SACRAMENTO – The Sacramento Bee is reporting that the state is asking for some landlords and tenants to return rent relief payments they may have obtained fraudulently.
California is demanding that thousands of tenants and landlords who were approved for emergency rental assistance during the pandemic return the money — often months after it has been spent — sometimes for vague or unspecified reasons.
The California Department of Housing and Community Development has sent “recapture” emails to about 5,400 tenants and landlords who received COVID-19 rent relief funds, the agency told The Sacramento Bee. HCD gives aid recipients 30 to 90 days to send the money back, said Nur Kausar, HCD communications manager.
The agency claims overpayment, tenants withholding funds from landlords and fraudulent activity are among the reasons they ask landlords and tenants to return their aid, Kausar said.
The city of Inglewood has received close to $2 million in federal funds for rent relief and have only distributed $250,000. The City’s housing department continues to deny public records request inquiring how the money was disbursed.
The City hired five additional part-time staff members to help assist with processing the applications which only saw 73 applicants approved out of over 1,000 applicants.
Los Angeles County received millions to purchase functioning motels to house homeless residents under Project Room Key with a building purchased in Compton for $14 million sitting vacant since the beginning of this year. The property was purchased in December 2020.
Read the full story on the state asking for their money back here.