Tenants fear eviction. Landlords fear bankruptcy. How can Philly balance the two? – WHYY

The proposed extension will give tenants time to begin to stabilize their income, comply with Governor Wolfs stay-at-home order, which now extends to the end of April, and work with their landlords to enter into new payment agreements, the 13 groups wrote in a letter addressed to Philadelphia Mayor Jim Kenney and City Council.

They argue that lifting the eviction moratorium as soon as the state of emergency is over wont allow people time to earn enough money to pay past-due rent.

And, they add, the shutdown of nonessential businesses is keeping some people from being able to move out by the agreed-upon date on their lease. Realtors are not showing properties in person, and moving companies are similarly hard to hire due to the shutdown.

Fifty-one percent of city residents are renters. The group says failing to protect them beyond the state of emergency could trigger mass evictions that will cause major destabilization for the City, its renters and its landlords.

But landlords have their own bills to pay.

Paul Cohen, the general counsel for the Homeowners Association of Philadelphia (HAPCO), said landlords in the city have been working with renters during the pandemic, and his group came out early on in support of a federal freeze on evictions and foreclosures.

However, he said landlords are afraid about their own futures and want to see more protections, too.

Your small landlords are people that dont have a lot of money. Theyre not wealthy people. Theyre people that are trying to make a go of it with what little they have, Cohen said, adding that about half of Philadelphias rental units are owned not by big companies but by individuals who own anywhere between one and four units.

Those people, he said, still have to pay property taxes and mortgages.

The $2 trillion federal coronavirus relief plan does give property owners government-backed mortgage forbearance, essentially a way to temporarily reduce or defer payments to some lenders. Councilmember-at-large Helen Gym said forbearance will help a sizable percentage of Philadelphians, but Cohen pointed out that property owners will still have to make interest payments.

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Tenants fear eviction. Landlords fear bankruptcy. How can Philly balance the two? - WHYY