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 households circumstances. 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. For both ERA1 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. Any proceeds or income a grantee receives after September 30, 2025, from loans, interest subsidies, or other similar financial arrangements made with ERA2 funds must be used for affordable rental housing purposes or eviction prevention purposes in accordance with this FAQ. For ERA2, grantees are required to allow tenants to apply directly for assistance, even if 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. 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. 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. Grantees must comply with the procurement standards set forth in 2 CFR 200.317-200.327 in entering into such contracts. The subrecipient monitoring and management requirements set forth in 2 CFR 200.331-200.333 will apply to such entities. 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. It may be difficult for some grantees to establish whether a financial hardship experienced during the pandemic is due to the COVID-19 outbreak. A version of this story was originally published on March 21, 2022. A grantee may rely on an applicants self-certification identifying the applicable risk factor or factors, without further documentation, if other documentation is not immediately available. 2 As of the date of these FAQs, the definition of low-income families in 42 U.S.C. Application Get year-round help with utility bills by contacting your local Low Income Home Energy Assistance Program (LIHEAP) office or calling the National Energy Assistance Referral Hotline at (866)-674-6327. 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. Grantees with overlapping or contiguous jurisdictions are particularly encouraged to coordinate and participate in joint administrative solutions to meet this requirement. Yes. WebParenting is one of the most complex and challenging jobs you'll face in your lifetime -- but also the most rewarding. According to the ACLU, 10% of tenants have an attorney in court, compared with 90% of landlords. The state says that if you receive assistance from its COVID-19 Rent Relief program, this won't disqualify you from any other state benefit assistance programs like CalFresh. Rental The nonprofit organization agrees in writing to return to the grantee any assistance that the household was ineligible for or for which the required documentation is not received within six months. 6The specific units within a mixed-income housing project subject to the applicable income limitation may vary over time depending on operational needs, provided the units subject to the income limitation at any point do not materially differ from units funded by ERA2 funds. "One of the problems with the statewide protections is they're very complicated and it's really hard for a tenant to use the state protections if they don't have an attorney," Howard said. 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 cost of the hotel or motel stay would not include expenses incidental to the charge for the room. COVID Rent Relief Eligible eviction prevention purposes are defined in the same manner as housing stability services under FAQ 23; however, services provided with funds made available for eviction prevention purposes must serve very low-income families. Grantees are encouraged to achieve administrative efficiency and fiduciary responsibility by collaborating with other grantees in joint administrative solutions to deploying ERA resources. When housing stability services represent the only ERA1 assistance a household will receive (i.e., no payments using ERA1 funds will be made either to the household, to the landlord, or to a utility provider), grantees are encouraged to rely on a households self-attestations for purposes of confirming eligibility. 1437a(b)); and. Through March 31, landlords would be blocked from evicting tenants over non-payment of rent through Sept. 30, 2021, if they had applied for rent relief from the state. In appropriate cases, grantees may rely on an attestation from a caseworker or other professional with knowledge of a households circumstances to certify that an applicants household income qualifies for assistance. The state can cover 100% of unpaid utility payments that date back to April 1, 2020, or future payments for a total of 12 months. 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 providers participation; or (iii) a landlord confirms in writing that the landlord does not wish to participate. the household has a household income at or below 80 percent of area median income. 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. The payments go directly to the utility For example, if a grantee voluntarily reallocated 50 percent of its total initial ERA2 allocation, and did not experience any other reallocation, it must obligate 75 percent of its post-reallocation amount (or 37.5 percent of its initial ERA2 allocation) to use its remaining ERA2 funds for eligible affordable rental housing and eviction prevention purposes. pay COVID "If you have an application in already and you're just waiting, I would suggest reaching out to HCD [the Housing and Community Development Department]," Howard said. Small Business Administration WebIn about 8-10 days you will receive an award letter so start checking spam it sometime go there. For purposes of ERA1 and ERA2, housing stability services include those that enable households to maintain or obtain housing. You could receive up to 18 months of assistance, including a mix of payments for back and future rent. With respect to landlords that receive funds under an ERA program for prospective rent or for rental arrearages, the grantee must prohibit the landlord from evicting the tenant for nonpayment of rent with respect to the period covered by the assistance. Then 7-10 business day after that you will get an email from bill.com to enter in your direct deposit info. In about 8-10 days you will receive an award letter so start checking spam it sometime go there. Q16. 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. 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 ERA1 requirements as described above. Utilities and home energy costs that are covered by the landlord will be treated as rent. Eligible affordable rental housing purposes are expenses3 for: For purposes of the definition above, affordable rental housing projects serve very low-income families only if: In addition, to be considered an affordable rental housing purpose serving very low-income families, an affordable rental housing project funded, in whole or in part, with ERA2 funds must conform to and meet the program regulations and other requirements of one or more of the types of assistance listed below. Under ERA1, 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. In no case may an eligible household receive more than 18 months of assistance under ERA1 and ERA2, combined. While grantees relying on clause (ii) in ERA1 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. The $1.9 trillion American Rescue Plan package signed by President Joe Biden on Thursday is expected to bring an additional $2.2 billion in rental assistance to In all cases, grantees must document their policies and procedures for determining a households eligibility to include policies and procedures for determining the prioritization of households in compliance with the statute and maintain records of their determinations. 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 grantee documents, in accordance with ERA records requirements, which expenses its funds ultimately covered; and. When documenting eligibility for households to receive housing stability services without any financial assistance, special considerations apply. Grantees should establish a preference system for assistance that prioritizes assistance to households with incomes less than 50 percent area median income8 and to households with one or more members that have been unemployed for at least 90 days. The payments go directly to the utility provider. 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. Applications received If the tenant doesnt apply for rent relief, the property owner must apply for it themselves. Under ERA2, these services do not have to be related to the COVID-19 outbreak and the ERA2 statute does not restrict the provision of housing stability services to eligible households. WebParenting is one of the most complex and challenging jobs you'll face in your lifetime -- but also the most rewarding. California rent relief program: How renters and landlords can apply Grantees must also have controls in place to ensure compliance with their policies and procedures and prevent fraud. You Applications received prior to that time will continue to be processed on a first-come, first-served basis until funding runs out. 1437a(b) is low-income families whose incomes do not exceed 50 per centum of the median family 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 50 per centum of the median for the area on the basis of the Secretarys findings that such variations are necessary because of unusually high or low family incomes. All references to very low-income families in this FAQ incorporate this definition. In other words, uses of ERA2 funds for an affordable rental housing purpose must be aligned with at least one of the following programs and must meet the requirements of that program along with the other conditions specifically set forth in this FAQ:5. In late March, the state attorney generals office sent warning letters to 91 law firms representing landlords across the state, reminding them that filing false declarations is against the law. Grantees must establish policies and procedures to govern the implementation of their ERA programs consistent with the statutes and these FAQs. Find a legal aid office near you. To the extent that these FAQs do not provide specific guidance on a particular issue, a grantee should establish its own policy or procedure that is consistent with the statutes and follow it consistently. Pay or Quit Notice period for nonpayment of rent extended from 3 to 15 days. Accordingly, utilities and home energy costs include separately stated electricity, gas, water and sewer, trash removal, and energy costs, such as fuel oil. If you have already paid for a month or months of rent that will be covered by this program, your landlord will be required to provide a credit for future rent due for that payment. Rental The Canada Revenue Agency (CRA) will be issuing the long-promised "grocery rebate" payments to eligible Canadians on July 5. SBAs processing staff may request additional information. When do student loan payments resume? Here's what today's 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 Secretarys findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes.. The federal eviction moratorium is scheduled to end on June 30, 2021, which could leave millions of renters vulnerable to eviction once the moratorium expires. To qualify for rental assistance, you cannot make more than the median income in your area. Under the statute establishing ERA1, 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. 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. Eligible Eviction Prevention Purposes. Application Submitted for Review (updated May 18, 2021) Q2. And the clock is ticking: Under state law, landlords will be able That's because this new state legislation means a landlord can't evict you for not paying rent you owed before March 31 but it doesn't protect you from eviction for not paying rent after that date. 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. Newsom and state legislative leaders have agreed upon a deal shielding tenants from evictions through Sept 30. Take advantage of free housing help. 2 Treasurys reporting guidance will address the specific reporting and certification requirements associated with the uses of ERA2 funds described in this FAQ. No, this program provides residential rental assistance. 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. The ERA1 statute specifies these services may be provided only to eligible households, meaning the household must meet all ERA1 eligibility requirements. t make your rent payments What to do if youre facing eviction - Consumer Financial Budget, Financial Reporting, Planning and Performance, Financial Markets, Financial Institutions, and Fiscal Service, Treasury Coupon-Issue and Corporate Bond Yield Curve, Treasury International Capital (TIC) System, Kline-Miller Multiemployer Pension Reform Act of 2014, Unpacking the Boom in U.S. Construction of Manufacturing Facilities, Post 5: Racial Differences in Educational Experiences and Attainment, MEDIA ADVISORY: Deputy Secretary of the Treasury Wally Adeyemo to Travel to Europe, New Treasury Department Data Shows Homeowner Assistance Fund Helped Keep More than 300,000 Families In Their Homes, Media Advisory: Secretary of the Treasury Janet L. Yellen to Travel to the Peoples Republic of China, Remarks by Secretary of the Treasury Janet L. Yellen at Press Conference in Beijing, the Peoples Republic of China, Remarks by Secretary of the Treasury Janet L. Yellen at Meeting with Vice Premier He Lifeng of the Peoples Republic of China, Remarks by Secretary of the Treasury Janet L. Yellen at Lunch with Female Economists and Entrepreneurs of the Peoples Republic of China, Form 941, employer's quarterly federal tax return, Assistance for State, Local, and Tribal Governments, find out what emergency rental assistance covers, how it works, and whos eligible, Additions and changes to FAQs are tracked in a change log, https://www.huduser.gov/portal/datasets/fmr.html, https://www.huduser.gov/portal/datasets/il.html, https://home.treasury.gov/system/files/136/Updated-ERA1-Reallocation-Guidance%203-30-%202022.pdf, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. And renters affected by COVID hardship can prevent an eviction from moving forward if they show they've applied for the rent relief program as a defense in court. Emergency Rental Assistance Program - U.S. Department of the The treatment of security deposits is generally subject to applicable law and the rental agreement. Participating governments have leveraged ERA funding to make over 10 million assistance payments to renters facing eviction, and research has shown that ERA The revised award term for ERA1 issued by Treasury permits recipients to use funds provided to cover both direct and indirect costs. Definition of Income: With respect to each household applying for assistance, grantees may choose between using the Department of Housing and Urban Developments (HUD) definition of annual income in 24 CFR 5.609and using adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 series for individual federal annual income tax purposes. There is no requirement regarding the length of tenure in the current unit. 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: 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. Emergency Rental Assistance Program And what can your landlord do while you're waiting for news on your application? If your local jurisdiction enacted eviction protections before Aug. 19, 2020, those protections are grandfathered in and will remain in place. See FAQ 12 for additional information on grantees providing assistance to landlords and tenants. Throughout the process, In addition to not engaging in further collection efforts regarding the arrears that are paid or related fees or expenses, as a condition to receiving payment, Treasury strongly encourages grantees to require the landlord or utility provider to agree not to pursue any further collection efforts against the household and ensure that any reports to credit agencies will confirm the matters resolution. AFTER PRE-APPLICATION SUBMISSION QUESTIONS FOR Supreme Court kills Biden student loan debt relief plan - NBC News all eligible applications received on or before March 31, 2022, for rent or utilities owed between April 1, 2020 through March 31, 2022, will be paid. Grantees should establish reasonable safeguards to ensure these additional rental payments do not incentivize landlords to adopt more stringent leasing policies and are otherwise compliant with any rent or security deposit restrictions imposed by state or local law. Grantees are encouraged to limit such payments to a portion of the landlords or utility providers estimate (for example, 50 or 75 percent of the estimated amount) to limit the risk of providing funds that are used for an ineligible purpose and subsequently must be returned. In accordance with Title VI of the Civil Rights Act of 1964 (Title VI) ERA grantees must ensure they provide meaningful access to their limited-English-proficiency (LEP) applicants and beneficiaries of their federally assisted programs, services, and activities. 1437a(b)). 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; 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. A grantee may only use the funds provided in the ERA to provide financial assistance and housing stability services to eligible households. Tribal members living outside Tribal lands may receive ERA1 funds from their Tribe or TDHE, provided they are not already receiving ERA assistance from another Tribe or TDHE, state, or local government. You must also show that you have had a loss of income or financial hardship related to COVID-19. Both tenants and landlords with low-income tenants who have fallen behind on rent because of the pandemic can apply for relief. Treasurys Emergency Rental Assistance (ERA) program has provided communities over $46 billion to support housing stability throughout the COVID-19 pandemic. If you find yourself in that situation with a pending rent relief application and an eviction notice you should contact a lawyer. 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. In addition, rent or rental bonds, where a tenant posts a bond with a court as a condition to obtaining a hearing, reopening an eviction action, appealing an order of eviction, reinstating a lease, or otherwise avoiding an eviction order, may also be considered an eligible expense. It's also critical that you dont move out, said Lpez. The department operates off a prioritization list, and your application could be considered sooner if youre in an emergency situation. Grantees with overlapping or contiguous jurisdictions are encouraged coordinate to avoid duplicating assistance. Relief