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1 <br />U.S. Department of the Treasury <br />Emergency Rental Assistance <br />Frequently Asked Questions <br />January 19, 2021 <br />The Department of the Treasury (Treasury) is providing these Frequently Asked Questions (FAQ) as <br />guidance regarding the requirements of the Emergency Rental Assistance (ERA) program established by <br />section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, <br />2020) (the “Act”). These FAQ will be supplemented by additional guidance and FAQ on a rolling basis. <br />1.The statute provides that ERA funds may be used for “utilities and home energy costs.” How are <br />those terms defined? <br />Utilities and home energy costs are separately-stated charges related to the occupancy of rental property. <br />Accordingly, utilities include separately-stated electricity, gas, water and sewer, trash removal and energy <br />costs, such as fuel oil. Telecommunication services (telephone, cable, Internet) delivered to the rental <br />dwelling are not considered to be utilities. Utilities that are covered by the landlord within rent will be <br />treated as rent. <br />2.Must a beneficiary of the rental assistance program have rental arrears? <br />No. The statute does not prohibit the enrollment of households for only prospective benefits. Section <br />501(c)(2)(B)(iii) of Division N of the Act does provide that assistance to reduce rental arrears, if any, <br />must be provided before prospective rental benefits may be provided. The statute also provides a <br />limitation on prospective benefits of three months at one time. <br />3.Must a grantee pay for all of a household’s rental or utility arrears? <br />No. The full payment of arrears is allowed up to the 12-month limit established by the statute if the <br />arrears can be shown to be due to COVID-19. (Grantees may provide assistance for an additional three <br />months if necessary to ensure housing stability for a household.) However, a grantee may structure a <br />program to provide less than full coverage of arrears. When structuring their program, grantees should <br />consider how to best minimize any incentives for the non-payment of rent or utilities by potential <br />beneficiaries of the program. <br />4. What outreach must be made by a grantee to a landlord or utility provider before determining <br />that the landlord or utility provider will not accept direct payment from the grantee? <br />Grantees must make reasonable efforts to obtain the cooperation of landlords and utility providers to <br />accept payments from the ERA program. Outreach will be considered complete if a request for <br />participation is sent in writing, by certified mail, to the landlord or utility provider, and the addressee does <br />not respond to the request within 21 calendar days after mailing; or, if the grantee has made at least three <br />attempts by phone or email over a 21 calendar-day period to request the landlord or utility provider’s <br />participation. All efforts must be documented. The cost of the mailing would be an eligible <br />administrative cost. <br />EXHIBIT 3EXHIBIT 1