Emergency Rental Assistance Program Funds to be Redirected

  • Real estate
  • 12/12/2021

The Treasury Department will begin reallocating Emergency Rental Assistance Program funds to states and municipalities that have demonstrated the greatest ability to...

The Treasury Department will begin reallocating Emergency Rental Assistance Program funds to states and municipalities that have demonstrated the greatest ability to deliver funds to tenants and landlords and to locations experiencing the highest needs. In other words, funds originally allocated to states and cities that have not used a majority of their funds will be reallocated to states and municipalities that are facing a backlog of requests. It is expected that funds will be may be moved within states, like from a state-administered program to a city-run program, or vice versa, rather than from one state to another.

Late last month, the Treasury Department released their October Emergency Rental Assistance report, which estimated that approximately $25 to $30 billion of combined Emergency Rental Assistance funds will be spent or obligated by the end of the year. It was also reported that more than 100 state and local grantees had spent 95% or more of the first round of Emergency Rental Assistance Program funds and that approximately 130 grantees have begun distributing the second round of Emergency Rental Assistance Program funds.

Biden Administration officials have gone on record that rural states such as Montana and North Dakota were allotted much more money than they have spent. On the other hand, such states as California, Illinois, New York, Texas and Oregon are already projecting an exhaustion of the second round of allotted Emergency Rental Assistance Program funds.

Source: Treasury.gov, Wall Street Journal

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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