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HomeMy WebLinkAboutBack-Up from Law DeptU.S. Department of the Treasury Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Guidance October 4, 2021 I. Overview Section 501 of Division N of the Consolidated Appropriations Act, 2021 appropriated $25 billion for the delivery of emergency rental assistance (ERA) to eligible households suffering unemployment or other financial hardship due to the novel coronavirus pandemic. The Department of the Treasury allocated these funds to states, the District of Columbia, U.S. territories, Indian tribes, Tribally designated housing entities (TDHEs), the Department of Hawaiian Homelands, and units of local government (Grantees). Congress later appropriated an additional $21,550,000,000 for ERA under the American Rescue Plan Act of 2021. Treasury refers to ERA under the Consolidated Appropriations Act, 2021, as "ERA1" and ERA under the American Rescue Plan Act of 2021 as "ERA2." This guidance is focused on ERA1, and addresses ERA2 only to the extent relevant to the reallocation of ERA funds. Treasury will publish guidance for the reallocation of ERA2 funds, which will not begin until March 31, 2022, at a later date. The Consolidated Appropriations Act, 2021 requires Treasury to begin reallocating "excess" ERA1 funds on September 30, 2021. Treasury's objective in reallocations is to ensure ERA funds remain available to Grantees in accordance with their jurisdictional needs and demonstrated capacity to deliver assistance while the ERA appropriations remain available. This guidance sets forth the procedures for the ERA reallocation process. It describes how Grantees that have obligated insufficient funds as of September 30, 2021 will be required to submit a Performance Improvement Plan and how excess funds will be identified based on the Grantee's expenditures. It further describes timelines and mitigating factors related to the recapture of excess funds. This guidance also describes a voluntary reallocation process through which a Grantee may request that Treasury reallocate its funds to another Grantee. It also clarifies that Treasury will not recapture funds from Indian Tribes, TDHEs or U.S. territories prior to April 2022. II. Obligations and Excess Funds The ERA statute requires Treasury to identify "excess funds" for reallocation from amounts Grantees have "not obligated" from their initial ERA allocations. Specifically, the statute provides that beginning on September 30, 2021, Treasury must recapture excess funds, as determined by the Secretary, not obligated by a grantee for eligible ERA purposes, and Treasury must reallocate those funds to Grantees that, at the time of the reallocation, have obligated at least 65% of their initial ERA allocation. The amount of any reallocation is based on demonstrated need within a Grantee's jurisdiction, as determined by Treasury. Consistent with these requirements, Treasury has developed the following policies and procedures for identifying the excess funds that will be available for reallocation. A. Obligating ERA Funds Treasury will not recapture funds that a grantee has obligated. Treasury will consider funds to be obligated if they meet any of the following conditions: The funds have actually been spent providing financial assistance and housing stability services under ERA for eligible households; The funds are needed to pay for assistance promised in a commitment letter issued to induce a landlord to enter a rental agreement with an eligible household under Treasury's ERA FAQ #35; or • Subject to the conditions described below concerning subrecipients, the Grantee has, as part of the Grantee's ERA program administration, entered into a binding agreement or funding commitment requiring the Grantee to disburse the funds to a third party for eligible ERA purposes (a Contractual Obligation). A Contractual Obligation will include situations in which (i) assistance has been approved for an eligible household but the payment to the landlord or utility provider has not yet been disbursed, or (ii) assistance has been approved but not yet disbursed under a bulk payment arrangement with a large landlord or utility provider under Treasury's ERA FAQ 938. Funds may not be deemed to be under a Contractual Obligation for more than 12 months. Treasury will consider any funds under a Contractual Obligation (subject to this 12-month limit) or any funds covered by a commitment letter issued to an eligible household to remain obligated for 30 days after the termination of the relevant agreement, funding commitment, or commitment letter. Funds not expended or re -obligated within the 30-day period will be considered de - obligated and potentially subject to reallocation in accordance with this guidance. In addition, under the ERA statute (as amended), Grantees must obligate all funds from their initial allocations by September 30, 2022. Grantees are encouraged to partner with local nonprofit organizations and governmental agencies to expedite the obligation process and delivery of assistance to eligible households. However, Grantees may not use subrecipient agreements with these entities to avoid meeting the statutory obligation deadlines, and funds will not be considered obligated based solely on the fact they are subject to an agreement that provides for another entity to administer assistance on the Grantee's behalf. Funds paid or payable by a Grantee under a subrecipient agreement, and that have not been expended by the subrecipient for permissible purposes, will be considered obligated only to the extent that such funds (i) represent the subrecipient's permissible compensation for ERA 1- related responsibilities, in accordance with Treasury's ERA FAQ #21; or (ii) will be used to pay obligations under binding agreements or funding commitments that would constitute Contractual Obligations if entered into by the Grantee directly. 2 The ERA statute provides that Grantees may use up to 10% of their allocations for administrative costs attributable to providing financial assistance and housing stability services. For reallocation purposes, Treasury will consider 10% of each Grantee's initial allocation as having been obligated for administrative costs regardless of the Grantee's actual expenditures, commitments, or obligations. Grantees will be required to submit a certification indicating the amount of funds they have obligated through September 30, 2021 (an Obligated Funds Certification). Grantees that have obligated less than 65% of their allocations, or that do not provide an Obligated Funds Certification, will be required to submit for Treasury's approval a program self -assessment and improvement plan, as described in Section II.C2, in a form provided by Treasury (a Program Improvement Plan), no later than November 15, 2021. B. Identi ing Excess Funds Treasury will rely on the following factors for identifying excess funds. Each factor will be applied separately. If Treasury identifies excess funds based on multiple factors, the amount to be reallocated from the Grantee will equal the aggregate total. Treasury will not identify excess funds from allocations to Indian Tribes, TDHEs or U.S. territories prior to April 2022. Treasury will notify a Grantee in writing upon determining that any part of its allocation constitutes excess funds and will provide instructions for the funds' return. Excess funds must be returned within 10 days of receiving such notice. 1. Insufficient Expenditure Ratio In addition to evaluating the amount of ERA1 funding obligated by a Grantee as of September 30, 2021, Treasury will also evaluate a Grantee's "Expenditure Ratio" as of September 30, 2021 and approximately every two months thereafter. A Grantee's Expenditure Ratio will be calculated as (i) the Grantee's total expenditure of ERA1 funds on assistance to eligible households divided by (ii) an amount equal to 90% of the Grantee's total ERA1 allocations as of the date of the assessment.' The Grantee's total assistance expenditures will be determined based on the Grantee's interim report to Treasury for the first quarter of 2021 and each subsequent monthly report. Grantees will be required to continue providing monthly reports at least through March 31, 2022. If funds are recaptured from a Grantee, the denominator of the Expenditure Ratio will be adjusted accordingly. The "First Assessment" means Treasury's assessment of a Grantee's performance and Expenditure Ratio based on the reporting data through September 30, 2021. A Grantee whose Expenditure Ratio is below 30% for the First Assessment will be considered to have excess funds. Beginning with the 30% threshold established for September 2021, the minimum Expenditure Ratio will increase by 5% each calendar month (and, as indicated above, assessments will occur approximately every two months). ' This allowance reflects the ERA statute's requirement that at least 90% of a grantee's allocation be spent on assistance to eligible households, with the remainder to be used for administrative costs. For each Grantee whose Expenditure Ratio is below the then -applicable minimum threshold at the time of an assessment, Treasury will calculate the Grantee's amount of excess funds as the difference between (i) the amount of expenditures needed for the Grantee to achieve the minimum Expenditure Ratio applicable to that assessment and (ii) the Grantee's reported total assistance expenditures. As a result, the amount subject to recapture will be less for Grantees whose Expenditure Ratios are closer to the minimum. 2. Failure to Make Required Submissions As described elsewhere in this guidance, a Grantee will be required to submit a Program Improvement Plan if the Grantee does not certify that the Grantee has obligated sufficient ERA funding as of September 30, 2021, and the Grantee may submit a Program Improvement Plan to mitigate an excess funds determination that results from an insufficient Expenditure Ratio on September 30, 2021. A Grantee that submits a Program Improvement Plan will be required to deliver a report within 60 days after the date of Treasury's approval of the Program Improvement Plan confirming that actions have been taken to implement the policy and administrative improvements identified in the Program Improvement Plan. A Grantee that is required to submit a Program Improvement Plan but does not do so by November 15, 2021 will be determined to have excess funds in an amount equal to 10% of the Grantee's initial allocation. A Grantee that submits a Program Improvement Plan but does not submit the required report confirming progress in implementing the actions identified in the Performance Improvement Plan in a timely manner may be determined to have excess funds in an amount equal to 10% of the Grantee's allocation at that time (taking into account any previous reallocations). 3. Unobligated Funds at Final Assessment Treasury will conduct a final assessment of each grantee's Expenditure Ratio based on data reported through March 31, 2022. At that time, any unobligated ERA funds may be determined to be excess funds. C. Millacting Factors for Excess Funds. If a Grantee is subject to an excess funds determination based on the criteria described above, the Grantee may request that Treasury reduce or not make the determination based on any of the following three criteria. 1. First Assessment Mitigation Treasury will not make a determination of excess funds based on an insufficient Expenditure Ratio for the First Assessment if the Grantee submits by November 15, 2021 a certification signed by an authorized official of the Grantee that confirms that either (i) the Grantee has obligated at least 65% of its allocation or (ii) the Grantee's Expenditure Ratio is at least 30%. N 2. Developing a Program Improvement Plan As indicated in Section II.A, Grantees that have obligated less than 65% of their allocations, or that do not provide an Obligated Funds Certification, will be required to submit for Treasury's approval a program self -assessment and improvement plan. Further, with respect to the First Assessment, a Grantee may request that Treasury reduce an excess funds determination if the Grantee submits a Program Improvement Plan as described below no later than November 15, 2021. If Treasury approves such a Program Improvement Plan, any reduction in the excess funds determination will not exceed the amount of total assistance expenditures required for the Grantee's Expenditure Ratio to equal 15%. The Program Improvement Plan will identify (i) policies and practices recommended by Treasury that the Grantee has already implemented, such as the use of self -attestations to confirm applicant income eligibility; eviction diversion partnerships; and engaging providers of culturally and linguistically relevant housing stability services; (ii) whether the Grantee has adopted any policies or practices that Treasury has discouraged; (iii) key obstacles to delivering ERA assistance to eligible households in the Grantee's jurisdiction; (iv) actions that the Grantee will take to improve program performance; and (v) a projection of the Grantee's ERA1 expenditures over the following four months. Treasury will approve a Grantee's Program Improvement Plan if it is complete and identifies actions for improvement that relate to adopting policies and practices recommended by Treasury, ceasing policies and practices Treasury has discouraged, or otherwise adequately addresses the key obstacles identified by the Grantee in the Program Improvement Plan. 3. Exigent Circumstances Treasury may also reduce or not make an excess funds determination if Treasury determines that the amount of excess funds was the result of exigent circumstances, such as a natural disaster. III. Distributing Reallocated Funds A. Requesting Reallocated Funds Treasury will begin accepting requests from Grantees for reallocated funds, on a form to be published by Treasury, on October 15, 2021. As the ERA statute requires, reallocated funds will only be available to Grantees that have obligated at least 65% of their own initial ERA allocations. Each funding request will be required to indicate the amount requested and confirm the need for such funds in the Grantee's jurisdiction. B. Allocation ofReallocated Funds Periodically, Treasury will determine if there are sufficient funding requests from Grantees serving jurisdictions with demonstrated needs to warrant the disbursement of reallocated funds. Treasury will evaluate each request for reallocated funds based on the requesting Grantee's demonstrated capacity to meet and exceed the minimum Expenditure Ratios, and other indications of ERA need in the Grantee's jurisdiction. The amount of any reallocation to a 5 Grantee will be determined by Treasury, in its discretion, based on its assessment of these factors. In the event Grantees request more reallocated funds than are available for distribution, each Grantee's share (Relative Share) will be calculated by (i) determining the aggregate amount of reallocated funds approved by Treasury based on its evaluation of the requests as described above; (ii) dividing the Grantee's approved amount by this aggregate total; and (iii) multiplying the total amount available for distribution by the resulting percentage. In addition, Treasury may limit a Grantee's eligibility for reallocated funds as a percentage of its initial allocation if appropriate to enable an equitable distribution of the available excess funds based on demonstrated needs among requesting Grantees. Treasury may establish a different limit for each category of Grantee (state, locality, Tribe, TDHE, or U.S. territory), but would apply the relevant limit uniformly among Grantees within a category. Grantees may be required to amend their existing ERAI program agreements as a condition to receiving reallocated ERA funds. These amendments will ensure the program agreements are consistent with the Grantee's augmented allocation amount and reflect the terms and conditions described in this guidance. C. Reallocation Priorities When feasible and consistent with jurisdictional needs, Treasury intends to reallocate excess funds that are recaptured from a Grantee to another Grantee in the same state. When appropriate, after such an intrastate reallocation, a Grantee's excess funds will be reallocated to Grantees in other states. In addition, Treasury may prioritize the reallocation of funding to Grantees that are likely to expend all their remaining ERA and ERA2 allocations promptly. D. Extended Statutory Deadline Grantees are prohibited from obligating any funds from their initial allocations after the statutory deadline of September 30, 2022. Grantees may, however, request an extension through December 29, 2022 to continue obligating funds received through reallocation. The funding request form described in Section IILA. will enable such extension requests. IV. Voluntary Reallocation Beginning September 30, 2021, Grantees may request the transfer of some or all of their allocations to another Grantee that (i) administers an ERA program in the same state, territory, or Tribal area and (ii) has obligated or spent at least 65% of its own allocation by the time of transfer. Grantees may request Treasury's assistance in identifying a permissible transferee. To complete a voluntary reallocation, the transferor and transferee Grantees will generally be required to submit a written agreement signed by authorized officials, together with documents meeting the following requirements: 0 • The transferee must provide evidence of demonstrated need in its jurisdiction for the funds to be transferred. This requirement may be satisfied by (i) Treasury's confirmation that the transferee has spent or obligated at least 65% of its own allocation and (ii) a description of the transferee's need for the funds, attested to by the transferee's authorized official. • Both the transferor and transferee Grantees must agree to comply with administrative requirements applicable to the transfer of federal funds between and among Grantees, including the completion and submission of certain documents that Treasury will provide. • The transferor must acknowledge and agree in writing that the transferred amount will be deemed to be excess funds and disclaim any further right, title, or interest therein. • Both the transferor and transferee Grantees must attest to their compliance with all applicable ERA requirements under applicable law, guidance, or the Grantee's funding agreement. Upon approval, Treasury will provide the transferor and transferee Grantees with instructions for completing the necessary fund transfers. Treasury may determine not to approve a voluntary reallocation request if it appears that the proposed reallocation may (i) increase the risk that the funds would be recaptured; (ii) leave a Grantee with insufficient funds to meet the needs in its jurisdiction; or (iii) otherwise undermine the purposes of reallocation. V. Use of Funds for Administrative Expenses and Housing Stability Services A Grantee may spend up to 10% of its initial ERA allocation for administrative expenses only if the Grantee obligates at least 30% of its initial allocation for the provision of financial assistance and housing stability services on behalf of eligible households by September 30, 2022. If a Grantee has obligated less than 30% of its initial allocation providing financial assistance and housing stability services as of September 30, 2022, Treasury will presume that the Grantee's administrative expenses were not attributable to such services — and therefore were not permissible uses of ERA funds — to the extent that the administrative expenses exceed 10% of the Grantee's allocation after deducting amounts recaptured or reallocated as excess funds, unless the Grantee can demonstrate that those costs are related to the delivery of the program. 7 H. R.133-888 Subtitle D—Extension of Waiver Authority SEC.442. EXTENSION OF WAIVER AUTHORITY. Notwithstanding any other provision of law, in fiscal year 2021, the Secretary of Transportation may exercise the authority provided by section 22005 of division B of the CARES Act (23 U.S.C. 401 note; Public Law 116-136). TITLE V—BANKING Subtitle A —Emergency Rental Assistance SEC. 501. EMERGENCY RENTAL ASSISTANCE. (a) APPROPRIATION.— H. R. 133-889 (1) IN GENERAL. —Out of any money in the Treasury of the United States not otherwise appropriated, there are appro- priated for making payments to eligible grantees under this section, $25,000,000,000 for fiscal year 2021. (2) RESERVATION OF FUNDS FOR THE TERRITORIES AND TRIBAL COMMUNITIES. —Of the amount appropriated under para- graph (1), the Secretary shall reserve — (A) $400,000,000 of such amount for making payments under this section to the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Common- wealth of the Northern Mariana Islands, and American Samoa; and (B) $800,000,000 of such amount for making payments under this section to eligible grantees described in subpara- graphs (C) and (D) of subsection (k)(2); and (C) $15,000,000 for administrative expenses of the Sec- retary described in subsection (h). (b) PAYMENTS FOR RENTAL ASSISTANCE.— (1) ALLOCATION AND PAYMENTS TO STATES AND UNITS OF LOCAL GOVERNMENT. — (A) IN GENERAL. —The amount appropriated under paragraph (1) of subsection (a) that remains after the application of paragraph (2) of such subsection shall be allocated and paid to eligible grantees described in subpara- graph (B) in the same manner as the amount appropriated under subsection (a)(1) of section 601 of the Social Security Act (42 U.S.C. 801) is allocated and paid to States and units of local government under subsections (b) and (c) of such section, and shall be subject to the same require- ments, except that— (i) the deadline for payments under section 601(b)(1) of such Act shall, for purposes of payments under this section, be deemed to be not later than 30 days after the date of enactment of this section; (ii) the amount referred to in paragraph (3) of section 601(c) of such Act shall be deemed to be the amount appropriated under paragraph (1) of subsection (a) of this Act that remains after the application of paragraph (2) of such subsection; (iii) section 601(c) of the Social Security Act shall be applied — (I) by substituting "1 of the 50 States or the District of Columbia" for "1 of the 50 States" each place it appears; (II) in paragraph (2)(A), by substituting " $200,000,000" for " $1,250,000,000"; (III) in paragraph (2)(B), by substituting "each of the 50 States and District of Columbia" for each of the 50 States"; (IV) in paragraph (4), by substituting "excluding the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Common- wealth of the Northern Mariana Islands, and American Samoa" for "excluding the District of Columbia and territories specified in subsection (a)(2)(A)"; and (V) without regard to paragraph (6); H. R. 133-890 (iv) section 601(d) of such Act shall not apply to such payments; and (v) section 601(e) shall be applied — (I) by substituting "under section 501 of sub- title A of title V of division N of the Consolidated Appropriations Act, 2021" for "under this section"; and (II) by substituting "local government elects to receive funds from the Secretary under section 501 of subtitle A of title V of division N of the Consolidated Appropriations Act, 2021 and will use the funds in a manner consistent with such section" for "local government's proposed uses of the funds are consistent with subsection (d)". (B) ELIGIBLE GRANTEES DESCRIBED. —The eligible grantees described in this subparagraph are the following: (i) A State that is 1 of the 50 States or the District of Columbia. (ii) A unit of local government located in a State described in clause W. (2) ALLOCATION AND PAYMENTS TO TRIBAL COMMUNITIES. — (A) IN GENERAL. —From the amount reserved under subsection (a)(2)(B), the Secretary shall— (i) pay the amount equal to 0.3 percent of such amount to the Department of Hawaiian Home Lands; and (ii) subject to subparagraph (B), from the remainder of such amount, allocate and pay to each Indian tribe (or, if applicable, the tribally designated housing entity of an Indian tribe) that was eligible for a grant under title I of the Native American Housing Assistance and Self -Determination Act of 1996 (NAHASDA) (25 U.S.G. 4111 et seq.) for fiscal year 2020 an amount that bears the same proportion to the such remainder as the amount each such Indian tribe (or entity) was eligible to receive for such fiscal year from the amount appropriated under paragraph (1) under the heading "NATIVE AMERICAN PROGRAMS" under the heading "PUBLIC AND INDIAN HOUSING" of title II of division H of the Further Consolidated Appro- priations Act, 2020 (Public Law 116-94) to carry out the Native American Housing Block Grants program bears to the amount appropriated under such para- graph for such fiscal year, provided the Secretary shall be authorized to allocate, in an equitable manner as determined by the Secretary, and pay any Indian tribe that opted out of receiving a grant allocation under the Native American Housing Block Grants program formula in fiscal year 2020, including by establishing a minimum amount of payments to such Indian tribe, provided such Indian tribe notifies the Secretary not later than 30 days after the date of enactment of this Act that it intends to receive allocations and pay- ments under this section. (B) PRO BATA ADJUSTMENT; DISTRIBUTION OF DECLINED FUNDS.— H. R. 133-891 (i) PRO RATA ADJUSTMENTS. —The Secretary shall make pro rate reductions in the amounts of the alloca- tions determined under clause (ii) of subparagraph (A) for entities described in such clause as necessary to ensure that the total amount of payments made pursu- ant to such clause does not exceed the remainder amount described in such clause. (ii) DISTRIBUTION OF DECLINED FUNDS. —If the Sec- retary determines as of 30 days after the date of enact- ment of this Act that an entity described in clause (ii) of subparagraph (A) has declined to receive its full allocation under such clause then, not later than 15 days after such date, the Secretary shall redis- tribute, on a pro rats, basis, such allocation among the other entities described in such clause that have not declined to receive their allocations. (3) ALLOCATIONS AND PAYMENTS TO TERRITORIES. — (A) IN GENERAL. —From the amount reserved under subsection (a)(2)(A), subject to subparagraph (B), the Sec- retary shall allocate and pay to each eligible grantee described in subparagraph (C) an amount equal to the product of— (i) the amount so reserved; and (ii) each such eligible grantee's share of the com- bined total population of all such eligible grantees, as determined by the Secretary. (B) ALLOCATION ADJUSTMENT.— (i) REQUIREMENT. —The sum of the amounts allo- cated under subparagraph (A) to all of the eligible grantees described in clause (ii) of subparagraph (C) shall not be less than the amount equal to 0.3 percent of the amount appropriated under subsection (a)(1). (ii) REDUCTION. —The Secretary shall reduce the amount of the allocation determined under subpara- graph (A) for the eligible grantee described in clause (i) of subparagraph (C) as necessary to meet the requirement of clause (i). (C) ELIGIBLE GRANTEES DESCRIBED. —The eligible grantees described in this subparagraph are— (i) the Commonwealth of Puerto Rico; and (ii) the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. (e) USE OF FUNDS.— (1) IN GENERAL. —An eligible grantee shall only use the funds provided from a payment made under this section to provide financial assistance and housing stability services to eligible households. (2) FINANCIAL ASSISTANCE. — (A) IN GENERAL. —Not less than 90 percent of the funds received by an eligible grantee from a payment made under this section shall be used to provide financial assistance to eligible households, including the payment of (i) rent; (ii) rental arrears; (iii) utilities and home energy costs; (iv) utilities and home energy costs arrears; and H. R. 133-892 (v) other expenses related to housing incurred due, directly or indirectly, to the novel coronavirus disease (COVID-19) outbreak, as defined by the Secretary. Such assistance shall be provided for a period not to exceed 12 months except that grantees may provide assistance for an additional 3 months only if necessary to ensure housing stability for a household subject to the availability of funds. (B) LIMITATION ON ASSISTANCE FOR PROSPECTIVE RENT PAYMENTS.— (i) IN GENERAL.. —Subject to the exception in clause (ii), an eligible grantee shall not provide an eligible household with financial assistance for prospective rent payments for more than 3 months based on any application by or on behalf of the household. (ii) EXCEPTION. —For any eligible household described in clause (i), such household may receive financial assistance for prospective rent payments for additional months: (I) subject to the availability of remaining funds currently allocated to the eligible grantee, and (II) based on a subsequent application for addi- tional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assist- ance allowed under subparagraph (A). (iii) FURTHER LIMITATION. —To the extent that applicants have rental arrears, grantees may not make commitments for prospective rent payments unless they have also provided assistance to reduce an eligible household's rental arrears. (C) DISTRIBUTION OF FINANCIAL ASSISTANCE.— (i) PAYMENTS. — (I) IN GENERAL. —With respect to financial assistance for rent and rental arrears and utilities and home energy costs and utility and home energy costs arrears provided to an eligible household from a payment made under this section, an eligible grantee shall make payments to a lessor or utility provider on behalf of the eligible house- hold, except that, if the lessor or utility provider does not agree to accept such payment from the grantee after outreach to the lessor or utility pro- vider by the grantee, the grantee may make such payments directly to the eligible household for the purpose of making payments to the lessor or utility provider. (II) RULE OF CONSTRUCTION. —Nothing in this section shall be construed to invalidate any other- wise legitimate grounds for eviction. (ii) DOCUMENTATION. —For any payments made by an eligible grantee to a lessor or utility provider on behalf of an eligible household, the eligible grantee shall provide documentation of such payments to such household. H. R. 133-893 (3) HOUSING STABILITY SERVICES. —Not more than 10 per- cent of funds received by an eligible grantee from a payment made under this section may be used to provide eligible house- holds with case management and other services related to the novel coronavirus disease (COVID-19) outbreak, as defined by the Secretary, intended to help keep households stably housed. (4) PRIORITIZATION OF ASSISTANCE. — (A) In reviewing applications for financial assistance and housing stability services to eligible households from a payment made under this section, an eligible grantee shall prioritize consideration of the applications of an eligible household that satisfies any of the following condi- tions: (i) The income of the household does not exceed 50 percent of the area median income for the house- hold. (ii) 1 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. (B) Nothing in this section shall be construed to pro- hibit an eligible grantee from providing a process for the further prioritizing of applications for financial assistance and housing stability services from a payment made under this section, including to eligible households in which 1 or more individuals within the household were unable to reach their place of employment or their place of employ- ment was closed because of a public health order imposed as a direct result of the COVID-19 public health emergency. (5) ADMINISTRATIVE COSTS. — (A) IN GENERAL. —Not more than 10 percent of the amount paid to an eligible grantee under this section may be used for administrative costs attributable to providing financial assistance and housing stability services under paragraphs (2) and (3), respectively, including for data collection and reporting requirements related to such funds. (B) NO OTHER ADMINISTRATIVE COSTS. —Amounts paid under this section shall not be used for any administrative costs other than to the extent allowed under subparagraph (A). (d) REALLOCATION OF UNUSED FUNDS. —Beginning on Sep- tember 30, 2021, the Secretary shall recapture excess funds, as determined by the Secretary, not obligated by a grantee for the purposes described under subsection (c) and the Secretary shall reallocate and repay such amounts to eligible grantees who, at the time of such reallocation, have obligated at least 65 percent of the amount originally allocated and paid to such grantee under subsection (b)(1), only for the allowable uses described under sub- section (c). The amount of any such reallocation shall be determined based on demonstrated need within a grantee's jurisdiction, as determined by the Secretary. (e) AVAILABILITY.— (1) IN GENERAL. —Funds provided to an eligible grantee under a payment made under this section shall remain avail- able through December 31, 2021. H. R. 133-894 (2) EXTENSION FOR FUNDS PROVIDED PURSUANT TO A RE- ALLOCATION OF UNUSED FUNDS. —For funds reallocated to an eligible grantee pursuant to subsection (d), an eligible grantee may request, subject to the approval of the Secretary, a 90- day extension of the deadline established in paragraph (1). (f) APPLICATION FOR ASSISTANCE By LANDLORDS AND OWNERS.— (1) IN GENERAL. —Subject to paragraph (2), nothing in this section shall preclude a landlord or owner of a residential dwelling from — (A) assisting a renter of such dwelling in applying for assistance from a payment made under this section; or (B) applying for such assistance on behalf of a renter of such dwelling. (2) REQUIREMENTS FOR APPLICATIONS SUBMITTED ON BEHALF OF TENANTS. —If a landlord or owner of a residential dwelling submits an application for assistance from a payment made under this section on behalf of a renter of such dwelling — (A) the landlord must obtain the signature of the ten- ant on such application, which may be documented elec- tronically; (13) documentation of such application shall be provided to the tenant by the landlord; and (C) any payments received by the landlord from a payment made under this section shall be used to satisfy the tenant's rental obligations to the owner. (g) REPORTING REQUIREMENTS— (1) IN GENERAL. —The Secretary, in consultation with the Secretary of Housing and Urban Development, shall provide public reports not less frequently than quarterly regarding the use of funds made available under this section, which shall include, with respect to each eligible grantee under this section, both for the past quarter and over the period for which such funds are available — (A) the number of eligible households that receive assistance from such payments; (B) the acceptance rate of applicants for assistance; (C) the type or types of assistance provided to each eligible household; (D) the average amount of funding provided per eligible household receiving assistance; (E) household income level, with such information disaggregated for households with income that— (i) does not exceed 30 percent of the area median income for the household; (ii) exceeds 30 percent but does not exceed 50 percent of the area median income for the household; and (iii) exceeds 50 percent but does not exceed 80 percent of area median income for the household; and (F) the average number of monthly rental or utility payments that were covered by the funding amount that a household received, as applicable. (2) DISAGGREGATION—Each report under this subsection shall disaggregate the information relating to households pro- vided under subparagraphs (A) through (F) of paragraph (1) H. R. 133-895 by the gender, race, and ethnicity of the primary applicant for assistance in such households. (3) ALTERNATIVE REPORTING REQUIREMENTS FOR CERTAIN GRANTEES. —The Secretary may establish alternative reporting requirements for grantees described in subsection (b)(2). (4) PRIVACY REQUIREMENTS. — (A) IN GENERAL. —Each eligible grantee that receives a payment under this section shall establish data privacy and security requirements for the information described in paragraph (1) that— (i) include appropriate measures to ensure that the privacy of the individuals and households is pro- tected; (ii) provide that the information, including any personally identifiable information, is collected and used only for the purpose of submitting reports under paragraph (1); and (iii) provide confidentiality protections for data col- lected about any individuals who are survivors of intimate partner violence, sexual assault, or stalking. (B) STATISTICAL RESEARCH.— (i) IN GENERAL. —The Secretary — (I) may provide full and unredacted informa- tion provided under subparagraphs (A) through (F) of paragraph (1), including personally identifi- able information, for statistical research purposes in accordance with existing law; and (II) may collect and make available for statis- tical research, at the census tract level, informa- tion collected under subparagraph (A). (ii) APPLICATION OF PRIVACY REQUIREMENTS. —A recipient of information under clause (i) shall establish for such information the data privacy and security requirements described in subparagraph (A). (5) NONAPPLICATION OF THE PAPERWORK REDUCTION ACT. — Subchapter I of chapter 35 of title 44, United States Code, shall not apply to the collection of information for the reporting or research requirements specified in this subsection. (h) ADMINISTRATIVE EXPENSES OF THE SECRETARY. —Of the funds appropriated pursuant to subsection (a), not more than $15,000,000 may be used for administrative expenses of the Sec- retary in administering this section, including technical assistance to grantees in order to facilitate effective use of funds provided under this section. (i) Inspector General Oversight; Recoupment (1) OVERSIGHT AUTHORITY. —The Inspector General of the Department of the Treasury shall conduct monitoring and over- sight of the receipt, disbursement, and use of funds made available under this section. (2) RECOUPMENT.—If the Inspector General of the Depart- ment of the Treasury determines that a State, Tribal govern- ment, or unit of local government has failed to comply with subsection (c), the amount equal to the amount of funds used in violation of such subsection shall be booked as a debt of such entity owed to the Federal Government. Amounts recov- ered under this subsection shall be deposited into the general fund of the Treasury. H. R. 133-896 (3) APPROPRIATION. —Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Office of the Inspector General of the Department of the Treasury, $6,500,000 to carry out oversight and recoupment activities under this subsection. Amounts appropriated under the preceding sentence shall remain avail- able until expended. (4) AUTHORITY OF INSPECTOR GENERAL. —Nothing in this subsection shall be construed to diminish the authority of any Inspector General, including such authority as provided in the Inspector General Act of 1978 (5 U.S.C. App.) Q) TREATMENT OF ASSISTANCE. —Assistance provided to a house- hold from a payment made under this section shall not be regarded as income and shall not be regarded as a resource for purposes of determining the eligibility of the household or any member of the household for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (k) DEFINITIONS. —In this section: (1) AREA MEDIAN INCOME. —The term "area median income" means, with respect to a household, the median income for the area in which the household is located, as determined by the Secretary of Housing and Urban Development. (2) ELIGIBLE GRANTEE. —The term "eligible grantee" means any of the following: (A) A State (as defined in section 601(g)(4) of the Social Security Act (42 U.S.G. 801(g)(4)). (B) A unit of local government (as defined in paragraph (5)). (C) An Indian tribe or its tribally designated housing entity (as such terms are defined in section 4 of the Native American Housing Assistance and Self -Determination Act of 1996 (25 U.S.C. 4103)) that was eligible to receive a grant under title I of such Act (25 U.S.C. 4111 et seq.) for fiscal year 2020 from the amount appropriated under paragraph (1) under the heading "NATIVE AMERICAN PRO- GRAMS" under the heading "PUBLIC AND INDIAN HOUSING" of title II of division H of the Further Consolidated Appro- priations Act, 2020 (Public Law 116-94) to carry out the Native American Housing Block Grants program. For the avoidance of doubt, the term Indian tribe shall include Alaska native corporations established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.). (D) The Department of Hawaiian Homelands. (3) ELIGIBLE HOUSEHOLD. — (A) IN GENERAL. —The term "eligible household" means a household of 1 or more individuals who are obligated to pay rent on a residential dwelling and with respect to which the eligible grantee involved determines— (i) that 1 or more individuals within the household has (I) qualified for unemployment benefits or (II) experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due, directly or indirectly, H. R. 133-897 to the novel coronavirus disease (COVID-19) out- break, which the applicant shall attest in writing; (ii) that 1 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; or (III) any other evidence of such risk, as deter- mined by the eligible grantee involved; and (iii) the household has a household income that is not more than 80 percent of the area median income for the household. (B) EXCEPTION. —To the extent feasible, an eligible grantee shall ensure that any rental assistance provided to an eligible household pursuant to funds made available under this section is not duplicative of any other Federally funded rental assistance provided to such household. (C) INCOME DETERMINATION.— (i) In determining the income of a household for purposes of determining such household's eligibility for assistance from a payment made under this section (including for purposes of subsection (c)(4)), the eligible grantee involved shall consider either (I) the household's total income for calendar year 2020, or (II) subject to clause (ii), sufficient confirma- tion, as determined by the Secretary, of the house - hold's monthly income at the time of application for such assistance. (ii) In the case of income determined under sub - clause (II), the eligible grantee shall be required to re -determine the eligibility of a household's income after each such period of 3 months for which the house- hold receives assistance from a payment made under this section. (4) INSPECTOR GENERAL. —The term "Inspector General" means the Inspector General of the Department of the Treasury. (5) SECRETARY. —The term "Secretary" means the Secretary ofthe Treasury. (6) UNIT OF LOCAL GOVERNMENT. —The term "unit of local government" has the meaning given such term in paragraph (2) of section 601(g) of the Social Security Act (42 U.S.C. 801(g)), except that, in applying such term for purposes of this section, such paragraph shall be applied by substituting "200,000" for "500,000". (1) TERMINATION OF PROGRAM. —The authority of an eligible grantee to make new obligations to provide payments under sub- section (c) shall terminate on the date established in subsection (e) for that eligible grantee. Amounts not expended in accordance with this section shall revert to the Department of the Treasury.