlords to certify and to validate the application," said Paul Kobayashi of Aloha United Way. "And so that's where a lot of our challenges have been right now in making timely disbursements is waiting for that second piece with the landlords."
 
Fink says some landlords are hesitant to provide personal information.
 
“You've got issues of elderly landlords, and you've got English as a second language sometimes. So to get them to willingly provide information on the phone when we've all told these people for years, don't do that, so it's a little cumbersome," Fink said.
 
The charities say to handle the large volume, they’re working with partner organizations like the Honolulu Board of Realtors and Unite Here Local 5, as well as volunteers to make sure applications are complete.
 
Furloughed hotel worker Caitlin Sabado is volunteering to review applications submitted by UNITE HERE Local 5 members. She is also a beneficiary of the state program. She says it took a month for her to receive three months of rental assistance.
 
“Thankfully for me, it goes through our union, so they will grab all the applications, process it, and then they send it off to Catholic Charities," she said.
 
Sabado says volunteers have been able to get through about half of their share so far. And people are grateful.
 
“They just want to hear something from someone. Yeah. So it's been, it's been really good," she said.
 
Any funds not disbursed by Dec. 31, goes into the state’s unemployment fund.
 
Miller says it should go to residents and hopes the state and charities do as they say.
 
“Talk is cheap and we'll just have to wait and see what they do there," he said,
 
If your application is pending, don't call the agencies because that adds to delays. Catholic Charities applicants can check their status online HERE. Aloha United Way says its online system will be ready next week.