Pandemic Relief: The Emergency Rental Assistance Program

Changes from July 9, 2021 to September 8, 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~~
~~July 9, 2021~~
~~Coronavirus Relief Fund~~Pandemic Relief: The Emergency Rental September 8, 2021 Assistance Program
Grant A. Driessen
In response to concerns about the economic effects of the In response to concerns about the economic effects of the ~~Coronavirus Disease 2019 (COVID-~~
COVID-19 pandemic on renters and Specialist in Public Finance Specialist in Public Finance
~~19) pandemic on renters and~~ their landlords, Congress created a $25 billion Emergency Rental their landlords, Congress created a $25 billion Emergency Rental

Assistance (ERA) program in Assistance (ERA) program in the Consolidated Appropriations Act, 2021 (Division N of P.L. the Consolidated Appropriations Act, 2021 (Division N of P.L.
~~Maggie McCarty~~
116-260). A second round of 116-260). A second round of Maggie McCarty ERA funding—$21.55 billion—was included in Section 3201 of the ERA funding—$21.55 billion—was included in Section 3201 of the
American Rescue Plan Act Specialist in Housing Policy Specialist in Housing Policy
~~American Rescue Plan Act~~ (P.L. 117-2). (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. implemented by the Department of the Treasury. ~~Like the CRF, the ERA directs~~The ERA directed resources to resources to
states, localities, and tribes
~~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~~
~~For a copy of the ful report,~~
~~localities to qualify for direct allocations (among other differences). 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 financial assistance and~~
~~housing stability services for renters.~~
via a per capita formula allocation. The second round of ERA funding included a set-aside of $2.5 billion for “high need” grantees and did not include a set-aside for tribes. For a copy of the ful report, please cal 7-5700 or visit www.crs.gov. P.L. 116-260 established various parameters for how the first round of ERA funding P.L. 116-260 established various parameters for how the first round of ERA funding (ERA-1) can be used. Among other requirements, can be used. Among other requirements,
states and localities must use states and localities must use ~~at least 90% of their~~the bulk of funds for financial assistance, which is defined to include rental assistance funds for financial assistance, which is defined to include rental assistance
and utility assistance (including payment of arrearages). Remaining funds may be used for housing stability services (case and utility assistance (including payment of arrearages). Remaining funds 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 and administrative expenses. ~~expenses are capped at 10%.~~
Renters are eligible for assistance if they are low-income, experiencing financial hardship, and at risk of homelessness or Renters are eligible for 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 housing insecurity. Grantees are directed to prioritize very low-income renters for assistance. The law also established
obligation and expenditure deadlines and imposed various reporting requirements on the Treasury Secretary. expenditure deadlines and 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 ~~housing stability services~~administrative expenses was increased, and grantees may be able to use funds that remain unobligated was increased, and grantees may be able to use funds that remain unobligated
as of October 1, 2022, for as of October 1, 2022, for ~~additional~~a broader range of affordable housing and eviction prevention activities. P.L. 117-2 affordable housing and eviction prevention activities. P.L. 117-2 also extended the also extended the
availability of first round ERA funding from December 31, 2021, to September 30, 2022. availability of first round ERA funding from December 31, 2021, 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. 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~~
~~relatively rapid distribution of ERA funds.~~
The ability of states and localities to structure their programs differently The ability of states and localities to structure their programs differently ~~will mean~~means that the experience of similarly situated that the experience of similarly situated
renters seeking assistance will likely vary geographicallyrenters seeking assistance will likely vary geographically . . Similarly,Similarly, there may be geographic variability in the degree to there may be geographic variability in the degree to
which existing resources—both ERA and which existing resources—both ERA and ~~earlier~~other funds funds —are adequate to meet demand for rental assistance—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.~~
~~Congressional Research Service~~

~~Emergency Rental Assistance through the Coronavirus Relief Fund~~

~~Introduction~~
~~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~~
~~Rental Assistance (ERA) program.1 The ERA is~~ funded through the Coronavirus Relief Fund funded through the Coronavirus Relief Fund
(CRF), a program created as part of the Coronavirus Aid, Relief, and (CRF), a program created as part of the Coronavirus Aid, Relief, and Economic Security 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 used for multiple purposes, the ERA appropriation in P.L. 116-260 is was directed only to rent and directed only to rent and
utility assistance and utility assistance and related housing stability services. A second appropriation—of $21.550 bil ion—for housing stability services. A second appropriation—of $21.550 bil ion—for
ERA was included in Section 3201 of the American ERA was included in Section 3201 of the American Rescue Plan Act (P.L. 117-2). Rescue Plan Act (P.L. 117-2).
This report briefly describes the need for rental assistance during the This report briefly describes the need for rental assistance during the ~~Coronavirus Disease 2019~~
~~(COVID-19)~~COVID-19 pandemic, provides information about the al ocation of ERA funds, describes the pandemic, provides information about the al ocation of ERA funds, describes the
parameters of the ERA parameters of the ERA program, and discusses outstanding questions about the program and 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. affordability. ~~In 2020, the~~The Joint Center on Housing Studies reported that Joint Center on Housing Studies reported that in 2018, nearly half (48%) of al 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 rentMil ions of renters report being behind on their rent ~~and~~, lacking confidence in their ability to pay lacking confidence in their ability to pay
next month’s rent next month’s rent.6
~~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~~, and facing a likelihood of leaving their housing due to eviction.6

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 6 ~~See Census Bureau Pulse survey data, available~~ T he Census Bureau has surveyed samples of households on their pandemic-related housing situations every two weeks since the beginning of the pandemic, starting on April 23, 2020. As of the date of this report, data was most recently available for the two-week period from August 4, 2021, through August 16, 2021. See Census Bureau Pulse survey data, available at https://www.census.gov/programs-surveys/household-pulse-at https://www.census.gov/programs-surveys/household-pulse-
survey/data.htmlsurvey/data.html~~#phase3~~. .
Congressional Research Service Congressional Research Service

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~~Emergency Rental Assistance through the Coronavirus Relief Fund~~

~~September 4, 2020, and has been extended several times, most recently through July 31, 2021.7~~
~~While the moratoriums~~ Pandemic Relief: The Emergency Rental Assistance Program 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 September 4, 2020, and was extended several times before it expired on August 1, 2021. Following the expiration of the moratorium, CDC issued a new eviction moratorium, on August 3, 2021, applicable in areas with substantial and high rates of community spread of COVID-19. However, on August 26, 2021, the Supreme Court blocked enforcement of the new eviction moratorium, al owing evictions to proceed in areas that do not have their own state or local eviction moratoriums.7 While the moratoriums may prevent eviction for nonpayment of rent, they do not prevent arrearages prevent eviction for nonpayment of rent, they do not prevent arrearages
from accumulating, which could result in eviction when moratoriums lift. from accumulating, which could result in eviction when moratoriums lift. ~~Renter inability to~~
~~maintain~~These missed rent payments also payments also ~~affects~~affect landlords. This may particularly result in hardship for smal er 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 end of January 2021, it was estimated that total rental arrears were $57 bil ion;9 more recent estimates suggest the total may be closer to $20 bil ion.10 At the outset of the COVID-19 pandemic, At the outset of the COVID-19 pandemic, some states and localities states and localities ~~relied on~~used federal funds 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. rental assistance programs.~~9 Households~~11 Further, households may have drawn on CARES Act stimulus checks, may have drawn on CARES Act stimulus checks,
expanded unemployment benefits, and borrowing to cover rent. However, some of these expanded unemployment benefits, and borrowing to cover rent. However, some of these sources sources
of funds became depleted as the pandemic continued.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~~12
Organizations representing both tenants and landlords Organizations representing both tenants and landlords ~~have~~ advocated for additional federal funds advocated for additional federal funds
to help tenants pay their rent.to help tenants pay their rent.1213 Legislation was introduced in the 116th Congress that would have Legislation was introduced in the 116th Congress that would have
provided as much as $100 bil ion to help tenants pay rent.provided as much as $100 bil ion to help tenants pay rent.1314 Ultimately, Congress appropriated 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,~~
~~territories, and tribal areas. Payments (denoted as ERA-1 payments here and in Treasury~~
~~documentation) are distributed across these jurisdictions as follows:~~
~~ $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~~
~~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~~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.~~
10 Jim Parrott and Mark M. Zandi, 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.~~
~~12 See, for example, National Housing Conference, “31 housing organizatio ns~~”). 10 Sarah T reuhaft, Rent Debt in America: Stabilizing Renters Is Key to Equitable Recovery, National Equity Atlas, August 10, 2021, https://nationalequityatlas.org/rent-debt-in-america (hereinafter, “ Rent Debt in Am erica”). 11 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. 12 Averting an Eviction Crisis. 13 See, for example, National Housing Conference, “31 housing organizations 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/.
1314 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R. 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,~~
~~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~~
~~populations, see U.S. Census Bureau, “American Community Survey 2015-2019 5-Year Data Release,” December~~
~~Congressional Research Service~~

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~~Emergency Rental Assistance through the Coronavirus Relief Fund~~
Congressional Research Service 2 Pandemic Relief: The Emergency Rental Assistance Program 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, territories, and tribal areas. Payments (denoted as ERA-1 payments here and in Treasury documentation) are distributed across these jurisdictions as follows:  $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 Bureau for July 2020),15 with no state receiving less than $0.200 bil ion;
 $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;the Native American Housing Block Program in FY2020;1516
 $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),U.S. Census Bureau in 2019),1617 may elect to receive assistance directly from Treasury. Any 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.such cases, al overlapping governments are eligible for assistance.1718 However, direct assistance 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~~
~~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~~
~~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~~
~~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;~~

15 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 populations, 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.html. 2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html.
1516 For more on the Native American Housing Block Grant program, see CRS Report R43307, 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 17 U.S. Census Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020, 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.
1718 U.S. T reasury, “Emergency Rental Assistance Program: Data and Methodology U.S. T reasury, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and 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~~
~~populations, 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.html.~~
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~~link to page 7~~ ~~Emergency Rental Assistance through the Coronavirus Relief Fund~~
Congressional Research Service 3 link to page 8 Pandemic Relief: The Emergency Rental Assistance Program example, the county government would only use a population of 200,000 for its direct payment calculation). P.L. 117-2 (ERA-2) P.L. 117-2 appropriated 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, and the payments were classified as mandatory spending rather than discretionary spending. Payments (denoted as ERA-2 payments here and in Treasury documentation) 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),19 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  $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. However, P.L. 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 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 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. the remainder to be distributed after grantees expend 75% of their initial ERA-2 al ocation.1920
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.2021 19 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 populations, 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.html. 20 See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/text#H61B6162AB8EC496ABB590ADA8F6898FF. 21 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. Congressional Research Service 4 Pandemic Relief: The Emergency Rental Assistance Program
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

~~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/~~
~~coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.~~
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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 South
272 272
215 215
31 31
74 74
59 59
0 0
651 651
Carolina Carolina
South Dakota South Dakota
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Tennessee Tennessee
383 383
303 303
29 29
73 73
58 58
16 16
862 862
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.
Congressional Research Service 6 Pandemic Relief: The 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~~
~~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~~ State and Local Distribution Information Treasury and stakeholder groups have assembled various resources to provide information on state and local ERA programs. For detailed state and local al ocations under ERA-1 and ERA-2, Treasury provides information on its website:  ERA-1: https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Payments-to-States-and-Eligible-Units-of-Local-Government.pdf  ERA-2: https://home.treasury.gov/system/files/136/ERA2_Allocations_Eligible_Entities_572021.pdf Treasury also periodical y releases data on program expenditures by grantee:  See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program (scrol to the bottom of the page) To identify specific grantees and programs in states and localities, Treasury has developed a program locator tool:  See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program/program-index The National Low Income Housing Coalition (a nonprofit advocacy organization) has developed a set of tools for analyzing selected features of state and local ERA programs as wel as a spending tracker:  See https://nlihc.org/era-dashboard ERA Program Parameters When P.L. 116-260 created the ERA program under the CRF, it established parameters for how the funds could and should be spent. Treasury has issued ~~. 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.2122 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 that are applicable only to the second round (i.e., income eligibility and round (i.e., income eligibility and ~~caps on administrative~~
~~and housing stability services funding~~a different cap on administrative expenses). Treasury has revised its FAQs multiple times to reflect ). Treasury has revised its FAQs multiple times to reflect
the requirements of both ERA-1 and ERA-2 and in the requirements of both ERA-1 and ERA-2 and in response to stakeholder feedback.response to stakeholder feedback.22

2123 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 guidance. Some states and localities were able to use the new funds to supplement existing rental assistance programs created with CARES Act or other funds, to the extent their existing programs aligned with the emergency rental assistance statutory requirements (which are outlined below); others had to develop new programs from scratch. 22 T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance- T reasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-
program. program.
2223 T reasury has revised FAQs in February, March, May, T reasury has revised FAQs in February, March, May, June, and August~~and June~~ of 2021. See the February FAQs at 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-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/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”), https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf (hereinafter, “ Treasury May 7, 2021, FAQs”),
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~~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~~
~~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~~
~~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~~
~~below).~~June FAQs at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf (hereinafter, “ Treasury June 24, 2021, FAQs”), and August FAQs at https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf (hereinafter, “T reasury August 25, 2021, FAQs”). Congressional Research Service 7 link to page 12 link to page 12 Pandemic Relief: The Emergency Rental Assistance Program
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.2324 Note that Treasury guidance further interpreted these limits; see the “Administrative Costs and Housing Stability Services” section.
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.2425 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.25
26 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

~~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~~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 24 T reasury’s initial guidance interpreted this 10% limitation as applying to both administrative fees and housing 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 stability services combined. Subsequent guidance has amended that interpretation to allow grantees to use up to 101 0% of % of
ERA-1 funds for housing stability services, and up to 10% of ERA-1 funds for housing stability services, and up to 10% of ~~t otal~~total funds for administrative expenses. funds for administrative expenses.
24 25 See the January FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19- See the January FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-
21.pdf. 21.pdf.
2526 See the February FAQ revision at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked- 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. Questions_Pub-2-22-21.pdf, FAQ 7, p. 4.
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link to page 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~~
11 Pandemic Relief: The Emergency Rental Assistance Program receive payment for rental arrearages from evicting tenants for nonpayment of rent for some receive payment for rental arrearages from evicting tenants for nonpayment of rent for some
period, consistent with applicable law. period, consistent with applicable law.2627
Payments
P.L. 116-260 directed that payments be made directly to landlords or utility providers, but it 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.2728
Landlords are permitted to aid their tenants in applying Landlords are permitted to aid their tenants in applying for assistance, or they may apply directly. Landlords , 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 The requirements ~~for ERA-2 funding set by~~in P.L. 117-2 are P.L. 117-2 are ~~largely the same, although~~not as specific about landlord involvement, and, according , 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.28 29 Additional y,Additional y,
a revision to the FAQs issued on June 24, 2021, permitted grantees to enter into data sharing 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.agreements and bulk payment arrangements for large landlords and utility providers.2930 The August revisions to the FAQs al ow grantees to make bulk payments to landlords and utility providers in advance of tenant eligibility determination, as long as application and documentation requirements are met within six months.31 The August FAQs further al ow that, upon the request of a tenant, a grantee may provide assistance for rental and utility arrears after an otherwise eligible tenant has vacated a unit.32
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, which Treasury has interpreted as al owing grantees to use up 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. to 10% of grant amounts each for housing stability services and administrative costs.3033
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. It to COVID-19, to be defined by the Secretary, that are intended to keep tenants stably housed. It
restricted administrative expenses to those tied to providing financial assistance and housing restricted administrative expenses to those tied to providing financial assistance and housing
stability services, including for data collection and reporting requirements. stability services, including for data collection and reporting requirements.
P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses and P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses and
up to 10% up to 10% ~~can be~~ for housing stability services. The law defined “housing stability services” as for housing stability services. The law defined “housing stability services” as
case management and other services intended to keep households stably housed, without 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-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.
2627 T reasury May 7, 2021, FAQs, FAQ 32, p. 14. T reasury May 7, 2021, FAQs, FAQ 32, p. 14.
2728 T reasury May 7, 2021, FAQs, FAQ 12, p. 8. T reasury May 7, 2021, FAQs, FAQ 12, p. 8.
2829 T reasury May 7, 2021, FAQs, FAQ 12, p. 8. T reasury May 7, 2021, FAQs, FAQ 12, p. 8.
2930 T reasury June 24, 2021, FAQs, FAQ 38, p. 16. T reasury June 24, 2021, FAQs, FAQ 38, p. 16.
~~30 See footnote 23~~31 T reasury August 25, 2021, FAQs, FAQ 38, p. 17. 32 T reasury August 25, 2021, FAQs, FAQ 40, p. 17. 33 See footnote 24. .
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~~Emergency Rental Assistance through the Coronavirus Relief Fund~~

~~260, as wel as costs associated with other affordable rental housing and eviction prevention~~
~~activities.~~9 Pandemic Relief: The Emergency Rental Assistance Program
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);
 experiencing financial hardship, as evidenced by receipt of unemployment  experiencing financial hardship, as evidenced by receipt of unemployment
benefits or a written attestation of other benefits or a written attestation of other ~~pandemic-related~~ financial hardship financial hardship
(income loss or (income loss or increased expenses)increased expenses) related directly or indirectly to the COVID-19 pandemic; ; and 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. 116-260demonstrate a risk of homelessness or housing insecurity that was included in P.L. 116-260.
; nor does it require that financial hardship be related to the COVID-19 pandemic. A household is eligible for assistance under ERA-2 as long as hardship has occurred due to or during the pandemic. Neither law addresses noncitizen eligibility for assistance under the ERA program.Neither law addresses noncitizen eligibility for assistance under the ERA program.3134
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.

3134 Some questions have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and 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 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 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, 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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~~Emergency Rental Assistance through the Coronavirus Relief Fund~~10 Pandemic Relief: The Emergency Rental Assistance Program

Documentation
P.L. 116-260 P.L. 116-260 ~~specified~~specifies that grantees may determine an applicant’s income eligibility based on 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.”3235 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.3336
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 September 30, 2021, the Treasury Secretary is directed to recapture any ~~excess unobligated funds~~
“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 65% of their ERA-1 funds for eligible purposes. Grantees receiving real ocated funds may request up to a 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.
As of the date of this report, Treasury has not issued any guidance regarding how it wil define “excess” unobligated funds held by grantees and when they plan to conduct the recapture and real ocation.37 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 undisbursed 2022, the Treasury Secretary is directed to real ocate undisbursed ~~funds~~funds38 to grantees that have 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 as of October 1, 2022, may obligate remaining unobligated funds for funds for ~~other~~ a broader range of other affordable rental housing and 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~~
~~ERA-2 grantees to comply with the data privacy and security requirements established for ERA-~~
~~1.34~~
~~Outstanding Questions~~
~~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~~
~~the implementation of the ERA program, adequacy of funds, and potential implications if state~~
~~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.~~
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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~~
~~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-~~
~~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~~
~~charged with distributing assistance to eligible~~ Treasury has begun publishing data from these reports on its website.39 35 T reasury May 7, 2021, FAQs, FAQ 1, p. 2. 36 T reasury May 7, 2021, FAQs, FAQ 4, p. 5. 37 A group of national organizations representing ERA program grantees released a set of joint recommendations on how T reasury should use the flexibility in the law when conducting the recapture and reallocation process. See https://www.ncsha.org/wp-content/uploads/Principles-for-Emergency-Rental-Assistance-Program-Reallocations.pdf. 38 As noted earlier, P.L. 117-2 directed T reasury to disburse ERA-2 funding allocations in phases, based on grantee spending rates. Specifically, T reasury 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 allocation. It is these undisbursed ERA-2 funds held by T reasury that are subject to potential reallocation. 39 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. Congressional Research Service 11 Pandemic Relief: The Emergency Rental Assistance Program P.L. 117-2 did not contain reporting requirements for ERA-2. Treasury’s May 7, 2021, FAQs encouraged ERA-2 grantees to comply with the data privacy and security requirements established for ERA-1.40 Treasury subsequently released reporting guidance applicable to both ERA-1 and ERA-2 grantees.41 Outstanding Questions This section discusses possible questions about the implementation of the ERA program. How are local programs structured? States and localities are charged with distributing ERA 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 have authority to parameters. Within those parameters, states and localities have authority to determine, for 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, 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 One factor that may influence state and local decisions is the extent to which any ~~existing~~previous
emergency rental assistance programs they emergency rental assistance programs they ~~administer may~~administered already already ~~meet~~met, or , or ~~may~~could be easily be easily
adjusted to meet, the requirements for ERA funding. To the extent states and localities adjusted to meet, the requirements for ERA funding. To the extent states and localities ~~can~~were able to fund 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.
Treasury found this to be the case in a “Key Findings” interim reporting document issued in July 2021.42 The ability of state and local governments to structure their programs differently The ability of state and local governments to structure their programs differently ~~wil mean~~means that that
the experience of similarly situated renters seeking emergency rental assistance wil likelythe experience of similarly situated renters seeking emergency rental assistance wil likely vary 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
40 T reasury May 7, 2021, FAQs, FAQ 14, p. 9. 41 See ERA Reporting Guidance, issued June 30, 2021, at https://home.treasury.gov/system/files/136/ERA-Reporting-Guidance.pdf. 42 U.S. T reasury, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities Must Do More to Accelerate Aid,” p. 4, available at https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-Post -vF.pdf. Congressional Research Service 12 Pandemic Relief: The Emergency Rental Assistance Program 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.
Treasury’s June FAQ revision included encouragement for grantees to coordinate to reduce 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 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 region. The agency also released “promising practices” to ensure assistance can quickly reach
renters in need. renters in need.3543
Will rental assistance prevent loss of housing?
Both the amount and geographic distribution of ERA 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.~~
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~~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~~
~~tenant outcomes.~~
funding, as wel as how quickly it is distributed, could determine the extent to which the assistance may help protect renters from eviction. 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).3644 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.3745 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. child tax credits. ~~Whether this additional aid~~Newer estimates project rental arrearages to be less than total ERA funding.46 Whether existing ERA funding wil be sufficient to address outstanding arrearages wil be sufficient to address outstanding arrearages
and avoid and avoid widespread housing disruption when eviction moratoriums end is yet to be seen. 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~~More recently, the speed and effectiveness of the distribution of ERA funds has been of increasing concern to stakeholders and policymakers. The need for more time to distribute ERA assistance to eligible households to forestal evictions was asserted by the Administration in its June 2021 extension of the CDC eviction moratorium (through the end of July)47 and in its issuance of a new eviction moratorium in August 2021 (through October 3, 2021).48 (The CDC’s federal eviction moratorium was made unenforceable as the result of a Supreme Court decision on August 26, 2021.49) 43 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program/promising-practices. 44 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, Household Rental Debt During COVID-19, Federal Reserve Bank of Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/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, 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, 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-market -outlook-markets-avoid-great-recessions-calamities.pdf. 45 Averting an Eviction Crisis. 46 Rent Debt in America. 47 Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19,” 86 Federal Register 34010-34018, June 28, 2021, https://www.federalregister.gov/d/2021-13842/p-65. 48 Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions in Communities With Substantial or High T ransmission of COVID-19 T o Prevent the Further Spread of COVID-19,” 86 Federal Register 43244-43252, August 6, 2021, https://www.federalregister.gov/d/2021-16945/p-80. 49 For more information, see CRS Legal Sidebar LSB10638, Supreme Court Blocks Enforcement of the CDC’s Eviction Congressional Research Service 13 Pandemic Relief: The Emergency Rental Assistance Program At the end of June, Treasury released initial data on ERA-1 expenditures. It found that, of the $25 of the $25
bil ion al ocated, grantees had spent approximately $1.45 bil ion on rent, utilities, and arrears 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 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 had committed roughly $1 bil ion to administrative costs and housing stability services. The data
~~show~~showed spending that spending that iswas accelerating; roughly half of total spending occurred in the last month accelerating; roughly half of total spending occurred in the last month
(May) of the reporting period.(May) of the reporting period.3950 Treasury’s accompanying analysis of these data stated “while Treasury’s accompanying analysis of these data stated “while
some state and local programs are increasingly reaching households in need, others lag far some state and local programs are increasingly reaching households in need, others lag far
behind, and many programs have just launched in recent weeks.” behind, and many programs have just launched in recent weeks.”40

~~36 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, Household Rental Debt During COVID-19, Federal Reserve Bank of~~
~~Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/~~
~~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,~~
~~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,~~ ~~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-~~
~~market -outlook-markets-avoid-great-recessions-calamities.pdf.~~
~~37 Averting an Eviction Crisis.~~
3851 On June 24, 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.”52 Treasury has since posted “Promising Practices” for speeding the delivery of aid and eviction diversion to its website,53 and the White House has hosted two summits on eviction prevention related to distribution of ERA assistance.54 Treasury has subsequently released two additional months of data on ERA-1 expenditures, through the end of June and July 2021. These data show that the pace of expenditure continued to grow in June, with $1.5 bil ion being spent on rent, utilities, and arrears serving approximately 291,000 households in that month alone.55 Total spending increased again in July, but at a slower pace, with just under $1.7 bil ion spent on rent, utilities, and arrears serving 341,000 households that month. According to these data, in the first seven months of the program (January-July 2021), of the $25 bil ion in ERA-1 funding distributed, grantees reported spending just over $4.7 bil ion on assistance (rent, utilities, and arrears).56 Moratorium . 50 See https://home.treasury.gov/system/files/136/ERA-Compliance-Report-06302021.xlsx. 51 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. 52 White House, “FACT SHEET : Biden-Harris Administration Announces Initiatives to Promote Housing Stability By 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-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-room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-
stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/.
3953 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. 54 White House, “Readout of the White House Eviction Prevention Summit,” press release, June 30, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/30/readout -of-the-white-house-eviction-prevention-summit/; and White House, “ Readout of the Second White House Eviction Prevention Convening,” press release, July 21, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/21/readout -of-the-second-white-house-eviction-prevention-convening/. 55 See https://home.treasury.gov/system/files/136/July-ERA-data.xlsx. 56 Ibid. Congressional Research Service 14 Pandemic Relief: The Emergency Rental Assistance Program ~~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.~~
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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 ($362 bil ion). General assistance through the CARES Act was Act ($150 bil ion) and P.L. 117-2 ($362 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,4157 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.”4258 The White House fact sheet The White House fact sheet
released in June 2021 highlighted the authority to use state and local fiscal relief funds for released in June 2021 highlighted the authority to use state and local fiscal relief funds for
eviction diversion purposes.eviction diversion purposes.4359 In late August 2021, following the Supreme Court ruling making the CDC’s federal eviction moratorium unenforceable, Treasury Secretary Yel en, Attorney General Garland, and Secretary of the Department of Housing and Urban Development Fudge sent a joint letter to governors and mayors encouraging the use of state and local general assistance funds provided in P.L. 117-2 for eviction prevention.60
Treasury published its Interim Final Rule for al owable uses of state and local recovery funds 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.received through P.L. 117-2 in May 2021.4461 The guidance includes an intent to make eligible for The guidance includes an intent to make eligible for
funding programs that respond to the negative economic impacts of the COVID-19 public health 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 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 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 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 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 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 period for the Interim Final Rule closes July 16, 2021, with a Final Rule expected to be released
after those comments have been considered. 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~~

4157 Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at
https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund. https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund.
42 58 42 U.S.C. 801, Section 602(c)(1)(A), which provides eligible uses for the Coronavirus State Fiscal Recovery Fund. 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 Identical language is included in statute for the ~~Coro navirus~~Coronavirus Local Fiscal Recovery Fund. Local Fiscal Recovery Fund.
4359 White House, “FACT SHEET : Biden-Harris Administration Announces Initiatives to Promote Housing Stability By 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-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-room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-
stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/.
44 60 U.S. T reasury, “Evict ion Moratorium Joint Letter,” August 27, 2021, available at https://home.treasury.gov/system/files/136/Eviction-Moratorium-Joint-Letter.pdf. 61 For access to the Interim Final Rule and more information on funding, see T reasury Department, “Coronavirus State 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/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. assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds.
Congressional Research Service Congressional Research Service

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~~Emergency Rental Assistance through the Coronavirus Relief Fund~~

15 Pandemic Relief: The Emergency Rental Assistance Program Author Information Grant A. Driessen Libby Perl Specialist in Public Finance Specialist in Housing Policy Maggie McCarty Specialist in Housing Policy

Disclaimer
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Congressional Research Service Congressional Research Service
R46688 R46688 · VERSION 79 · UPDATED
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