Company will make financial hardship evictions the last resort for 160,000+ people nationwide
BOSTON (January 29, 2021) WinnCompanies, the largest operator of affordable housing in the United States, today announced it is launching a Housing Stability Program designed to cut eviction rates in half across the company’s owned and managed national apartment portfolio during the next five years, starting with a 25 percent reduction in 2021.
The initiative will support 160,000 individuals living in 600 residential communities owned or managed by the company’s property management arm, WinnResidential, in 16 states and Washington, DC. WinnResidential operates 61,000 apartments in Arizona, California, Connecticut, the District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Texas and Virginia.
“The payment of rent is critical to the ongoing viability and quality of our housing stock, but we believe this plan can be the blueprint for a national policy model to reduce evictions and homelessness going forward. This comprehensive policy is intended to outlast the current crisis triggered by the coronavirus pandemic and recession,” said WinnCompanies CEO Gilbert Winn. “It’s time to improve the way our industry thinks about these issues. Our goal is to make eviction truly the last resort in cases of financial hardship by making education, two-way communication, early intervention and hands-on assistance our first lines of defense.”
More than half of the company’s rental income derives from individual tenant payments, rather than government subsidies. In addition, the company manages more than 13,000 market rate apartments. “By and large, our properties are working communities,” Winn said. “Our residents include high income earners as well as families on governmental assistance, and our clients range from private, for-profit owners to community development corporations and leading non-profit groups. This program is meant to aid in the stability of housing for all income earners. Everyone should have a safety net when they fall on hard times through no fault of their own.”
Developed by an internal task force created in January 2020, WinnCompanies’ Housing Stability Program focuses on four innovative strategies designed to remove barriers to housing stability, especially among renters living in affordable and mixed-income apartment communities. The program:
A test drive of the company’s strategy helped thousands of struggling tenants remain in their homes during 2020. WinnResidential has reached payment agreements with more than 2,500 residents since the start of the pandemic, creating payment plans to recoup over $3 million in back rent. In addition, it also has directly assisted more than 2,500 households in securing more than $6.1 million in rental assistance from public and private sources.
To fully implement the new program, approximately 1,600 WinnResidential property management and resident services staff, as well as hundreds of private attorneys who handle eviction cases in various states, will be trained in the weeks ahead with the goal of having the nationwide initiative in place the end of March.
“Our property management teams have invested the extra effort to prevent thousands of evictions in the past six months, despite facing already difficult workloads and their own personal challenges during this pandemic,” said WinnResidential President Patrick Appleby. “Our stability strategy builds on our experiences this year, as well as decades of being a national leader in affordable housing. While federal and state eviction moratoriums provide a temporary stop gap, no one should doubt the challenges facing our residents, owners and communities over the long term.”
The new program does not waive household responsibilities under lease agreements, including the obligation to pay rent, but it can provide a viable path forward and relief to residents who demonstrate a good faith effort to meet their obligations. It will not apply to any household violating its lease through criminal behavior, violence or other activities deemed to be a danger to the health and safety of the community or damaging to property. Residents who do not communicate and participate in the program will be subject to eviction proceedings.
Evictions have been shown to contribute to homelessness and joblessness, numerous mental and physical health consequences, and educational setbacks for children. They also create a considerable financial burden for rental property managers and owners. Total eviction costs, incorporating lost rent, vacancy, legal fees, repairs, turnover, leasing and other costs, can range between $2,500 and $8,000 per case, depending on location and circumstances.
“From health to economic mobility, non-payment evictions leave a permanent mark on individual and families,” said Trevor Samios, Vice President of Connected Communities, the resident services platform of WinnResidential. “Our goal is to flip the traditional approach on its head with a shift to housing stabilization as a comprehensive strategy to intervene to avoid eviction whenever possible. Helping people to stay sustainably in their homes has myriad benefits; it’s good for our residents, for communities, our industry and the economy.”
The company’s Housing Stability Task Force included representatives from property management, development, legal, compliance, resident services, communications and asset management teams. In addition, numerous external stakeholders, including legal services representatives, tenant advocates, housing agencies and academic experts, were involved in evaluating aspects of the new program.
WinnCompanies voluntarily halted evictions in July 2020 for residents who qualified for virus-related financial hardship under federal and state rules and who entered into payment agreements based on their rent obligations and household situations.