The U.S. Department of the Treasury (Treasury) released the Quarter 1 2023 Compliance Report for the tranche of emergency rental assistance funds passed by the “American Rescue Plan Act” (ERA2). Treasury reports that since March 2021 nearly $15.3 billion in ERA2 funds have been expended on financial assistance to households, housing stability services, and administrative expenses by state, local, and territorial grantees. This amount represents nearly 71% of the $21.55 billion available under ERA2. According to the new data, the overall amount of ERA1 and ERA2 expended has increased to more than $38 billion.
ERA2 spending data through March 2023 reveal that nearly half of state grantees, and the District of Columbia, have reported expending 75% or more of their allocation on financial assistance to households, housing stability services, and administrative costs. Yet two state grantees – Ohio and Iowa – have reported expending less than 10% of available funds. Local grantees report spending 70% of their funds. Overall, Treasury reports that nearly $15.3 billion of ERA2 funds have been spent on these activities. NLIHC analysis identified approximately 22 grantees that reported ERA2 spending in prior quarters but not in Quarter 1 2023. This has resulted in nearly $290 million not being captured in the new report and suggests that the total amount of funds expended has likely been underreported. Treasury notes that all data are presented as reported by each ERA2 grantee and are preliminary.
Treasury guidance allows grantees that have spent 75% of their total ERA2 funds for financial assistance to use the remaining, unobligated funds for “affordable rental housing and eviction prevention purposes.” The Quarter 1 2023 Compliance Report indicates that 16 state and four local grantees are using ERA2 funds for the construction, rehabilitation, or preservation of rental housing projects, or for the operation of these projects. Expenditure and obligation data are available for three of these 20 grantees. These three grantees – the State of Maryland; Cuyahoga County, Ohio; and the State of West Virginia – have expended or obligated over $31.5 million for affordable rental housing projects. Three grantees are using ERA2 funds, beyond those set aside for housing stability services, for eviction prevention programs. Nearly $3.8 million has been expended or obligated to these programs thus far.
Quarter 1 2023 Compliance Report also includes demographic data of households served with ERA2 funds since March 2021. Overall, nearly half (45%) of households served were Black or African American, nearly a third (33%) were white, and 16% were Hispanic or Latino. Almost two-thirds of households served (62%) had extremely low incomes.
The Quarter 1 2023 Compliance Report can be accessed at: http://tinyurl.com/mr2sxv8y