At NAHB’s Urging, Treasury Dept. Releases $21.6 Billion in Emergency Rental Assistance
- New Protections for Renters from Eviction While Payments Are Being Made on Their Behalf. Starting with today's guidance, programs must prohibit the eviction of renters for nonpayment in months for which they receive emergency rental assistance. While most landlords are working to secure relief and help renters stay in place, Treasury strongly encourages grantees to require that landlords not evict tenants for nonpayment of rent for 30 to 90 days longer than the period covered by the emergency rental assistance as a condition of receiving payment. Including additional restrictions on eviction as a condition of ERAP assistance has been a disincentive for landlord participation, especially among small business mom and pop landlords.
- Allowing – For the First Time – Offers of Assistance Directly to Renters First. While rental assistance programs under the initial Emergency Rental Assistance Plan – ERA1 – required an offer of assistance to landlords before reaching out to renters, the administration has made clear that the new funds from the American Rescue Plan (ERA2) can be used to provide assistance to renters first and immediately. NAHB strongly supports ERAP assistance for tenants, but we believe it is more efficient and less duplicative for the programs to reach out to landlords first.
- Require – for the First Time – Programs to Offer Assistance Directly to Renters if Landlords Choose not to Participate. Treasury says this will speed up payments to Americans who are most in need. Many landlords are working with tenants in good faith to secure aid and pay off rental debts.
- Cut in Half the Wait for Assistance Offered to Renters When Landlords Do Not Participate. Currently, where assistance is first offered to landlords, programs must wait 14 days when reaching out by mail or 10 days when reaching out by phone, text, or email before offering relief to a tenant directly. Those wait times will now be cut in half, to seven days and five days, respectively.
- Encourage Financial Assistance to Support Renters Finding New Housing. The Treasury guidance reinforces that expenses pertaining to moving expenses, security deposits, future rent, utilities, and the cost of a transitional stay in a hotel or motel when a family has been displaced should be considered eligible – and encouraged – uses of emergency rental assistance.
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