Emergency Rental Assistance Frequently Asked Questions — Department of the Treasury (revised May 7, 2021)
Summary
The Department of the Treasury's Emergency Rental Assistance Frequently Asked Questions, revised May 7, 2021, give guidance on the programs known as ERA1 and ERA2. The FAQs say a household must be obligated to pay rent on a residential dwelling to be eligible. For ERA1 the household income must be at or below 80% of area median income, while for ERA2 the household must be a low-income family. Grantees must require applications to include an attestation from the applicant that all information is correct and complete. Treasury strongly encourages grantees to require landlords not to evict tenants for nonpayment of rent for 30 to 90 days longer than the period covered by the assistance.
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“Emergency Rental Assistance Frequently Asked Questions — Department of the Treasury (revised May 7, 2021).”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/35-may-7-2021-faq-4-2-https-home-treasury-gov-system-files-136-era2faq-c551b39084/
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U.S. Department of the Treasury
Emergency Rental Assistance
Frequently Asked Questions
Revised May 7, 2021
The Department of the Treasury (Treasury) is providing these frequently asked questions (FAQs)
as guidance regarding the requirements of the Emergency Rental Assistance program established
by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260
(Dec. 27, 2020) (ERA1) and the Emergency Rental Assistance program established by section
3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (March 11, 2021) (ERA2).
These FAQs apply to both ERA1 and ERA2, except where differences are specifically noted.
References in these FAQs to “the ERA” apply to both ERA1 and ERA2. These FAQs will be
supplemented by additional guidance.1
1. Who is eligible to receive assistance in the ERA and how should a grantee document the
eligibility of a household?
A grantee may only use the funds provided in the ERA to provide financial assistance and
housing stability services to eligible households. To be eligible, a household must be obligated
to pay rent on a residential dwelling and the grantee must determine that:
i. for ERA1:
a. one or more individuals within the household has qualified for unemployment
benefits or experienced a reduction in household income, incurred significant
costs, or experienced other financial hardship due, directly or indirectly, to the
COVID-19 outbreak;
b. one or more individuals within the household can demonstrate a risk of
experiencing homelessness or housing instability; and
c. the household has a household income at or below 80% of area median
income.
ii. for ERA2:
a. one or more individuals within the household has qualified for unemployment
benefits or experienced a reduction in household income, incurred significant
1
On January 19, 2021, initial FAQs were released for ERA1. On February 22, 2021, the initial FAQs were revised
to, among other things, clarify program requirements and provide additional flexibility with respect to documenting
the eligibility of households. On March 16, 2021, FAQ 7 was revised to add rental security deposits as a permissible
relocation expense and clarify that application or screening fees are permissible rental fees and FAQs 26–28 were
added. On March 25, 2021, FAQ 29 was added. On May 7, 2021, these FAQs were revised to provide initial
guidance for ERA2, to clarify differences between ERA1 and ERA2, and to clarify how ERA should be used to
promote housing stability for eligible households.
1
costs, or experienced other financial hardship during or due, directly or
indirectly, to the coronavirus pandemic;
b. one or more individuals within the household can demonstrate a risk of
experiencing homelessness or housing instability; and
c. the household is a low-income family (as such term is defined in section 3(b)
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).2
While there are some differences in eligibility between ERA1 and ERA2, the eligibility
requirements are very similar, and Treasury is seeking to implement ERA2 consistently with
ERA1, to the extent possible, reduce administrative burdens for grantees.
The FAQs below describe the documentation requirements for each of these conditions of
eligibility. These requirements provide for various means of documentation so that grantees may
extend this emergency assistance to vulnerable populations without imposing undue
documentation burdens. As described below, given the challenges presented by the COVID-19
pandemic, grantees may be flexible as to the particular form of documentation they require,
including by permitting photocopies or digital photographs of documents, e-mails, or attestations
from employers, landlords, caseworkers, or others with knowledge of the household’s
circumstances. Treasury strongly encourages grantees to avoid establishing documentation
requirements that are likely to be barriers to participation for eligible households, including those
with irregular incomes such as those operating small business or gig workers whose income is
reported on Internal Revenue Service Form 1099. However, grantees must require all
applications for assistance to include an attestation from the applicant that all information
included is correct and complete.
In all cases, grantees must document their policies and procedures for determining a household’s
eligibility to include policies and procedures for determining the prioritization of households in
compliance with the statute and maintain records of their determinations. Grantees must also
have controls in place to ensure compliance with their policies and procedures and prevent fraud.
Grantees must specify in their policies and procedures under what circumstances they will accept
written attestations from the applicant without further documentation to determine any aspect of
eligibility or the amount of assistance, and in such cases, grantees must have in place reasonable
validation or fraud-prevention procedures to prevent abuse.
2
As of the date of these FAQs, the definition of “low-income families” in 42 U.S.C. 1437a(b) is “those families
whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary [of
Housing and Urban Development] with adjustments for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the
Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually
high or low family incomes.”
2
2. How should applicants document that a member of the household has qualified for
unemployment benefits, experienced a reduction in income, incurred significant costs, or
experienced other financial hardship during or due to the COVID-19 outbreak?
A grantee must document that one or more members of the applicant’s household either (i)
qualified for unemployment benefits or (ii) (a) for ERA1, experienced a reduction in household
income, incurred significant costs, or experienced other financial hardship due, directly or
indirectly, to the COVID-19 outbreak or (b) for ERA2, experienced a reduction in household
income, incurred significant costs, or experienced other financial hardship during or due, directly
or indirectly, to the coronavirus pandemic.3 If the grantee is relying on clause (i) for this
determination, or if the grantee is relying on clause (ii) in ERA2, the grantee is permitted to rely
on either a written attestation signed by the applicant or other relevant documentation regarding
the household member’s qualification for unemployment benefits. If the grantee is relying on
clause (ii) for this determination in ERA1, the statute requires the grantee to obtain a written
attestation signed by the applicant that one or more members of the household meets this
condition.
While grantees relying on clause (ii) in ERA1 must show financial hardship “due, directly or
indirectly, to” COVID-19, grantees in ERA2 are also permitted to rely on financial hardship
“during” the pandemic. It may be difficult for some grantees to establish whether a financial
hardship experienced during the pandemic is due to the COVID-19 outbreak. Therefore,
Treasury strongly encourages grantees to rely on the self-certification of applicants with regard
to whether their financial hardship meets these statutory eligibility requirements. Further,
because the standard in ERA2 is broader than the standard in ERA1, any applicant that self-
certifies that it meets the standard in ERA1 should be considered to meet the standard for
purposes of ERA2.
3. How should a grantee determine that an individual within a household is at risk of
experiencing homelessness or housing instability?
The statutes establishing ERA1 and ERA2 both require that one or more individuals within the
household can demonstrate a risk of experiencing homelessness or housing instability, which
may include (i) a past due utility or rent notice or eviction notice, (ii) unsafe or unhealthy living
conditions (which may include overcrowding), or (iii) any other evidence of risk, as determined
by the grantee. Grantees may establish additional criteria for determining whether a household
satisfies this requirement, and should adopt policies and procedures addressing how they will
determine the presence of unsafe or unhealthy living conditions and what evidence of risk to
accept in order to support their determination that a household satisfies this requirement.
4. The statutes establishing ERA1 and ERA2 limit eligibility to households based on
certain income criteria. How is household income defined for purposes of the ERA? How
will income be documented and verified?
Definition of Income: With respect to each household applying for assistance, grantees may
choose between using the Department of Housing and Urban Development’s (HUD) definition
3
Treasury is interpreting the two different statutory terms (“the COVID-19 outbreak” and “the coronavirus
pandemic”) as having the same meaning.
3
of “annual income” in 24 CFR 5.6094 and using adjusted gross income as defined for purposes of
reporting under Internal Revenue Service Form 1040 series for individual federal annual income
tax purposes.
Methods for Income Determination: The statute establishing ERA1 provides that grantees may
determine income eligibility based on either (i) the household’s total income for calendar year
2020, or (ii) sufficient confirmation of the household’s monthly income at the time of
application, as determined by the Secretary of the Treasury (Secretary).
If a grantee in ERA1 uses a household’s monthly income to determine eligibility, the grantee
should review the monthly income information provided at the time of application and
extrapolate over a 12-month period to determine whether household income exceeds 80 percent
of area median income. For example, if the applicant provides income information for two
months, the grantee should multiply it by six to determine the annual amount. If a household
qualifies based on monthly income, the grantee must redetermine the household income
eligibility every three months for the duration of assistance.
For ERA2, if a grantee uses the same income determination methodology that it used in ERA1, it
is presumed to be in compliance with relevant program requirements; if a grantee chooses to use
a different methodology for ERA2 than it used for ERA1, the methodology should be reasonable
and consistent with all applicable ERA2 requirements. In addition, if a household is a single
family that the grantee determined met the income requirement for eligibility under ERA1, the
grantee may consider the household to be eligible under ERA2, unless the grantee becomes
aware of any reason the household does not meet the requirements for ERA2. Finally, if
multiple families from the same household receive funding under an ERA2 program, the grantee
should ensure that there is no duplication of the assistance provided.
Documentation of Income Determination: Grantees in ERA1 and ERA2 must have a reasonable
basis under the circumstances for determining income. Except as discussed below, this generally
requires a written attestation from the applicant as to household income and also documentation
available to the applicant to support the determination of income, such as paystubs, W-2s or
other wage statements, tax filings, bank statements demonstrating regular income, or an
attestation from an employer. As discussed below, under certain circumstances, a grantee may
rely on a written attestation from the applicant without further documentation of household
income. Grantees have discretion to provide waivers or exceptions to this documentation
requirement to accommodate disabilities, extenuating circumstances related to the pandemic, or a
lack of technological access. In these cases, the grantee is still responsible for making the
required determination regarding the applicant’s household income and documenting that
determination. Treasury encourages grantees to partner with state unemployment departments or
entities that administer federal benefits with income requirements to assist with the verification
process, consistent with applicable law.
Categorical Eligibility: If an applicant’s household income has been verified to be at or below 80
percent of the area median income (for ERA1) or if an applicant’s household has been verified as
a low-income family as defined in section 3(b) of the United States Housing Act of 1937
4
See https://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:1.1.1.1.5#se24.1.5_1609.
4
(42 U.S.C. 1437a(b)) (for ERA2) in connection with another local, state, or federal government
assistance program, grantees are permitted to rely on a determination letter from the government
agency that verified the applicant’s household income or status as a low-income family, provided
that the determination for such program was made on or after January 1, 2020.
Fact-specific proxy: A grantee may rely on a written attestation from the applicant as to
household income if the grantee also uses any reasonable fact-specific proxy for household
income, such as reliance on data regarding average incomes in the household’s geographic area.
Written Attestation Without Further Documentation: To the extent that a household’s income, or
a portion thereof, is not verifiable due to the impact of COVID-19 (for example, because a place
of employment has closed) or has been received in cash, or if the household has no qualifying
income, grantees may accept a written attestation from the applicant regarding household
income. If a written attestation without further documentation of income (or a fact-specific
proxy as described above) is relied on, the grantee must reassess household income for such
household every three months. In appropriate cases, grantees may rely on an attestation from a
caseworker or other professional with knowledge of a household’s circumstances to certify that
an applicant’s household income qualifies for assistance.
Definition of Area Median Income: For purposes of ERA1, the area median income for a
household is the same as the income limits for families published in accordance with 42 U.S.C.
1437a(b)(2), available under the heading for “Access Individual Income Limits Areas” at
https://www.huduser.gov/portal/datasets/il.html.5
5. ERA funds may be used for rent and rental arrears. How should a grantee document
where an applicant resides and the amount of rent or rental arrears owed?
Grantees must obtain, if available, a current lease, signed by the applicant and the landlord or
sublessor that identifies the unit where the applicant resides and establishes the rental payment
amount. If a household does not have a signed lease, documentation of residence may include
evidence of paying utilities for the residential unit, an attestation by a landlord who can be
identified as the verified owner or management agent of the unit, or other reasonable
documentation as determined by the grantee. In the absence of a signed lease, evidence of the
amount of a rental payment may include bank statements, check stubs, or other documentation
that reasonably establishes a pattern of paying rent, a written attestation by a landlord who can be
verified as the legitimate owner or management agent of the unit, or other reasonable
documentation as defined by the grantee in its policies and procedures.
Written Attestation: If an applicant is able to provide satisfactory evidence of residence but is
unable to present adequate documentation of the amount of the rental obligation, grantees may
accept a written attestation from the applicant to support the payment of assistance up to a
monthly maximum of 100% of the greater of the Fair Market Rent or the Small Area Fair Market
Rent for the area in which the applicant resides, as most recently determined by HUD and made
5
Specifically, 80% of area median income is the same as “low income.” For the purpose of prioritizing rental
assistance as described in FAQ 22 below, pursuant to section 501(c)(4)(A) of Subdivision N of the ERA1 statute, 50
percent of the area median income for the household is the same as the “very low-income limit” for the area in
question.
5
available at https://www.huduser.gov/portal/datasets/fmr.html. In this case, the applicant must
also attest that the household has not received, and does not anticipate receiving, another source
of public or private subsidy or assistance for the rental costs that are the subject of the attestation.
This limited payment is intended to provide the most vulnerable households the opportunity to
gather additional documentation of the amount of the rental obligation or to negotiate with
landlords in order to avoid eviction. The assistance described in this paragraph may only be
provided for three months at a time, and a grantee must obtain evidence of rent owed consistent
with the above after three months in order to provide further assistance to such a household;
Treasury expects that in most cases the household would be able to provide documentation of the
amount of the rental obligation in any applications for further assistance.
6. ERA funds may be used for “utilities and home energy costs” and “utilities and home
energy costs arrears.” How are those terms defined and how should those costs be
documented?
Utilities and home energy costs are separately stated charges related to the occupancy of rental
property. Accordingly, utilities and home energy costs include separately stated electricity, gas,
water and sewer, trash removal, and energy costs, such as fuel oil. Payments to public utilities
are permitted.
All payments for utilities and home energy costs should be supported by a bill, invoice, or
evidence of payment to the provider of the utility or home energy service.
Utilities and home energy costs that are covered by the landlord will be treated as rent.
7. The statutes establishing ERA1 and ERA2 allow the funds to be used for certain “other
expenses,” as defined by the Secretary. What are some examples of these “other
expenses”?
ERA1 funds used for “other expenses” must be related to housing and “incurred due, directly or
indirectly, to the novel coronavirus disease (COVID-19) outbreak”. In contrast, ERA2 requires
that “other expenses” be “related to housing” but does not require that they be incurred due to the
COVID-19 outbreak.
For both ERA1 and ERA2, other expenses related to housing include relocation expenses
(including prospective relocation expenses), such as rental security deposits, and rental fees,
which may include application or screening fees. It can also include reasonable accrued late fees
(if not included in rental or utility arrears), and Internet service provided to the rental unit.
Internet service provided to a residence is related to housing and is in many cases a vital service
that allows renters to engage in distance learning, telework, and telemedicine and obtain
government services. However, given that coverage of Internet would reduce the amount of
funds available for rental assistance, grantees should adopt policies that govern in what
circumstances that they will determine that covering this cost would be appropriate.
All payments for housing-related expenses must be supported by documentary evidence such as
a bill, invoice, or evidence of payment to the provider of the service. If a housing-related
expense is included in a bundle or an invoice that is not itemized (for example, internet services
6
bundled together with telephone and cable television services) and obtaining an itemized invoice
would be unduly burdensome, grantees may establish and apply reasonable procedures for
determining the portion of the expense that is appropriate to be covered by ERA. As discussed
in FAQ 26 below, under certain circumstances, the cost of a hotel stay may also be covered as an
“other expense.”
8. Must a beneficiary of the rental assistance program have rental arrears?
No. The statutes establishing ERA1 and ERA2 permit the enrollment of households for only
prospective benefits. For ERA1, if an applicant has rental arrears, the grantee may not make
commitments for prospective rent payments unless it has also provided assistance to reduce the
rental arrears; this requirement does not apply to ERA2.
9. May a grantee provide assistance for arrears that have accrued before the date of
enactment of the statute?
Yes, but not before March 13, 2020, the date of the emergency declaration pursuant to section
501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C.
5191(b).
10. Is there a limit on how many months of financial assistance a tenant can receive?
Yes. In ERA1, an eligible household may receive up to twelve (12) months of assistance (plus
an additional three (3) months if necessary to ensure housing stability for the household, subject
to the availability of funds). The aggregate amount of financial assistance an eligible household
may receive under ERA2, when combined with financial assistance under ERA1, must not
exceed 18 months.
In ERA1, financial assistance for prospective rent payments is limited to three months based on
any application by or on behalf of the household, except that the household may receive
assistance for prospective rent payments for additional months (i) subject to the availability of
remaining funds currently allocated to the grantee, and (ii) based on a subsequent application for
additional assistance. In no case may an eligible household receive more than 18 months of
assistance under ERA1 and ERA2, combined.
11. Must a grantee pay for all of a household’s rental or utility arrears?
No. The full payment of arrears is allowed up to the limits established by the statutes, as
described in FAQ 10 above. A grantee may structure a program to provide less than full
coverage of arrears.
12. What outreach should be made by a grantee to a landlord or utility provider before
determining that the landlord or utility provider will not accept direct payment from the
grantee?
Treasury expects that in general, rental and utility assistance can be provided most effectively
and efficiently when the landlord or utility provider participates in the program. However, in
7
cases where a landlord or utility provider does not participate in the program, the only way to
achieve the statutory purpose is to provide assistance directly to the eligible household.
In ERA1, grantees must make reasonable efforts to obtain the cooperation of landlords and
utility providers to accept payments from the ERA program. Outreach will be considered
complete if (i) a request for participation is sent in writing, by mail, to the landlord or utility
provider, and the addressee does not respond to the request within seven calendar days after
mailing; (ii) the grantee has made at least three attempts by phone, text, or e-mail over a five
calendar-day period to request the landlord or utility provider’s participation; or (iii) a landlord
confirms in writing that the landlord does not wish to participate. The final outreach attempt or
notice to the landlord must be documented. The cost of contacting landlords would be an
eligible administrative cost.
ERA2 does not require grantees to seek the cooperation of the landlord or utility provider before
providing assistance directly to the tenant. However, if an ERA2 grantee chooses to seek the
cooperation of landlords or utility providers before providing assistance directly to tenants,
Treasury strongly encourages the grantee to apply the same ERA1 requirements as described
above.
13. Is there a requirement that the eligible household have been in its current rental home
when the public health emergency with respect to COVID-19 was declared?
No. There is no requirement regarding the length of tenure in the current unit.
14. What data should a grantee collect regarding households to which it provides rental
assistance in order to comply with Treasury’s reporting and recordkeeping requirements?
Treasury will provide instructions at a later time as to what information grantees must report to
Treasury and how this information must be reported. At a minimum, in order to ensure that
Treasury is able to fulfill its reporting requirements and its ongoing monitoring and oversight
responsibilities, grantees should anticipate the need to collect from households and retain records
on the following:
Address of the rental unit;
For landlords and utility providers, the name, address, and Social Security number, tax
identification number or DUNS number;
Amount and percentage of monthly rent covered by ERA assistance;
Amount and percentage of separately stated utility and home energy costs covered by
ERA assistance;
Total amount of each type of assistance provided to each household (i.e., rent, rental
arrears, utilities and home energy costs, utilities and home energy costs arrears, and other
expenses related to housing incurred due directly or indirectly to the COVID-19
outbreak);
Amount of outstanding rental arrears for each household;
Number of months of rental payments and number of months of utility or home energy
cost payments for which ERA assistance is provided;
Household income and number of individuals in the household; and
8
Gender, race, and ethnicity of the primary applicant for assistance.
Grantees should also collect information as to the number of applications received in order to be
able to report to Treasury the acceptance rate of applicants for assistance.
Treasury’s Office of Inspector General may require the collection of additional information in
order to fulfill its oversight and monitoring requirements.6 Treasury will provide additional
information regarding reporting to Treasury at a future date. Grantees under ERA1 must comply
with the requirement in section 501(g)(4) of Division N of the Consolidated Appropriations Act,
2021, to establish data privacy and security requirements for information they collect; grantees
under ERA2 are also encouraged to comply with those requirements.7
The assistance listing number assigned to the ERA is 21.023.
15. The statute establishing ERA1 requires that payments not be duplicative of any other
federally funded rental assistance provided to an eligible household. Are tenants of
federally subsidized housing, e.g., Low Income Housing Credit, Public Housing, or Indian
Housing Block Grant-assisted properties, eligible for the ERA?
An eligible household that occupies a federally subsidized residential or mixed-use property or
receives federal rental assistance may receive assistance in the ERA, provided that ERA1 funds
are not applied to costs that have been or will be reimbursed under any other federal assistance.
Grantees are required to comply with Title VI of the Civil Rights Act and should evaluate
whether their policies and practices regarding assistance to households that occupy federally
subsidized residential or mixed-use properties or receive federal rental assistance comply with
Title VI. With respect to ERA2, grantees must not refuse to provide assistance to households on
the basis that they occupy such properties or receive such assistance, due to the disproportionate
effect such a refusal could have on populations intended to receive assistance under the ERA and
the potential for such a practice to violate applicable law, including Title VI.
If an eligible household participates in a HUD-assisted rental program or lives in certain
federally assisted properties (e.g., a Housing Choice Voucher, Public Housing, or Project-Based
Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter
household may receive ERA1 assistance for the tenant-owed portion of rent or utilities that is not
subsidized. Grantees are encouraged to confirm that the participant has already reported any
income loss or financial hardship to the Public Housing Authority or property manager and
completed an interim re-examination before assistance is provided.
6
Note that this FAQ is not intended to address all reporting requirements that will apply to the ERA but rather to
note for grantees information that they should anticipate needing to collect from households with respect to the
provision of rental assistance.
7
Specifically, the statute establishing ERA1 requires grantees to establish data privacy and security requirements for
certain information regarding applicants that (i) include appropriate measures to ensure that the privacy of the
individuals and households is protected; (ii) provide that the information, including any personally identifiable
information, is collected and used only for the purpose of submitting reports to Treasury; and (iii) provide
confidentiality protections for data collected about any individuals who are survivors of intimate partner violence,
sexual assault, or stalking.
9
Treasury encourages grantees to enter into partnerships with owners of federally subsidized
housing to implement methods of meeting the statutory requirement to prioritize assistance to
households with income that does not exceed 50 percent of the area median income for the
household, or where one or more individuals within the household are unemployed as of the date
of the application for assistance and have not been employed for the 90-day period preceding
such date.
Pursuant to section 501(k)(3)(B) of Subdivision N of the Consolidated Appropriations Act, 2021,
and 2 CFR 200.403, when providing ERA1 assistance, the grantee must review the household’s
income and sources of assistance to confirm that the ERA1 assistance does not duplicate any
other assistance, including federal, state, or local assistance provided for the same costs.
Grantees may rely on an attestation from the applicant regarding non-duplication with other
government assistance in providing assistance to a household. Grantees with overlapping or
contiguous jurisdictions are particularly encouraged to coordinate and participate in joint
administrative solutions to meet this requirement. The requirement described in this paragraph
does not apply to ERA2; however, to maximize program efficacy, Treasury encourages grantees
to minimize the provision of duplicative assistance.
16. In ERA1, may a Tribe or Tribally Designated Housing Entity (TDHE) provide
assistance to Tribal members living outside Tribal lands?
Yes. Tribal members living outside Tribal lands may receive ERA1 funds from their Tribe or
TDHE, provided they are not already receiving ERA assistance from another Tribe or TDHE,
state, or local government.
17. In ERA1, may a Tribe or TDHE provide assistance to non-Tribal members living on
Tribal lands?
Yes. A Tribe or TDHE may provide ERA1 funds to non-Tribal members living on Tribal lands,
provided these individuals are not already receiving ERA assistance from another Tribe or
TDHE, state, or local government.
18. May a grantee provide assistance to households for which the grantee is the landlord?
Yes. A grantee may provide assistance to households for which the grantee is the landlord,
provided that the grantee complies with the all provisions of the statute establishing ERA1 or
ERA2, as applicable, the award terms, and applicable ERA guidance issued by Treasury, and (for
purposes of ERA1) that no preferences beyond those outlined in the Consolidated Appropriations
Act, 2021, are given to households that reside in the grantee’s own properties.
19. May a grantee provide assistance to a renter household with respect to utility or energy
costs without also covering rent?
Yes. A grantee is not required to provide assistance with respect to rent in order to provide
assistance with respect to utility or energy costs. For ERA1, the limitations in section
501(c)(2)(B) of Division N of the Consolidated Appropriations Act, 2021, limiting assistance for
prospective rent payments do not apply to the provision of utilities or home energy costs.
10
20. May a grantee provide ERA assistance to homeowners to cover their mortgage, utility,
or energy costs?
No. ERA assistance may be provided only to eligible households, which is defined by statute to
include only households that are obligated to pay rent on a residential dwelling. However,
homeowners may be eligible for assistance under programs using funds under the Homeowner
Assistance Fund, which was established by Treasury under the American Rescue Plan Act of
2021.
21. May grantees administer ERA programs by using contractors, subrecipients, or
intergovernmental cooperation agreements?
Yes. Grantees may use ERA payments to make subawards to other entities, including non-profit
organizations and local governments, to administer ERA programs on behalf of the grantees.
The subrecipient monitoring and management requirements set forth in 2 CFR 200.331-333 will
apply to such entities. Grantees may also enter into contracts using ERA payments for goods or
services to implement ERA programs. Grantees must comply with the procurement standards set
forth in 2 CFR 200.317-327 in entering into such contracts. Grantees are encouraged to achieve
administrative efficiency and fiduciary responsibility by collaborating with other grantees in
joint administrative solutions to deploying ERA resources.
22. ERA requires a prioritization of assistance for households with incomes less than 50%
of area median income or households with one or more individuals that have not been
employed for the 90-day period preceding the date of application. How should grantees
prioritize assistance?
Grantees should establish a preference system for assistance that prioritizes assistance to
households with incomes less than 50% area median income and to households with one or more
members that have been unemployed for at least 90 days. Grantees should document the
preference system they plan to use and should inform all applicants about available preferences.
Treasury will require grantees to report to Treasury on the methods they have established to
implement this prioritization of assistance and to publicly post a description of their prioritization
methods, including on their program web page if one exists, by July 15, 2021.
23. ERA1 and ERA2 both allow for up to 10 percent of the funds received by a grantee to
be used for certain housing stability services. What are some examples of these services?
ERA1 and ERA2 have different requirements for housing stability services.
Under ERA1, these funds may be used to provide eligible households with case management and
other services related to the COVID-19 outbreak, as defined by the Secretary, intended to help
keep households stably housed.
Under ERA2, these services do not have to be related to the COVID-19 outbreak.
For purposes of ERA1 and ERA2, housing stability services include those that enable eligible
households to maintain or obtain housing. Such services may include housing counseling, fair
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housing counseling, case management related to housing stability, housing related services for
survivors of domestic abuse or human trafficking, legal services or attorney’s fees related to
eviction proceedings and maintaining housing stability, and specialized services for individuals
with disabilities or seniors that supports their ability to access or maintain housing. Grantees
using ERA funds for housing stability services must maintain records regarding such services
and the amount of funds provided to them.
24. Are grantees required to remit interest earned on ERA payments made by Treasury?
No. ERA payments made by Treasury to states, territories, and the District of Columbia are not
subject to the requirement of the Cash Management Improvement Act and Treasury’s
implementing regulations at 31 CFR part 205 to remit interest to Treasury. ERA payments made
by Treasury to local governments, Tribes, and TDHEs are not subject to the requirement of 2
CFR 200.305(b)(8)–(9) to maintain balances in an interest-bearing account and remit payments
to Treasury.
25. When may Treasury recoup ERA funds from a grantee?
Treasury may recoup ERA funds from a grantee if the grantee does not comply with the
applicable limitations on the use of those funds.
26. May rental assistance be provided to temporarily displaced households living in hotels
or motels?
Yes. The cost of a hotel or motel room occupied by an eligible household may be covered using
ERA assistance within the category of certain “other expenses related to housing” (as described
in FAQ 7) provided that:
i. the household has been temporarily or permanently displaced from its primary
residence or does not have a permanent residence elsewhere;
ii. the total months of assistance provided to the household do not exceed the applicable
time limit described in FAQ 10; and
iii. documentation of the hotel or motel stay is provided and the other applicable
requirements provided in the statute and these FAQs are met.
The cost of the hotel or motel stay would not include expenses incidental to the charge for the
room.
Grantees covering the cost of such stays must develop policies and procedures detailing under
what circumstances they would provide assistance to cover such stays. In doing so, grantees
should consider the cost effectiveness of offering assistance for this purpose as compared to
other uses. If a household is eligible for an existing program with narrower eligibility criteria
that can provide similar assistance for hotel or motel stays, such as the HUD Emergency
Solutions Grant program or FEMA Public Assistance, grantees should utilize such programs
prior to providing similar assistance under the ERA program.
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27. May a renter subject to a “rent-to-own” agreement with a landlord be eligible for ERA
assistance?
A grantee may provide financial assistance to households that are renting their residence under a
“rent-to-own” agreement, under which the renter has the option (or obligation) to purchase the
property at the end of the lease term, provided that a member of his or her household:
i. is not a signor or co-signor to the mortgage on the property;
ii. does not hold the deed or title to the property; and
iii. has not exercised the option to purchase.
Homeowners may be eligible for assistance under programs using funds under the Homeowner
Assistance Fund, which was established by Treasury under the American Rescue Plan Act of
2021.
28. Under what circumstances may households living in manufactured housing (mobile
homes) receive assistance?
Rental payments for either the manufactured home and/or the parcel of land the manufactured
home occupies are eligible for financial assistance under ERA programs. Households renting
manufactured housing and/or the parcel of land the manufactured home occupies may also
receive assistance for utilities and other expenses related to housing, as detailed in FAQ 7 above.
This principle also applies to mooring fees for water-based dwellings (houseboats).
29. What are the applicable limitations on administrative expenses?
Under ERA1, not more than 10 percent of the amount paid to a grantee may be used for
administrative costs attributable to providing financial assistance and housing stability services
to eligible households. Under ERA2, not more than 15 percent of the amount paid to a grantee
may be used for administrative costs attributable to providing financial assistance, housing
stability services, and other affordable rental housing and eviction prevention activities.
The revised award term for ERA1 issued by Treasury permits recipients to use funds provided to
cover both direct and indirect costs. A grantee may permit a subrecipient to incur more than 10
or 15 percent, as applicable, of the amount of the subaward issued to that subrecipient as long as
the total of all administrative costs incurred by the grantee and all subrecipients, whether as
direct or indirect costs, does not exceed 10 or 15 percent, as applicable, of the total amount of the
award provided to the grantee from Treasury.)
Further, the revised award term for ERA1 no longer requires grantees to deduct administrative
costs charged to the award from the amount available for housing stability services. Rather, any
direct and indirect administrative costs in ERA1 or ERA2 must be allocated by the grantee to
either the provision of financial assistance or the provision of housing stability services. As
required by the applicable statutes, not more than 10 percent of funds received by a grantee may
be used to provide eligible households with housing stability services (discussed in FAQ 23). To
the extent administrative costs are not readily allocable to one or the other of these categories,
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the grantee may assume an allocation of the relevant costs of 90 percent to financial assistance
and 10 percent to housing stability services.
Grantees may apply their negotiated indirect cost rate to the award, but only to the extent that the
total of the amount charged pursuant to that rate and the amount of direct costs charged to the
award does not exceed 10 percent of the amount of the award.
30. Should grantees provide tenants the option to apply directly for ERA assistance, rather
than only accepting applications for assistance from landlords and owners of dwellings?
For ERA1, Treasury strongly encourages grantees to provide an option for tenants to apply
directly for funding, rather than only accepting applications for assistance from landlords and
owners of dwellings. For ERA2, grantees are required to allow tenants to apply directly for
assistance, even if the landlord or owner chooses not to participate, consistent with the statutory
requirement for the funds to be used to provide financial assistance to eligible households.
See FAQ 12 for additional information on grantees providing assistance to landlords and tenants.
31. How should grantees ensure that recipients use ERA funds only for permissible
purposes?
Grantees should require recipients of funds under ERA programs, including tenants and
landlords, to commit in writing to use ERA assistance only for the intended purpose before
issuing a payment. Grantees are not required to obtain documentation evidencing the use of
ERA program funds by tenants and landlords. Grantees are expected to apply reasonable fraud-
prevention procedures and to investigate and address potential instances of fraud or the misuse of
funds that they become aware of.
32. Can grantees prohibit landlords from pursuing eviction for nonpayment of rent for
some period after receiving ERA assistance?
With respect to landlords that receive funds under an ERA program for prospective rent, the
grantee must prohibit the landlord from evicting the tenant for nonpayment of rent during the
period covered by the assistance.
In addition, with respect to landlords that receive funds for rental arrears, to promote the purpose
of the program the grantee is encouraged to prohibit the landlord from evicting the tenant for
nonpayment of rent for some period of time, consistent with applicable law.
In all cases, Treasury strongly encourages grantees to require landlords that receive funds under
the ERA, as a condition of receiving the funds, not to evict tenants for nonpayment of rent for 30
to 90 days longer than the period covered by the rental assistance.
33. How can grantees work with other grantees to make their ERA programs consistent?
Treasury encourages different grantees to collaborate to develop consistent terms of their ERA
programs, in order to reduce burdens for entities including landlords with properties in multiple
jurisdictions.
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34. Should a grantee require that a landlord initiate an eviction proceeding in order to
apply for assistance under an ERA program?
No.
35. How can ERA assistance be used to support an eligible household moving to a new
home?
ERA funds may be used to provide assistance to eligible households to cover prospective
relocation assistance, rent, and utility or home energy costs, including after an eviction. Treasury
encourages grantees to provide prospective support to help ensure housing stability. See FAQ 7
(regarding qualifying relocation expenses) and FAQ 10 (regarding time limits on assistance).
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