Emergency Rental Assistance through the
February 18March 31, 2021 , 2021
Coronavirus Relief Fund
Grant A. Driessen
In response to concerns about the economic effects of the Coronavirus Disease 2019 (COVID-
In response to concerns about the economic effects of the Coronavirus Disease 2019 (COVID-
Specialist in Public Finance
Specialist in Public Finance
19) pandemic on renters and their landlords, Congress created a $25 billion Emergency Rental
19) pandemic on renters and their landlords, Congress created a $25 billion Emergency Rental
Assistance (ERA) program in the Consolidated Appropriations Act, 2021 (Division N of P.L.
Assistance (ERA) program in the Consolidated Appropriations Act, 2021 (Division N of P.L.
Maggie McCarty
116-260).
116-260).
Specialist in Housing Policy A second round of ERA funding—$21.55 billion—was included in Section 3201 of the
Specialist in Housing Policy
American Rescue Plan Act (P.L. 117-2).
The ERA program is funded through the Coronavirus Relief Fund (CRF) that was established by
The ERA program is funded through the Coronavirus Relief Fund (CRF) that was established by
Libby Perl
the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) and
Libby PerlSpecialist in Housing Policy
implemented by the Department of the Treasury. Like the CRF, the ERA directs resources to
implemented by the Department of the Treasury. Like the CRF, the ERA directs resources to
Specialist in Housing Policy
states and localities via a per capita formula allocation, although the ERA uses a somewhat
states and localities via a per capita formula allocation, although the ERA uses a somewhat
different formula that treats the District of Columbia as a state and includes a lower threshold for different formula that treats the District of Columbia as a state and includes a lower threshold for
For a copy of the ful report,
localities to qualify for direct allocations (among other differences). localities to qualify for direct allocations (among other differences).
Unlike the CRF, which can
For a copy of the ful report,
The second round of ERA
please cal 7-5700 or visit www.crs.gov.
funding includes a set-aside of $2.5 billion for “high need” grantees. Unlike the CRF, which can be used for a broad set of purposes including rental assistance, the ERA may only be used for be used for a broad set of purposes including rental assistance, the ERA may only be used for
please cal 7-5700 or visit www.crs.gov.
financial assistance and housing stability services for renters.financial assistance and housing stability services for renters.
P.L. 116-260
P.L. 116-260
establishesestablished various parameters for how various parameters for how
the first round of ERA funding can be used. Among other requirements, states and ERA funding can be used. Among other requirements, states and
localities must use at least 90% of their funds for financial assistance, which is defined to include rental assistance and utility localities must use at least 90% of their funds for financial assistance, which is defined to include rental assistance and utility
assistance (including payment of arrearages). The remaining 10% may be used for housing stability services (assistance (including payment of arrearages). The remaining 10% may be used for housing stability services (
casecas e management and other supports to help families retain their housing) and administrative expenses. Renters are eligible for management and other supports to help families retain their housing) and administrative expenses. Renters are eligible for
assistance if they are low-income, experiencing financial hardship, and at risk of homelessness or housing insecurity. assistance if they are low-income, experiencing financial hardship, and at risk of homelessness or housing insecurity.
Grantees are directed to prioritize very low-income renters for assistance. The law also Grantees are directed to prioritize very low-income renters for assistance. The law also
establishesestablished expenditure deadlines and expenditure deadlines and
imposesimposed various reporting requirements on the Treasury Secretary.
These parameters were changed somewhat for the second round of ERA funding under P.L. 117-2. Specifically, the amount that can be spent on administrative expenses and housing stability services was increased, and grantees may be able to use funds that remain unobligated as of October 1, 2022, for additional affordable housing and eviction prevention activities. P.L. 117-2 also extended the availability of first round ERA funding from December 31, 2021, to September 30, 2022.
various reporting requirements on the Treasury Secretary.
Within the statutory requirements—and any additional guidance established by Treasury—states and localities Within the statutory requirements—and any additional guidance established by Treasury—states and localities
will have have
flexibility in designing their rental assistance programs. Many had used CARES Act and other funding to establish earlier flexibility in designing their rental assistance programs. Many had used CARES Act and other funding to establish earlier
rental assistance programs; if those programs are consistent with ERA requirements, th ey may be available to facilitate rental assistance programs; if those programs are consistent with ERA requirements, th ey may be available to facilitate
relatively rapid distribution of ERA funds. relatively rapid distribution of ERA funds.
The ability of states and localities to structure their programs differently will mean that the experience of similarly situated
The ability of states and localities to structure their programs differently will mean that the experience of similarly situated
renters seeking assistance will likely vary geographically. Similarly, there may be geographic variability in the degree to renters seeking assistance will likely vary geographically. Similarly, there may be geographic variability in the degree to
which existing resources—both ERA and earlier funds —are adequate to meet demand for rental assistance. which existing resources—both ERA and earlier funds —are adequate to meet demand for rental assistance.
Recent estimates that account for ERAEstimates from January 2021 suggest that as much as $57 billion in rental and utility debt may be outstanding nationally. suggest that as much as $57 billion in rental and utility debt may be outstanding nationally.
This has led for calls for more aid, which may be provided in the form of additional rental assistance, additional direct assistance via stimulus payments and further enhanced unemployment, and/or additional aid to states and localities. President Biden’s American Rescue Plan proposes additional assistance in each of these forms.
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1314 Emergency Rental Assistance through the Coronavirus Relief Fund
Contents
Introduction ................................................................................................................... 1
Background: Rental Assistance During the COVID-19 Pandemic ........................................... 1
State and Local Allocations .............................................................................................. 2
ERA Program Parameters
P.L. 116-260 ...................................................................................................... 5
Eligible Use of Funds .. 2 P.L. 117-2.......................................................................................................... 6
Financial Assistance .. 3
ERA Program Parameters ................................................................................................. 6
Eligible Use of Funds 6
Administrative Costs and Housing Stability Services ................................................. 6
Individual Eligibility and Prioritization ................................................ 6
Financial Assistance ......................... 7
Eligibility.................................................................... 7 Administrative Costs and Housing Stability Services ........................................ 7
Prioritization .................. 8
Individual Eligibility and Prioritization ......................................................................... 8
Eligibility..................... 7
Documentation ....................................................................................... 8 Prioritization .......................... 7
Funding Availability and Reallocation........................................................................... 7
Reporting Requirements ............... 9 Documentation .............................................................................. 7
Outstanding Questions ...................... 9
Funding Availability and Reallocation............................................................................... 8
How will local programs be structured? 9
Reporting Requirements ........................................................................ 8
Will rental assistance be adequate to prevent loss of housing?.......................................... 9
Outstanding Questions ............................................ 9
Wil the federal government provide further assistance to state and local
governments? ............................................................................... 9
How will local programs be structured? ..................................................... 9
Tables
Table 1. Emergency Rental Assistance Al ocations by State/Territory and Government
Level ........................................... 10 Will rental assistance be adequate to prevent loss of housing?............................................................................... 3
10
Will state and local governments use other federal funding for rental assistance? ............... 11
Tables Table 1. Emergency Rental Assistance Allocations in P.L. 116-260 and P.L. 117-2 .................... 4
Contacts
Author Information ....................................................................................................... 1011
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Emergency Rental Assistance through the Coronavirus Relief Fund
Introduction
The Consolidated Appropriations Act, 2021 (P.L. 116-260) included an appropriation of $25 The Consolidated Appropriations Act, 2021 (P.L. 116-260) included an appropriation of $25
bil ion to help low-income households make rent and utility payments through an Emergency bil ion to help low-income households make rent and utility payments through an Emergency
Rental Assistance (ERA) program.1 The ERA is funded through the Coronavirus Relief Fund
Rental Assistance (ERA) program.1 The ERA is funded through the Coronavirus Relief Fund
(CRF), a program created as part of the Coronavirus Aid, Relief, and Economic Security (CRF), a program created as part of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act (P.L. 116-136), and administered by the (CARES) Act (P.L. 116-136), and administered by the
Treasury DepartmentDepartment of the Treasury, to assist state, local, , to assist state, local,
territorial, and tribal governments.2 While the CARES Act CRF appropriation could be used for territorial, and tribal governments.2 While the CARES Act CRF appropriation could be used for
multiple purposes, the ERA appropriation in P.L. 116-260 is directed only to rent and utility multiple purposes, the ERA appropriation in P.L. 116-260 is directed only to rent and utility
assistance and housing stability services. assistance and housing stability services.
A second appropriation—of $21.550 bil ion—for
ERA was included in Section 3201 of the American Rescue Plan Act (P.L. 117-2).
This report briefly describes the need for rental assistance during the Coronavirus Disease 2019
This report briefly describes the need for rental assistance during the Coronavirus Disease 2019
(COVID-19) pandemic, provides information about the al ocation of (COVID-19) pandemic, provides information about the al ocation of
the $25 bil ion in ERA
ERA funds, describes the parameters of the ERA program, and discusses outstanding questions about funds, describes the parameters of the ERA program, and discusses outstanding questions about
the program and the program and
renter needs. renter needs.
Background: Rental Assistance During the COVID-
19 Pandemic
Even before the onset of the COVID-19 pandemic, low-income renters struggled with housing Even before the onset of the COVID-19 pandemic, low-income renters struggled with housing
affordability. In 2020, the Joint Center on Housing Studies reported that nearly half (48%) of al affordability. In 2020, the Joint Center on Housing Studies reported that nearly half (48%) of al
renters were cost burdened (i.e., paying more than 30% of their income in rent), with higher renters were cost burdened (i.e., paying more than 30% of their income in rent), with higher
numbers for lower-income (80%), Black (55%), and Hispanic (53%) renters.3 The pandemic may numbers for lower-income (80%), Black (55%), and Hispanic (53%) renters.3 The pandemic may
have made renter housing arrangements even more precarious. Renters have been more likely to have made renter housing arrangements even more precarious. Renters have been more likely to
lose employment income than homeowners.4 This is particularly the case for Black and Hispanic lose employment income than homeowners.4 This is particularly the case for Black and Hispanic
renters, who are also estimated to face the greatest threat of eviction during the pandemic .5 renters, who are also estimated to face the greatest threat of eviction during the pandemic .5
Mil ions of renters report being behind on their rent and lacking confidence in their ability to pay Mil ions of renters report being behind on their rent and lacking confidence in their ability to pay
next month’s rent.6
next month’s rent.6
Efforts to assist renters include eviction moratoriums at the state and federal levels. A national
Efforts to assist renters include eviction moratoriums at the state and federal levels. A national
eviction moratorium issued by the Centers for Disease Control and Prevention took effect on eviction moratorium issued by the Centers for Disease Control and Prevention took effect on
1 See Division N, T itle V, Section 501 of P.L. 116-260. 1 See Division N, T itle V, Section 501 of P.L. 116-260.
2 For more information about CRF in the CARES Act, see CRS Report R46298, 2 For more information about CRF in the CARES Act, see CRS Report R46298,
General State and Local Fiscal
Assistance and COVID-19: Background and Available Data . .
3 Joint Center for Housing Studies,
3 Joint Center for Housing Studies,
America’s Rental Housing 2020, January 2020, pp. 26-29, , January 2020, pp. 26-29,
https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2020.pdf. https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2020.pdf.
4 Alexander Hermann and Sharon Cornelissen,
4 Alexander Hermann and Sharon Cornelissen,
Using the Census Bureau’s Household Pulse Survey to Assess the
Econom ic Im pacts of COVID-19 on Am erica’s Households, Harvard Joint Center for Housing Studies, July 2, 2020, , Harvard Joint Center for Housing Studies, July 2, 2020,
https://www.jchs.harvard.edu/blog/using-the-census-bureaus-household-pulse-survey-to-assess-the-economic-impacts-https://www.jchs.harvard.edu/blog/using-the-census-bureaus-household-pulse-survey-to-assess-the-economic-impacts-
of-covid-19-on-americas-households/. of-covid-19-on-americas-households/.
5 Whitney Airgood-Obrycki, “ T he Impact of COVID-19 on Renters and Rental Markets,” Harvard Joint Center for 5 Whitney Airgood-Obrycki, “ T he Impact of COVID-19 on Renters and Rental Markets,” Harvard Joint Center for
Housing Studies virtual event, September 4, 2020, https://www.jchs.harvard.edu/calendar/impact -covid-19-renters-and-Housing Studies virtual event, September 4, 2020, https://www.jchs.harvard.edu/calendar/impact -covid-19-renters-and-
rental-markets. See also, Sophia Wedeen, rental-markets. See also, Sophia Wedeen,
Black and Hispanic Renters Face Greatest Threat of Eviction in Pandem ic , ,
Harvard Joint Center for Housing Studies, January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-Harvard Joint Center for Housing Studies, January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-
renters-face-greatest -threat-eviction-pandemic. renters-face-greatest -threat-eviction-pandemic.
6 See Census Bureau Pulse survey data, available at https://www.census.gov/programs-surveys/household-pulse-
6 See Census Bureau Pulse survey data, available at https://www.census.gov/programs-surveys/household-pulse-
survey/data.html#phase3. survey/data.html#phase3.
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Emergency Rental Assistance through the Coronavirus Relief Fund
September 4, 2020, and has been extended
September 4, 2020, and has been extended
thus far through March 31several times, most recently through June 30, 2021.7 While the , 2021.7 While the
moratoriums prevent eviction for nonpayment of rent, they do not prevent arrearages from moratoriums prevent eviction for nonpayment of rent, they do not prevent arrearages from
accumulating, which could result in eviction when moratoriums lift. Renter inability to maintain accumulating, which could result in eviction when moratoriums lift. Renter inability to maintain
payments also affects landlords. This may particularly result in hardship for smal er landlords, payments also affects landlords. This may particularly result in hardship for smal er landlords,
who are estimated to have lower incomes and make up larger shares of Black and who are estimated to have lower incomes and make up larger shares of Black and
Hispanic
Hispanic landlords.8 landlords.8
At the outset of the COVID-19 pandemic, states and localities relied on federal funds
At the outset of the COVID-19 pandemic, states and localities relied on federal funds
appropriated as part of the CARES Act, including funds distributed through CRF, to operate appropriated as part of the CARES Act, including funds distributed through CRF, to operate
rental assistance programs.9 Households may have drawn on CARES Act stimulus checks,
rental assistance programs.9 Households may have drawn on CARES Act stimulus checks,
expanded unemployment benefits, and borrowing to cover rent. However, some of these sources expanded unemployment benefits, and borrowing to cover rent. However, some of these sources
of funds of funds
may bebecame depleted as the pandemic depleted as the pandemic
continues.10 Recent research estimatescontinued.10 Estimates suggest that total rental that total rental
arrears arrears
were $57 bil ionwere $57 bil ion
as of the end of January 2021.11 as of the end of January 2021.11
Organizations representing both tenants and landlords have advocated for additional federal funds
Organizations representing both tenants and landlords have advocated for additional federal funds
to help tenants pay their rent.12 Legislation was introduced in the 116th Congress that would have to help tenants pay their rent.12 Legislation was introduced in the 116th Congress that would have
provided as much as $100 bil ion to help tenants pay rent.13 Ultimately, Congress appropriated provided as much as $100 bil ion to help tenants pay rent.13 Ultimately, Congress appropriated
$25nearly $47 bil ion for bil ion for
bothemergency rent and utility assistance rent and utility assistance
to be funded through the CRFthrough ERA. .
State and Local Allocations
P.L. 116-260 P.L. 116-260
provides
P.L. 116-260 provided a total of $25 a total of $25
.000 bil ion in ERA support to governments in states, bil ion in ERA support to governments in states,
territories, territories,
and tribal areas. Payments are distributed across these jurisdictions as follows: and tribal areas. Payments are distributed across these jurisdictions as follows:
$23.785 bil ion is al ocated for governments in the 50 states and the District of
$23.785 bil ion is al ocated for governments in the 50 states and the District of
Columbia (DC) based on their populations (as projected by the U.S. Census
Columbia (DC) based on their populations (as projected by the U.S. Census
Bureau for July 2020),14 with no state receiving less than $0.Bureau for July 2020),14 with no state receiving less than $0.
2200 bil ion; bil ion;
7 For more information, see CRS Insight IN11516, 7 For more information, see CRS Insight IN11516,
Federal Eviction Moratoriums in Response to the COVID-19
Pandem ic. .
8 Small landlords in the analysis are those owning 2-4 unit properties; Jung Hyun Choi and Caitlin Young, 8 Small landlords in the analysis are those owning 2-4 unit properties; Jung Hyun Choi and Caitlin Young,
Owners and
Renters of 6.2 Million Units in Sm all Buildings Are Particularly Vulnerable during the Pandem ic , T he Urban Institute, , T he Urban Institute,
August 10, 2020, https://www.urban.org/urban-wire/owners-and-renters-62-million-units-small-buildings-are-August 10, 2020, https://www.urban.org/urban-wire/owners-and-renters-62-million-units-small-buildings-are-
particularly-vulnerable-during-pandemic. particularly-vulnerable-during-pandemic.
9 See examples from the National Conference of State Legislatures, which tracks the ways in which states are using
9 See examples from the National Conference of State Legislatures, which tracks the ways in which states are using
their CRF allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspxtheir CRF allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspx
. 10 Jim Parrott and Mark M. Zandi, 10 Jim Parrott and Mark M. Zandi,
Averting an Eviction Crisis, Urban Institute, January 25, 2021, , Urban Institute, January 25, 2021,
https://www.urban.org/sites/default/files/publication/103532/averting-an-eviction-crisis.pdf (hereinafter, https://www.urban.org/sites/default/files/publication/103532/averting-an-eviction-crisis.pdf (hereinafter,
Averting an
Eviction Crisis). ).
11 Ibid.
11 Ibid.
12 See, for example, National Housing Conference, “31 12 See, for example, National Housing Conference, “31
housingho using organizations tell administration and Congress to organizations tell administration and Congress to
immediately return to negotiations,” press release, August 21, 2020, https://nhc.org/press-release/31-housing-immediately return to negotiations,” press release, August 21, 2020, https://nhc.org/press-release/31-housing-
organizations-tell-administration-and-congress-to-immediately-return-to-negotiations/. organizations-tell-administration-and-congress-to-immediately-return-to-negotiations/.
13 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R. 13 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R.
6820, S. 3685). 6820, S. 3685).
14 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020,
14 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020,
https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html. https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html.
Allocations are determined by total state populations, including Allocations are determined by total state populations, including
non -rentersnonrenters; for recent estimates of state renter ; for recent estimates of state renter
populations, see U.S. Census Bureau, “populations, see U.S. Census Bureau, “
American Community Survey 2015 -2019 5-Year Data Release,” December American Community Survey 2015 -2019 5-Year Data Release,” December
2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html. 2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html.
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Emergency Rental Assistance through the Coronavirus Relief Fund
$0.
$0.
8800 bil ion is set aside for governments in tribal areas, with individual bil ion is set aside for governments in tribal areas, with individual
government al ocations distributed in proportion to relative payments made under
government al ocations distributed in proportion to relative payments made under
the Native American Housing Block Program in FY2020;15 the Native American Housing Block Program in FY2020;15
$0.
$0.
4400 bil ion is al ocated to the territories of Puerto Rico, the U.S. Virgin bil ion is al ocated to the territories of Puerto Rico, the U.S. Virgin
Islands, Islands,
Guam, the Northern Mariana Islands, and American Samoa, with $0.325 bil ionGuam, the Northern Mariana Islands, and American Samoa, with $0.325 bil ion
provided to Puerto Rico and $0.075 bil ion distributed to the remaining territories provided to Puerto Rico and $0.075 bil ion distributed to the remaining territories
based on their relative population share; and based on their relative population share; and
$0.015 bil ion is set aside to cover federal administrative costs related to program
$0.015 bil ion is set aside to cover federal administrative costs related to program
implementation.
implementation.
ERA payments are general y provided to state (or territorial) governments, though state
ERA payments are general y provided to state (or territorial) governments, though state
governments may transfer any funds received to local governments so long as funds are used for governments may transfer any funds received to local governments so long as funds are used for
eligible purposes. Local governments serving a population of at least 200,000 (as measured by the
eligible purposes. Local governments serving a population of at least 200,000 (as measured by the
U.S. Census Bureau in 2019),16 may elect to receive assistance directly from Treasury. Any U.S. Census Bureau in 2019),16 may elect to receive assistance directly from Treasury. Any
payments made directly to localities reduce the al ocation made to the state government (keeping payments made directly to localities reduce the al ocation made to the state government (keeping
the total amount provided across each state constant), and are the product of (1) the state or the total amount provided across each state constant), and are the product of (1) the state or
territorial al ocationterritorial al ocation
amount, (2) the percentage of the state or territorial population attributable to amount, (2) the percentage of the state or territorial population attributable to
the local government, and (3) 45%.
the local government, and (3) 45%.
In many cases, populations are served by more than one local government that is eligible for
In many cases, populations are served by more than one local government that is eligible for
direct assistance from the CRF (e.g., a city with a population of 300,000 located in a county with direct assistance from the CRF (e.g., a city with a population of 300,000 located in a county with
200,000 other people and thus having a county population of 500,000). Treasury clarified that in
200,000 other people and thus having a county population of 500,000). Treasury clarified that in
such cases, al overlapping governments are eligible for assistance.17 However, direct assistance such cases, al overlapping governments are eligible for assistance.17 However, direct assistance
payments to larger localities is calculated using only their unique population, or wil be reduced payments to larger localities is calculated using only their unique population, or wil be reduced
by any amounts also attributable to smal er localities receiving assistance (i.e., in the above by any amounts also attributable to smal er localities receiving assistance (i.e., in the above
example, the county government would only use a population of 200,000 for its direct payment example, the county government would only use a population of 200,000 for its direct payment
calculation).
calculation).
Table 1 shows ERA al ocations and estimates broken out by state and territory, and government level. Al ocations made across states and territories, and localities have been confirmed by
Treasury.18
Table 1. Emergency Rental Assistance Allocations by State/Territory and
Government Level
(Al al ocations in mil ions of dol ars)
Direct Local
Government
State Government
State or Territory
Total Allocation
Allocation
Allocation
Alabama
326
63
263P.L. 117-2
P.L. 117-2 provided a total of $21.550 bil ion in ERA support to governments in states and territories. Unlike P.L. 116-260, P.L. 117-2 did not include a separate al ocation of funds for tribal
governments. Payments are distributed across these jurisdictions as follows:
$18.712 bil ion is al ocated for governments in the 50 states and the District of
Columbia (DC) based on their populations (as projected by the U.S. Census Bureau for July 2020),18 with no state receiving less than $0.152 bil ion;
$0.305 bil ion is al ocated to the territories of Puerto Rico, the U.S. Virgin
Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.240
15 For more on the Native American Housing Block Grant program, see CRS Report R43307, 15 For more on the Native American Housing Block Grant program, see CRS Report R43307,
The Native American
Housing Assistance and Self-Determ ination Act of 1996 (NAHASDA): Background and Funding, by Katie Jones. , by Katie Jones.
16 U.S. Census Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020, 16 U.S. Census Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020,
https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html. https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html.
17 U.S. T reasury, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and
17 U.S. T reasury, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and
T erritory Allocations,” January 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Data-T erritory Allocations,” January 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Data-
and-Methodology-1-11-21.pdf. and-Methodology-1-11-21.pdf.
18 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020, https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html. Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter populat ions, see U.S. Census Bureau, “ American Community Survey 2015 -2019 5-Year Data Release,” December 2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html18 U.S. T reasury, “Emergency Rental Assistance Program: Payments to States and Eligible Units of Local Government,” February 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Payments-to-States-and-Eligible-Units-of-Local-Government.pdf. .
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Direct Local
Government
State Government
State or Territory
Total Allocation
Allocation
Allocation
Alaska
200
35
165
American Samoa
10
0
10
Arizona
492
194
299
Arkansas
201
27
174
California
2,611
1,113
1,498
Colorado
385
137
248
Connecticut
236
0
236
Delaware
200
0
200
bil ion provided to Puerto Rico and $0.065 bil ion distributed to the remaining territories based on their relative population share;
$2.500 bil ion is set aside for high-need grantees, to be distributed by the
Treasury Secretary using statistics on high-need housing, rental market costs, and unemployment; and
$0.033 bil ion is set aside to cover federal administrative costs related to program
implementation.
Direct local al ocation identifications, calculations, and division of payments across overlapping
governments in P.L. 117-2 are consistent with the methodology from P.L. 116-260.
Table 1 shows ERA al ocations and estimates broken out by state and territory, and government level. Al ocations from P.L. 116-260 have been confirmed by Treasury, while amounts provided
in P.L. 117-2 represent CRS projections based on the distribution in P.L. 116-260.19
Table 1. Emergency Rental Assistance Allocations in P.L. 116-260 and P.L. 117-2
(Al al ocations in mil ions of dol ars)
P.L. 116-260 (Actual)
P.L. 117-2 (Projected)
Direct
Direct
State or
State Govt.
Local Govt.
Total
State Govt.
Local Govt.
Total
Territory
Allocation
Allocation
Allocation
Allocation
Allocation
Allocation
Alabama
263
63
326
208
50
258
Alaska
165
35
200
125
27
152
American Samoa
10
0
10
9
0
9
Arizona
299
194
492
236
153
389
Arkansas
174
27
201
137
22
159
California
1,498
1,113
2,611
1185
881
2066
Colorado
248
137
385
196
109
305
Connecticut
236
0
236
187
0
187
Delaware
200
0
200
152
0
152
District of Columbia District of Columbia
200
200
0
0
200
200
Florida
1,441
570
872
Georgia
710
158
552
Guam
33
0
33
Hawai
200
75
125
Idaho
200
24
176
Il inois
835
268
566
Indiana
448
76
372
Iowa
210
15
195
Kansas
200
31
169
Kentucky
297
33
264
Louisiana
308
59
249
Maine
200
0
200
Maryland
402
143
258
Massachusetts
457
36
421
Michigan
661
38
623
Minnesota
375
86
289
Mississippi
200
13
187
Missouri
408
84
324
Montana
200
0
200
Nebraska
200
41
159
Nevada
208
83
125
New Hampshire
200
21
179
New Jersey
589
235
354
New Mexico
200
39
161
New York
1,282
481
801
North Carolina
703
156
547
North Dakota
200
0
200
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Direct Local
Government
State Government
State or Territory
Total Allocation
Allocation
Allocation
Northern Mariana Islands
10
0
10
Ohio
775
210
565
Oklahoma
264
54
210
Oregon
281
77
204
Pennsylvania
848
278
570
Puerto Rico
325
0
325
Rhode Island
200
0
200
South Carolina
346
74
272
South Dakota
200
0
200
Tennessee
457
73
383
Texas
1,947
639
1,308
U.S. Virgin Islands
21
0
21
Utah
216
65
150
Vermont
200
0
200
Virginia
570
45
525
Washington
510
188
322
West Virginia
200
0
200
Wisconsin
387
65
322
Wyoming
200
0
200
Al Tribal 152
0
152
Florida
872
570
1,441
689
451
1140
Georgia
552
158
710
437
125
562
Guam
33
0
33
29
0
29
Hawai
125
75
200
95
57
152
Idaho
176
24
200
134
18
152
Il inois
566
268
835
448
212
660
Indiana
372
76
448
294
60
354
Iowa
195
15
210
154
12
166
19 U.S. T reasury, “Emergency Rental Assistance Program: Payments to States and Eligible Units of Local Government,” February 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Payments-to-States-and-Eligible-Units-of-Local-Government.pdf.
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P.L. 116-260 (Actual)
P.L. 117-2 (Projected)
Direct
Direct
State or
State Govt.
Local Govt.
Total
State Govt.
Local Govt.
Total
Territory
Allocation
Allocation
Allocation
Allocation
Allocation
Allocation
Kansas
169
31
200
129
23
153
Kentucky
264
33
297
209
26
235
Louisiana
249
59
308
197
47
244
Maine
200
0
200
152
0
152
Maryland
258
143
402
204
114
318
Massachusetts
421
36
457
333
29
362
Michigan
623
38
661
493
30
523
Minnesota
289
86
375
229
68
297
Mississippi
187
13
200
145
10
156
Missouri
324
84
408
256
67
323
Montana
200
0
200
152
0
152
Nebraska
159
41
200
121
31
152
Nevada
125
83
208
99
66
165
New Hampshire
179
21
200
136
16
152
New Jersey
354
235
589
280
186
466
New Mexico
161
39
200
123
29
152
New York
801
481
1,282
634
381
1015
North Carolina
547
156
703
432
124
556
North Dakota
200
0
200
152
0
152
Northern Mariana
10
0
10
9
0
9
Islands
Ohio
565
210
775
447
167
614
Oklahoma
210
54
264
166
43
209
Oregon
204
77
281
162
61
223
Pennsylvania
570
278
848
451
220
671
Puerto Rico
325
0
325
240
0
240
Rhode Island
200
0
200
152
0
152
South Carolina
272
74
346
215
59
274
South Dakota
200
0
200
152
0
152
Tennessee
383
73
457
303
58
361
Texas
1,308
639
1,947
1035
506
1541
U.S. Virgin Islands
21
0
21
18
0
18
Utah
150
65
216
119
52
171
Vermont
200
0
200
152
0
152
Virginia
525
45
570
415
36
451
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P.L. 116-260 (Actual)
P.L. 117-2 (Projected)
Direct
Direct
State or
State Govt.
Local Govt.
Total
State Govt.
Local Govt.
Total
Territory
Allocation
Allocation
Allocation
Allocation
Allocation
Allocation
Washington
322
188
510
255
149
404
West Virginia
200
0
200
152
0
152
Wisconsin
322
65
387
255
51
306
Wyoming
200
0
200
152
0
152
Al Tribal Governments
800
0
800
0
0
0
Amounts Not Projected – High-
0
0
0
n/a
n/a
2,500
Need Grantees
Totals
18,305
6,680Governments
800
0
800
Totals
24,985
6,680
18,305
Source: U.S. Treasury, 14,195
4,822
21,517
Source: P.L. 116-260 payments taken from U.S. Treasury, “Emergency Rental Assistance“Emergency Rental Assistance
Program,”Program,”
February 2021, https://home.treasury.gov/February 2021, https://home.treasury.gov/
policy-issues/cares/policy-issues/cares/
emergencyemerg ency-rental-assistance-program.-rental-assistance-program.
P.L. 117-2 projections represent CRS estimates. Notes: Recipients may choose to transfer funds to governments within their jurisdiction, but are not obligated Recipients may choose to transfer funds to governments within their jurisdiction, but are not obligated
to do so. For each state or territory, the sum of the direct local government al ocationto do so. For each state or territory, the sum of the direct local government al ocation
and the state government and the state government
al ocation may not equal the total al ocation due to rounding. al ocation may not equal the total al ocation due to rounding.
ERA Program Parameters
When P.L. 116-260 created the ERA program under the CRF, it established parameters for how When P.L. 116-260 created the ERA program under the CRF, it established parameters for how
the funds can and should be spent. These parameters are relatively broad, but are more the funds can and should be spent. These parameters are relatively broad, but are more
prescriptive than what was included in the original CARES Act CRF. Treasury has issuedprescriptive than what was included in the original CARES Act CRF. Treasury has issued
,19 and may continue to issue, clarifying guidance Frequently Asked Questions (FAQs) and other guidance documents regarding how certain aspects regarding how certain aspects
of the law are to be of the law are to be
applied.
As noted, applied.20 For the second round of ERA funding, P.L. 117-2 made some changes that are applicable to the first round of funding (i.e., expenditure deadlines); and others that are applicable only to the second round (i.e., income eligibility and caps on administrative and housing stability services funding). As of the date of this report, Treasury has not issued new
or revised guidance for the second round of ERA funding.
As noted, ERA funds are provided from Treasury to states and localities, which can use the funds to funds are provided from Treasury to states and localities, which can use the funds to
design their own rental assistance programs within the requirements of the law and Treasury design their own rental assistance programs within the requirements of the law and Treasury
guidance. Some states and localities may be able to use the new funds to supplement existing guidance. Some states and localities may be able to use the new funds to supplement existing
19 T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program.
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rental assistance programs created with CARES Act or other funds, to the extent their existing
rental assistance programs created with CARES Act or other funds, to the extent their existing
programs align with the emergency rental assistance statutory requirements (which are outlined programs align with the emergency rental assistance statutory requirements (which are outlined
below).
below).
Eligible Use of Funds
P.L. 116-260 P.L. 116-260
directsdirected that 90% of that 90% of
ERA funds be spent on direct financial assistance and funds be spent on direct financial assistance and
that up to up to
10% could be spent on administrative expenses and housing stability services.
20 T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program.
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For the second round of ERA funding, P.L. 117-2 directed that no more than 15% 10% may
be spent on administrative expenses and be spent on administrative expenses and
housing services10% be spent on housing stability services, leaving at least 75% to
be spent on direct financial assistance. .
Financial Assistance
P.L. 116-260
P.L. 116-260
definesdefined financial assistance as assistance to tenants for financial assistance as assistance to tenants for
rent and rental arrears,
rent and rental arrears,
utilities and home energy costs and arrears, and utilities and home energy costs and arrears, and
other expenses related to housing incurred due, directly or indirectly, to the other expenses related to housing incurred due, directly or indirectly, to the
COVID-19 outbreak, as defined by the Treasury Secretary.
COVID-19 outbreak, as defined by the Treasury Secretary.
Treasury has issued an FAQ document The definition of financial assistance under P.L. 117-2 is nearly identical, except when it comes to other expenses related to housing. The P.L. 117-2 definition does not require that the expenses be
related to the COVID-19 outbreak.
Treasury issued an FAQ document in January 2021 clarifying that telecommunications services are not clarifying that telecommunications services are not
considered utilities under this program.considered utilities under this program.
20 As of the date of this report, Treasury has not defined
“other expenses related to housing.”
Length of Assistance
Assistance21 However, Treasury later revised the FAQs to define “other expenses” eligible for assistance to include internet service, if it al ows renters to engage in distance learning, telework, and telemedicine and obtain government services.22
Additional “other expenses” identified in the FAQ include relocation expenses and rental fees (if
a household has been displaced due to COVID-19), and accrued late fees.
Length of Assistance
Under P.L. 116-260, assistance can be provided for no more than 12 months, with the possibility of one 3-month can be provided for no more than 12 months, with the possibility of one 3-month
extension. Payments made for prospective rent are subject to additional extension. Payments made for prospective rent are subject to additional
limitations; they can only limitations; they can only
be provided in 3-month increments and only if rental arrearages are be provided in 3-month increments and only if rental arrearages are
addressed.
Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under
both rounds of ERA combined.
addressed.
Payments
P.L. 116-260
P.L. 116-260
directsdirected that payments be made directly to landlords or utility providers, but it al ows that payments be made directly to landlords or utility providers, but it al ows
payments to be made directly to tenants if landlords or utility providers are unwil ing to payments to be made directly to tenants if landlords or utility providers are unwil ing to
accept
accept such payments. such payments.
Landlords are permitted to aid their tenants in applying, or they may apply directly. Landlords
Landlords are permitted to aid their tenants in applying, or they may apply directly. Landlords
who apply directly must meet certain conditions (including obtaining tenant signatures, notifying who apply directly must meet certain conditions (including obtaining tenant signatures, notifying
tenants of the application, and ensuring any funds received are applied to tenants’ rental tenants of the application, and ensuring any funds received are applied to tenants’ rental
obligations).
obligations).
P.L. 117-2 made these provisions applicable to the second round of ERA funding.
21 See the FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-21.pdf. 22 T reasury has revised FAQs in February and March of 2021. See the February FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf; and March FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf.
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Administrative Costs and Housing Stability Services
Under P.L. 116-260, theAdministrative Costs and Housing Stability Services
The remaining 10% of grant funds can be used for grantee administrative remaining 10% of grant funds can be used for grantee administrative
costs and housing costs and housing
stability services. stability services.
P.L. 116-260
P.L. 116-260
describesdefined “housing stability services” as case management and other services related “housing stability services” as case management and other services related
to COVID-19, to be defined by the Secretary, that are intended to keep tenants stably housed. (As to COVID-19, to be defined by the Secretary, that are intended to keep tenants stably housed. (As
of the date of this report, Treasury has not further defined the term.)
of the date of this report, Treasury has not further defined the term.)
The law restrictsP.L. 116-260 restricted administrative expenses to those tied to providing financial assistance and administrative expenses to those tied to providing financial assistance and
housing stability services, including for data collection and reporting requirements.
housing stability services, including for data collection and reporting requirements.
20 See the FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-21.pdf.
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Individual Eligibility and Prioritization
P.L. 116-260 establishes
P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses and up to 10% for housing stability services. The law defined “housing stability services” as case management and other services intended to keep households stably housed, without reference to COVID-19. It defined “administrative expenses” as those included under P.L. 116-260, as wel as
costs associated with other affordable rental housing and eviction prevention activities.
Individual Eligibility and Prioritization P.L. 116-260 established a three-part eligibility test based on income level, income loss or other a three-part eligibility test based on income level, income loss or other
financial hardship, and risk of homelessness or housing instability. It also
financial hardship, and risk of homelessness or housing instability. It also
establishesestablished a set of a set of
income targeting requirements to guide states and localities in prioritizing assistance. income targeting requirements to guide states and localities in prioritizing assistance.
Eligibility
ToP.L. 117-2
largely adopted the same requirements, but with some changes.
Eligibility
Under P.L. 116-260 , to be eligible for direct financial assistance or housing stability services, be eligible for direct financial assistance or housing stability services,
households must be households must be
renters and renters and
low-income, defined (consistent with federal housing law) as having income at or
low-income, defined (consistent with federal housing law) as having income at or
below 80% of local area median income as established by the Department of
below 80% of local area median income as established by the Department of
Housing and Urban Development (HUD); Housing and Urban Development (HUD);
experiencing financial hardship, as evidenced by receipt of unemployment
experiencing financial hardship, as evidenced by receipt of unemployment
benefits or
benefits or
ana written attestation of other pandemic-related financial hardship (income attestation of other pandemic-related financial hardship (income
loss or increased expenses); and loss or increased expenses); and
have at least one member at risk of homelessness or housing instability, as
have at least one member at risk of homelessness or housing instability, as
evidenced by past due rent or utility notices (including eviction notices), unsafe
evidenced by past due rent or utility notices (including eviction notices), unsafe
living conditions, or other evidence as established by the grantee. living conditions, or other evidence as established by the grantee.
The eligibility definition in P.L. 117-2 does not include the detail as to how an individual can
demonstrate a risk of homelessness or housing insecurity that was included in P.L. 116-260. Neither law addresses noncitizen eligibility for assistance under the ERA program.23
23 Some questions have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and Work Responsibility Act of 1996 (PRWORA; T itle IV of P.L. 104-193, as amended) apply to assistance under the ERA program. T o date, T reasury has not issued guidance on the applicability of PRWORA noncitizen restrictions to these funds. For more information about PRWORA’s restrictions, see CRS Report R46510, PRWORA’s Restrictions on Noncitizen Eligibility for Federal Public Benefits: Legal Issues.
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Prioritization
P.L. 116-260 directs grantees to prioritize the following individuals for direct financial assistance
P.L. 116-260 directs grantees to prioritize the following individuals for direct financial assistance
and housing stability services:
and housing stability services:
very low-income tenants defined (consistent with federal housing law) as having
very low-income tenants defined (consistent with federal housing law) as having
income at or below 50% of local area median income as established by HUD;
income at or below 50% of local area median income as established by HUD;
and and
applicants who are unemployed and have been unemployed for the prior 90 days.
applicants who are unemployed and have been unemployed for the prior 90 days.
The law permits states and localities to further establish their own prioritization policies.
The law permits states and localities to further establish their own prioritization policies.
Documentation
P.L. 116-260 al ows grantees to base income eligibility on P.L. 117-2 made these provisions applicable to the second round of ERA funding.
Documentation
P.L. 116-260 specified that grantees may determine an applicant’s income eligibility based on
annual income or current monthly annual income or current monthly
income (subject to three-month recertification)income (subject to three-month recertification)
. P.L. 117-2 does not include provisions related to income determination. .
Funding Availability and Reallocation
P.L. 116-260 P.L. 116-260
makes the funding it provides available made first round ERA funds available to grantees through December 31, 2021to grantees through December 31, 2021
; the deadline was subsequently extended to September 30, 2022, by P.L. 117-2. . However, beginning However, beginning
September 30, 2021, the Treasury Secretary is directed to recapture any September 30, 2021, the Treasury Secretary is directed to recapture any
excess unobligated funds (as determined by the Secretary) and to real ocate them to grantees excess unobligated funds (as determined by the Secretary) and to real ocate them to grantees
who that have obligated at least 65% of their funds for eligible purposes. Grantees receiving real ocated have obligated at least 65% of their funds for eligible purposes. Grantees receiving real ocated
funds may request up to a funds may request up to a
90-day extension of 90-day extension of
the December 31, 2021, availability deadline for
those fundsavailability deadline.
Funding provided through P.L. 117-2 is available until September 30, 2025. Beginning March 31, 2022, the Treasury Secretary is directed to real ocate unobligated funds to grantees that have obligated 50% or more of their total al ocated funds. These real ocated funds can only be used for financial assistance. Grantees that have obligated at least 75% of their funds for eligible purposes
as of October 1, 2022, may obligate remaining funds for other affordable rental housing and
eviction prevention purposes for very low-income families. .
Reporting Requirements
The Treasury Secretary, in consultation with the Secretary of Housing and Urban Development, is The Treasury Secretary, in consultation with the Secretary of Housing and Urban Development, is
required under P.L. 116-260 to provide quarterly reports on a number of specified program required under P.L. 116-260 to provide quarterly reports on a number of specified program
indicators, including the number of households served by the program, their income profiles, the indicators, including the number of households served by the program, their income profiles, the
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acceptance rate of applicants, and the types and amounts of assistance. Grantees must establish acceptance rate of applicants, and the types and amounts of assistance. Grantees must establish
data privacy guidelines for collecting information.
data privacy guidelines for collecting information.
P.L. 117-2 did not contain reporting requirements.
Outstanding Questions
Several aspects of the ERA program wil not be known until grantees receive funds and Several aspects of the ERA program wil not be known until grantees receive funds and
implement programs at the state and local levels. This section discusses possible questions about implement programs at the state and local levels. This section discusses possible questions about
the implementation of the ERA program, adequacy of funds, and potential implications if state the implementation of the ERA program, adequacy of funds, and potential implications if state
and local governments were to receive additional funds.
and local governments were to receive additional funds.
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How will local programs be structured?
There is likely to be a great deal of variation across states and localities in terms of how local There is likely to be a great deal of variation across states and localities in terms of how local
ERA programs are structured.
ERA programs are structured.
As noted earlier,
As noted earlier,
P.L. 116-260 directs Treasury to al ocate ERA fundsERA funds are al ocated to states and localities. to states and localities.
States and localities are then charged with distributing assistance to eligibleStates and localities are then charged with distributing assistance to eligible
renters based on a renters based on a
limited set of program limited set of program
parameters. Within those parameters, states and localities parameters. Within those parameters, states and localities
wil have
have authority to determine, for authority to determine, for
example, example,
who wil administer assistance (i.e., a government entity vs. a nonprofit or
who wil administer assistance (i.e., a government entity vs. a nonprofit or
community partner);
community partner);
how to prioritize among the eligible uses of the funds (e.g., arrears vs.
how to prioritize among the eligible uses of the funds (e.g., arrears vs.
prospective payments; utilities vs. rent);
prospective payments; utilities vs. rent);
how to ration limited benefits (e.g., lotteries for assistance vs. first-come first-
how to ration limited benefits (e.g., lotteries for assistance vs. first-come first-
served or referral-based processes);
served or referral-based processes);
whether and how to further prioritize applicants (e.g., adopting deeper income
whether and how to further prioritize applicants (e.g., adopting deeper income
targeting than is required by law);
targeting than is required by law);
how much documentation to require of applicants and for recertification periods;
how much documentation to require of applicants and for recertification periods;
the amount and duration of benefits provided; the amount and duration of benefits provided;
whether to place conditions on the recipients of assistance (e.g., requiring whether to place conditions on the recipients of assistance (e.g., requiring
landlords to accept partial payment to reduce debt obligations); and
landlords to accept partial payment to reduce debt obligations); and
whether and what to provide in terms of housing stability services.
whether and what to provide in terms of housing stability services.
One factor that may influence state and local decisions is the extent to which any existing
One factor that may influence state and local decisions is the extent to which any existing
emergency rental assistance programs they administer may already meet, or may be easily emergency rental assistance programs they administer may already meet, or may be easily
adjusted to meet, the requirements for ERA funding. To the extent states and localities can fund adjusted to meet, the requirements for ERA funding. To the extent states and localities can fund
existing programs with their ERA dollars instead of having to establish new programs, the existing programs with their ERA dollars instead of having to establish new programs, the
assistance could potential y be distributed more quickly.
assistance could potential y be distributed more quickly.
The ability of state and local governments to structure their programs differently wil mean that
The ability of state and local governments to structure their programs differently wil mean that
the experience of similarly situated renters seeking emergency rental assistance wil likely vary the experience of similarly situated renters seeking emergency rental assistance wil likely vary
geographical y. How and whether individual renters are made aware of the availability of ERA geographical y. How and whether individual renters are made aware of the availability of ERA
funds in their communities; their individual eligibility and likelihood of being assisted; and how funds in their communities; their individual eligibility and likelihood of being assisted; and how
to access available assistance are currently uncertain. (As of the date of this report, there is no to access available assistance are currently uncertain. (As of the date of this report, there is no
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central federal repository for information on federal y funded emergency rental assistance central federal repository for information on federal y funded emergency rental assistance
programs.
programs.
2124) )
Will rental assistance be adequate to prevent loss of housing?
Both the amount and geographic distribution of ERA funds could determine the extent to which Both the amount and geographic distribution of ERA funds could determine the extent to which
renters may be protected from eviction. Additional federal assistance, which could take various renters may be protected from eviction. Additional federal assistance, which could take various
forms, could also affect the need for, and adequacy of, ERA funds.
forms, could also affect the need for, and adequacy of, ERA funds.
Because there is no definitive estimate of renters in arrears and the
Because there is no definitive estimate of renters in arrears and the
amountamounts they owe, it is unknown whether al renters who are behind wil be able to receive assistance with available 24 One national organization, the National Low Income Housing Coalition, has created a repository of local rental assistance programs, funded with a mix of state or local funds and federal funds from various programs. It can be accessed at https://nlihc.org/rental-assistance.
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funding. Estimates of the need for rental assistance vary and may depend on the data source and methodology (which are not examined in this report).25 Research released in January 2021 predicted that the first round of ERA rental assistance would be insufficient to meet the needs of al delinquent renters.26 Since that time, P.L. 117-2 funded another $21.550 bil ion in rental assistance as wel as additional direct aid to individuals via stimulus payments and refundable child tax credits. Whether this additional aid wil be sufficient to address outstanding arrearages
and avoid widespread housing disruption when eviction moratoriums end is yet to be seen.
Will state and local governments use other federal funding for rental assistance? How state and local governments choose to distribute ERA funds across programs and other governments may depend on the availability of other they owe, it is unknown whether al renters who are behind wil be able to receive assistance with available funding. Estimates of the need for rental assistance vary and may depend on the data source and methodology (which are not examined in this report).22 Research released in January 2021
predicted that ERA rental assistance wil be insufficient to meet the needs of al delinquent
renters, and that arrears wil continue to exceed $30 bil ion even after ERA funds are expended.23
The formula used to al ocate funds may also determine the adequacy of funds for a given
community. States and counties with greater numbers of low-income renters who qualify for ERA may have more difficulty meeting the needs of their residents than areas with similar populations
but fewer residents in need.
The need for rental assistance could also depend on congressional actions. Additional stimulus payments, expanded unemployment assistance, or additional rental assistance may help address renters’ needs. Al three have been proposed in President Biden’s American Rescue Plan.24 The availability of unspent CARES Act funds or additional support to state and local governments
(described in the next section) may also be factors.
Will the federal government provide further assistance to state and
local governments?
How state and local governments choose to distribute ERA funds across programs and other governments may depend on the perceived likelihood and timing of further federal assistance federal assistance
during the COVID-19 during the COVID-19
pandemic. The Congressional Budget Office (CBO) estimated thatpandemic for rental assistance. Separate from the ERA funding, the the
federal government provided federal government provided
$291
a total of $512 bil ion bil ion
in new fiscal in general assistance to state and local governments assistance to state and local governments
21 One national organization, the National Low Income Housing Coalition, has created a repository of local rental assistance programs, funded with a mix of state or local funds and federal funds from various p rograms. It can be accessed at https://nlihc.org/rental-assistance.
22through the CARES Act ($150 bil ion) and P.L. 117-2 ($350 bil ion). General assistance through the CARES Act was used by government recipients to fund a number of housing initiatives,27 and eligible uses of P.L. 117-2 general assistance include programs “to respond to the public health emergency … or its
negative economic impacts, including assistance to households.”28
Author Information
Grant A. Driessen
Libby Perl
Specialist in Public Finance
Specialist in Housing Policy
Maggie McCarty
Specialist in Housing Policy
25 Various estimates made in 2020 predicted arrears of $7 billion, $25 -$34 billion, and $70 billion by the end of the Various estimates made in 2020 predicted arrears of $7 billion, $25 -$34 billion, and $70 billion by the end of the
year. See Davin Reed and Eileen Divringi, year. See Davin Reed and Eileen Divringi,
Household Rental Debt During COVID-19, Federal Reserve Bank of , Federal Reserve Bank of
Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/
household-rental-debt-during-covid-19.pdf; Stout, Risius Ross LLC, household-rental-debt-during-covid-19.pdf; Stout, Risius Ross LLC,
Analysis of Current and Expected Rental Shortfall
and Potential Eviction Filings in the U.S., National Council of State Housing Finance Agencies, September 25, 2020, , National Council of State Housing Finance Agencies, September 25, 2020,
https://www.ncsha.org/wp-content/uploads/Analysis-of-Current -and-Expected-Rental-Shortfall-and-Potential-https://www.ncsha.org/wp-content/uploads/Analysis-of-Current -and-Expected-Rental-Shortfall-and-Potential-
Evictions-in-the-US_Stout_FINAL.pdf; and John Lonski, Evictions-in-the-US_Stout_FINAL.pdf; and John Lonski,
Weekly Market Outlook: Markets Avoid Great Recession ’s
Calam ities, Moody’s Analytics, August 13, 2020, p. 9, https://www.moodysanalytics.com/-/media/article/2020/weekly-, Moody’s Analytics, August 13, 2020, p. 9, https://www.moodysanalytics.com/-/media/article/2020/weekly-
market -outlook-markets-avoid-great-recessions-calamities.pdf. market -outlook-markets-avoid-great-recessions-calamities.pdf.
2326 Averting an Eviction Crisis. .
24 T he White House, “National Strategy for the COVID-19 Response and Pandemic Preparedness,” January 21, 2021, https://www.whitehouse.gov/wp-content/uploads/2021/01/National-Strategy-for-the-COVID-19-Response-and-Pandemic-Preparedness.pdf (hereinafter, “ National Strategy for the COVID-19 Response and Pandemic Preparedness”).
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Emergency Rental Assistance through the Coronavirus Relief Fund
through the four pieces of pandemic relief legislation enacted prior to P.L. 116-260, including policy-specific funding and general purpose assistance through the Coronavirus Relief Fund.25 CRS estimates that P.L. 116-260 provides an additional $162 bil ion in policy-specific state and
local assistance.26
State and local government advocates have sought additional federal fiscal relief to assist with budget shortfal s and new spending on housing, health, education, and other services related to the COVID-19 pandemic until the public health crisis ends and normal economic activity resumes. How much additional relief is anticipated and when any new federal assistance is
expected to arrive may affect what types of services are provided with existing money, including ERA funding. President Biden’s American Rescue Plan includes a cal for $350 bil ion in general fiscal assistance for state and local governments, with no details provided on state and local
support for housing programs.27
Author Information
Grant A. Driessen
Libby Perl
Specialist in Public Finance
Specialist in Housing Policy
Maggie McCarty
Specialist in Housing Policy 27 Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund. 28 42 U.S.C. 801, Section 602(c)(1)(A), which provides eligible uses for the Coronavirus State Fiscal Recovery Fund. Identical language is included in statute for the Coronavirus Local Fiscal Recovery Fund.
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Emergency Rental Assistance through the Coronavirus Relief Fund
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
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25 Congressional Budget Office (CBO), An Update to the Budget Outlook: 2020 to 2030, September 2020 , Figure A-2, https://www.cbo.gov/system/files/2020-09/56517-Budget -Outlook.pdf. Estimate does not include $30 billion in increased federal funding for the Supplemental Nutrition Assistance Program, which is implemented by state governments.
26 Includes funding provided for the ERA, education, transportation, vaccine distribution, contact tracing, testing, and the Disaster Relief Fund. A detailed CBO cost estimate for these funds was not available as of the cover date of this report. 27 See the “National Strategy for the COVID-19 Response and Pandemic Preparedness.”
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Congressional Research Service
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