Unlike emergency unemployment aid, rental relief programs don’t show many signs of fraud. But efforts are underway in at least five states to claw back improperly issued funds, sowing confusion among landlords and tenants.
Letters have gone out in Minnesota, Delaware, Texas, North Carolina and Alaska asking for some emergency rental assistance to be returned.State and local agencies that distributed federal aid to renters facing eviction during the pandemic are now scrambling to claw back millions of dollars in overpayments.
But with little public guidance from Washington, some recipients are scrambling to dash off checks or appeal the requests, even though many remain vulnerable to many of the same housing disruptions the now-discontinued aid was meant to blunt. Then in early August, Delaware authorities announced they’d cease statewide attempts to recover the funds — but warned they still have to report nonpayment to the Treasury and that “further action at the local level may also be taken.”
One Delaware property manager told NBC News it had to evict someone who was already behind in rent after receiving a recoupment notice that put the tenant further in arrears. The state has told the landlord it’s still on the hook for the repayment, and the company hasn’t determined how to proceed. In Delaware, which said it has recovered about $204,000 of its $1.6 million target, authorities said they mistakenly overpaid some landlords on tenants’ behalf. An independent audit last year faulted “various documentation and processing errors.”
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