Against the backdrop of increasing evictions across the country, America’s poorest big city has been able to stem its rate.
Nationally, evictions have risen 35% compared to prepandemic levels due to the end of moratoriums intended to keep tenants in place and rent rates climbing to record highs. But thanks to a now-permanent program, Philadelphia’s rate has fallen off a cliff, according to The Wall Street Journal.
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Philadelphia’s eviction diversion program started in 2020 and was made permanent in June. Over the 12 months ending in June, the rate of local court filings to evict tenants declined 41% compared to annual averages from 2016 to 2019, according to Princeton University’s Eviction Lab.
Philadelphia's eviction diversion program is similar to those courts are experimenting with to keep tenants in place in other states, including Alaska, Indiana, Texas and Michigan. The City of Brotherly Love's program is unique, though, in requiring landlords to work with tenants out of court first.
Philadelphia is funding $34M in public rental assistance this year to resolve temporary payment problems. In some cases, diversion also means a bit of creative financing.
Renter Mercedes Peterson was in the hospital and facing eviction just before missing her second month’s rent, the WSJ reported. Working with a counselor from the program, she paid partial rent using some wages, part of a tax return refund and dipping into her security deposit while setting up a back pay program with her landlord.
“It really just calmed my mind and allowed me to focus on my health,” Peterson told the publication.
Many landlords support the diversion program’s goals, especially when tied to rental assistance to recover rent they couldn't normally get returned through the court process. However, the Pennsylvania Apartment Association has pushed the Philadelphia City Council to narrow the eligibility for the program, which includes lease violations outside of the nonpayment of rent.
Last year, enrollment in the diversion program was higher than the number of eviction filings before the pandemic, the Philadelphia Housing Authority said.
But since its implementation, nearly half of all landlord-tenant pairs were able to resolve their issues outside of court, avoiding costly legal fees and official court filings that can alter renters’ lives, according to data compiled by the Philadelphia City Council.
“Everyone anticipated that there would be this wave of eviction filings, and you saw that nationally,” Rachel Garland, a housing lawyer with Community Legal Services of Philadelphia, told the WSJ. “We never saw the wave hit.”
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