The Department of the Treasury published plans for reallocation of unspent dollars from the Emergency Rental Assistance program authorized under the American Rescue Plan Act (ERA 2).
As with ERA 1 reallocation, assessments for ERA 2 reallocation will take place over multiple rounds. For the first assessment round, grantees who have expended less than 20 percent of their funds as of March 31 could face recapture of the difference between their ERA 2 expenditure ratio and 20 percent of their grant. However, if a grantee can reach a 20 percent expenditure ratio by April 30, the grantee will not face recapture in the first assessment. A grantee also can avoid recapture if they voluntarily have reallocated at least 25 percent of their ERA 1 funding. Future assessments will happen quarterly thereafter, with the minimum expenditure ratio increasing by 20 percent each quarter. Read more from the National Council of State Housing Agencies.
