The U.S. Department of the Treasury on October 25 published a letter to Emergency Rental Assistance (ERA) program grantees highlighting additional details on the ERA1 reallocation process and three forms referenced in the reallocation guidance released on October 4 (see Memo, 10/12).
The letter from Treasury Deputy Secretary Wally Adeyemo announces the department will begin identifying excess funds for potential reallocation in mid-November. Treasury will first prioritize requests from grantees serving jurisdictions in the same state where recaptured funds were initially allocated. Treasury will then prioritize same-state grantees that are close to expending their initial ERA1 funds and the funding authorized by the “American Rescue Plan Act” (ARPA), referred to as ERA2. Treasury will prioritize grantees based on their expenditures, not obligations. Funds not distributed based on the first two priorities will be available in a pool for reallocation nationwide. These funds will be distributed based on grantees’ relative need. The letter reminds grantees that in addition to ERA funds, ARPA State and Local Fiscal Recovery Funds can be used to help prevent evictions and provide stable housing.
Treasury posted the following forms related to the recapture and reallocation process:
Access Treasury’s ERA resources at: https://bit.ly/3CooQk1
Read Treasury’s ERA1 reallocation guidance at: https://bit.ly/2YmNa7r