The US States Spend Billions in Emergency Rent Relief after a Slow Start

    According to Bloomberg News, when coronavirus hit for the first time in 2020, the United States Congress allocated as much as $46.5 million to assist struggling renters that belong to the low-income group and aid them in continuing to live in their homes during the pandemic. For those who fell behind on their rents, the Federal Emergency Rental Assistance came to their rescue. But several states were found to be slow in disbursing the funds, which added to the frustration and woes of the tenants, housing advocacy groups, and landlords.

    More on the story 

    Following a slow start, there are currently signs that indicate significant progress. THIS MONTH, the US Treasury reported that more than 4.3 million in payments worth $20.5 billion were assigned to households across the country through January 31st. However, the late assistance was found to play a crucial role in preventing evictions for several hundred and thousands of renters, as per new Eviction Lab analysis. 

    Bloomberg News reports that every state has its ERA guidelines. However, those households that typically have 80% of area median income or below were found to be eligible for a year of rent. About two-thirds of ERA beneficiaries last year had meager incomes, and these families made lower than one-third of the median income in their area of residence. Approximately 40% of the renters are Black, and 20% were Hispanic, as per Treasury data through December 31st

    Each state has designed its program to disburse federal money. As such, the distribution has not been even. While it was found that Virginia, California, North Carolina, and New Jersey spend more than 90% of the first round of the ERA amount, 15 states spent less than 30% of the federal fund by January end, as per NLIHC or National Low Income Housing Coalition, which is a non-profit advocacy body. 

    Some of the slower spending states include Georgia, Arizona, Ohio, and Tennessee, which also have many low-income renter households, as pointed out by the NLIHC. 

    Such states are required to take steps swiftly to make use of the second phase funds as rent relief. Post-March 31st, 2022, the Treasury will begin assessing the reallocation of the second tranche of ERA money that has not been used, which could again be “recaptured” and distributed to any other state. 

    Bloomberg News reports that the slow disbursal of the rent relief will cause challenges when the government wants to roll out new programs during the pandemic, ranging from the covid-19 vaccinations to the federal small business loans


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