Treasury Posts Guidance on Reallocation of First Emergency Rental Assistance Program Funds
The U.S. Department of the Treasury today posted official guidance on how it will reallocate funds under the first Emergency Rental Assistance program (ERA1). Treasury’s guidance addresses the $25 billion initially allocated to states, the District of Columbia, U.S. territories, tribal governments, tribally designated housing entities, the Department of Hawaiian Homelands and units of local government. Treasury was required to identify excess funds for reallocation from amounts grantees did “not obligate” from their initial allocation as of Sept. 30. A summary from Treasury explains that guidance requires that grantees that have not obligated at least 65% of their ERA1 funds must submit a program improvement plan, grantees that have not obligated at least 65% of their ERA1 funding and have insufficient expenditure ratios will face reallocation, grantees who face the first two issues have ways to mitigate how much Treasury would recapture, Treasury will subsequently assess each grantee’s expenditure ratio every two months and Treasury expects to distribute recaptured funds about every two months. Treasury also released the letter that will be sent to grantees.
Novogradac’s Emergency Rental Assistance team can assist both grantees and grant recipients navigating the ERA program.