Members of the Acacia Tenants Union in Denver have posted banners saying “Don’t Pay May” and “Rent Relief Now” after failing to reach terms for rent relief with their landlord, Olive Bark LLC.
“The union officially started actively mobilizing a rent strike. We sent out a four-page packet this weekend. Everyone in our building got it on their doors,” said Ryan Leach, a tenant and strike organizer at the building located at 429 E. 14th Ave. in Denver.
The apartment has 55 units and about 30 percent of tenants participate in the union, which formed years ago to deal with prior tenant-landlord disputes. The goal is to have at least 40% of tenants strike on May rent, Leach said.
Olive Bark and landlords across the country have urged tenants to apply for unemployment benefits and other public assistance so they can make the rent. But some renters are pushing back, arguing that landlords should also take advantage of the relief provided them under the CARES Act.
Borrowers with a government-backed mortgage, which represents the large majority, can seek forbearance on monthly payments for 180 days. About 7.3% of U.S. mortgages are now in forbearance, according to Black Knight. Missed mortgage payments can be repaid in a lump sum or applied in the regular installments to the end of the loan term, with no penalties or lowering of credit scores.
Acacia tenants, after learning the building had a qualifying mortgage, urged Olive Bark to seek mortgage relief and apply the 40% savings in operating costs towards lower rents. Leach said that is different than what some rent strikers want — a temporary halt on all rent, mortgage, and utility payments.
Vicky Pelton, operations manager at Olive Bark, said in an email that one way or the other the mortgage payments would have to be made up. They aren’t being forgiven, just postponed. Any rent forgiveness offered would need to be made up somehow, she said, adding that “the math doesn’t add up.”
“We know that this is a scary time for many people, and we are willing to do what we can to help,” she said. “There are financial resources available; however, if people who can afford to pay rent don’t, they are taking these resources from people who need them. Our goal is to keep as many residents in their homes as possible.”
Acacia residents facing hardship can pay half of May’s rent and any utility fees upfront, and defer the remaining payments over the following six months. She said many of the tenants who sought relief in April came back a few weeks later and paid the rest.
Leach said a payment plan might work for a month or two, but over time it will crush tenants. Someone who takes three months of payment relief could end up paying 150% of the usual rent in month four and beyond. They will be digging a hole they can’t get out of.
Gov. Jared Polis on Thursday evening extended a ban on evictions for nonpayment and minor violations that he put into place in April through the end of May. Courts will not process eviction requests and law enforcement will not enforce orders, he said at a press conference on Friday.
“This order will not change rental housing providers’ actions because nearly all rental housing providers had already adopted halting executing on evictions. In fact, the governor, in his press conference today, noted that no evictions related to COVID-19 job or income loss happened last month,” Mark Williams, executive vice president of the Colorado Apartment Association, said in a statement.
Despite pleas from progressive groups, Polis, however, has not endorsed rent forgiveness or a rent pause, instead urging landlords and tenants to negotiate payment terms. Rent strikers may have some room to maneuver, but they are at risk once evictions resume.
“All renters need to pay their rent,” Polis said Friday.
About 5% of apartment renters in the state failed to make April rent or payment arrangements, according to the apartment association, which acknowledged that making May’s rent could prove even more of a struggle for households.
A survey of 600 U.S. adults by market research platform 1Q found that 10% expect to skip their May rent or mortgage payments.
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