City Council is considering extending Philly’s Eviction Diversion Program into 2024

For two years, Philadelphia has required landlords to try mediation with tenants as part of the Eviction Diversion Program before filing for eviction in court in most cases. City Council members now are considering extending the program through the first half of 2024.

The city launched the Eviction Diversion Program in September 2020 to help tenants struggling financially during the pandemic, and it has extended the program a couple of times. Last December, Council unanimously voted to extend the program through 2022 as long as enough rental assistance was available. This assistance has been critical in helping tenants pay back rent.

Council and Mayor Jim Kenney’s administration have allocated $45 million in rental assistance for the continuation of the program, of which $30 million is earmarked for the current fiscal year. To date, Philadelphia’s rental assistance program fueled by federal pandemic relief funds has distributed nearly $300 million to more than 46,000 applicants, according to the city.

» READ MORE: Philly’s program that prevents evictions will continue through 2022

“A stable home is the foundation of a stable life,” Councilmember Jamie Gauthier said at a Council hearing Tuesday. “And it is critical that the housing policies we put forth are centered around maintaining stable housing for our residents. Extending the Eviction Diversion Program is a necessary step to doing so.”

Of the more than 2,000 participating landlords and tenants no longer in mediation from September 2020 through the first full week of January 2022, 80% reached an agreement, said Melissa Long, director of the city’s Division of Housing and Community Development.

Since early January, substantial rental assistance has no longer been available, but to date, 60% of participating landlords and tenants in the program have continued to reach agreements, Long said. Since Jan. 10, roughly 930 households have been able to stay in their homes, she said.

» READ MORE: Philadelphia is ending its rental assistance program because it’s running out of funds

Since fewer eviction cases are going to court, the backlog of cases has improved. For those situations that require a judge, rental property owners now wait about 30 days for a hearing, down from about 90 days.

The federal government has called Philadelphia’s program a model for other cities. At Tuesday’s Council hearing, tenant and landlord advocates said they supported extending the program.

Andre Del Valle, vice president of government affairs at the Pennsylvania Apartment Association, said he has appreciated the collaboration that continues to improve the program “to find a balance for landlords to recoup outstanding balances while preventing instability across the city of Philadelphia.” He said the association hopes to reduce the time mediation takes, which he called one of the biggest challenges for landlords.

If the program is extended, landlords entering it would have to participate for at least 30 days, down from 45.

In the program, housing counselors connect tenants with resources, and trained mediators provide a space for tenants and landlords to de-escalate disagreements and come up with mutually acceptable solutions. Those solutions can include home repairs, repayment plans, or time for tenants to move out.

» READ MORE: Philly’s program for preventing evictions is a national model. Lawmakers want to make it permanent.

This latest iteration of the Eviction Diversion Program would expire June 30, 2024. On Tuesday, Council members moved the legislation out of committee to be considered by the full Council.

Preventing an eviction filing in court helps tenants because past eviction records make it harder for renters to find adequate housing in the future.

That was a “scary” prospect for Haniah Harvey, a 24-year-old who faced eviction with her son. Harvey said she spent her savings moving into her current home after being forced to leave her previous apartment building, which the city shut down for violations. So she was already behind on payments to her landlord when Amazon reduced her hours at her job, she said.

At Tuesday’s hearing, she called the Eviction Diversion Program “a lifesaver.”

“I feel like the eviction program came in and saved the day,” she said.