Item 09 - First Amendment to Emergency Rental Assistance Program Spending Plan

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1 National Community Development Association Emergency Rental Assistance Overview Congress included $25 billion in emergency rental assistance in the Consolidated Appropriations Act of 2021. The President signed the measure into law on December 27, 2020. The legislation includes an extension of the federal eviction moratorium through January 31, 2021. The legislation also extends the disbursement deadline for the CARES Act Coronavirus Relief Fund from December 31, 2020 to December 31, 2021. Federal Administration The Treasury Department will administer the program. Distribution Formula Tribal communities, U.S. territories, states (including the District of Columbia), and local governments with populations over 200,000 are eligible to receive funding. Approximately $400 million will be allocated to U.S. territories and $800 million to tribal communities. Approximately $23.7 billion will be available for allocation to states and local governments. The funding will be distributed to states based on the state’s population according to the 2019 Census data. Each state will receive no less than $200 million. Forty-five percent of a state’s allocation will be made available to local governments with populations over 200,000 (based on the 2019 Census data). To receive funding, eligible local governments must submit a certification signed by the chief executive of the locality to the Treasury Department by January 26, 2021. Treasury has not released the certification form yet. NCDA encourages those localities that are not eligible for a direct allocation to reach out to their state or county (if they are located within an urban county) to seek funding. Duplication of Benefits No duplication of benefits. Renters receiving rental assistance through this program cannot also receive rental assistance under another federal program. Use of Funds Grantees can use up to 10% of their allocation for administrative expenses. The remaining 90% must be used for rent, rental arrears, utilities, utility arrears, and other housing expenses resulting from the pandemic for households meeting the criteria below; up to 10% can be used for case management or other services. The assistance can last up to 12 months plus an additional three months, if necessary, to ensure housing stability. Timeframe for Obligating Funds The Treasury Department will recapture any funds not obligated by September 30, 2021. Unobligated funds will be recaptured and reallocated to those grantees who have obligated at least 65 percent of their grant by September 30, 2021. The amount of the reallocation will be based on demonstrated need, to be determined by the Treasury Department. Eligible Households EXHIBIT 2EXHIBIT 1