Debt advice for tenants with unpaid rents
Local governments can invest in this strategy using State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA).
- This strategy can help support healthy living environments. The U.S. Department of Treasury has indicated that strategies that help achieve this outcome are eligible for the use of Fiscal Recovery Funds.
- Investments in this strategy are SLFRF-eligible as long as they are made in qualified census tracts or are designed to assist populations or communities disproportionately impacted by COVID-19.
Program overview
Supporting renters at risk of eviction: In programs that provide debt advice to tenants with unpaid rent, housing counselors provide counseling and referrals to participants to reduce their risk of eviction. Ultimately, housing counseling programs aim to improve clients’ financial situation and increase housing stability.
Offering professional advice: Housing counseling is provided by public or nonprofit social service agencies. At agencies approved by the U.S. Department of Housing and Urban Development, all counselors are trained and certified to assist clients with housing and debt issues. Clients may identify certified agencies through the Consumer Financial Protection Bureau’s website or through referrals from other community-based organizations.
Assistance to manage debt and remain housed: For clients who have unpaid rent, housing counselors recommend and assist their clients in pursuing a range of strategies to manage their debt and remain housed. These strategies may include establishing a rent repayment plan, pursuing tenant-landlord mediation, or understanding fair housing protections.
Part of a broader set of services: Typically, advising renters with unpaid rent is part of a broader set of services offered by housing counseling programs. Clients who are not at immediate risk of eviction may receive more general housing counseling, such as assistance determining what they can afford to pay for housing, developing a monthly budget, applying for rental assistance, identifying an appropriate housing unit, and more.
- Cost per Participant
-
Not available
Multiple studies with rigorous designs provide some evidence for housing counseling for tenants with unpaid rent as a strategy for reducing debt and risk of eviction.
- This assessment is based on evidence from a 2020 systematic review.
Conduct outreach to increase participation: When behind on rent, tenants may have limited time to address their debt and prevent eviction. To increase the number of individuals who access services in a timely fashion, housing counseling agencies should develop a communications plan that aims to raise public awareness. Effective approaches may include leveraging local leaders (e.g., mayors or faith leaders), targeted messaging campaigns to specific subpopulations, collaborative outreach with community-based organizations, and more.
Offer varied forms to communicate with counselors: Clients may have different preferences and constraints on how they can engage with counseling services. As such, housing counseling agencies should offer multiple ways to access counselors, including in-person, virtual, and text- and phone-based counseling.
Develop formal partnerships with social service agencies: Housing counseling agencies should develop formal partnerships with other public and nonprofit social service agencies. Potential steps include creating written materials and delivering training sessions to educate staff on the agency’s programs (e.g., eligibility requirements), outlining referral processes, or creating data-sharing agreements to measure shared outcomes.
Connect clients with broader housing counseling: When assisting tenants with unpaid rent, housing counselors are addressing an urgent, short-term need. To reduce the likelihood of the issue recurring in the future, agencies should offer a continuum of services to improve clients’ financial stability. As urgent matters are addressed, counselors can assist clients with setting and achieving mid- and long-term financial and housing goals.