Pandemic Relief: The Emergency Rental Assistance Program

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Pandemic Relief: The Emergency Rental
~~September 8~~October 21, 2021 , 2021
Assistance Program
Grant A. Driessen
In response to concerns about the economic effects of the COVID-19 pandemic on renters and In response to concerns about the economic effects of the COVID-19 pandemic on renters and
Specialist in Public Finance Specialist in Public Finance
their landlords, Congress created a $25 billion Emergency Rental Assistance (ERA) program in their landlords, Congress created a $25 billion Emergency Rental Assistance (ERA) program in

the Consolidated Appropriations Act, 2021 (Division N of P.L. 116-260). the Consolidated Appropriations Act, 2021 (Division N of P.L. 116-260). A second round of A second round of
Maggie McCarty
ERA funding—$21.55 billion—was included in Section 3201 of the American Rescue Plan Act ERA funding—$21.55 billion—was included in Section 3201 of the American Rescue Plan Act
Specialist in Housing Policy Specialist in Housing Policy
of 2021 (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) the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) and and
Specialist in Housing Policy Specialist in Housing Policy
implemented by the Department of the Treasury. The ERA implemented by the Department of the Treasury. The ERA program directed resources to states, directed resources to states, ~~localities,~~

localities, and tribes via a per capita formula allocation. The second round of ERA funding included a set-and tribes 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 aside of $2.5 billion for “high need” grantees and did not include a set-aside for ~~tribes.~~
For a copy of the For a copy of the ~~ful~~ full report, report,
please please ~~cal~~ call 7-5700 or visit 7-5700 or visit
tribes. www.crs.gov. www.crs.gov.
P.L. 116-260 P.L. 116-260 established various parameters for how the first round of ERA funding (ERA-1) established various parameters for how the first round of ERA funding (ERA-1)
can be used. Among other requirements, states and localities must use the bulk of funds for financial assistance, which is can be used. Among other requirements, states and localities must use the bulk of funds for financial assistance, which is
defined to include rental assistance and utility assistance (including payment of arrearages). Remaining funds may be used defined to include rental assistance 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) and administrative for housing stability services (case management and other supports to help families retain their housing) and administrative
expenses. Renters are eligible for assistance if they are low-income, experiencing financial hardship, and at risk of expenses. 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 homelessness or 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.established obligation and 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. These parameters were changed somewhat for the second round of ERA funding under P.L. 117-2. Specifically, the amount Specifically, the amount
that can be spent on administrative expenses was increased, and grantees may be able to use funds that remain unobligated as that can be spent on administrative expenses was increased, and grantees may be able to use funds that remain unobligated as
of October 1, 2022, for a broader range of affordable housing and eviction prevention activities. P.L. 117-2of October 1, 2022, for a broader range of 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. The ability of states and localities to structure their programs flexibility in designing their rental assistance programs. The ability of states and localities to structure their programs
differently means that the experience of similarly situated renters seeking assistance will likely vary geographicallydifferently means that the experience of similarly situated renters seeking assistance will likely vary geographically . .
Similarly,Similarly, there may be geographic variability in the degree to which existing resources—both ERA and other funds—are there may be geographic variability in the degree to which existing resources—both ERA and other funds—are
adequate to meet demand for rental assistance and the speed at which grantees are able to disburse assistance. adequate to meet demand for rental assistance and the speed at which grantees are able to disburse assistance.
Treasury data on spending of ERA-1 funds showed that Treasury data on spending of ERA-1 funds showed that ~~less than $~~approximately $7.5 billion of the $25 billion in ERA-1 funding allocated to 5 billion of the $25 billion in ERA-1 funding allocated to
states and localities had been spent on household rent, utilities, and arrears during the first states and localities had been spent on household rent, utilities, and arrears during the first ~~seven~~eight months of the program months of the program
(through the end of (through the end of ~~July~~August 2021). The rate of expenditure of ERA-1 funds has caused some to raise concerns about the 2021). The rate of expenditure of ERA-1 funds has caused some to raise concerns about the
effectiveness of the program in preventing evictions as eviction moratoriums endeffectiveness of the program in preventing evictions as eviction moratoriums end, and and in addressing the backlog of rent and addressing the backlog of rent and
utility debt (estimates of which have ranged from more than $20 billion to more than $50 billion). Grantees with excess utility debt (estimates of which have ranged from more than $20 billion to more than $50 billion). Grantees with excess
unobligated ERA-1 funds unobligated ERA-1 funds ~~may be~~are subject to recapture and reallocation of those funds beginning subject to recapture and reallocation of those funds beginning ~~September 30,~~in fall 2021. 2021.
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Pandemic Relief: The Emergency Rental Assistance Program

Introduction
The Emergency Rental Assistance (ERA) program was created to help cover the unmet rent and The Emergency Rental Assistance (ERA) program was created to help cover the unmet rent and
utility expenses of low-income households affected by the economic consequences of the utility expenses of low-income households affected by the economic consequences of the
COVID-19 pandemic. COVID-19 pandemic. It has received two rounds of funding. The Consolidated Appropriations Act, 2021 (P.L. 116-260) The Consolidated Appropriations Act, 2021 (P.L. 116-260) ~~initial y~~ initially funded funded
the ERA program with an appropriation of $25 the ERA program with an appropriation of $25 ~~bil ion.1~~ billion.1 The ERA The ERA program was funded through the was funded through the
Coronavirus Relief Fund (CRF), a program created as part of the Coronavirus Aid, Relief, and Coronavirus Relief Fund (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 Economic Security (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 Treasury, to assist state, 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 was appropriation could be used for multiple purposes, the ERA appropriation in P.L. 116-260 was
directed only to rent and utility assistance and related housing stability services. A second directed only to rent and utility assistance and related housing stability services. A second
appropriation—of $21.550 appropriation—of $21.550 ~~bil ion~~billion—for ERA was included in Section 3201 of the American —for ERA was included in Section 3201 of the American
Rescue Plan Act Rescue Plan Act of 2021 (P.L. 117-2). (P.L. 117-2).
This report briefly describes the need for rental assistance during the COVID-19 pandemic, This report briefly describes the need for rental assistance during the COVID-19 pandemic,
provides information about the provides information about the ~~al ocation~~allocation of ERA funds, describes the parameters of the ERA of ERA funds, describes the parameters of the ERA
program, and discusses outstanding questions about the program and renter needs. program, and discusses outstanding questions about the program and 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. The Joint Center on Housing Studies reported that in 2018, nearly half (48%) of affordability. The Joint Center on Housing Studies reported that in 2018, nearly half (48%) of al
all 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 pandemicrenters, who are also estimated to face the greatest threat of eviction during the pandemic .5
~~Mil ions~~ .5 Millions of renters report being behind on their rent, lacking confidence in their abilityof renters report being behind on their rent, lacking confidence in their ability to pay to pay
next month’s rent, and facing a likelihood of leaving their housing due to eviction.6next month’s rent, and facing a likelihood of leaving their housing due to eviction.6

~~1 See Division N, T itle~~ 1 See Division N, Title V, Section 501 of P.L. 116-260. V, Section 501 of P.L. 116-260.
2 For more information about CRF in the CARES2 For more information about CRF in the CARES Act, see CRSAct, see CRS Report R46298, 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~~ the Economic Impacts of COVID-19 on ~~Am erica~~America’s Households, Harvard Joint Center for Housing, Harvard Joint Center for Housing Studies,Studies, July 2, 2020, 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, “5 Whitney Airgood-Obrycki, “ ~~T he~~The Impact of COVID-19 on Renters and Rental Markets,” Harvard Joint Center for Impact of COVID-19 on Renters and Rental Markets,” Harvard Joint Center for
HousingHousing ~~Studies~~ Studies virtual event, September 4, 2020, https://www.jchs.harvard.edu/calendar/impactvirtual event, September 4, 2020, https://www.jchs.harvard.edu/calendar/impact -covid-19-renters-and--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~~ Pandemic, ,
Harvard Joint Center for Housing Studies,Harvard Joint Center for Housing Studies, January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-
renters-face-greatestrenters-face-greatest -threat-eviction-pandemic. -threat-eviction-pandemic.
6 6 ~~T he~~The Census Bureau Census Bureau has surveyed samples of householdshas surveyed samples of households on their pandemic-related housing situations every two on their pandemic-related housing situations every two
weeksweeks since the beginning of the pandemic, starting on April 23, 2020. 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~~ See Census Bureau Pulse Pulse
survey data, availablesurvey data, available ~~at https://www.census.gov/programs-surveys/household-pulse-survey/data.html.~~
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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 eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) took effect on took effect on
September 4, 2020, and was extended several times before it expired on August 1, 2021. 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 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. 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 However, on August 26, 2021, the Supreme Court blocked enforcement of the new eviction
moratorium, moratorium, ~~al owing~~allowing evictions to proceed in areas that do not have their own state or local evictions to proceed in areas that do not have their own state or local
eviction moratoriums.7eviction moratoriums.7
While the moratoriums may prevent eviction for nonpayment of rent, they do not prevent While the moratoriums may prevent eviction for nonpayment of rent, they do not prevent
arrearages from accumulating, which arrearages from accumulating, which ~~could~~can result in eviction when moratoriums lift. These result in eviction when moratoriums lift. These
missed rent payments also affect landlords. This may particularly result in hardship for missed rent payments also affect landlords. This may particularly result in hardship for ~~smal er~~
smaller 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 At the end of January 2021, it was estimated that total rental arrears were Hispanic landlords.8 At the end of January 2021, it was estimated that total rental arrears were
~~$57 bil ion;9~~ $57 billion;9 more recent estimates suggest the total may be closer to $20 more recent estimates suggest the total may be closer to $20 ~~bil ion~~billion.10 .10
At the outset of the COVID-19 pandemic, some states and localities used federal funds At the outset of the COVID-19 pandemic, some states and localities used 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.11 Further, households may have drawn on CARES Act stimulus rental assistance programs.11 Further, households may have drawn on CARES Act stimulus
checks, expanded unemployment benefits, and borrowing to cover rent. However, some of these checks, expanded unemployment benefits, and borrowing to cover rent. However, some of these
sources of funds became depleted as the pandemic continued.12sources of funds became depleted as the pandemic continued.12
Organizations representing both tenants and landlords advocated for additional federal funds to Organizations representing both tenants and landlords advocated for additional federal funds to
help tenants pay their rent.13 Legislation was introduced in the 116th Congress that would have help tenants pay their rent.13 Legislation was introduced in the 116th Congress that would have
provided as much as $100 provided as much as $100 ~~bil ion~~billion to help tenants pay rent.14 Ultimately, Congress appropriated to help tenants pay rent.14 Ultimately, Congress appropriated
nearly $47 nearly $47 ~~bil ion~~ billion for emergency rent and utility assistance through for emergency rent and utility assistance through ~~ERA.~~

the ERA program. at https://www.census.gov/programs-surveys/household-pulse-survey/data.html. 7 For more information, see CRS7 For more information, see CRS Insight IN11673, Insight IN11673, The CDC’s Federal Eviction Moratorium . .
8 Small8 Small ~~landlords~~ landlords in the analysis are those owning 2-4 unit properties; Jung Hyun Choi and Caitlin Young, 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~~Small Buildings Are Particularly Vulnerable during the ~~Pandem ic, T he~~Pandemic, The Urban Institute, Urban Institute,
AugustAugust 10, 2020, https://www.urban.org/urban-wire/owners-and-renters-62-million-units-small-buildings-are-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 Jim Parrott and Mark M. Zandi, 9 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”). ”).
10 Sarah 10 Sarah ~~T reuhaft~~Treuhaft, , Rent Debt in America: Stabilizing Renters Is Key to Equitable Recovery, National Equity Atlas, ,
AugustAugust 10, 2021, https://nationalequityatlas.org/rent-debt-in-america (hereinafter, “10, 2021, https://nationalequityatlas.org/rent-debt-in-america (hereinafter, “ Rent Debt in ~~Am erica~~America”). ”).
11 See 11 See examples from the National Conference of State Legislatures, which tracks the ways in which states are using examples from the National Conference of State Legislatures, which tracks the ways in which states are using
their CRFtheir CRF allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspx. allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspx.
12 12 Averting an Eviction Crisis. .
13 See,13 See, for example, National Housing Conference, “31 housing organizations tell administration and Congress to for example, National Housing Conference, “31 housing organizations tell administration and Congress to
immediately return to negotiations,” press release, Augustimmediately return to negotiations,” press release, August 21, 2020, https://nhc.org/press-release/31-housing-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/.
14 See 14 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R. the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R.
6820, S. 3685). 6820, S. 3685).
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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 P.L. 116-260 provided a total of $25.000 ~~bil ion~~ billion in ERA support to governments in states, 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  $23.785 ~~bil ion is al ocated~~billion is allocated for governments in the 50 states and the District of for governments in the 50 states and the District of
Columbia Columbia ~~(DC)~~ based on their populations (as projected by the U.S. Census based on their populations (as projected by the U.S. Census
Bureau for July 2020),15 with no state receiving less than $0.200 Bureau for July 2020),15 with no state receiving less than $0.200 ~~bil ion~~billion; ;
 $0.800  $0.800 ~~bil ion~~ billion is set aside for governments in tribal areas, with individual is set aside for governments in tribal areas, with individual
government government ~~al ocations~~allocations distributed in proportion to relative payments made under distributed in proportion to relative payments made under
the Native American Housing Block Program in FY2020;16 the Native American Housing Block Program in FY2020;16
 $0.400  $0.400 ~~bil ion is al ocated~~billion is allocated to the territories of Puerto Rico, the U.S. Virgin 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~~ billion provided to Puerto Rico and $0.075 provided to Puerto Rico and $0.075 ~~bil ion~~billion distributed to the remaining distributed to the remaining
territories based on their relative population share; and territories based on their relative population share; and
 $0.015  $0.015 ~~bil ion~~ billion is set aside to cover federal administrative costs related to program is set aside to cover federal administrative costs related to program
implementation. implementation.
ERA-1 payments are ERA-1 payments are ~~general y~~generally provided to state (or territorial) governments, though state 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
eligibleeligible purposes. Local governments serving a population of at least 200,000 (as measured by the purposes. Local governments serving a population of at least 200,000 (as measured by the
U.S. Census Bureau in 2019),17 may elect to receive assistance directly from Treasury. Any U.S. Census Bureau in 2019),17 may elect to receive assistance directly from Treasury. Any
payments made directly to localities reduce the payments made directly to localities reduce the ~~al ocation~~allocation made to the state government (keeping 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 territorial ~~al ocation~~allocation amount, (2) the percentage of the state or territorial population attributable to amount, (2) the percentage of the state or territorial population attributable to
the local government, and (3) 45%. the local government, and (3) 45%.
In many cases, populations are served by more than one local government that is eligible In many cases, populations are served by more than one local government that is eligible for 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, such cases, al all overlapping governments are eligible for assistance.18 However, direct assistance overlapping governments are eligible for assistance.18 However, direct assistance
payments to larger localitiespayments to larger localities is calculated using only their unique population, or is calculated using only their unique population, or ~~wil~~ will be reduced be reduced
by any amounts also attributable to by any amounts also attributable to ~~smal er~~smaller localities receiving assistance (i.e., in the above localities receiving assistance (i.e., in the above

~~15 U.S. Census Bureau,~~ 15 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020, “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.populations, see U.S. ~~Census~~ Census Bureau,Bureau, “American Community Survey 2015“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.
16 For more on the Native American Housing16 For more on the Native American Housing Block Grant program, see CRSBlock Grant program, see CRS Report R43307, Report R43307, The Native American
Housing Assistance and Self-~~Determ ination~~Determination Act of 1996 (NAHASDA): Background and Funding, by Katie Jones. , by Katie Jones.
17 U.S. 17 U.S. ~~Census~~ Census Bureau,Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020, “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.
18 U.S. 18 U.S. ~~T reasury~~ Treasury, “Emergency Rental Assistance Program: Data and Methodology, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and for State, Local Government, and
~~T erritory~~Territory Allocations,” January 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Data- 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.
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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 appropriated a total of $21.550 P.L. 117-2 appropriated a total of $21.550 ~~bil ion~~ billion in ERA support to governments in states and in ERA support to governments in states and
territories. Unlike P.L. 116-260, P.L. 117-2 did not include a separate territories. Unlike P.L. 116-260, P.L. 117-2 did not include a separate ~~al ocation~~allocation of funds for tribal of funds for tribal
governments, and the payments were classified as mandatory spending rather than discretionary 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 spending. 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  $18.712 ~~bil ion is al ocated~~billion is allocated for governments in the 50 states and the District of for governments in the 50 states and the District of
Columbia Columbia ~~(DC)~~ based on their populations (as projected by the U.S. Census based on their populations (as projected by the U.S. Census
Bureau for July 2020),19 with no state receiving less than $0.152 Bureau for July 2020),19 with no state receiving less than $0.152 ~~bil ion~~billion; ;
 $0.305  $0.305 ~~bil ion is al ocated~~billion is allocated to the territories of Puerto Rico, the U.S. Virgin 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~~ billion provided to Puerto Rico and $0.065 provided to Puerto Rico and $0.065 ~~bil ion~~billion distributed to the remaining distributed to the remaining
territories based on their relative population share; territories based on their relative population share;
 $2.500  $2.500 ~~bil ion~~ billion is set aside for high-need grantees, to be distributed by the 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  $0.033 ~~bil ion~~ billion is set aside to cover federal administrative costs related to program is set aside to cover federal administrative costs related to program
implementation. implementation.
Direct local Direct local ~~al ocation~~allocation identifications, calculations, and division of payments across overlapping 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. 117-2 directed that ERA-2 funds be staggered in their distribution. ~~Specifical y~~Specifically, Treasury was , 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 initialthe remainder to be distributed after grantees expend 75% of their initial ERA-2 ERA-2 ~~al ocation~~allocation.20 .20
Table 1 shows ERA-1 and ERA-2 shows ERA-1 and ERA-2 ~~al ocations~~allocations and estimates broken out by state and territory, and and estimates broken out by state and territory, and
government level.21 government level.21

~~19 U.S. Census Bureau,~~ 19 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020, “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.populations, see U.S. ~~Census Bureau, “~~ Census Bureau, “American Community Survey 2015American 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.
20 See 20 See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/
text#H61B6162AB8EC496ABB590ADA8F6898FF. text#H61B6162AB8EC496ABB590ADA8F6898FF.
21 U.S.21 U.S. ~~T reasury~~ Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-issues/, “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.
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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~~All allocations in millions of dollars) )

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 District of 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~~
Hawaii 125 125
95 95
0 0
75 75
57 57
14 14
366 366
Idaho Idaho
176 176
134 134
0 0
24 24
18 18
0 0
352 352
Il inois Il inois
566 566
448 448
32 32
268 268
212 212
70 70
1,597 1,597
Indiana Indiana
372 372
294 294
32 32
76 76
60 60
11 11
845 845
Iowa Iowa
195 195
154 154
0 0
15 15
12 12
0 0
376 376
Kansas Kansas
169 169
129 129
0 0
31 31
23 23
0 0
353 353
Kentucky Kentucky
264 264
209 209
24 24
33 33
26 26
6 6
562 562
Louisiana Louisiana
249 249
197 197
0 0
59 59
47 47
18 18
570 570
Maine Maine
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Maryland Maryland
258 258
204 204
0 0
143 143
114 114
34 34
754 754
Massachusetts Massachusetts
421 421
333 333
55 55
36 36
29 29
20 20
893 893
Michigan Michigan
623 623
493 493
25 25
38 38
30 30
45 45
1,254 1,254
Minnesota Minnesota
289 289
229 229
0 0
86 86
68 68
18 18
690 690
Mississippi Mississippi
187 187
145 145
0 0
13 13
10 10
2 2
358 358
Missouri Missouri
324 324
256 256
23 23
84 84
67 67
18 18
772 772
Montana Montana
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Nebraska Nebraska
159 159
121 121
0 0
41 41
31 31
5 5
357 357
Nevada Nevada
125 125
99 99
0 0
83 83
66 66
21 21
394 394
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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
New New
179 179
136 136
0 0
21 21
16 16
0 0
352 352
Hampshire Hampshire
New Jersey New Jersey
354 354
280 280
0 0
235 235
186 186
86 86
1,141 1,141
New Mexico New Mexico
161 161
123 123
0 0
39 39
29 29
6 6
358 358
New York New York
801 801
634 634
39 39
481 481
381 381
258 258
2,594 2,594
North North
547 547
432 432
57 57
156 156
124 124
14 14
1,331 1,331
Carolina Carolina
North North
200 200
152 152
0 0
0 0
0 0
0 0
352 352
Dakota Dakota
Northern Northern
10 10
9 9
0 0
0 0
0 0
0 0
19 19
Mariana Mariana
Islands Islands
Ohio Ohio
565 565
447 447
49 49
210 210
167 167
39 39
1,476 1,476
Oklahoma Oklahoma
210 210
166 166
0 0
54 54
43 43
12 12
485 485
Oregon Oregon
204 204
162 162
0 0
77 77
61 61
22 22
526 526
Pennsylvania Pennsylvania
570 570
451 451
49 49
278 278
220 220
43 43
1,610 1,610
Puerto Rico Puerto Rico
325 325
240 240
0 0
0 0
0 0
0 0
565 565
Rhode Island Rhode Island
200 200
152 152
0 0
0 0
0 0
0 0
352 352
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 All Tribal 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,U.S. Treasury, “Emergency Rental Assistance“Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-Program,” May 2021, https://home.treasury.gov/policy-
issues/cares/emergency-rental-assistance-program.issues/cares/emergency-rental-assistance-program.
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Notes: Recipients may choose to transfer funds to governmentsRecipients may choose to transfer funds to governments within their jurisdiction,within their jurisdiction, but are not obligated 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.

State and Local Distribution Information
Treasury and stakeholder Treasury and stakeholder groups have assembledgroups have assembled various resourcesvarious resources to provide information on state and local ERA to provide information on state and local ERA
programs. programs.
For detailed state and local al ocationsFor detailed state and local al ocations under ERA-1 and ERA-2, Treasury provides information on its website: 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- ERA-1: https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Payments-to-States-and-
Eligible-Units-of-Local-Government.pdfEligible-Units-of-Local-Government.pdf
 
ERA-2: https://home.treasury.gov/system/files/136/ERA2_Allocations_Eligible_Entities_572021.pdf ERA-2: https://home.treasury.gov/system/files/136/ERA2_Allocations_Eligible_Entities_572021.pdf
Treasury also Treasury also ~~periodical y releases~~ periodically releases data on program expenditures by grantee: data on program expenditures by grantee:
 
See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-programgovernments/emergency-rental-assistance-program (scrol(scrol to the bottom of the page) to the bottom of the page)
To identify specific grantees and programs To identify specific grantees and programs in states and localities,in states and localities, ~~Treasury~~ Treasury has developed a programhas developed a program locator tool: locator tool:
 
See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program/program-index governments/emergency-rental-assistance-program/program-index
The National Low Income Housing Coalition (a nonprofit advocacy organization) has developed a set of tools for The National Low Income Housing Coalition (a nonprofit advocacy organization) has developed a set of tools for
analyzing selectedanalyzing selected features of state and local ERA programsfeatures of state and local ERA programs ~~as wel~~ as well as a spending tracker: as a spending tracker:
 
See https://nlihc.org/era-dashboard 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 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 Frequently Asked Questions (FAQs) and the funds could and should be spent. Treasury has issued Frequently Asked Questions (FAQs) and
other guidance documents regarding how certain aspects of the law are to be applied.22 For the other guidance documents regarding how certain aspects of the law are to be applied.22 For the
second round of ERA funding, P.L. 117-2 made some changes that are applicable to the first second round of ERA funding, P.L. 117-2 made some changes that are applicable to the first
round of funding (i.e., expenditure deadlines); and others that are applicable only to the second round of funding (i.e., expenditure deadlines); and others that are applicable only to the second
round (i.e., income eligibilityround (i.e., income eligibility and a different cap on administrative expenses). Treasury has and a different cap on administrative expenses). Treasury has
revised its FAQs multiple times to reflect the requirements of both ERA-1 and ERA-2 and in revised its FAQs multiple times to reflect the requirements of both ERA-1 and ERA-2 and in
response to stakeholder feedback.23 response to stakeholder feedback.23
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 were able to use the new funds to supplement existing rental 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 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); aligned with the emergency rental assistance statutory requirements (which are outlined below);
others had to develop new programs from scratch.others had to develop new programs from scratch.

~~22 T reasury guidance can be~~ 22 Treasury guidance can be found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-found at https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-
program. program.
23 23 ~~T reasury~~Treasury has revised has revised FAQs in February, March, May, June,FAQs in February, March, May, June, and Augustand August of 2021. See the February FAQsof 2021. See the February FAQs at 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, “https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf (hereinafter, “ Treasury May 7, 2021, FAQs”), Treasury May 7, 2021, FAQs”),
June FAQsJune FAQs at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf (hereinafter, “at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf (hereinafter, “ Treasury June 24, Treasury June 24,
2021, FAQs”), and August2021, FAQs”), and August FAQs at https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf (hereinafter, FAQs at https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf (hereinafter,
““~~T reasury~~Treasury August 25, 2021, FAQs”). August 25, 2021, FAQs”).
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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.24 Note that 10% could be spent on administrative expenses and housing stability services.24 Note that
Treasury guidance further interpreted these limits; see the Treasury guidance further interpreted these limits; see the “Administrative Costs and Housing
Stability Services” section. 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 utilities and home energy costs and arrears, and 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.25 However, Treasury later revised the FAQs to are not considered utilities under this program.25 However, Treasury later revised the FAQs to
define “other expenses” eligible for assistance to include internet service, if it define “other expenses” eligible for assistance to include internet service, if it ~~al ows~~allows renters to renters to
engage in distance learning, telework, and telemedicine and obtain government services.26 engage in distance learning, telework, and telemedicine and obtain government services.26
AdditionalAdditional “other expenses” identified in the FAQ include relocation expenses and rental fees (if “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 limitations; they can only be provided in 3-month increments and only if rental arrearages are
addressed. addressed.
Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under
both rounds of ERA combined. both rounds of ERA combined.
Treasury’s May 7, 2021, FAQs clarified that grantees must prohibit landlords from evicting 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 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 payments. Treasury’s guidance also encourages grantees to set policies prohibiting landlords who

~~24 T reasury~~ 24 Treasury’s initial guidance’s initial guidance interpreted this 10% limitation as applying to both administrative fees and housing interpreted this 10% limitation as applying to both administrative fees and housing
stability services combined. Subsequentstability services combined. Subsequent ~~guidance~~ guidance has amended that interpretation to allow grantees to usehas amended that interpretation to allow grantees to use up to up to ~~1 0~~10% of % of
ERA-1 funds for housingERA-1 funds for housing stability services, and up to 10% of total funds for administrative expenses.stability services, and up to 10% of total funds for administrative expenses.
25 See 25 See the January FAQthe January FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-
21.pdf. 21.pdf.
26 See 26 See the February FAQ revision at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-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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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.27 period, consistent with applicable law.27
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~~allows payments to be made directly to tenants if landlords or utility providers are payments to be made directly to tenants if landlords or utility providers are ~~unwil ing to~~
unwilling 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.28 making payments directly to tenants.28
Landlords are permitted to aid their tenants in applying for assistance, or they may apply directly. Landlords are permitted to aid their tenants in applying for assistance, or they may apply directly.
Landlords who apply directly must meet certain conditions (including obtaining tenant signatures, Landlords 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 notifying tenants of the application, and ensuring any funds received are applied to tenants’ rental
obligations). obligations).
The requirements in P.L. 117-2 are not as specific about landlord involvement, and, according to The requirements in P.L. 117-2 are not as specific about landlord involvement, and, according to
guidance in the May 7, 2021, FAQs, grantees may use their ERA-2 funding to offer assistance 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.29directly to tenants without first attempting to contact landlords or utility providers.29
~~Additional y,~~ Additionally, a revision to the FAQs issued on June 24, 2021, permitted grantees to enter into data 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.30 sharing agreements and bulk payment arrangements for large landlords and utility providers.30
The August revisions to the FAQs The August revisions to the FAQs ~~al ow~~allow grantees to make bulk payments to landlords and utility grantees to make bulk payments to landlords and utility
providers in advance of tenant eligibilityproviders in advance of tenant eligibility determination, as long as application and documentation determination, as long as application and documentation
requirements are met within six months.31 requirements are met within six months.31
The August FAQs further The August FAQs further ~~al ow~~allow that, upon the request of a tenant, a grantee may provide 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.32assistance 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 costs and housing stability services, which Treasury has interpreted as ~~al owing~~allowing grantees to use up grantees to use up
to 10% of grant amounts each for housing stability services and administrative costs.33 to 10% of grant amounts each for housing stability services and administrative costs.33
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% for housing stability services. The law defined “housing stability services” as case up to 10% for housing stability services. The law defined “housing stability services” as case
management and other services intended to keep households stably housed, without reference to management and other services intended to keep households stably housed, without reference to
COVID-19. It defined “administrative expenses” as those included under P.L. 116-260, as COVID-19. It defined “administrative expenses” as those included under P.L. 116-260, as ~~wel as~~
well as costs associated with other affordable rental housing and eviction prevention activities. costs associated with other affordable rental housing and eviction prevention activities.

~~27 T reasury~~ 27 Treasury May 7, 2021, FAQs, FAQ 32, p. 14. May 7, 2021, FAQs, FAQ 32, p. 14.
28 28 ~~T reasury~~Treasury May 7, 2021, FAQs, FAQ 12, p. 8. May 7, 2021, FAQs, FAQ 12, p. 8.
29 29 ~~T reasury~~Treasury May 7, 2021, FAQs, FAQ 12, p. 8. May 7, 2021, FAQs, FAQ 12, p. 8.
30 30 ~~T reasury~~Treasury June 24, 2021, FAQs, FAQ 38, p. 16. June 24, 2021, FAQs, FAQ 38, p. 16.
31 31 ~~T reasury~~Treasury August August 25, 2021, FAQs, FAQ25, 2021, FAQs, FAQ 38, p. 17. 38, p. 17.
32 32 ~~T reasury~~Treasury August August 25, 2021, FAQs, FAQ25, 2021, FAQs, FAQ 40, p. 17. 40, p. 17.
33 See33 See ~~footnote 24~~ footnote 24. .
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Individual Eligibility and Prioritization
P.L. 116-260 established a three-part eligibilityP.L. 116-260 established a three-part eligibility test based on income level, income loss or other 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 Under P.L. 116-260, to be eligible for direct financial assistance or housing stability services, 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 financial hardship (income loss or benefits or a written attestation of other financial hardship (income loss or
increased expenses) related directly or indirectly to the COVID-19 pandemic; 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
livingliving conditions, or other evidence as established by the grantee. conditions, or other evidence as established by the grantee.
The eligibility The eligibility definition in P.L. 117-2 does not include the detail as to how an individualdefinition in P.L. 117-2 does not include the detail as to how an individual can can
demonstrate a risk of homelessness or housing insecurity that was included in P.L. 116-260; nor demonstrate a risk of homelessness or housing insecurity that was included in P.L. 116-260; nor
does it require that financialdoes it require that financial hardship be related to the COVID-19 pandemic. A household is hardship be related to the COVID-19 pandemic. A household is
eligibleeligible for assistance under ERA-2 as long as hardship has occurred due to for assistance under ERA-2 as long as hardship has occurred due to or during the during the
pandemic. pandemic.
Neither law addresses noncitizen eligibility Neither law addresses noncitizen eligibility for assistance under the ERA program.34 for assistance under the ERA program.34
Prioritization
P.L. 116-260 directs grantees to prioritize the following individuals P.L. 116-260 directs grantees to prioritize the following individuals for direct financial assistance 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.

34 Some questions34 Some questions have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and
Work Responsibility Act of 1996 (PRWORA; Work Responsibility Act of 1996 (PRWORA; ~~T itle~~Title IV of P.L. 104-193, as amended) apply to assistance under the IV of P.L. 104-193, as amended) apply to assistance under the
ERA program. ERA program. ~~T o~~To date, date, ~~T reasury~~Treasury has not issued has not issued ~~guidance~~ guidance on the applicability of PRWORA noncitizen restrictions to on the applicability of PRWORA noncitizen restrictions to
these funds.these funds. For more information about PRWORA’s restrictions, see CRSFor more information about PRWORA’s restrictions, see CRS Report R46510, Report R46510, PRWORA’s Restrictions on
Noncitizen Eligibility for Federal Public Benefits: Legal Issues. .
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Documentation
P.L. 116-260 specifies that grantees may determine an applicant’s income eligibility P.L. 116-260 specifies that grantees may determine an applicant’s income eligibility based on 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.”35 For example, the FAQs say a grantee may rely on an applicant’s self-attestation of households.”35 For example, the FAQs say a grantee may rely on an applicant’s self-attestation of
income under certain circumstances.36 income under certain circumstances.36
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 September 30, 2021, the ~~Treasury Secretary is directed~~law directs the Treasury Secretary to recapture any “excess” unobligated to recapture any “excess” unobligated
funds (as determined by the Secretary) and to funds (as determined by the Secretary) and to ~~real ocate~~reallocate them to grantees that have obligated at them to grantees that have obligated at
least 65% of their ERA-1 funds for eligible purposesleast 65% of their ERA-1 funds for eligible purposes (discussed below). Grantees receiving . Grantees receiving ~~real ocated~~reallocated funds may funds may
~~request up to a 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~~
request up to a 90-day extension of the availability deadline, to December 29, 2022. 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 2022, the Treasury Secretary is directed to ~~real ocate~~reallocate undisbursed undisbursed ~~funds38~~funds37 to grantees that have to grantees that have
obligated 50% or more of their total obligated 50% or more of their total ~~al ocated~~allocated funds. These funds. These ~~real ocated~~reallocated funds can only be used for 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 unobligated funds for a broader range of other as of October 1, 2022, may obligate remaining unobligated funds for a broader range of other
affordable rental housing and eviction prevention purposes for very low-income families. affordable rental housing and eviction prevention purposes for very low-income families.
~~Reporting Requirements~~
~~The Treasury Secretary, in consultation with the Secretary of Housing and Urban Development, is~~
~~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~~
~~acceptance rate of applicants, and the types and amounts of assistance. Grantees must establish~~
~~data privacy guidelines for collecting information. 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~~ ERA-1 Recapture and Reallocation Process On October 4, 2021, Treasury released initial guidance on its plan for reallocating “excess” unobligated ERA-1 funding, which is summarized below.38 Grantees that have obligated less than 65% of their ERA-1 allocations are required to submit a Program Improvement Plan to Treasury no later than November 15, 2021, as well as progress reports thereafter. The Program Improvement Plan is a factor Treasury will consider in determining excess funds. Beginning in November 2021, and every two months thereafter, through at least March 31, 2022, Treasury will assess grantees for excess funds. Treasury will determine excess funds based on the following factors: 35 Treasury May 7, 2021, FAQs, FAQ 1, p. 2. 36 Treasury May 7, 2021, FAQs, FAQ 4, p. 5. 37 As noted earlier, P.L. 117-2 directed Treasury to disburse ERA-2 funding allocations in phases, based on grantee spending rates. Specifically, Treasury was directed to distribute no less than the first 40% of ERA-2 funds within 60 within 60
days of enactment, with the remainder to be distributed after grantees expend 75% of their initial ERAdays of enactment, with the remainder to be distributed after grantees expend 75% of their initial ERA -2 allocation. It -2 allocation. It
is these undisbursedis these undisbursed ERA-2 fundsERA-2 funds held by held by ~~T reasury~~Treasury that are subject to potential reallocation. 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.~~
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~~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~~
~~limited set of program parameters. Within those parameters, states and localities have authority to~~
~~determine, for example,~~
~~ who wil administer assistance (i.e., a government entity vs. a nonprofit or~~
~~community partner);~~
~~ how to prioritize among the eligible uses of the funds (e.g., arrears vs.~~
~~prospective payments; utilities vs. rent);~~
~~ how to ration limited benefits (e.g., lotteries for assistance vs. first-come first-~~
~~served or referral-based processes);~~
~~ whether and how to further prioritize applicants (e.g., adopting deeper income~~
~~targeting than is required by law);~~
38 Department of the Treasury, “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Guidance,” October 4, 2021, https://home.treasury.gov/system/files/136/ERA-Reallocation-Guidance.pdf (hereinafter, “Treasury, October 4, 2021, guidance”). Congressional Research Service 11 Pandemic Relief: The Emergency Rental Assistance Program  Insufficient Expenditure Ratios: Grantees with an expenditure ratio below a specified threshold may be determined to have excess funds based on that threshold. The expenditure ratio is calculated as the share of a grantee’s allocation (excluding 10% for administrative costs) spent on assistance to eligible households.  For the first assessment, in November 2021, the threshold is 30%, based on expenditure data through September 30, 2021.  Thereafter, the threshold will be increased by five percentage points each month.  Failure to Make Required Submissions: Grantees that have obligated less than 65% of their funds and fail to submit a Program Improvement Plan, or fail to confirm progress on that plan, may be determined to have excess funds measured at 10% of their allocation.  Unobligated Funds at Final Assessment: Grantees that have unobligated funds remaining on March 31, 2022, may have those funds determined to be excess. Whether Treasury will recapture funds from a grantee, and the amount to be recaptured, depends on various formulas and mitigating considerations, including the Program Improvement Plan, outlined in the Treasury guidance.39 Once Treasury has made a recapture, it may reallocate funds to other grantees. According to the Treasury guidance,  grantees will be eligible to apply for reallocated funds if they have obligated at least 65% of their own initial ERA-1 allocations and they submit a request to Treasury;  Treasury will “periodically” determine whether there are sufficient requests for reallocated funding, based on capacity and indicators of need, to trigger a reallocation; and  if more requests are received than there are excess funds to be allocated, Treasury will develop a relative share formula for allocating funds:  when feasible, Treasury will prioritize reallocation within the same state; and  Treasury may also prioritize grantees likely to expend all remaining ERA-1 and ERA-2 funds “promptly.” Grantees may also voluntarily request that their ERA-1 funds be reallocated to another grantee within the same state that has obligated at least 65% of its funds. Reporting Requirements 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 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 39 For example, a grantee can avoid recapture if, by November 15, 2021, it certifies it has met either the 30% expenditure ratio or the 65% obligation threshold. For more details, see Treasury, October 4, 2021, guidance. Congressional Research Service 12 Pandemic Relief: The Emergency Rental Assistance Program data privacy guidelines for collecting information. Treasury has begun publishing data from these reports on its website.40 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-1.41 Treasury subsequently released reporting guidance applicable to both ERA-1 and ERA-2 grantees.42 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 limited set of program parameters. Within those parameters, states and localities have authority to determine, for example,  who will administer assistance (i.e., a government entity vs. a nonprofit or community partner);  how to prioritize among the eligible uses of the funds (e.g., arrears vs. prospective payments; utilities vs. rent);  how to ration limited benefits (e.g., lotteries for assistance vs. first-come first- served or referral-based processes);  whether and how to further prioritize applicants (e.g., adopting deeper income 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 previous One factor that may influence state and local decisions is the extent to which any previous
emergency rental assistance programs they administered already met, or could be easily adjusted emergency rental assistance programs they administered already met, or could be easily adjusted
to meet, the requirements for ERA funding. To the extent states and localities were able to fund to meet, the requirements for ERA funding. To the extent states and localities were able to 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 assistance could ~~potential y~~potentially be distributed more quickly. Treasury found this to be the case in a be distributed more quickly. Treasury found this to be the case in a
“Key Findings” interim reporting document issued in July 2021.“Key Findings” interim reporting document issued in July 2021.42
~~The ability of state and local governments to structure their programs differently means that 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~~

~~40 T reasury May 7, 2021, FAQs, FAQ 14, p. 9.~~
~~41 See ERA Reporting Guidance, issued~~ 43 40 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. 41 Treasury May 7, 2021, FAQs, FAQ 14, p. 9. 42 See ERA Reporting Guidance, issued June 30, 2021, at https://home.treasury.gov/system/files/136/ERA-Reporting-June 30, 2021, at https://home.treasury.gov/system/files/136/ERA-Reporting-
Guidance.pdf. Guidance.pdf.
~~42 U.S. T reasury~~43 U.S. Treasury, “Emergency Rental Assistance Data Shows, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States andPrograms Ramping Up, but States and Localities Must Do Localities Must Do
More to Accelerate Aid,” p. 4, available at https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-More to Accelerate Aid,” p. 4, available at https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-
PostPost -vF.pdf. -vF.pdf.
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~~funds in their communities; their individual eligibility and likelihood of being assisted; and how~~
~~to access available assistance are currently uncertain.~~
The ability of state and local governments to structure their programs differently means that the experience of similarly situated renters seeking emergency rental assistance will likely vary geographically, including how and whether individual renters are made aware of the availability of ERA funds in their communities, as well as their individual eligibility and likelihood of being assisted. 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.43
44 Will rental assistance prevent loss of housing?
Both the amount and geographic distribution of ERA funding, as Both the amount and geographic distribution of ERA funding, as ~~wel~~ well as how quickly it is as how quickly it is
distributed, could determine the extent to which the assistance may help protect renters from distributed, could determine the extent to which the assistance may help protect renters from
eviction.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 unknown whether al all renters who are behind renters who are behind ~~wil~~ will be able to receive assistance with available 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).4445 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 all delinquent renters.delinquent renters.4546 Since that time, P.L. 117-2 funded another $21.550 Since that time, P.L. 117-2 funded another $21.550 ~~bil ion~~billion in rental in rental
assistance as assistance as ~~wel~~ well as additional direct aid to individuals via stimulus payments and refundable as additional direct aid to individuals via stimulus payments and refundable
child tax credits. Newer estimates project rental arrearages to be less than total ERA funding.child tax credits. Newer estimates project rental arrearages to be less than total ERA funding.4647
Whether existing ERA funding Whether existing ERA funding ~~wil~~ will be sufficient to address outstanding arrearages and avoid be sufficient to address outstanding arrearages 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.
More recently, the speed and effectiveness of the distribution of ERA funds has been of 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 increasing concern to stakeholders and policymakers. The need for more time to distribute ERA
assistance to eligible households to assistance to eligible households to ~~forestal~~ forestall evictions was asserted by the Administration in its evictions was asserted by the Administration in its
June 2021 extension of the CDC eviction moratorium (through the end of July)June 2021 extension of the CDC eviction moratorium (through the end of July)4748 and in its and in its
issuance of a new eviction moratorium in August 2021 (through October 3, 2021).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~~ 49 (The CDC’s 44 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program/promising-practices. emergency-rental-assistance-program/promising-practices.
4445 Various Various estimates made in 2020 predicted arrears of $7 billion, $25estimates made in 2020 predicted arrears of $7 billion, $25 -$34 billion, and $70 billion by the end of the -$34 billion, and $70 billion by the end of the
year. Seeyear. See Davin ReedDavin Reed and Eileen Divringi, and Eileen Divringi, Household Rental Debt During COVID-19, Federal, Federal Reserve Bank of 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, Risiushousehold-rental-debt-during-covid-19.pdf; Stout, Risius Ross LLC, Ross LLC, Analysis of Current and Expected Rental Shortfall
and Potential Eviction Filings in the U.S., National Council of State Housing, National Council of State Housing Finance Agencies, September 25, 2020, Finance Agencies, September 25, 2020,
https://www.ncsha.org/wp-content/uploads/Analysis-of-Currenthttps://www.ncsha.org/wp-content/uploads/Analysis-of-Current -and-Expected-Rental-Shortfall-and-Potential--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~~Calamities, Moody’s Analytics, August, Moody’s Analytics, August 13, 2020, p. 9, https://www.moodysanalytics.com/-/media/article/2020/weekly-13, 2020, p. 9, https://www.moodysanalytics.com/-/media/article/2020/weekly-
marketmarket -outlook-markets-avoid-great-recessions-calamities.pdf. -outlook-markets-avoid-great-recessions-calamities.pdf.
4546 Averting an Eviction Crisis. .
4647 Rent Debt in America.
4748 Centers for Disease Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions to Prevent the Further Spread Control and Prevention, “Temporary Halt in Residential Evictions to Prevent the Further Spread
of COVID-19,” 86of COVID-19,” 86 Federal Register 34010-34018, June 28, 2021, https://www.federalregister.gov/d/2021-13842/p-65. 34010-34018, June 28, 2021, https://www.federalregister.gov/d/2021-13842/p-65.
4849 Centers for Disease Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions in Communities With Control and Prevention, “Temporary Halt in Residential Evictions in Communities With
SubstantialSubstantial or High or High ~~T ransmission~~Transmission of COVID-19 of COVID-19 ~~T o~~To Prevent the Further Spread of COVID-19,” 86 Prevent the Further Spread of COVID-19,” 86 Federal Register
43244-43252, August 6, 2021, https://www.federalregister.gov/d/2021-16945/p-80.43244-43252, 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~~
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federal eviction moratorium was made unenforceable as the result of a Supreme Court decision on August 26, 2021.50) At the end of June 2021~~At the end of June~~, Treasury released initial data on ERA-1 expenditures. It found that, of , Treasury released initial data on ERA-1 expenditures. It found that, of the $25 billion allocated~~the $25~~
~~bil ion al ocated~~, grantees had spent approximately $1.45 , grantees had spent approximately $1.45 ~~bil ion~~billion on rent, utilities, and arrears 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 had committed roughly $1 ~~bil ion~~ billion to administrative costs and housing stability services. The data to administrative costs and housing stability services. The data
showed spending that was accelerating; roughly half of total spending occurred in the last month showed spending that was accelerating; roughly half of total spending occurred in the last month
(May) of the reporting period.(May) of the reporting period.5051 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.”5152
On June 24, 2021, the White House announced a series of actions designed to help state and local 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 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 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 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 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.”whole-of-government effort to raise awareness about emergency rental assistance.”5253 Treasury has Treasury has
since posted “Promising Practices” for speeding the delivery of aid and eviction diversion to its since posted “Promising Practices” for speeding the delivery of aid and eviction diversion to its
website,website,5354 and the White House has hosted two summits on eviction prevention related to and the White House has hosted two summits on eviction prevention related to
distribution of ERA assistance.distribution of ERA assistance.54
55 Treasury has subsequently released Treasury has subsequently released ~~two~~three additional months of data on ERA-1 expenditures, additional months of data on ERA-1 expenditures,
through the end of Junethrough the end of June, July, and August ~~and July~~ 2021. These data show that the pace of expenditure continued to 2021. These data show that the pace of expenditure continued to
grow in June, with $1.5 grow in June, with $1.5 ~~bil ion~~billion being spent on rent, utilities, and arrears serving approximately being spent on rent, utilities, and arrears serving approximately
291,000 households in that month alone.291,000 households in that month alone.5556 Total spending increased again in July, but at a slower Total spending increased again in July, but at a slower
pace, with just under $1.7 pace, with just under $1.7 ~~bil ion~~billion spent on rent, utilities, and arrears serving 341,000 households spent on rent, utilities, and arrears serving 341,000 households
~~that month.~~ that month. The pace of spending increased again in August, with grantees spending nearly $2.3 billion on assistance to serve nearly 400,000 households.57 According to these data, in the first According to these data, in the first ~~seven~~eight months of the program (January- months of the program (January-~~July~~August 2021), 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~~ of the $25 billion in 50 For more information, see CRS Legal Sidebar LSB10638, Supreme Court Blocks Enforcement of the CDC’s Eviction Moratorium. 51 See https://home.treasury.gov/system/files/136/ERA-Compliance-Report-06302021.xlsx. https://home.treasury.gov/system/files/136/ERA-Compliance-Report-06302021.xlsx.
~~51 T reasury~~52 Treasury Department, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities 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-Must Do More to Accelerate Aid,” https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-Post-
vF.pdf. vF.pdf.
52 53 White House, “FACT White House, “FACT ~~SHEET~~ SHEET: Biden-Harris: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Administration Announces Initiatives to Promote Housing Stability By
Supporting VulnerableSupporting Vulnerable ~~T enants~~ Tenants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing- 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/.
5354 See See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program. emergency-rental-assistance-program.
54 55 White House, “Readout of the White House Eviction Prevention Summit,” press release, June 30, 2021, 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/readouthttps://www.whitehouse.gov/briefing-room/statements-releases/2021/06/30/readout -of-the-white-house-eviction--of-the-white-house-eviction-
prevention-summit/; and White House, “prevention-summit/; and White House, “ Readout of the Second White House Eviction Prevention Convening,” press 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/readoutrelease, July 21, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/21/readout -of-the--of-the-
second-white-house-eviction-prevention-convening/. second-white-house-eviction-prevention-convening/.
5556 See See https://home.treasury.gov/system/files/136/July-ERA-data.xlsx. https://home.treasury.gov/system/files/136/July-ERA-data.xlsx.
~~56 Ibid~~57 See https://home.treasury.gov/system/files/136/August-ERA-Data.xlsx. .
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ERA-1 funding distributed, grantees reported spending just over $7.5 billion on assistance, or about 30% of total ERA-1 funding.58 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 availabilitygovernments may depend on the availability of other federal assistance during the COVID-19 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 a total of $512 ~~bil ion~~ billion in general assistance to state and local governments through the CARES in general assistance to state and local governments through the CARES
Act ($150 Act ($150 ~~bil ion)~~ billion) and P.L. 117-2 ($362 and P.L. 117-2 ($362 ~~bil ion~~billion). General assistance through the CARES Act was ). 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,5759 and eligible and eligible uses of P.L. 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.”5860 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.5961 In late August 2021, following the Supreme Court ruling making In late August 2021, following the Supreme Court ruling making
the CDC’s federal eviction moratorium unenforceable, Treasury Secretary the CDC’s federal eviction moratorium unenforceable, Treasury Secretary ~~Yel en~~Yellen, Attorney , Attorney
General Garland, and Secretary of the Department of Housing and Urban Development Fudge 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 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.assistance funds provided in P.L. 117-2 for eviction prevention.6062
Treasury published its Interim Final Rule for Treasury published its Interim Final Rule for ~~al owable~~allowable uses of state and local recovery funds 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.~~61 The guidance~~63 The interim rule includes an intent to make eligible includes an intent to make eligible ~~for~~
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. crisis, with emphasis on mitigating any exacerbation of pre-existing economic disparities. The interim rule also allows~~The~~
~~guidance also al ows~~ for payments to replace lost revenues to the extent that annual own-source 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 period for the Interim Final Rule ~~closes~~closed on July 16, 2021, with a Final Rule expected to be released July 16, 2021, with a Final Rule expected to be released
after those comments have been considered.after those comments have been considered.

57 58 Ibid. 59 Pandemic Oversight, “Coronavirus Relief Fund,” accessed Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at 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.
5860 42 U.S.C. 42 U.S.C. 801, Section 602(c)(1)(A), which provides eligible801, Section 602(c)(1)(A), which provides eligible ~~uses~~ uses for the Coronavirus State Fiscal Recovery Fund. for the Coronavirus State Fiscal Recovery Fund.
Identical languageIdentical language is includedis included in statute for the Coronavirus Local Fiscal Recovery Fund. in statute for the Coronavirus Local Fiscal Recovery Fund.
59 61 White House, “FACT White House, “FACT ~~SHEET~~ SHEET: Biden-Harris: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Administration Announces Initiatives to Promote Housing Stability By
Supporting VulnerableSupporting Vulnerable ~~T enants~~ Tenants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing- 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/.
~~60 U.S. T reasury, “Evict ion~~62 U.S. Treasury, “Eviction Moratorium Joint Letter,” August 27, 2021, available at https://home.treasury.gov/system/ Moratorium Joint Letter,” August 27, 2021, available at https://home.treasury.gov/system/
files/136/Eviction-Moratorium-Joint-Letter.pdf. files/136/Eviction-Moratorium-Joint-Letter.pdf.
61 63 For access For access to the Interim Final Rule and more information on funding, see to the Interim Final Rule and more information on funding, see ~~T reasury~~Treasury Department, “Coronavirus State Department, “Coronavirus State
and Local Fiscaland Local Fiscal Recovery Funds,”Recovery Funds,” May 2021, available at https://home.treasury.gov/policy-issues/coronavirus/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.
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Author Information

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

Maggie McCarty Maggie McCarty

Specialist in Housing Policy Specialist in Housing Policy

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