“States and localities continue to struggle with getting billions in federal rent relief funds out the door, frustrating both tenants and property owners while fueling demands for continued eviction moratoriums.
On Friday, the U.S. Treasury Department released new data showing that as of May 31, recipient jurisdictions have spent only about $1.3 billion, or 6 percent, of the $25 billion in Emergency Rental Assistance (ERA) funds approved by Congress in December 2020 to help renters cover rent, rent debt, and utilities.That federal money was given in the form of grants to states and territories and to local governments with populations over 200,000.
That number obscures a lot of variation between states. Virginia has spent about 30 percent of its ERA award, compared to California’s 2 percent. The pace of spending is also increasing. States and localities spent $774 million in May, compared to the $443 million spent in April, and the $272 million spent from January to March. About 345,000 families have received ERA-funded assistance.
That’s far short of the 1.3 million households who self-report that they’re “very likely” to be evicted in the next two months in Census surveys, reports Politico.”
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“The dispersal of funds has faced a number of problems. For starters, most state and local governments have had to set up their own rent relief programs from scratch.”
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“Some 60 percent of respondents in a recent survey of ERA administrators said that a lack of staff was preventing them from dispersing rental aid. Another 49 percent said that their technical ability to scale up programs was responsible for the trickle of relief provided thus far.
Nevertheless, housing advocates say that even with these front-end logistical difficulties, ERA grantees should still be managing to spend emergency rental assistance like there’s actually an emergency on.”