Treasury released new data on the first round of reallocation of Emergency Rental Assistance authorized under the Consolidated Appropriations Act of 2021 (ERA 1). The reallocation process, required by the statute, gives Treasury the opportunity to “right-size” grantees’ grant amounts to better reflect need on the ground given the inconsistencies between the program’s formula and rental needs in practice. Of the $1.1 billion reallocated, more than three quarters was transferred voluntarily between grantees in the same state.
Four states—California, New Jersey, New York and Oregon—and the District of Columbia received additional funds as part of the reallocation. The remaining reallocated funds went to localities and tribes. Moreover, 12 states were able to voluntarily transfer more than $860 million to local governments and tribes in their states. In general, state grantees report receiving far less than what they requested from Treasury. However, this is because the need for rental assistance nationwide far exceeds the funds available. Many states that requested assistance did not receive any in this first reallocation, as very little of the reallocated funds went to grantees in states where other grantees did not have funding recaptured.
