Memo to Members

Coronavirus Updates – April 4, 2022

Apr 04, 2022

National Updates

Department of the Treasury

The U.S. Department of the Treasury (Treasury) released new data on reallocations of the initial appropriation of emergency rental assistance (ERA1). The release of these data marked the second of several rounds in which Treasury will reallocate “excess” ERA1 funds from grantees that did not meet required expenditure benchmarks to grantees with additional needs. In the second round of reallocation, just over $1 billion was reallocated, with 53% of reallocated funds remaining within the same states to which the funds were originally awarded. Between the first two rounds of reallocation, four state grantees voluntarily or involuntarily reallocated more than 50% of their initial ERA1 allocations. Read NLIHC’s analysis of the new ERA reallocation data.

Treasury updated its resources for online applications to include a section on protecting applicant data through data privacy and security measures, including limiting the collection of social security numbers.

Jacob Leibenluft, counselor to the secretary of the Treasury Department, spoke at the National League of Cities’ Legislative Conference on March 15 about the American Rescue Plan and the impact of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) on communities across the country. “[SLFRF] funds are a generational opportunity to make investments that build a more equitable economy and revitalize underserved communities,” said Leibenluft. “Affordable housing in particular is an area where Treasury sees immense opportunity for these funds to make a lasting difference.”

Reporting

Reuters reports that U.S. Department of the Treasury (Treasury) officials are urging municipalities to use Coronavirus State and Local Fiscal Recovery Fund dollars to help renters stay in their homes as federal emergency rental assistance (ERA) funds dwindle. The federal ERA program had disbursed or obligated over $30 billion in ERA through the end of February and is on pace to spend the “vast majority” of its funding by mid-year.

Yahoo! Finance reports on the emergency rental assistance (ERA) data released by Treasury on March 30, showing that about $30 billion in ERA payments were sent out in February and that most of the remaining funds will be disbursed by the middle of the year.

CBS News reports on Treasury’s announcement that most of the federal emergency rental assistance (ERA) dollars will be used by mid-year as well. As ERA runs out, Treasury officials are urging state and local leaders to use other federal funds – including the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) – to help struggling renters and bolster other housing efforts. As of the end of 2021, about $11 billion in SLFRF dollars have been committed for housing efforts.

State and Local News

Alabama

Montgomery County, Alabama, will soon receive an additional $8 million in emergency rental assistance, bringing the county’s total to $22 million and allowing the program to begin accepting new applications after it was forced to pause due to a lack of funds.

Arizona

Pima County and the City of Tucson recently received a combined total of $22 million in emergency rental and utility assistance. As of the end of February, Pima County and the City of Tucson had distributed more than $4.8 million in funds to cover past-due utility bills and more than $50 million in total rental assistance funds. Those in need of assistance are encouraged to apply as quickly as possible.

Arkansas

As of March 25, Washington County, Arkansas, is no longer accepting emergency rental assistance applications. Advocates say that some applicants who have been approved for assistance have not yet received it, and the county expects the rest of the funds to be depleted in fulfilling those applications.

California

The California State Assembly approved a bill on March 28 to extend eviction protections for millions of renters through June 30, just days before the protections were set to expire on April 1. Assembly Bill 2179, which now heads to the state Senate for approval, would prevent landlords from evicting tenants who are still waiting to receive rental assistance through June 30.

Georgia

DeKalb County officials announced on March 30 a new partnership to assist county residents with applications for the Georgia Rental Assistance Program (RAP). The DeKalb Section of the National Council of Negro Women (NCNW) launched the new partnership on April 2 in collaboration with the DeKalb County School District, Clerk of the Superior Court, DeKalb County Sheriff’s Office, and Georgia Department of Community Affairs (GDCA). Federal funding to assist families with rents, utilities, and moving and other expenses is being provided by the GDCA, which is administering Georgia’s $989 million rental assistance program.

Massachusetts

Homes for All Massachusetts and Massachusetts Institute of Technology (MIT) researchers released a new report on March 22, Housing Justice Beyond the Emergency: An Analysis of Racial Inequity in Eviction Filings Across Massachusetts. The report reveals the deep racial inequities in evictions in Massachusetts during the pandemic. Read the report here.

Nebraska

Governor Pete Ricketts vetoed a bill on March 29 that would require him to apply for $120 million in federal emergency rental assistance. Legislative Bill 1073 passed in the Legislature on a 26-15 vote, but Governor Ricketts has repeatedly voiced opposition to seeking the aid. In his veto announcement, Ricketts said the funding would create a government subsidy that would make residents “more reliant on government” in the future.

New Jersey

Governor Phil Murphy signed legislation (S.2356) extending utility shutoffs for certain customers who are awaiting decisions on their applications for state utility assistance. This bill extends utility shutoff protections for families by requiring local authorities, municipal or public utilities, and rural electric cooperatives to continue providing electric, gas, sewer, or water services to residential customers who applied for utility assistance prior to June 15, 2022.

Oklahoma

According to the Wichita Eagle, a prominent landlord who owns apartment properties across Oklahoma and Kansas has refused to renew agreements with local governments to accept emergency rental assistance payments. Many tenants are facing eviction due to this decision. The landlord, who owns Eucalyptus Real Estate, said they will not renew their agreement due to new terms that prohibit landlords from evicting tenants within 60 days of nonpayment of rent.

South Carolina

As short-term COVID-19 rental relief wanes, South Carolina lawmakers are considering longer-term solutions to address the state’s affordable housing crisis. Lawmakers have proposed a new bill that would allow counties with more than 50,000 residents to impose laws requiring a certain number of new housing developments to be dedicated to affordable housing. SC Housing’s SC Stay Plus program still has $156 million in federal rental assistance available, which includes an allocation of $65 million that is arriving soon.

Texas

The Fort Worth Emergency Rental Assistance Program stopped accepting applications on March 31 due to dwindling funds. The amount needed to fund the applications in the queue exceeds the available funds by a margin of $9.5 million. As a result, there is not enough funding to cover rental assistance for those who have submitted applications. Staff will continue to process applications submitted prior to the March 31 deadline. Applications will be prioritized based on eviction status, income level, and application submission date.

Spectrum Local News highlighted the latest data from Texas Housers’ ERA dashboard showing that at least nine ERA programs in the state have $100,000 left in unspent funds even as more than 19,000 renters have been evicted statewide as of January 2022. Some of the counties, such as Hays County, have already had to return funds to the federal government for failure to meet the U.S. Department of the Treasury’s spending deadlines. Advocates in the state expect many of the programs to shut down in the coming months.

Guidance

Department of Housing and Urban Development (HUD)

U.S. Department of the Treasury

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