Writing on behalf of NLIHC and its End Rental Arrears to Stop Evictions (ERASE) cohort and Disaster Housing Recovery Coalition, NLIHC President and CEO Diane Yentel sent a letter on March 23 to U.S. Department of the Treasury (Treasury) Secretary Janet Yellen urging Treasury to begin the process of recapturing and reallocating funds appropriated under the “American Rescue Plan Act” (ERA2) starting on March 31, 2022, and requesting that Treasury limit the ability of grantees to divert funds away from emergency use.
Treasury’s efforts to recapture and reallocate funds enacted under the “Consolidated Appropriations Act of 2021” (ERA1) have been widely beneficial, yet far more resources could be made available to struggling households through the recapture and reallocation of ERA2 funds. Without access to ERA2 funds, millions of renters may face eviction, even as millions of dollars in emergency assistance remain unspent because some grantees are unable or unwilling to quickly deploy these emergency funds. The letter urges Treasury to meet the urgency of the moment by beginning the recapture and reallocation of ERA2 funds starting on March 31, 2022, as directed by the American Rescue Plan Act, rather than waiting months or years to initiate the process. The letter observes that Congress established March 31 as the date for beginning the reallocation process to ensure that limited emergency funds would be deployed quickly to prevent renters from losing their homes.
The letter notes that Treasury and some ERA program administrators may prefer to use a portion of ERA2 funds to support “other affordable rental housing and eviction prevention activities,” as permitted by statute. While NLIHC consistently advocates for increased federal investment to expand and preserve the supply of rental homes affordable and available to the lowest-income households, NLIHC believes that ERA2 funds are not the appropriate resource for supporting this activity. The letter urges Treasury to allow ERA2 funds to be used for “other affordable rental housing and eviction prevention activities” only after these resources are first made available to grantees for use as emergency rental assistance.
Read the letter at: https://bit.ly/3LfrA7E