ACCE v. HCD: Holding California Accountable for Its Failures in Implementing the COVID-19 Rent Relief Program
Summary
A case page from Public Counsel on ACCE v. HCD, a suit by ACCE Action, SAJE and PolicyLink against the California Department of Housing & Community Development over its administration of the COVID-19 rent relief program, Housing Is Key, filed 06/06/2022 in the Superior Court of the State of California, County of Alameda, Case No. 22CV012263. The page states that California identified over $6 billion in rent relief funds, and that the petition alleged due process and fair housing violations and challenged HCD's refusal to provide public records. It lists a preliminary injunction of 07/08/2022, a 01/19/2023 ruling that denial notices must state the facts supporting denial, and a 05/30/2023 settlement giving denied applicants 30 days to appeal. Public Counsel, Western Center on Law & Poverty, LAFLA and Covington & Burling LLP represent the plaintiffs.
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Housing Justice Home > ACCE v. HCD Holding California Accountable for Its Failures in Implementing the COVID-19 Rent Relief Program Overview Explore Sections Case Overview our Clients Alliance of Californians for Community Empowerment (ACCE) Action ACCE is a grassroots, member-led, statewide community organization working with more than 15,000 members across California. ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, to fight for the policies and programs we need to improve our communities and create a brighter future. Learn More PolicyLink PolicyLink is a national research and action institute that works to advance racial and economic equity. PolicyLink seeks to promote economic inclusion to eliminate poverty, shrink inequality, and increase mobility, creating and maintaining opportunity-rich communities through equitable development. PolicyLink uses research to create resources that will ensure that all systems and institutions are just, free of racial bias, and lead to a vibrant democracy where all, especially the most vulnerable, can participate and prosper. Learn More Strategic Actions for a Just Economy (SAJE) SAJE is dedicated to securing economic justice and building community power in South Los Angeles by advocating for tenant rights, healthy housing, and equitable development. SAJE provides tenants’ rights education, direct tenant services, and tenant organizing support. SAJE has engaged in extensive educational campaigns and conducted direct services to assist tenants in accessing rental assistance. Learn More The COVID-19 rent relief program was created by the federal government to keep low-income tenants housed if they faced difficulty paying rent because of the COVID-19 pandemic. California identified over $6 billion in state and federal funds, and the California Department of Housing & Community Development (HCD) was charged with creating an application process, screening tenants for eligibility, and distributing the program funds. However, the application process for California’s COVID-19 rent relief program (Housing Is Key) was burdensome for many of the most vulnerable people who needed such assistance. It required extensive paperwork and documentation, access to email and the ability to check it regularly, and the ability to navigate the system in English, even if it was not the tenant’s preferred language. If they managed to apply, tenants still waited months for a response and received a variety of vague responses, including approval for partial payments or a full denial of payment without adequate explanation. The process was profoundly unfair, didn’t meet constitutional standards, and failed to achieve its most basic aim in many instances: keeping Californians housed. That’s why community-based tenant organizations ACCE and SAJE, along with research and action institute PolicyLink, filed a lawsuit against HCD for administering COVID-19 rent relief in a way that is opaque and disproportionately harms tenants on the basis of race, color, and national origin. The suit also challenges HCD’s refusal to provide public records that would shed light on its administration of the program. Public Counsel, Western Center on Law & Poverty, LAFLA, and Covington & Burling LLP joined forces to represent the Plaintiffs and, in May 2023, reached a historic agreement with the State of California to settle the COVID-19 rent relief cases. The settlement will bring resolution and hope to over 100,000 households who have been waiting for a year or more for the chance to receive support from the State of California. The settlement will provide new opportunities for those denied rental assistance to appeal, will add clarity to application denials, and will expand a network of community partners to assist tenants in responding to denials and appeals. People who still have pending applications as of the date of the settlement should expect to receive a new series of communications from the State and, if their applications are denied, will have 30 days to file an appeal to receive rental assistance. Because of this lawsuit, the State of California will improve its administration of a crucial pandemic relief program to comply with due process. As a result, low-income Californians will have a better shot at receiving the rental assistance they need to avoid eviction and stay housed. Court Superior Court of the State of California, County of Alameda Status Settled Case No. 22CV012263 Filed 06/06/2022 PUBLIC COUNSEL Legal Team Greg Bonett Senior Policy Counsel Faizah Malik Managing Attorney our Co-Counsel Legal Aid Foundation of Los Angeles (LAFLA ) LAFLA is a nonprofit law firm that seeks to achieve equal justice for people living in poverty across Greater Los Angeles. LAFLA changes lives through direct representation, systems change, and community empowerment. It has five offices in Los Angeles County, along with four Self-Help Legal Access Centers at area courthouses, and three domestic violence clinics to aid survivors. Learn More Western Center on Law & Poverty Western Center on Law & Poverty fights in courts, cities, counties, and in the Capitol to secure housing, health care, and a strong safety net for Californians with low incomes, through the lens of economic and racial justice. Learn More Covington & Burling LLP In an increasingly regulated world, Covington & Burling LLP provides corporate, litigation, and regulatory expertise to help clients navigate their most complex business problems, deals, and disputes. Founded in 1919, the firm has more than 1,300 lawyers in offices in Beijing, Brussels, Dubai, Frankfurt, Johannesburg, London, Los Angeles, New York, Palo Alto, San Francisco, Seoul, Shanghai, and Washington. Since its founding, Covington has demonstrated a strong commitment to public service. The firm is frequently recognized for pro bono service, including 11 times being ranked the number one pro bono practice in the U.S. by The American Lawyer. Learn More Case Developments Settlement 05/30/2023 Parties Reach Settlement Plaintiffs and Defendants have reached a landmark settlement on behalf of Californians struggling with pandemic rent debt. The agreement holds HCD accountable for failures in implementing the Covid-19 rent relief program. The settlement will provide new opportunities for those denied rental assistance to appeal, will add clarity to application denials, and will expand a network of community partners to assist tenants in responding to denials and appeals. People who have pending applications as of the date of the settlement should expect to receive a new series of communications from the State and will have 30 days to file an appeal to receive rental assistance if their application is denied. Settlement Agreement ruling 01/19/2023 Court Orders State to Create Denial Notices that Satisfy Due Process In modifying the preliminary injunction to comply with the Court of Appeal order, Judge Roesch said the State’s denial notices must “specify the facts supporting the denial” to satisfy due process, meaning the notice must provide enough information for applicants to understand why the State does not believe their application meets program requirements. The Court acknowledged that being told why tenants are being denied is important to allow applicants a meaningful opportunity to appeal and correct their paperwork. Order Petitioners’ Brief Re: Narrowing Preliminary Injunction Respondent HCD’s Brief Re: Narrowing Preliminary Injunction Ruling 12/20/2022 Court of Appeal Orders Superior Court to Narrow Preliminary Injunction In November 2022, HCD filed a petition for an extraordinary writ with the Court of Appeal asking the Court to overturn the preliminary injunction. The Court of Appeal issued an order in December 2022 ordering the Superior Court to modify the scope of the preliminary injunction. However, the Court’s order said the preliminary injunction could only be modified in a way to still ensure due process so that “it prohibits the Department from denying applications for rental assistance only if the applicant has not been informed of the specific reason(s) for the denial or provided with the documents that the Department relied upon in denying the applications.” Order Respondent HCD’s Petition for Extraordinary Writ Petitioners’ Opposition Respondent HCD’s Reply to Opposition Ruling 07/08/2022 Court Grants Preliminary Injunction The Court sided with tenant advocates and ordered HCD not to deny any pending rental assistance applications until the Court can determine if HCD’s process meets constitutional due process standards. Judge Roesch said the State’s denial notices are too vague, do not tell applicants which of their documents led to denial, and make it difficult for denied applicants to appeal. Order Petitioners’ Brief Respondents’ Opposition Petitioners’ Reply Filing 06/06/2022 Plaintiffs File Complaint Three community groups sued the State of California over its COVID-19 rent relief program. The lawsuit said the program operates in an unclear and discriminatory way and does not provide adequate explanation to renters who are denied help, violating due process and fair housing laws. Petition for Writ of Mandate Press Releases Press Release 06/05/23 Tenants’ Rights Advocates Reach Landmark Settlement on Behalf of Californians Struggling With Pandemic Rent Debt Learn More Press Release 03/03/23 Attorneys for Community Groups Denounce California’s Move to Appeal Ruling in Covid-19 Rent Relief Lawsuit Learn More Press Release 01/24/23 California Says Emergency Rental Assistance Program Will Likely Run Out of Funds with Over 140,000 Applicants Still in Limbo Learn More Press Release 07/08/22 Judge Orders CA Dept of Housing & Community Development to Stop Denying State Rental Assistance Applications Until Further Review Learn More Press Release 06/06/22 Tenants File Lawsuit Against CA Department of Housing and Community Development for Violating Due Process Rights Learn More Media
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