Making the Rent: Examining the Scale of the Rent Shortfall in Sonoma County Due to COVID-19

Author: Jesús Guzmán
July 2020

Overview

For the last few months, the federal CARES Act has offered relief to those who lost their jobs due to COVID-19 by offering enhanced benefits. Despite many still being unable or ineligible to receive benefits, the enhanced benefits have been a lifeline allowing many to pay their bills But the benefits expire at the end of July with Sonoma County renters and rental housing providers facing uncertainty and significant need.

1 in 5 Sonoma County workers filed an initial claim for unemployment insurance after the shelter-in-place order was implemented and through the late May reopening. Hospitality, restaurant, and retail workers, who on average receive lower wages, were amongst the hardest hit.

Economic forecasts suggest that California may begin to see jobs return in Q4. With a 25 percent jobs return, Sonoma County renters and housing providers may see two scenarios: A) $4.7 million monthly rent shortfall if enhanced benefits are extended, or B) $17 million rent shortfall if benefits go away. Assuming a scenario in which the enhanced benefits are extended, Sonoma County could support impacted households for the next 6 months with a $28 million rental assistance fund.