State leaders opened a new temporary rental assistance grant program this week that will use $30 million approved by the Colorado legislature in November to try to keep people in their homes after eviction filings reached record high numbers in pockets of the state last year.
The Colorado Department of Local Affairs launched the first pre-application process through the Temporary Rental Assistance Grant program Thursday. The first round of pre-applications will remain open until 5 p.m. Tuesday.
Coloradans who aren’t selected to move forward in the process to receive funds, and others who miss the deadline, will have another chance to apply when grant program leaders reopen the process again on the 15th day of each month — the same day landlords typically send demand for rent notices.
All $30 million must be distributed to eligible Coloradans by June 30 under House Bill 1001, which passed during the legislature’s special lawmaking term in November providing money for the grant program, said Maria De Cambra, executive director of the Colorado Department of Local Affairs.
State leaders plan to review and approve rental assistance for about 3,700 households before the grant program ends.
“Our agency, community partners and legislators are serving those who need help through no fault of their own,” De Cambra said.
“This initiative embodies the department’s commitment to fostering resilient communities and ensuring that every Coloradan has access to the stability and support they deserve.”
State lawmakers have criticized the department’s handling of a separate rental assistance program that was funded by federal dollars. The state never spent $8 million the legislature set aside last year for that program, even as the department was limiting applications for help.
Against that backdrop, lawmakers for weeks have been pressing the department to open the new program to applicants.
The new initiative is launching at a time when inflation and the cost of living are increasing while the number of rental assistance programs since the pandemic are dwindling, making it harder for Coloradans to afford rent and remain in their homes.
For the first time in 20 years, the average American is rent-burdened, meaning they spend 30% or more of their income on housing.
In October alone, there were 1,629 eviction filings in Denver, the highest number of any month last year, according to recent data from Denver County Court. The second highest number of eviction filings were in May when 1,216 cases were counted, according to the data.
To be eligible for aide under the Temporary Rental Assistance Grant, Coloradans must earn no more than 80% of their area’s median income, be at risk for eviction or displacement, plan to use the grant funds to remain in their primary residence, have a notice of late rent from their landlord, have not received rental assistance in the last year and report other risk factors for eviction or displacement, such as a loss or reduction in their income.
The Department of Local Affairs is trying to manage the high demand for assistance and to reduce the burden on applicants by requiring only a pre-application rather than a full one since some Coloradans may not be selected.
Applicants can submit pre-applications during the five-day window beginning on the 15th of each month, and within seven days, Department of Local Affairs leaders will randomly select pre-applicants to fill out a longer application.
Within four to six weeks, five nonprofits that are helping the state distribute the funds — the Community Economic Defense Project, La Puente Home, Brothers Redevelopment, Neighbor to Neighbor and Total Concept — will complete an initial review of those longer applications and administer funds within seven to 14 days after approval.
Grant amounts will be based on the applicant’s level of need and the amount of their past-due rent. Payments will not exceed up to five months of rent or $10,000, whichever is less.
Meeting the unprecedented demand
There will be more eligible applications from Coloradans than the state can review and fund.
In October alone, 63,000 Colorado households were behind on rent, according to a 2023 U.S. Census Bureau survey.
The Colorado Economic Defense Project has been helping state leaders provide emergency rental assistance funds since the pandemic began in 2020, said Zach Neumann, executive director of the organization.
“We’re in the business of trying to stop evictions,” he said. “It’s a really hard thing to do in Colorado. The eviction timeline moves very quickly. Tenants have very few defenses and we’re seeing unprecedented levels of eviction filings.”
Community Economic Defense Project leaders are seeing an unprecedented level of demand for rental assistance, legal assistance and representation, and help with navigating evictions, housing insecurity and other forms of economic hardship, Neumann said.
In January, the organization received approximately 3,000 calls per week, about three times the number of calls it received in October, when nonprofit leaders tallied 1,000 to 1,500 calls in a week, Neumann said.
“This money could not have come at a better time,” Neumann said. “We suspect those numbers will go up more with this new grant program. I think when people learn that there’s rental assistance dollars available, they’re going to start reaching out in greater numbers, as they should.”
The new funds represent a historic investment by the state to stabilize renters, Neumann said.
“At the same time, the $30 million appropriated during the special session would only be able to cover all the eviction filings in January,” he said. “So there’s a real disconnect between the volume or level of resources available and the scale of the problem that we are experiencing across the state.”
MORE: Coloradans who have a court date for eviction proceedings should first apply for the Colorado Temporary Rental Assistance Grant and then contact the Colorado CARE Center by calling or text messaging 720-356-0174 or 888-480-0066 for help with navigating evictions or applying for rental assistance, state leaders said.