HomeMy WebLinkAboutExhibit AU.S. Department of the Treasury
Emergency Rental Assistance
Frequently Asked Questions
Revised June 24, 2021
The Department of the Treasury (Treasury) is providing these frequently asked questions (FAQs)
as guidance regarding the requirements of the Emergency Rental Assistance program (ERA1)
established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L.
No. 116-260 (Dec. 27, 2020) and the Emergency Rental Assistance program (ERA2) established
by section 3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (March 11, 2021).
These FAQs apply to both ERA 1 and ERA2, except where differences are specifically noted.
References in these FAQs to "the ERA" apply to both ERA1 and ERA2. These FAQs will be
supplemented by additional guidance.'
1. Who is eligible to receive assistance in the ERA and how should a grantee document the
eligibility of a household?
A grantee may only use the funds provided in the ERA to provide financial assistance and housing
stability services to eligible households. To be eligible, a household must be obligated to pay rent
on a residential dwelling and the grantee must determine that:
for ERA 1:
a. one or more individuals within the household has qualified for unemployment
benefits or experienced a reduction in household income, incurred significant
costs, or experienced other financial hardship due, directly or indirectly, to the
COVID-19 outbreak;
b. one or more individuals within the household can demonstrate a risk of
experiencing homelessness or housing instability; and
c. the household has a household income at or below 80% of area median
income.
ii. for ERA2:
'On January 19, 2021, initial FAQs were released for ERA1. On February 22, 2021, the initial FAQs were revised to,
among other things, clarify program requirements and provide additional flexibility with respect to documenting the
eligibility of households. On March 16, 2021, FAQ 7 was revised to add rental security deposits as a permissible
relocation expense and clarify that application or screening fees are permissible rental fees and FAQs 26-28 were
added. On March 25, 2021, FAQ 29 was added. On May 7, 2021, these FAQs were revised to provide initial guidance
for ERA2, to clarify differences between ERA1 and ERA2, and to clarify how ERA should be used to promote
housing stability for eligible households. On June 24, 2021, these FAQs were revised to further clarify how to
promote housing stability for eligible households; specifically, FAQs 14, 23, 29, 31, 33, and 35 were revised and
FAQs 36-39 were added, in addition to other nonsubstantive changes.
a. one or more individuals within the household has qualified for
unemployment benefits or experienced a reduction in household
income, incurred significant costs, or experienced other financial
hardship during or due, directly or indirectly, to the coronavirus
pandemic;
b. one or more individuals within the household can demonstrate a risk of
experiencing homelessness or housing instability; and
c. the household is a low-income family (as such term is defined in section 3(b)
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))).'
While there are some differences in eligibility between ERA and ERA2, the eligibility
requirements are very similar, and Treasury is seeking to implement ERA2 consistently with
ERA I, to the extent possible, to reduce administrative burdens for grantees.
The FAQs below describe the documentation requirements for each of these conditions of
eligibility. These requirements provide for various means of documentation so that grantees may
extend this emergency assistance to vulnerable populations without imposing undue
documentation burdens. As described below, given the challenges presented by the COVID-19
pandemic, grantees may be flexible as to the particular form of documentation they require,
including by permitting photocopies or digital photographs of documents, e-mails, or attestations
from employers, landlords, caseworkers, or others with knowledge of the household's
circumstances. Treasury strongly encourages grantees to avoid establishing documentation
requirements that are likely to be barriers to participation for eligible households, including those
with irregular incomes such as those operating small business or gig workers whose income is
reported on Internal Revenue Service Form 1099. However, grantees must require all applications
for assistance to include an attestation from the applicant that all information included is correct
and complete.
In all cases, grantees must document their policies and procedures for determining a household's
eligibility to include policies and procedures for determining the prioritization of households in
compliance with the statute and maintain records of their determinations. Grantees must also have
controls in place to ensure compliance with their policies and procedures and prevent fraud.
Grantees must specify in their policies and procedures under what circumstances they will accept
written attestations from the applicant without further documentation to determine any aspect of
eligibility or the amount of assistance, and in such cases, grantees must have in place reasonable
validation or fraud -prevention procedures to prevent abuse.
2. How should applicants document that a member of the household has qualified for
unemployment benefits, experienced a reduction in income, incurred significant costs, or
As of the date of these FAQs, the definition of "low-income families" in 42 U.S.C. 1437a(b) is "those families
whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary [of
Housing and Urban Development] with adjustments for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary's
findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low
family incomes."
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experienced other financial hardship during or due to the COVID-19 outbreak?
A grantee must document that one or more members of the applicant's household either (i)
qualified for unemployment benefits; or (ii) (a) for ERAI, experienced a reduction in household
income, incurred significant costs, or experienced other financial hardship due, directly or
indirectly, to the COVID-19 outbreak or (b) for ERA2, experienced a reduction in household
income, incurred significant costs, or experienced other financial hardship during or due, directly
or indirectly, to the coronavirus pandemic.' If the grantee is relying on clause (i) for this
determination, or if the grantee is relying on clause (ii) in ERA2, the grantee is permitted to rely on
either a written attestation signed by the applicant or other relevant documentation regarding the
household member's qualification for unemployment benefits. If the grantee is relying on clause
(ii) for this determination in ERAI, the statute requires the grantee to obtain a written attestation
signed by the applicant that one or more members of the household meets this condition.
While grantees relying on clause (ii) in ERAI must show financial hardship "due, directly or
indirectly, to" COVID-19, grantees in ERA2 are also permitted to rely on financial hardship
"during" the pandemic. It may be difficult for some grantees to establish whether a financial
hardship experienced during the pandemic is due to the COVID-19 outbreak. Therefore, Treasury
strongly encourages grantees to rely on the self -certification of applicants with regard to whether
their financial hardship meets these statutory eligibility requirements. Further, because the standard
in ERA2 is broader than the standard in ERAI, any applicant that self -certifies that it meets the
standard in ERAI should be considered to meet the standard for purposes of ERA2.
3. How should a grantee determine that an individual within a household is at risk of
experiencing homelessness or housing instability?
The statutes establishing ERAI and ERA2 both require that one or more individuals within the
household can demonstrate a risk of experiencing homelessness or housing instability, which may
include (i) a past due utility or rent notice or eviction notice, (ii) unsafe or unhealthy living
conditions (which may include overcrowding), or (iii) any other evidence of risk, as determined by
the grantee. Grantees may establish additional criteria for determining whether a household
satisfies this requirement, and should adopt policies and procedures addressing how they will
determine the presence of unsafe or unhealthy living conditions and what evidence of risk to
accept in order to support their determination that a household satisfies this requirement.
4. The statutes establishing ERAI and ERA2 limit eligibility to households based on certain
income criteria. How is household income defined for purposes of the ERA? How will income
be documented and verified?
Definition oflncome: With respect to each household applying for assistance, grantees may
choose between using the Department of Housing and Urban Development's (HUD) definition of
"annual income" in 24 CFR 5.6094 and using adjusted gross income as defined for purposes of
reporting under Internal Revenue Service Form 1040 series for individual federal annual income
tax purposes.
s Treasury is interpreting the two different statutory terms ("the COVID-19 outbreak" and "the coronavirus pandemic")
as having the same meaning.
a See hops://www.ecfr.jzov/cgi-bin/text-idx?ran=div5&node=24:1.1.1.1.54se24.1.5_1609.
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Methods for Income Determination: The statute establishing ERA provides that grantees may
determine income eligibility based on either (i) the household's total income for calendar year
2020, or (ii) sufficient confirmation of the household's monthly income at the time of application,
as determined by the Secretary of the Treasury (Secretary).
If a grantee in ERA1 uses a household's monthly income to determine eligibility, the grantee
should review the monthly income information provided at the time of application and extrapolate
over a 12-month period to determine whether household income exceeds 80 percent of area
median income. For example, if the applicant provides income information for two months, the
grantee should multiply it by six to determine the annual amount. If a household qualifies based on
monthly income, the grantee must redetermine the household income eligibility every three months
for the duration of assistance.
For ERA2, if a grantee uses the same income determination methodology that it used in ERA I, it
is presumed to be in compliance with relevant program requirements; if a grantee chooses to use a
different methodology for ERA2 than it used for ERA1, the methodology should be reasonable and
consistent with all applicable ERA2 requirements. In addition, if a household is a single family that
the grantee determined met the income requirement for eligibility under ERA1, the grantee may
consider the household to be eligible under ERA2, unless the grantee becomes aware of any reason
the household does not meet the requirements for ERA2. Finally, if multiple families from the
same household receive funding under an ERA2 program, the grantee should ensure that there is
no duplication of the assistance provided.
Documentation oflncome Determination: Grantees in ERA and ERA2 must have a reasonable
basis under the circumstances for determining income. Except as discussed below, this generally
requires a written attestation from the applicant as to household income and also documentation
available to the applicant to support the determination of income, such as paystubs, W-2s or other
wage statements, tax filings, bank statements demonstrating regular income, or an attestation from
an employer. As discussed below, under certain circumstances, a grantee may rely on a written
attestation from the applicant without further documentation of household income. Grantees have
discretion to provide waivers or exceptions to this documentation requirement to accommodate
disabilities, extenuating circumstances related to the pandemic, or a lack of technological access.
In these cases, the grantee is still responsible for making the required determination regarding the
applicant's household income and documenting that determination. Treasury encourages grantees
to partner with state unemployment departments or entities that administer federal benefits with
income requirements to assist with the verification process, consistent with applicable law.
Categorical Eligibility: If an applicant's household income has been verified to be at or below 80
percent of the area median income (for ERA1) or if an applicant's household has been verified as a
low-income family as defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)) (for ERA2) in connection with another local, state, or federal government assistance
program, grantees are permitted to rely on a determination letter from the government agency that
verified the applicant's household income or status as a low-income family, provided that the
determination for such program was made on or after January 1, 2020.
Fact -specific proxy: A grantee may rely on a written attestation from the applicant as to household
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income if the grantee also uses any reasonable fact -specific proxy for household income, such as
reliance on data regarding average incomes in the household's geographic area.
Written Attestation Without Further Documentation: To the extent that a household's income, or a
portion thereof, is not verifiable due to the impact of COVID-19 (for example, because a place of
employment has closed) or has been received in cash, or if the household has no qualifying
income, grantees may accept a written attestation from the applicant regarding household income.
If a written attestation without further documentation of income (or a fact -specific proxy as
described above) is relied on, the grantee must reassess household income for such household
every three months. In appropriate cases, grantees may rely on an attestation from a caseworker or
other professional with knowledge of a household's circumstances to certify that an applicant's
household income qualifies for assistance.
Definition of Area Median Income: For purposes of ERA1, the area median income for a
household is the same as the income limits for families published in accordance with 42 U.S.C.
1437a(b)(2), available under the heading for "Access Individual Income Limits Areas" at
hlt2s://www.huduser.gov/portal/datasets/il.html.'
5. ERA funds may be used for rent and rental arrears. How should a grantee document
where an applicant resides and the amount of rent or rental arrears owed?
Grantees must obtain, if available, a current lease, signed by the applicant and the landlord or
sublessor, that identifies the unit where the applicant resides and establishes the rental payment
amount. If a household does not have a signed lease, documentation of residence may include
evidence of paying utilities for the residential unit, an attestation by a landlord who can be
identified as the verified owner or management agent of the unit, or other reasonable
documentation as determined by the grantee. In the absence of a signed lease, evidence of the
amount of a rental payment may include bank statements, check stubs, or other documentation that
reasonably establishes a pattern of paying rent, a written attestation by a landlord who can be
verified as the legitimate owner or management agent of the unit, or other reasonable
documentation as defined by the grantee in its policies and procedures.
Written Attestation: If an applicant is able to provide satisfactory evidence of residence but is
unable to present adequate documentation of the amount of the rental obligation, grantees may
accept a written attestation from the applicant to support the payment of assistance up to a monthly
maximum of 100% of the greater of the Fair Market Rent or the Small Area Fair Market Rent for
the area in which the applicant resides, as most recently determined by HUD and made available at
https://www.huduser.gov/portal/datasets/fmr.html. In this case, the applicant must also attest that
the household has not received, and does not anticipate receiving, another source of public or
private subsidy or assistance for the rental costs that are the subject of the attestation. This limited
payment is intended to provide the most vulnerable households the opportunity to gather additional
documentation of the amount of the rental obligation or to negotiate with landlords in order to
avoid eviction. The assistance described in this paragraph may only be provided for three months
5 Specifically, 80% of area median income is the same as "low income." For the purpose of prioritizing rental
assistance as described in FAQ 22 below, pursuant to section 501(c)(4)(A) of Subdivision N of the ERA1 statute, 50
percent of the area median income for the household is the same as the "very low-income limit" for the area in
question.
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at a time, and a grantee must obtain evidence of rent owed consistent with the above after three
months in order to provide further assistance to such a household; Treasury expects that in most
cases the household would be able to provide documentation of the amount of the rental obligation
in any applications for further assistance.
6. ERA funds may be used for "utilities and home energy costs" and "utilities and home
energy costs arrears." How are those terms defined and how should those costs be
documented?
Utilities and home energy costs are separately stated charges related to the occupancy of rental
property. Accordingly, utilities and home energy costs include separately stated electricity, gas,
water and sewer, trash removal, and energy costs, such as fuel oil. Payments to public utilities are
permitted.
All payments for utilities and home energy costs should be supported by a bill, invoice, or
evidence of payment to the provider of the utility or home energy service.
Utilities and home energy costs that are covered by the landlord will be treated as rent.
7. The statutes establishing ERA1 and ERA2 allow the funds to be used for certain "other
expenses," as defined by the Secretary. What are some examples of these "other expenses"?
Under the statute establishing ERA I, funds used for "other expenses" must be related to housing
and "incurred due, directly or indirectly, to the novel coronavirus disease (COVID-19) outbreak."
In contrast, the statute establishing ERA2 requires that "other expenses" be "related to housing"
but does not require that they be incurred due to the COVID-19 outbreak.
For both ERA and ERA2, other expenses related to housing include relocation expenses
(including prospective relocation expenses), such as rental security deposits, and rental fees, which
may include application or screening fees. It can also include reasonable accrued late fees (if not
included in rental or utility arrears), and Internet service provided to the rental unit. Internet service
provided to a residence is related to housing and is in many cases a vital service that allows renters
to engage in distance learning, telework, and telemedicine and obtain government services.
However, given that coverage of Internet would reduce the amount of funds available for rental
assistance, grantees should adopt policies that govern in what circumstances that they will
determine that covering this cost would be appropriate.
All payments for housing -related expenses must be supported by documentary evidence such as a
bill, invoice, or evidence of payment to the provider of the service. If a housing -related expense is
included in a bundle or an invoice that is not itemized (for example, internet services bundled
together with telephone and cable television services) and obtaining an itemized invoice would be
unduly burdensome, grantees may establish and apply reasonable procedures for determining the
portion of the expense that is appropriate to be covered by ERA. As discussed in FAQ 26 below,
under certain circumstances, the cost of a hotel stay may also be covered as an "other expense."
8. Must a beneficiary of the rental assistance program have rental arrears?
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No. The statutes establishing ERA and ERA2 permit the enrollment of households for only
prospective benefits. For ERA1, if an applicant has rental arrears, the grantee may not make
commitments for prospective rent payments unless it has also provided assistance to reduce the
rental arrears; this requirement does not apply to ERA2.
9. May a grantee provide assistance for arrears that have accrued before the date of
enactment of the statute?
Yes, but not for arrears accrued before March 13, 2020, the date of the emergency declaration
pursuant to section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act, 42 U.S.C. 5191(b).
10. Is there a limit on how many months of financial assistance a tenant can receive?
Yes. In ERAI, an eligible household may receive up to twelve (12) months of assistance (plus an
additional three (3) months if necessary to ensure housing stability for the household, subject to the
availability of funds). The aggregate amount of financial assistance an eligible household may
receive under ERA2, when combined with financial assistance under ERA1, must not exceed 18
months.
In ERA I, financial assistance for prospective rent payments is limited to three months based on
any application by or on behalf of the household, except that the household may receive assistance
for prospective rent payments for additional months (i) subject to the availability of remaining
funds currently allocated to the grantee, and (ii) based on a subsequent application for additional
assistance. In no case may an eligible household receive more than 18 months of assistance under
ERA I and ERA2, combined.
11. Must a grantee pay for all of a household's rental or utility arrears?
No. The full payment of arrears is allowed up to the limits established by the statutes, as described
in FAQ 10 above. A grantee may structure a program to provide less than full coverage of arrears.
12. What outreach should be made by a grantee to a landlord or utility provider before
determining that the landlord or utility provider will not accept direct payment from the
grantee?
Treasury expects that in general, rental and utility assistance can be provided most effectively and
efficiently when the landlord or utility provider participates in the program. However, in cases
where a landlord or utility provider does not participate in the program, the only way to achieve
the statutory purpose is to provide assistance directly to the eligible household.
In ERA I, grantees must make reasonable efforts to obtain the cooperation of landlords and utility
providers to accept payments from the ERA program. Outreach will be considered complete if (i) a
request for participation is sent in writing, by mail, to the landlord or utility provider, and the
addressee does not respond to the request within seven calendar days after mailing; (ii) the grantee
has made at least three attempts by phone, text, or e-mail over a five calendar -day period to request
the landlord or utility provider's participation; or (iii) a landlord confirms in writing that the
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landlord does not wish to participate. The final outreach attempt or notice to the landlord must be
documented. The cost of contacting landlords would be an eligible administrative cost.
ERA2 does not require grantees to seek the cooperation of the landlord or utility provider before
providing assistance directly to the tenant. However, if an ERA2 grantee chooses to seek the
cooperation of landlords or utility providers before providing assistance directly to tenants,
Treasury strongly encourages the grantee to apply the same ERA requirements as described
above.
13. Is there a requirement that the eligible household have been in its current rental home
when the public health emergency with respect to COVID-19 was declared?
No. There is no requirement regarding the length of tenure in the current unit.
14. What data should a grantee collect regarding households to which it provides rental
assistance in order to comply with Treasury's reporting and recordkeeping requirements?
Treasury provided interim guidance to ERA grantees regarding reporting requirements covering
the period January through May 2021. The interim guidance required grantees to report limited
data elements for the first quarter of 2021, as well as monthly for April and May. A grantee's
failure to submit required reports to Treasury on a timely basis may constitute a violation of the
ERA award terms.
Treasury will provide grantees with additional guidance regarding quarterly reporting
requirements. Grantees will be required to submit reports in accordance with the additional
guidance beginning with the first quarter of 2021 for ERA and the second quarter of 2021 for
ERA2, with the first reports under the additional guidance being due on July 29, 2021.
ERA grantees will be required to submit monthly reports for June, July, and August 2021, which
will be consistent with monthly reports that were previously required for April and May.
Treasury's Office of Inspector General may require the collection of additional information in
order to fulfill its oversight and monitoring requirements.6 Grantees under ERA must comply
with the requirement in section 501(g)(4) of Division N of the Consolidated Appropriations Act,
2021, to establish data privacy and security requirements for information they collect; grantees
under ERA2 are also encouraged to comply with those requirements.'
The assistance listing number assigned to the ERA is 21.023.
6 Note that this FAQ is not intended to address all reporting requirements that will apply to the ERA but rather to note
for grantees information that they should anticipate needing to collect from households with respect to the provision of
rental assistance.
' Specifically, the statute establishing ERA1 requires grantees to establish data privacy and security requirements for
certain information regarding applicants that (i) include appropriate measures to ensure that the privacy of the
individuals and households is protected; (ii) provide that the information, including any personally identifiable
information, is collected and used only for the purpose of submitting reports to Treasury; and (iii) provide
confidentiality protections for data collected about any individuals who are survivors of intimate partner violence,
sexual assault, or stalking.
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15. The statute establishing ERAI requires that payments not be duplicative of any other
federally funded rental assistance provided to an eligible household. Are tenants of federally
subsidized housing, e.g., Low Income Housing Credit, Public Housing, or Indian Housing
Block Grant -assisted properties, eligible for the ERA?
An eligible household that occupies a federally subsidized residential or mixed -use property or
receives federal rental assistance may receive assistance in the ERA, provided that ERA funds are
not applied to costs that have been or will be reimbursed under any other federal assistance.
Grantees are required to comply with Title VI of the Civil Rights Act and should evaluate whether
their policies and practices regarding assistance to households that occupy federally subsidized
residential or mixed -use properties or receive federal rental assistance comply with Title VI. With
respect to ERA2, grantees must not refuse to provide assistance to households on the basis that
they occupy such properties or receive such assistance, due to the disproportionate effect such a
refusal could have on populations intended to receive assistance under the ERA and the potential
for such a practice to violate applicable law, including Title VI.
If an eligible household participates in a HUD -assisted rental program or lives in certain federally
assisted properties (e.g., using a Housing Choice Voucher, Public Housing, or Project -Based
Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter
household may receive ERA assistance for the tenant -owed portion of rent or utilities that is not
subsidized. Grantees are encouraged to confirm that the participant has already reported any
income loss or financial hardship to the Public Housing Authority or property manager and
completed an interim re-examination before assistance is provided.
Treasury encourages grantees to enter into partnerships with owners of federally subsidized
housing to implement methods of meeting the statutory requirement to prioritize assistance to
households with income that does not exceed 50 percent of the area median income for the
household, or where one or more individuals within the household are unemployed as of the date
of the application for assistance and have not been employed for the 90-day period preceding such
date.
Pursuant to section 501(k)(3)(B) of Subdivision N of the Consolidated Appropriations Act, 2021,
and 2 CFR 200.403, when providing ERA1 assistance, the grantee must review the household's
income and sources of assistance to confirm that the ERA assistance does not duplicate any other
assistance, including federal, state, or local assistance provided for the same costs.
Grantees may rely on an attestation from the applicant regarding non -duplication with other
government assistance in providing assistance to a household. Grantees with overlapping or
contiguous jurisdictions are particularly encouraged to coordinate and participate in joint
administrative solutions to meet this requirement. The requirement described in this paragraph
does not apply to ERA2; however, to maximize program efficacy, Treasury encourages grantees to
minimize the provision of duplicative assistance.
16. In ERA1, may a Tribe or Tribally Designated Housing Entity (TDHE) provide
assistance to Tribal members living outside Tribal lands?
Yes. Tribal members living outside Tribal lands may receive ERA funds from their Tribe or
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TDHE, provided they are not already receiving ERA assistance from another Tribe or TDHE,
state, or local government.
17. In ERAI, may a Tribe or TDHE provide assistance to non -Tribal members living on
Tribal lands?
Yes. A Tribe or TDHE may provide ERA funds to non -Tribal members living on Tribal lands,
provided these individuals are not already receiving ERA assistance from another Tribe or TDHE,
state, or local government.
18. May a grantee provide assistance to households for which the grantee is the landlord?
Yes. A grantee may provide assistance to households for which the grantee is the landlord,
provided that the grantee complies with the all provisions of the statute establishing ERA1 or
ERA2, as applicable, the award terms, and applicable ERA guidance issued by Treasury, and that
no preferences (beyond the prioritization described in FAQ 22) are given to households that reside
in the grantee's own properties.
19. May a grantee provide assistance to a renter household with respect to utility or energy
costs without also covering rent?
Yes. A grantee is not required to provide assistance with respect to rent in order to provide
assistance with respect to utility or energy costs. For ERA1, the limitations in section 501(c)(2)(B)
of Division N of the Consolidated Appropriations Act, 2021, limiting assistance for prospective
rent payments do not apply to the provision of utilities or home energy costs.
20. May a grantee provide ERA assistance to homeowners to cover their mortgage, utility,
or energy costs?
No. ERA assistance may be provided only to eligible households, which is defined by statute to
include only households that are obligated to pay rent on a residential dwelling. However,
homeowners may be eligible for assistance under programs using funds under the Homeowner
Assistance Fund, which was established by Treasury under the American Rescue Plan Act of 2021.
21. May grantees administer ERA programs by using contractors, subrecipients, or
intergovernmental cooperation agreements?
Yes. Grantees may use ERA payments to make subawards to other entities, including non-profit
organizations and local governments, to administer ERA programs on behalf of the grantees.
The subrecipient monitoring and management requirements set forth in 2 CFR 200.331-333 will
apply to such entities. Grantees may also enter into contracts using ERA payments for goods or
services to implement ERA programs. Grantees must comply with the procurement standards set
forth in 2 CFR 200.317-327 in entering into such contracts. Grantees are encouraged to achieve
administrative efficiency and fiduciary responsibility by collaborating with other grantees in joint
administrative solutions to deploying ERA resources.
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22. ERA requires a prioritization of assistance for households with incomes less than 50%
of area median income or households with one or more individuals that have not been
employed for the 90-day period preceding the date of application. How should grantees
prioritize assistance?
Grantees should establish a preference system for assistance that prioritizes assistance to
households with incomes less than 50% area median income and to households with one or more
members that have been unemployed for at least 90 days. Grantees should document the
preference system they plan to use and should inform all applicants about available preferences.
Treasury will require grantees to report to Treasury on the methods they have established to
implement this prioritization of assistance and to publicly post a description of their prioritization
methods, including on their program web page if one exists, by July 15, 2021.
23. ERA1 and ERA2 both allow for up to 10 percent of the funds received by a grantee to
be used for certain housing stability services. What are some examples of these services?
ERA and ERA2 have different requirements for housing stability services.
Under ERA I, these funds may be used to provide eligible households with case management and
other services related to the COVID-19 outbreak, as defined by the Secretary, intended to help
keep households stably housed.
Under ERA2, these services do not have to be related to the COVID-19 outbreak.
For purposes of ERA and ERA2, housing stability services include those that enable eligible
households to maintain or obtain housing. Such services may include, among other things, eviction
prevention and eviction diversion programs; mediation between landlords and tenants; housing
counseling; fair housing counseling; housing navigators or promotoras that help households access
ERA programs or find housing; case management related to housing stability; housing -related
services for survivors of domestic abuse or human trafficking; legal services or attorney's fees
related to eviction proceedings and maintaining housing stability; and specialized services for
individuals with disabilities or seniors that support their ability to access or maintain housing.
Grantees using ERA funds for housing stability services must maintain records regarding such
services and the amount of funds provided to them.
24. Are grantees required to remit interest earned on ERA payments made by Treasury?
No. ERA payments made by Treasury to states, territories, and the District of Columbia are not
subject to the requirement of the Cash Management Improvement Act and Treasury's
implementing regulations at 31 CFR part 205 to remit interest to Treasury. ERA payments made
by Treasury to local governments, Tribes, and TDHEs are not subject to the requirement of 2
CFR 200.305(b)(8)—(9) to maintain balances in an interest -bearing account and remit payments to
Treasury.
25. When may Treasury recoup ERA funds from a grantee?
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Treasury may recoup ERA funds from a grantee if the grantee does not comply with the
applicable limitations on the use of those funds.
26. May rental assistance be provided to temporarily displaced households living in hotels
or motels?
Yes. The cost of a hotel or motel room occupied by an eligible household may be covered using
ERA assistance within the category of certain "other expenses related to housing" (as described in
FAQ 7) provided that:
the household has been temporarily or permanently displaced from its primary
residence or does not have a permanent residence elsewhere;
ii. the total months of assistance provided to the household do not exceed the applicable
time limit described in FAQ 10; and
iii. documentation of the hotel or motel stay is provided and the other applicable
requirements provided in the statute and these FAQs are met.
The cost of the hotel or motel stay would not include expenses incidental to the charge for the
room.
Grantees covering the cost of such stays must develop policies and procedures detailing under
what circumstances they would provide assistance to cover such stays. In doing so, grantees
should consider the cost effectiveness of offering assistance for this purpose as compared to
other uses. If a household is eligible for an existing program with narrower eligibility criteria
that can provide similar assistance for hotel or motel stays, such as the HUD Emergency
Solutions Grant program or FEMA Public Assistance, grantees should utilize such programs
prior to providing similar assistance under the ERA program.
27. Maya renter subject to a "rent -to -own" agreement with a landlord be eligible for ERA
assistance?
A grantee may provide financial assistance to households that are renting their residence under a
"rent -to -own" agreement, under which the renter has the option (or obligation) to purchase the
property at the end of the lease term, provided that a member of his or her household:
is not a signor or co -signor to the mortgage on the property;
ii. does not hold the deed or title to the property; and
iii. has not exercised the option to purchase.
Homeowners may be eligible for assistance under programs using funds under the Homeowner
Assistance Fund, which was established by Treasury under the American Rescue Plan Act of
2021.
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28. Under what circumstances may households living in manufactured housing (mobile
homes) receive assistance?
Rental payments for either the manufactured home or the parcel of land the manufactured home
occupies are eligible for financial assistance under ERA programs. Households renting
manufactured housing or the parcel of land the manufactured home occupies may also receive
assistance for utilities and other expenses related to housing, as detailed in FAQ 7 above. This
principle also applies to mooring fees for water -based dwellings (houseboats).
29. What are the applicable limitations on administrative expenses?
Under ERA1, not more than 10 percent of the amount paid to a grantee may be used for
administrative costs attributable to providing financial assistance and housing stability services to
eligible households. Under ERA2, not more than 15 percent of the amount paid to a grantee may
be used for administrative costs attributable to providing financial assistance, housing stability
services, and other affordable rental housing and eviction prevention activities.
The revised award term for ERA issued by Treasury permits recipients to use funds provided to
cover both direct and indirect costs. A grantee may permit a subrecipient to incur more than 10 or
15 percent, as applicable, of the amount of the subaward issued to that subrecipient as long as the
total of all administrative costs incurred by the grantee and all subrecipients, whether as direct or
indirect costs, does not exceed 10 or 15 percent, as applicable, of the total amount of the award
provided to the grantee from Treasury.
Further, the revised award term for ERA no longer requires grantees to deduct administrative
costs charged to the award from the amount available for housing stability services. Rather, any
direct and indirect administrative costs in ERA must be allocated by the grantee to either the
provision of financial assistance or the provision of housing stability services. For ERA2, any
direct and indirect administrative costs must be allocated by the grantee accordingly for the
provision of financial assistance, housing stability services, and other affordable rental housing and
eviction prevention activities. As required by the applicable statutes, not more than 10 percent of
funds received by a grantee may be used to provide eligible households with housing stability
services (discussed in FAQ 23). To the extent administrative costs are not readily allocable to one
or the other of these categories, the grantee may assume an allocation of the relevant costs of 90
percent to financial assistance and 10 percent to housing stability services.
Grantees may apply their negotiated indirect cost rate to the award, but only to the extent that the
total of the amount charged pursuant to that rate and the amount of direct costs charged to the
award does not exceed 10 percent of the amount of the award for ERAI or 15 percent of the
amount of the award for ERA2.
30. Should grantees provide tenants the option to apply directly for ERA assistance, rather
than only accepting applications for assistance from landlords and owners of dwellings?
For ERA1, Treasury strongly encourages grantees to provide an option for tenants to apply directly
for funding, rather than only accepting applications for assistance from landlords and owners of
dwellings. For ERA2, grantees are required to allow tenants to apply directly for assistance, even if
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the landlord or owner chooses not to participate, consistent with the statutory requirement for the
funds to be used to provide financial assistance to eligible households.
See FAQ 12 for additional information on grantees providing assistance to landlords and tenants.
31. How should grantees ensure that recipients use ERA funds only for permissible
purposes?
Grantees should require recipients of funds under ERA programs, including tenants and landlords,
to commit in writing to use ERA assistance only for the intended purpose before issuing a
payment. Grantees are not required to obtain documentation evidencing the use of ERA program
funds by tenants and landlords. Grantees are expected to apply reasonable fraud- prevention
procedures and to investigate and address potential instances of fraud or the misuse of funds that
they become aware of.
There may be instances when a landlord refuses to accept a payment from a tenant who has
received assistance directly from a grantee for the purpose of paying the landlord. In these cases,
the grantee may allow the tenant to use the assistance for other eligible costs in accordance with the
terms of the grantee's ERA programs.
32. Can grantees prohibit landlords from pursuing eviction for nonpayment of rent for
some period after receiving ERA assistance?
With respect to landlords that receive funds under an ERA program for prospective rent, the
grantee must prohibit the landlord from evicting the tenant for nonpayment of rent during the
period covered by the assistance.
In addition, with respect to landlords that receive funds for rental arrears, to promote the purpose
of the program the grantee is encouraged to prohibit the landlord from evicting the tenant for
nonpayment of rent for some period of time, consistent with applicable law.
In all cases, Treasury strongly encourages grantees to require landlords that receive funds under
the ERA, as a condition of receiving the funds, not to evict tenants for nonpayment of rent for 30
to 90 days longer than the period covered by the rental assistance.
33. How can grantees work with other grantees to make their ERA programs consistent?
Treasury encourages grantees with overlapping or contiguous areas to collaborate to develop
consistent or complementary terms of their ERA programs and to coordinate in their
communications with the public, to minimize potential confusion among tenants and landlords
regarding assistance. Treasury also encourages grantees to reduce burdens for entities seeking
assistance from multiple grantees across different jurisdictions, including utility providers and
landlords with properties in multiple jurisdictions.
34. Should a grantee require that a landlord initiate an eviction proceeding in order to
apply for assistance under an ERA program?
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No.
35. How can ERA assistance be used to support an eligible household moving to a new
home?
ERA funds may be used to provide assistance to eligible households to cover prospective
relocation assistance, rent, and utility or home energy costs, including after an eviction. Treasury
encourages grantees to provide prospective support to help ensure housing stability. See FAQ 7
(regarding qualifying relocation expenses) and FAQ 10 (regarding time limits on assistance).
Before moving into a new residence, a tenant may not yet have a rental obligation, as required by
the statutes establishing ERA and ERA2. In those cases, Treasury encourages grantees to provide
otherwise eligible households with an official document specifying the amount of financial
assistance under ERA programs that the grantee will pay a landlord on behalf of the household
(such as for a security deposit or rent) if the landlord and the household enter into a qualifying lease
of at least six months. Such documentation may expire after a certain period, such as 60 to 120 days
after the issuance date. Treasury encourages grantees to work with providers of housing stability
services to help these households identify housing that meets their needs. For purposes of reporting
to Treasury, grantees may consider these commitments to be an obligation of funding until their
expiration.
36. What steps can ERA grantees take to prevent evictions for nonpayment of rent?
Treasury strongly encourages grantees to develop partnerships with courts in their jurisdiction that
adjudicate evictions for nonpayment of rent to help prevent evictions and develop eviction
diversion programs. For example, grantees should consider: (1) providing information to judges,
magistrates, court clerks, and other relevant court officials about the availability of assistance under
ERA programs and housing stability services; (2) working with eviction courts to provide
information about assistance under ERA programs to tenants and landlords as early in the
adjudication process as possible; and (3) engaging providers of legal services and other housing
stability services to assist households against which an eviction action for nonpayment of rent has
been filed.
37. How can grantees promote access to assistance for all eligible households?
Grantees should address barriers that potentially eligible households may experience in accessing
ERA programs, including by providing program documents in multiple languages and by
conducting targeted outreach to populations with disproportionately high levels of unemployment
or housing instability or that are low income.
Grantees should also provide, either directly or through partner organizations, culturally and
linguistically relevant outreach and housing stability services to ensure access to assistance for all
eligible households.
38. May grantees obtain information in bulk from utility providers and landlords with
multiple units regarding the eligibility of multiple tenants, or bundle assistance payments for
the benefit of multiple tenants in a single payment to a utility provider or landlord?
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Data -sharing agreements between grantees and utility providers or landlords with multiple units
may reduce administrative burdens and enhance program integrity by providing information to
validate tenant -provided information. Therefore, grantees may establish prudent information -
sharing arrangements with utility providers and landlords for determining household eligibility.
Grantees may also establish reasonable procedures for combining the assistance provided for
multiple households into a single "bulk" payment made to a utility or landlord. Grantees should
ensure that any such arrangements (1) comply with applicable privacy requirements; (2) include
appropriate safeguards to ensure payments are made only for eligible households; and (3) are
documented in records satisfying the grantee's reporting requirements, including, for example, the
amount of assistance paid for each household."
39. If ERA program funds are used for a security deposit for a lease, to whom should the
landlord return the security deposit at the end of the lease?
Grantees should establish a policy with regard to the payment and disposition of security deposits,
which should include a reasonable limit on the amount of a security deposit to be paid using ERA
program funds. The amount of a security deposit should not exceed one month's rent, except in
cases where a higher amount is reasonable and customary in the local housing market. The
treatment of security deposits is generally subject to applicable law and the rental agreement. In
order to mitigate risks associated with the use of ERA program funds for security deposits, grantees
should establish a minimum rental period, not less than four months, before a tenant is entitled to
receive a returned security deposit that was paid for with ERA funds. To the extent that the security
deposit is not returned to the tenant, it should be returned to the grantee.
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