Pandemic Relief: The Emergency Rental Assistance Program

Changes from June 8, 2021 to July 9, 2021

This page shows textual changes in the document between the two versions indicated in the dates above. Textual matter removed in the later version is indicated with ~~red strikethrough~~ and textual matter added in the later version is indicated with blue.

Emergency Rental Assistance through the
~~June 8~~July 9, 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). A second round of ERA funding—$21.55 billion—was included in Section 3201 of the 116-260). A second round of ERA funding—$21.55 billion—was included in Section 3201 of the
Specialist in Housing Policy Specialist in Housing Policy
American Rescue Plan Act (P.L. 117-2). 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
Specialist in Housing Policy Specialist 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

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, For a copy of the ful report,
localities to qualify for direct allocations (among other differences). The second round of ERA localities to qualify for direct allocations (among other differences). The second round of ERA
please cal 7-5700 or visit please cal 7-5700 or visit
www.crs.gov. www.crs.gov.
funding includes a set-aside of $2.5 billion for “high need” grantees. Unlike the CRF, which can 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 financial assistance and be used for a broad set of purposes including rental assistance, the ERA may only be used for financial assistance and
housing stability services for renters.housing stability services for renters.
P.L. 116-260 established various parameters for how the first round of ERA funding can be used. Among other requirements, P.L. 116-260 established various parameters for how the first round of 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 states and 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). and utility assistance (including payment of arrearages). ~~The remaining 10%~~Remaining funds may be used for housing stability services (case may be used for housing stability services (case
management and other supports to help families retain their housing)management and other supports to help families retain their housing), and administrative expenses and administrative expenses are capped at 10%. . Renters are eligible for 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 established expenditure deadlines and Grantees are directed to prioritize very low-income renters for assistance. The law also established expenditure deadlines and
imposed various reporting requirements on the Treasury Secretary. imposed 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 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 that can be spent on ~~administrative expenses and~~ housing stability services was increased, and grantees may be able to use 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. 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, 2021,117-2 also extended the availability of first round ERA funding from December 31, 2021, to September 30, 2022. to September 30, 2022.
Within the statutory requirements—and any additional guidance established by Treasury—states and localities have Within the statutory requirements—and any additional guidance established by Treasury—states and localities 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. Estimates from which existing resources—both ERA and earlier funds —are adequate to meet demand for rental assistance. Estimates from
January 2021 suggest that as much as $57 billion in rental and utility debt may be outstanding nationally. January 2021 suggest that as much as $57 billion in rental and utility debt may be outstanding nationally.
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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 Department of the Treasury, to assist state, (CARES) Act (P.L. 116-136), and administered by the Department of the Treasury, to assist state,
local, territorial, and tribal governments.2 While the CARES Act CRF appropriation could be local, 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 used for multiple purposes, the ERA appropriation in P.L. 116-260 is directed only to rent and
utility assistance and housing stability services. A second appropriation—of $21.550 bil ion—for utility 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). 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 ERA funds, describes the (COVID-19) pandemic, provides information about the al ocation of ERA funds, describes the
parameters of the ERA program, and discusses outstanding questions about the program and parameters of the ERA program, and discusses outstanding questions about 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, JanuaryHarvard Joint Center for Housing Studies, January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-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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September 4, 2020, and has been extended several times, most recently through September 4, 2020, and has been extended several times, most recently through ~~June 30~~July 31, 2021.7 , 2021.7
While the moratoriums prevent eviction for nonpayment of rent, they do not prevent arrearages While the 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 from 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 maintain 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 landlords, who are estimated to have lower incomes and make up larger shares of Black and
Hispanic landlords.8 Hispanic 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 became depleted as the pandemic continued.10 Estimates suggest that total rental arrears of funds became depleted as the pandemic continued.10 Estimates suggest that total rental arrears
were $57 bil ion as of the end of January 2021.11 were $57 bil ion 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
nearly $47 bil ion for emergency rent and utility assistance through ERA. nearly $47 bil ion for emergency rent and utility assistance through ERA.
State and Local Allocations
P.L. 116-260 (ERA-1)
P.L. 116-260 provided a total of $25.000 bil ion in ERA support to governments in states, P.L. 116-260 provided a total of $25.000 bil ion in ERA support to governments in states,
territories, and tribal areas. Payments (denoted as ERA-1 payments here and in Treasury territories, and tribal areas. Payments (denoted as ERA-1 payments here and in Treasury
documentation) are distributed across these jurisdictions as follows: documentation) are distributed across these jurisdictions as follows:
 $23.785 bil ion is  $23.785 bil ion is ~~allocated~~al ocated for governments in the 50 states and the District of 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 $0.200 bil ion; Bureau for July 2020),14 with no state receiving less than $0.200 bil ion;

7 For more information, see CRS Insight IN11673, 7 For more information, see CRS Insight IN11673, The CDC’s Federal Eviction Moratorium . .
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.aspx. their 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 housing 12 See, for example, National Housing Conference, “31 housing ~~organizations~~organizatio ns tell administration and Congress to 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 nonrenters; for Allocations are determined by total state populations, including nonrenters; for ~~rece nt~~recent estimates of state renter estimates of state renter
populations, see U.S. Census Bureau, “American Community Survey 2015populations, see U.S. Census Bureau, “American Community Survey 2015 -2019 5-Year Data Release,” December -2019 5-Year Data Release,” December
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 $0.800 bil ion is set aside for governments in tribal areas, with individual  $0.800 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
 $0.400 bil ion is al ocated to the territories of Puerto Rico, the U.S. Virgin  $0.400 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 $0.325 Islands, Guam, 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 bil ion provided to Puerto Rico and $0.075 bil ion distributed to the remaining
territories based on their relative population share; and territories 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-1 payments are general y provided to state (or territorial) governments, though state ERA-1 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 ocation amount, (2) the percentage of the state or territorial population attributable to territorial al ocation 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).
P.L. 117-2 (ERA-2)
P.L. 117-2 provided a total of $21.550 bil ion in ERA support to governments in states and 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 territories. Unlike P.L. 116-260, P.L. 117-2 did not include a separate al ocation of funds for tribal
governments. Payments (denoted as ERA-2 payments here and in Treasury documentation) are governments. Payments (denoted as ERA-2 payments here and in Treasury documentation) are
distributed across these jurisdictions as follows: distributed across these jurisdictions as follows:
 $18.712 bil ion is al ocated for governments in the 50 states and the District of  $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 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; Bureau for July 2020),18 with no state receiving less than $0.152 bil ion;

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.
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, 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. 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 Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter
populations, see U.S. Census Bureau, “American Community Survey 2015populations, see U.S. Census Bureau, “American Community Survey 2015 -2019 5-Year Data Release,” December -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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 $0.305 bil ion is al ocated to the territories of Puerto Rico, the U.S. Virgin  $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 Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.240
bil ion provided to Puerto Rico and $0.065 bil ion distributed to the remaining bil ion provided to Puerto Rico and $0.065 bil ion distributed to the remaining
territories based on their relative population share; territories based on their relative population share;
 $2.500 bil ion is set aside for high-need grantees, to be distributed by the  $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 Treasury Secretary using statistics on high-need housing, rental market costs, and
unemployment (ERA-2 High Need); and unemployment (ERA-2 High Need); and
 $0.033 bil ion is set aside to cover federal administrative costs related to program  $0.033 bil ion is set aside to cover federal administrative costs related to program
implementation. implementation.
Direct local al ocation identifications, calculations, and division of payments across overlapping 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. governments in P.L. 117-2 are consistent with the methodology from P.L. 116-260.
However, P.L. 117-2 directed that ERA-2 funds be staggered in their distribution. Specifical y, Treasury was directed to distribute no less than the first 40% of ERA-2 funds within 60 days of enactment, with the remainder to be distributed after grantees expend 75% of their initial ERA-2 al ocation.19 Table 1 shows ERA-1 and ERA-2 al ocations and estimates broken out by state and territory, and shows ERA-1 and ERA-2 al ocations and estimates broken out by state and territory, and
government level. government level.1920
Table 1. Emergency Rental Assistance Allocations in P.L. 116-260 (ERA-1) and P.L.
117-2 (ERA-2, ERA-2 High Need)
(Al al ocations in mil ions of dol ars) (Al al ocations in mil ions of dol ars)

Allocations to State Governments
Allocations to Local Governments

ERA-2
ERA-2
State or
High
High
Grand
Territory
ERA-1
ERA-2
Need
ERA-1
ERA-2
Need
Total
Alabama Alabama
263 263
208 208
21 21
63 63
50 50
10 10
616 616
Alaska Alaska
165 165
125 125
0 0
35 35
27 27
0 0
352 352
American American
10 10
9 9
0 0
0 0
0 0
0 0
19 19
Samoa Samoa
Arizona Arizona
290 290
229 229
0 0
203 203
160 160
39 39
920 920
Arkansas Arkansas
174 174
137 137
0 0
27 27
22 22
0 0
360 360
California California
1,498 1,498
1,185 1,185
26 26
1,113 1,113
881 881
495 495
5,197 5,197
Colorado Colorado
248 248
196 196
0 0
137 137
109 109
29 29
719 719
Connecticut Connecticut
236 236
187 187
35 35
0 0
0 0
0 0
457 457
Delaware Delaware
200 200
152 152
0 0
0 0
0 0
0 0
352 352
District of District of
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Columbia Columbia
Florida Florida
872 872
689 689
51 51
570 570
451 451
124 124
2,757 2,757
Georgia Georgia
552 552
437 437
42 42
158 158
125 125
34 34
1,348 1,348
Guam Guam
33 33
29 29
0 0
0 0
0 0
0 0
62 62
~~Hawai~~
~~125~~
95
0
75
57
14
~~366~~
~~Idaho~~
~~176~~
~~134~~
0
24
18
0
~~352~~
~~Il inois~~
~~566~~
~~448~~
32
~~268~~
~~212~~
70
~~1,597~~

19 19 See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/text#H61B6162AB8EC496ABB590ADA8F6898FF. 20 U.S. T reasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-issues/ U.S. T reasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-issues/
coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.
Congressional Research Service Congressional Research Service

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Emergency Rental Assistance through the Coronavirus Relief Fund

Allocations to State Governments
Allocations to Local Governments

ERA-2
ERA-2
State or
High
High
Grand
Territory
ERA-1
ERA-2
Need
ERA-1
ERA-2
Need
Total
South 272 215 31 74 59 0 651 Carolina South Dakota 200 152 0 0 0 0 352 Tennessee 383 303 29 73 58 16 862 Texas Texas
1,308 1,308
1,035 1,035
66 66
639 639
506 506
133 133
3,686 3,686
U.S. Virgin U.S. Virgin
21 21
18 18
0 0
0 0
0 0
0 0
40 40
Islands Islands
Utah Utah
150 150
119 119
0 0
65 65
52 52
6 6
392 392
Vermont Vermont
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Virginia Virginia
525 525
415 415
43 43
45 45
36 36
15 15
1,079 1,079
Washington Washington
322 322
255 255
24 24
188 188
149 149
41 41
979 979
West Virginia West Virginia
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Wisconsin Wisconsin
322 322
255 255
26 26
65 65
51 51
16 16
735 735
Wyoming Wyoming
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Al Tribal Al Tribal
800 800
0 0
0 0
0 0
0 0
0 0
800 800
Governments Governments
Totals
18,305
14,195
779
6,680
4,822
1,721
46,502
Source: U.S. Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-U.S. Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-
issues/cares/emergency-rental-assistance-program. issues/cares/emergency-rental-assistance-program.
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. Sums may not equal totals due to rounding. to do so. Sums may not equal totals 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. Those parameters are relatively broad, but are more the funds can and should be spent. Those parameters are relatively broad, but are more
prescriptive than what was included in the original CARES Act CRF. Treasury has issued prescriptive than what was included in the original CARES Act CRF. Treasury has issued
Frequently Asked Questions (FAQs) and other guidance documents regarding how certain aspects Frequently Asked Questions (FAQs) and other guidance documents regarding how certain aspects
of the law are to be applied.of the law are to be applied.2021 For the second round of ERA funding, P.L. 117-2 made some 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 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 that are applicable only to the second round (i.e., income eligibility and caps on administrative
and housing stability services funding). Treasury has revised its FAQsand housing stability services funding). Treasury has revised its FAQs multiple times to reflect to reflect the requirements the requirements
of both ERA-1 and ERA-2of both ERA-1 and ERA-2. and in response to stakeholder feedback.22 21 T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program. 22 T reasury has revised FAQs in February, March, May, and June of 2021. See the February FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf, March FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf, May FAQs at https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf (hereinafter, “ Treasury May 7, 2021, FAQs”), Congressional Research Service 6 Emergency Rental Assistance through the Coronavirus Relief Fund
As noted, ERA funds are provided from Treasury to states and localities, which can use the funds As noted, ERA 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 to 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
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).

~~20 T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-~~
~~program.~~
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Eligible Use of Funds
P.L. 116-260 directed that 90% of ERA funds be spent on direct financial assistance and that up to P.L. 116-260 directed that 90% of ERA funds be spent on direct financial assistance and that up to
10% could be spent on administrative expenses and housing stability services. 10% could be spent on administrative expenses and housing stability services.23
For the second round of ERA funding, P.L. 117-2 directed that no more than 15% be spent on For the second round of ERA funding, P.L. 117-2 directed that no more than 15% be spent on
administrative expenses and 10% be spent on housing stability services, leaving at least 75% to administrative expenses and 10% be spent on housing stability services, leaving at least 75% to
be spent on direct financial assistance. be spent on direct financial assistance.
Financial Assistance
P.L. 116-260 defined financial assistance as assistance to tenants for P.L. 116-260 defined 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.
The definition of financial assistance under P.L. 117-2 is nearly identical, except when it comes to 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 other expenses related to housing. The P.L. 117-2 definition does not require that the expenses be
related to the COVID-19 outbreak. related to the COVID-19 outbreak.
Treasury issued an FAQ document in January 2021 clarifying that telecommunications services Treasury issued an FAQ document in January 2021 clarifying that telecommunications services
are not considered utilities under this program.are not considered utilities under this program.2124 However, Treasury later revised the FAQs to However, Treasury later revised the FAQs to
define “other expenses” eligible for assistance to include internet service, if it al ows renters 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.engage in distance learning, telework, and telemedicine and obtain government services.22
25 Additional “other expenses” identified in the FAQ include relocation expenses and rental fees (if 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. 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 Under P.L. 116-260, assistance 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 of one 3-month extension. Payments made for prospective rent are subject to additional
~~limitations; they can only 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.~~
~~Treasury’s May 7, 2021, FAQs clarified that grantees must prohibit landlords from evicting~~
~~tenants for nonpayment of rent during the period for which they have received prospective rent~~
~~payments. Treasury’s guidance also encourages grantees to set policies prohibiting landlords who~~
~~receive payment for rental arrearages from evicting tenants for nonpayment of rent for some~~
~~period, consistent with applicable law.23~~

~~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, March, and May of 2021. See the February FAQs at~~
~~https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf; March FAQs at~~
~~https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf; and May FAQs at~~
~~https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf (hereinafter, “ Treasury May 7, 2021, FAQs”).~~
~~23 T reasury May 7, 2021, FAQs, FAQ 32, p. 14.~~
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~~Payments~~
~~P.L. 116-260 directed that payments be made directly to landlords or utility providers, but it~~
and June FAQs at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf (hereinafter, “ Treasury June 24, 2021, FAQs”). 23 T reasury’s initial guidance interpret ed this 10% limitation as applying to both administrative fees and housing stability services combined. Subsequent guidance has amended that interpretation to allow grantees to use up to 10% of ERA-1 funds for housing stability services, and up to 10% of t otal funds for administrative expenses. 24 See the January FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-21.pdf. 25 See the February FAQ revision at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf, FAQ 7, p. 4. Congressional Research Service 7 link to page 10 Emergency Rental Assistance through the Coronavirus Relief Fund limitations; they can only 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. Treasury’s May 7, 2021, FAQs clarified that grantees must prohibit landlords from evicting tenants for nonpayment of rent during the period for which they have received prospective rent payments. Treasury’s guidance also encourages grantees to set policies prohibiting landlords who receive payment for rental arrearages from evicting tenants for nonpayment of rent for some period, consistent with applicable law.26 Payments P.L. 116-260 directed 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 al ows payments to be made directly to tenants if landlords or utility providers are unwil ing to
accept such payments. According to the May 7, 2021, FAQs, Treasury has reduced the amount of accept such payments. According to the May 7, 2021, FAQs, Treasury has reduced the amount of
time grantees must wait for landlords or utility providers to respond to outreach efforts before time grantees must wait for landlords or utility providers to respond to outreach efforts before
making payments directly to tenants. making payments directly to tenants.2427
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).
The requirements for ERA-2 funding set by P.L. 117-2 are largely the same, although, according The requirements for ERA-2 funding set by P.L. 117-2 are largely the same, although, according
to guidance in the May 7, 2021, FAQs, grantees may use their ERA-2 funding to offer assistance to guidance in the May 7, 2021, FAQs, grantees may use their ERA-2 funding to offer assistance
directly to tenants without first attempting to contact landlords or utility providers. directly to tenants without first attempting to contact landlords or utility providers.2528 Additional y, a revision to the FAQs issued on June 24, 2021, permitted grantees to enter into data sharing agreements and bulk payment arrangements for large landlords and utility providers.29
Administrative Costs and Housing Stability Services
Under P.L. 116-260, the remaining 10% of grant funds can be used for grantee administrative Under P.L. 116-260, the remaining 10% of grant funds can be used for grantee administrative
costs and housing stability services costs and housing stability services., which Treasury has interpreted as al owing grantees to use up to 10% of grant amounts each for housing stability services and administrative costs.30
P.L. 116-260 defined “housing stability services” as case management and other services related P.L. 116-260 defined “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. 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.) It~~ It restricted administrative restricted administrative
expenses to those tied to providing financial assistance and housing expenses to those tied to providing financial assistance and housing stability services, including stability services, including
for data collection and reporting requirements. for data collection and reporting requirements.
P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses~~, of~~
~~which~~ and up to 10% can be for housing stability services. The law defined “housing stability up to 10% can be for housing stability services. The law defined “housing stability
services” as case management and other services intended to keep households stably housed, 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 without reference to COVID-19. It defined “administrative expenses” as those included under
~~P.L. 116-~~P.L. 116- 26 T reasury May 7, 2021, FAQs, FAQ 32, p. 14. 27 T reasury May 7, 2021, FAQs, FAQ 12, p. 8. 28 T reasury May 7, 2021, FAQs, FAQ 12, p. 8. 29 T reasury June 24, 2021, FAQs, FAQ 38, p. 16. 30 See footnote 23. Congressional Research Service 8 Emergency Rental Assistance through the Coronavirus Relief Fund 260, as wel as costs associated with other affordable rental housing and eviction 260, as wel as costs associated with other affordable rental housing and eviction
prevention prevention activities. activities.
Individual Eligibility and Prioritization
P.L. 116-260 established a three-part eligibility test based on income level, income loss or other P.L. 116-260 established a three-part eligibility test based on income level, income loss or other
financial hardship, and risk of homelessness or housing instability. It also established a set of financial hardship, and risk of homelessness or housing instability. It also established a set of
income targeting requirements to guide states and localities in prioritizing assistance. P.L. 117-2 income targeting requirements to guide states and localities in prioritizing assistance. P.L. 117-2
largely adopted the same requirements, but with some changes. 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, Under P.L. 116-260, to be eligible for direct financial assistance or housing stability services,
households must be renters and households must be 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);

~~24 T reasury May 7, 2021, FAQs, FAQ 12, p. 8.~~
~~25 T reasury May 7, 2021, FAQs, FAQ 12, p. 8.~~
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~~ experiencing financial~~  experiencing financial hardship, as evidenced by receipt of unemployment hardship, as evidenced by receipt of unemployment
benefits or a written attestation of other pandemic-related financial hardship benefits or a written attestation of other pandemic-related financial hardship
(income loss or increased expenses); and (income 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 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. 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.Neither law addresses noncitizen eligibility for assistance under the ERA program.2631
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.
P.L. 117-2 made these provisions applicable to the second round of ERA funding. P.L. 117-2 made these provisions applicable to the second round of ERA funding.
31 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. Congressional Research Service 9 Emergency Rental Assistance through the Coronavirus Relief Fund Documentation
P.L. 116-260 specified that grantees may determine an applicant’s income eligibility based on P.L. 116-260 specified that grantees may determine an applicant’s income eligibility based on
annual income or current monthly income (subject to three-month recertification). annual income or current monthly income (subject to three-month recertification).
P.L. 117-2 does not include provisions related to income determination. P.L. 117-2 does not include provisions related to income determination.
Treasury’s May 7, 2021, FAQs state: “Treasury strongly encourages grantees to avoid Treasury’s May 7, 2021, FAQs state: “Treasury strongly encourages grantees to avoid
establishing documentation requirements that are likely to be barriers to participation for eligible establishing documentation requirements that are likely to be barriers to participation for eligible
households.”households.”2732 For example, the FAQs say a grantee may rely on an applicant’s self-attestation of For example, the FAQs say a grantee may rely on an applicant’s self-attestation of
income under certain circumstances. income under certain circumstances.2833
Funding Availability and Reallocation
P.L. 116-260 made first round ERA funds available to grantees through December 31, 2021; the P.L. 116-260 made first round ERA funds available to grantees through December 31, 2021; the
deadline was subsequently extended to September 30, 2022, by P.L. 117-2. However, beginning deadline was subsequently extended to September 30, 2022, by P.L. 117-2. However, beginning
September 30, 2021, the Treasury Secretary is directed to recapture any excess unobligated funds 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 that have obligated at least (as determined by the Secretary) and to real ocate them to grantees that have obligated at least
65% of their funds for eligible purposes. Grantees receiving real ocated funds may request up to a 65% of their funds for eligible purposes. Grantees receiving real ocated funds may request up to a
90-day extension of availability deadline. 90-day extension of availability deadline.

~~26 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~~.
~~27 T reasury May 7, 2021, FAQs, FAQ 1, p. 2.~~
~~28 T reasury May 7, 2021, FAQs, FAQ 4, p. 5.~~
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Funding provided through P.L. 117-2 is available until September 30, 2025. Beginning March 31, 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 2022, the Treasury Secretary is directed to real ocate ~~unobligated~~undisbursed funds to grantees that have funds to grantees that have
obligated 50% or more of their total al ocated funds. These real ocated funds can only be used for 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 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 as of October 1, 2022, may obligate remaining funds for other affordable rental housing and
eviction prevention purposes for very low-income families. 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
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. Treasury’s May 7, 2021, FAQs encouraged P.L. 117-2 did not contain reporting requirements. Treasury’s May 7, 2021, FAQs encouraged
ERA-2 grantees to comply with the data privacy and security requirements established for ERA-ERA-2 grantees to comply with the data privacy and security requirements established for ERA-
1. 1.2934
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.
32 T reasury May 7, 2021, FAQs, FAQ 1, p. 2. 33 T reasury May 7, 2021, FAQs, FAQ 4, p. 5. 34 T reasury May 7, 2021, FAQs, FAQ 14, p. 9. Congressional Research Service 10 Emergency Rental Assistance through the Coronavirus Relief Fund 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. Treasury has provided links to state and local ERA programs on its ERA programs are structured. Treasury has provided links to state and local ERA programs on its
website at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-website at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-
tribal-governments/emergency-rental-assistance-program/program-index. tribal-governments/emergency-rental-assistance-program/program-index.
As noted earlier, ERA funds are al ocated to states and localities. States and localities are then As noted earlier, ERA funds are al ocated to states and localities. States and localities are then
charged with distributing assistance to eligible renters based on a limited set of program charged with distributing assistance to eligible renters based on a limited set of program
parameters. Within those parameters, states and localities have authority to determine, for parameters. Within those parameters, states and localities have 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;

~~29 T reasury May 7, 2021, FAQs, FAQ 14, p. 9.~~
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 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, prohibiting landlords to accept partial payment to reduce debt obligations, prohibiting
landlords that accept payment from pursuing eviction); and landlords that accept payment from pursuing eviction); 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. to access available assistance are currently uncertain.
~~Will rental assistance prevent loss of housing?~~
~~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~~
Treasury’s June FAQ revision included encouragement for grantees to coordinate to reduce barriers and delays in providing assistance created by differences in local programs in the same region. The agency also released “promising practices” to ensure assistance can quickly reach renters in need.35 Will rental assistance prevent loss of housing? 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 35 https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program/promising-practices. Congressional Research Service 11 Emergency Rental Assistance through the Coronavirus Relief Fund forms, could also affect the need for, and adequacy of, ERA funds. Further, the ability of grantees forms, could also affect the need for, and adequacy of, ERA funds. Further, the ability of grantees
to establish ERA programs, engage landlords, and process tenant applications could also affect to establish ERA programs, engage landlords, and process tenant applications could also affect
tenant outcomes. tenant outcomes.
Because there is no definitive estimate of renters in arrears and the amounts they owe, it is Because there is no definitive estimate of renters in arrears and the amounts they owe, it is
unknown whether al renters who are behind wil be able to receive assistance with available 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 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).methodology (which are not examined in this report).3036 Research released in January 2021 Research released in January 2021
predicted that the first round of ERA rental assistance would be insufficient to meet the needs of predicted that the first round of ERA rental assistance would be insufficient to meet the needs of
al delinquent renters.al delinquent renters.3137 Since that time, P.L. 117-2 funded another $21.550 bil ion in rental 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 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 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. and avoid widespread housing disruption when eviction moratoriums end is yet to be seen.
On June 24, 2021, concurrent with the announcement of the extension of the CDC eviction moratorium through July 31, 2021, the White House announced a series of actions designed to help state and local governments prevent evictions. These included the previously mentioned June revisions to Treasury’s ERA FAQs, designed to speed the delivery of assistance; a letter to state and local courts from the Deputy Attorney General encouraging the adoption of eviction diversion efforts and guidance on how ERA funds can be used to support such efforts; and implementation of “a whole-of-government effort to raise awareness about emergency rental assistance.”38 At the end of June, Treasury released initial data on ERA-1 expenditures. It found that of the $25 bil ion al ocated, grantees had spent approximately $1.45 bil ion on rent, utilities, and arrears from January to May 2021, serving approximately 345,000 unique households, and separately had committed roughly $1 bil ion to administrative costs and housing stability services. The data show spending that is accelerating; roughly half of total spending occurred in the last month (May) of the reporting period.39 Treasury’s accompanying analysis of these data stated “while some state and local programs are increasingly reaching households in need, others lag far behind, and many programs have just launched in recent weeks.”40 36
30 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.
31 37 Averting an Eviction Crisis. 38 White House, “FACT SHEET : Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Supporting Vulnerable T enants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. 39 See https://home.treasury.gov/system/files/136/ERA-Compliance-Report-06302021.xlsx 40 T reasury Department, Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities Must Do More to Accelerate Aid, https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-Post-vF.pdf ~~Averting an Eviction Crisis~~. .
Congressional Research Service Congressional Research Service

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Emergency Rental Assistance through the Coronavirus Relief Fund

Will state and local governments use other federal funding for
rental assistance and eviction prevention?
How state and local governments choose to distribute ERA funds across programs and other How state and local governments choose to distribute ERA funds across programs and other
governments may depend on the availability of other federal assistance during the COVID-19 governments may depend on the availability of other federal assistance during the COVID-19
pandemic for rental assistance. Separate from the ERA funding, the federal government provided pandemic for rental assistance. Separate from the ERA funding, the federal government provided
a total of $512 bil ion in general assistance to state and local governments through the CARES a total of $512 bil ion in general assistance to state and local governments through the CARES
Act ($150 bil ion) and P.L. 117-2 ($Act ($150 bil ion) and P.L. 117-2 ($~~350~~362 bil ion). General assistance through the CARES Act was bil ion). General assistance through the CARES Act was
used by government recipients to fund a number of housing initiatives,used by government recipients to fund a number of housing initiatives,3241 and eligible uses of P.L. and eligible uses of P.L.
117-2 general assistance include programs “to respond to the public health emergency … or its 117-2 general assistance include programs “to respond to the public health emergency … or its
negative economic impacts, including assistance to households.”negative economic impacts, including assistance to households.”33

~~Author Information~~

~~Grant A. Driessen~~
~~Libby Perl~~
~~Specialist in Public Finance~~
~~Specialist in Housing Policy~~

~~Maggie McCarty~~

~~Specialist in Housing Policy~~

42 The White House fact sheet released in June 2021 highlighted the authority to use state and local fiscal relief funds for eviction diversion purposes.43 Treasury published its Interim Final Rule for al owable uses of state and local recovery funds received through P.L. 117-2 in May 2021.44 The guidance includes an intent to make eligible for funding programs that respond to the negative economic impacts of the COVID-19 public health crisis, with emphasis on mitigating any exacerbation of pre-existing economic disparities. The guidance also al ows for payments to replace lost revenues to the extent that annual own-source revenue growth is below the greater of (1) 4.1% or (2) the government’s average revenue growth rate in the three years prior to the COVID-19 crisis. Such revenue replacement can then be used for the general provision of government services under the Interim Final Rule. The comment period for the Interim Final Rule closes July 16, 2021, with a Final Rule expected to be released after those comments have been considered. Author Information Grant A. Driessen Libby Perl Specialist in Public Finance Specialist in Housing Policy Maggie McCarty Specialist in Housing Policy 41 Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund. 42 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 Coro navirus Local Fiscal Recovery Fund. 43 White House, “FACT SHEET : Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Supporting Vulnerable T enants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. 44 For access to the Interim Final Rule and more information on funding, see T reasury Department, “Coronavirus State and Local Fiscal Recovery Funds,” May 2021, available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds. Congressional Research Service 13 Emergency Rental Assistance through the Coronavirus Relief Fund

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~~32 Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at~~
~~https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund.~~
~~33 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.~~
~~Congressional Research Service~~
~~R46688 · VERSION 6 · UPDATED~~
12 Congressional Research Service R46688 · VERSION 7 · UPDATED 14