Oregon Admits: We Sent Bad Checks to Landlords & Renters

The State of Oregon is admitting the incredible story that it sent bad checks to Oregon tenants and landlords.

PORTLAND, Ore. (KATU-TV) — The Oregon Housing and Community Services Department confirmed Monday that hundreds of renters who were approved to get federal funding were given bad checks.

It's unclear how many checks were in the batch but a spokesperson with OHCS says 295 checks have not been cashed out of the batch.

The department says it is working to get in touch with those people.

A spokesperson provided this response to KATU.

"There was an accounting issue with one batch of checks. The checks were missing a digit from the routing number but were still able to be cashed (or reissued). We are reaching out to the affected tenants and landlords individually with information on how to cash the check or get it reissued if needed. Many people were able to cash the checks if the bank verified it through the “Positive Pay” process. We regret the inconvenience this may have caused."

KATU has spoken with one of those people. She says she was approved in July for several thousand dollars in rent assistance. In November, her landlord received a check, but when he went to deposit it, the bank told him the routing number was incorrect.

Now after months of waiting for help, they are continuing to wait. While OHCS says it is working to contact those impacted, no one has reached out to the renter who contacted KATU or her landlord. They were instructed to mail back the check but do not know when they will receive a new one.

The problem comes at a time that the state struggles to figure out how to get more assistance to renters and landlords, as federal funding has dried up. Gov. Kate Brown has called the Legislature back for a special session next Monday to address the issue.

The revelation came at the same time as reporting that Oregon has spent $71 million or nearly 20% of the entire fund on administrative costs.