Feds report most rental assistance has still not gone out
FILE - In this Jan. 13, 2021, file photo, tenants' rights advocates demonstrate in front of the Edward W. Brooke Courthouse in Boston. A federal judge is refusing landlords' request to put the Biden administration’s new eviction moratorium on hold, though she made clear she thinks it's illegal. U.S. District Judge Dabney Friedrich on Friday, Aug. 13, said her “hands are tied” by an appellate ruling the last time courts considered the evictions moratorium in the spring. (AP Photo/Michael Dwyer, File)
BOSTON (AP) — States and localities have only distributed 11% of the tens of billions of dollars in federal rental assistance, the Treasury Department said Wednesday, the latest sign the program is struggling to reach the millions of tenants at risk of eviction.
The latest data shows that the pace of distribution increased in July over June and that nearly a million households have been helped.
But with the Supreme Court considering a challenge to the federal eviction moratorium, the concern is that a wave of evictions will happen before much of the assistance has been distributed. Some 3.5 million people in the U.S. as of Aug. 16 said they face eviction in the next two months, according to the U.S. Census Bureau’s Household Pulse Survey.
Lawmakers approved $46.5 billion in rental assistance earlier this year and most states are distributing the first tranche of $25 billion. According to the Treasury Department, $5.1 billion in Emergency Rental Assistance has been distributed by states and localities through July, up from $3 billion at the end of June and only $1.5 billion by May 31.
Several states, including Virginia and Texas, have been praised for moving quickly to get the federal money out. But many others have still only distributed a small percentage of the rental help.
Housing advocates blame the slow rollout partly on the Treasury Department under President Donald Trump, which they say was slow to explain how the money could be spent. The criteria, while clearer under the Biden administration, was still criticized for a burdensome process that seemed more focused on preventing fraud than helping tenants.
Advocates also said states made things worse — some waited months to set up programs and others created bureaucratic hurdles.
Efforts to use coronavirus relief money for rental assistance last year faced similar challenges.
“Nearly 1 million households assisted is meaningful progress, but the overall rate of spending emergency rental assistance remains much too slow,” said Diane Yentel, CEO of the National Low Income Housing Coalition.
“Some communities are spending the money quickly and well, proving that it’s possible and making the many communities who aren’t all the more glaring and unacceptable” she said. “Seven months after funds were first allocated to them, nine states have spent less than 3% of the money and 16 states have spent less than 5%.”
National Apartment Association president and CEO Bob Pinnegar called the assistance rollout “a disaster, marred with programmatic inefficiencies and difficulties.”
“Americans are hurting and we are on the edge of another financial cliff as distribution deadlines loom and the future availability of rental assistance funds is jeopardized,” he said.
The Treasury Department has repeatedly tweaked its guidance to encourage states and local governments to streamline the distribution of the funds. The Biden administration has also asked states to create eviction diversion programs that aim to resolve disputes before they reach the courts.
On Wednesday, Treasury released additional guidance to try to speed up the process. This includes programs to allow tenants to self-assess their income and risk of becoming homeless among other criteria. Many states and localities, fearing fraud, have measures in place that can take weeks to verify an applicant qualifies for help.
Treasury also said states and localities now can distribute money in advance to landlords and utility providers “in anticipation of the full satisfaction of (the) application and documentation requirement.” And they approved providing money for tenants who have outstanding rental debt in collection, which would make it easier for them to find new housing.
“For those cities and states that wanted even more clarity that they can and should use simpler applications, speedier processes and a self-attestation option without needless delays — this answers that call,” said Gene Sperling, who is charged with overseeing implementation of President Joe Biden’s $1.9 trillion coronavirus rescue package.
“The guidance could not be more clear in expressing that this is a public health and eviction emergency that requires putting quick and sound rental relief above unnecessary paperwork that will not reach families in time.”
The administration also announced measures aimed at averting evictions at federally-back housing, including 400,000 rental units in Department of Agriculture-backed multifamily properties. It also is offering additional rental assistance to at-risk veterans and their families and working to ensure tenants in public housing can access rental assistance.
The Treasury noted that more needs to be done at the local and state levels to move the payment process along. The program is federally funded, but it's up to states to handle systems to manage the payments. File Photo by PublicCo/Pixabay
Aug. 25 (UPI) -- A federal program funded with almost $50 billion to help struggling Americans pay their rent in the face of COVID-19 hardships is still only slowly paying out money, government data showed Wednesday -- reflecting a national housing crisis that's affecting millions of landlords and tenants.
According to data released by the Treasury Department, just $1.7 billion was disbursed to 340,000 U.S. homes over the month of July, a slight increase over June.
The Emergency Rental Assistance Program was created last year to help Americans affected fiscally by the pandemic stay in their homes. The program has existed with the aid of a national eviction ban that's now being evaluated by the U.S. Supreme Court.
The aid program was funded with $46.5 billion, but Wednesday's data show that only about $5 billion has gone out to struggling Americans so far.
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The Treasury noted that more needs to be done at the local and state levels to move the process along. The program is federally funded, but it's up to states to handle systems to manage the payments.
"Many grantees need to do more to urgently accelerate efforts to prevent harmful evictions of vulnerable families," the department said in a statement.
The department warned that if things don't improve after next month, monies in the fund will go elsewhere.
"After September, programs that are unwilling or unable to deliver assistance quickly will be at risk of having their rental assistance funding reallocated to effective programs in other high-need areas."
Officials said there will be new policies and measures intended to reduce delays and simplify applications.
The national eviction moratorium, issued last year by the Centers for Disease Control and Prevention, has been the target of numerous legal challenges spearheaded by frustrated landlords. Some federal courts have ruled against the moratorium, but none have applied the rulings to all landlords and renters nationwide.
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The moratorium expired at the end of July, but the CDC issued a narrower, more targeted eviction ban earlier this month that lasts until October. That order, which was upheld by a federal appellate court last week, has been appealed to the Supreme Court.
Landlords in Alabama and Georgia are leading the effort to get the moratorium removed.
Previously, the Supreme Court voted 5-4 in June to keep the previous moratorium in place. Justice Brett Kavanaugh said at the time, however, indicated that he might not vote to support it a second time.
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