Treasury Announces Second Round of Emergency Rental Assistance Funding
On Friday, May 7, the Department of the Treasury announced its allocation of $21.6 billion in additional Emergency Rental Assistance Program (ERAP) funds. Treasury also released a new FAQ with updated guidance on ERAP administration. The FAQ discusses the differences between ERAP1 (December funding) and ERAP2 (current funding).
In response to the COVID-19 pandemic, Congress included the second round of ERAP funds in the American Rescue Plan. Treasury coordinated with the White House American Rescue Plan Implementation Team and the U.S. Department of Housing and Urban Development (HUD) to determine the funding awards. The second round of ERAP funding sets aside $2.5 billion for eligible grantees in high-need areas, as determined by local rental market and economic conditions. Eligible uses for ERAP funds include direct financial assistance, rental arrears, utilities and home energy costs, and other expenses related to housing.
The new FAQ confirms that ERAP2 does not include the language around duplicative assistance that Treasury originally included in ERAP1. Households that already receive federal housing assistance are still eligible to receive ERAP2 funding. NAHRO will provide more details next week on information included in the newest FAQ.
To access the allocation and FAQ documents on Treasury’s website, click here.