Treasury Will Review Reallocating Portions of Unused ERAP Funds on Sept. 30

Multifamily
Published

On Sept. 30, the Treasury Department will be required by law to consider reallocating unused funds from the Emergency Rental Assistance Program (ERAP) that was passed by Congress in December 2020 to help renters and landlords who were affected by the COVID-19 pandemic.

Congress appropriated two rounds of ERAP funds totaling $46.5 billion and the law applies to the first ERAP, which allocated $26.5 billion to help distressed tenants and property owners. Roughly $7.7 billion has been distributed from this $26.5 billion that Congress appropriated.

On Sept. 24, the deputy secretary of the Treasury released a letter on how the Treasury intends to approach the reallocation process:

  • Treasury will not be seizing state and local grantees’ ‘excess’ ERAP all at once — it will be done gradually over a period of months;
  • Grantees will have the opportunity to show reason for keeping their ERAP;
  • Obligated ERAP will not be reallocated; and
  • Treasury wants to keep the reallocated ERAP in the same state.

NAHB continues to advocate for effective solutions to expedite ERAP assistance to renters and housing providers. We strongly urge the Treasury Department and ERAP grantees to ensure this policy does not further delay ERAP applications in the pipeline and create new confusion about where to apply for ERAP assistance.

For more information, contact Michelle Kitchen.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

May 23, 2025

Volatile Spring Selling Season Continues

Sales of newly built, single-family homes in April increased 10.9% to a 743,000 seasonally adjusted annual rate from a downwardly revised March number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in April was up 3.3% compared to a year earlier.

Material Costs

May 22, 2025

NAHB Members Cite Impact of Tariff Uncertainty on Home Building

Tariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.

View all

Latest Economic News

Economics

May 22, 2025

Existing Home Sales Fall in April

Despite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.

Economics

May 22, 2025

Income Growth Helps Mute Existing Affordability Constraints

Despite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

Economics

May 21, 2025

Gains for Multifamily Missing Middle over Last Year

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.