The U.S. Department of the Treasury (Treasury) has released the Quarter 2 2023 Compliance Report for the tranche of emergency rental assistance funds passed by the “American Rescue Plan Act” (ERA2). Treasury reports that since March 2021, nearly $16.6 billion in ERA2 funds have been expended on financial assistance and other housing services by state, local, and territorial grantees. This represents over 77% of the $21.55 billion available under ERA2. The new data bring the overall amount of ERA1 and ERA2 expended to more than $39 billion, or 85% of the $46.5 billion in funds made available by Treasury for emergency rental assistance. State, local, and territorial grantees have made over 11.6 million payments to households since February 2021.
ERA2 spending data through March 2023 reveal that nearly two-thirds of state grantees, and the District of Columbia, have expended 75% or more of their allocation. Only one state grantee – Iowa – has reported expending less than 10% of available funds. Overall, state grantees reported spending over 80% of available funds. Local grantees reported expending nearly $4.2 billion of ERA2 funds – over 75% of their allocation. NLIHC analysis identified approximately 15 grantees that reported ERA2 spending in prior quarters but not in Quarter 2 2023. This has resulted in nearly $172 million not being captured in this report, and therefore the total funds expended are likely underreported. Treasury notes that all data are presented as reported by each ERA2 grantee and are preliminary.
Treasury guidance allows grantees that have spent 75% of their total ERA2 funds for financial assistance to use the remaining, unobligated funds for “affordable rental housing and eviction prevention purposes.” Eighteen state and eight local grantees are using ERA2 funds for the construction, rehabilitation, or preservation of rental housing projects, or for the operation of these projects. Expenditure and obligation data are available for nine of these 26 grantees. Three states – Maryland, Michigan, and West Virginia – have obligated nearly $33.9 million for affordable rental housing projects. The local grantees have obligated $7.6 million thus far to affordable rental housing projects. Six grantees are using ERA2 funds, beyond those set aside for housing stability services, for eviction prevention programs. Nearly $11 million has been obligated for these services thus far.
The Quarter 2 2023 Compliance Report also includes demographic data about households served with ERA2 funds since March 2021. Overall, one third (36%) of households served were Black or African American, nearly four in 10 (37%) were white, and nearly a quarter (24%) were Hispanic or Latino. Nearly two-thirds of households served (61%) had extremely low incomes.
The Q2 2023 Compliance Report can be accessed at: https://tinyurl.com/275fkf7m.