Emergency Rental Assistance

Only 59% of Emergency Rental Assistance funds have been distributed to renters across the South, compared to 67% in non-Southern states.

Percent of Emergency Rental Assistance funds distributed

Jan 1, 2021 - Apr 30, 2022

Source: U.S. Department of the Treasury. Notes: Assistance to households is the total dollar amount of ERA1 and ERA2 award funds paid to or for households, including payments for rent, rental arrears, utility/home energy costs, utility/home energy arrears, and other eligible expenses. "Percent distributed" is calculated as the sum of assistance to households divided by 90% of the ERA1 and ERA2 allocation amount.

The December 2020 stimulus bill and the March 2021 American Rescue Plan (ARP) include a combined $45 billion in Emergency Rental Assistance (ERA) funds.¹ Many Southern states have been slow to distribute these funds, including TN where only 31% of ERA funds have been spent, WV with only 33% spent, AL with only 34% spent, and GA with only 35% spent. Meanwhile, rents are increasing rapidly — up an estimated 15% annually as of May.²

Grantees who fail to spend 50% of their ERA allotment may find some of their funds reallocated to ensure all funds are spent by September 2022. Kentucky and Virginia increased their distribution of ERA funds by reducing documentation burdens for accessing this aid.³
Additional rental assistance will likely be needed as inflation is impacting many families’ pocketbooks. However, the federal government is focusing on eviction protection. In May, the Department of Housing and Urban Development announced it was doubling the size of its eviction protection program from $20 million provided in November 2021, to $40 million.⁴ States and localities that are quickly expending their ERA allotment may use flexible ARP funds to provide additional rental relief, and this may trigger additional allocations of ERA funds.¹

1. “Treasury Announces $30 Billion in Emergency Rental Assistance Spent or Obligated with Over 4.7 Million Payments Made to Households Through February 2022”. U.S. Department of the Treasury. March, 2022. https://home.treasury.gov/news/press-releases/jy0688

2. “Rental Market Tracker: Typical U.S. Asking Rent Surpassed $2,000 for First Time in May”. Ellis. Redfin News. June, 2022. https://www.redfin.com/news/redfin-rental-report-may-2022/ 

3. “After Slow Start, U.S. States Spend Billions in Emergency Rent Relief”. Yee. Bloomberg. March, 2022. https://www.bloomberg.com/news/articles/2022-03-22/how-the-race-to-deliver-emergency-rental-aid-was-won

4. “HUD Expands Eviction Protection and Diversion Program with Additional $20 Million”. U.S. Department of Housing and Urban Development. May, 2022. https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_091