Congressional Research Service IN11641.2 (Housing Funding in the American Rescue Plan Act of 2021)
Summary
A Congressional Research Service Insight, IN11641 (version 2), updated May 13, 2021, on housing funding in the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2). It reports Census data from late February 2021 showing that nearly 19% of renters and more than 10% of homeowners with a mortgage had fallen behind on housing payments during the pandemic. It states that ARPA included nearly $43 billion in mandatory funding for housing-related programs for people experiencing housing instability and homelessness, appropriated to the Department of the Treasury, HUD, the Department of Agriculture, the Bureau of Indian Affairs and NeighborWorks America. It notes that ARPA's cash payments to individuals may also help families pay housing costs.
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INSIGHTi
Housing Funding in the American Rescue
Plan Act of 2021
Updated May 13, 2021
According to Census data from late February 2021, nearly 19% of renters and more than 10% of
homeowners with a mortgage reported having fallen behind in their housing payments during the
Coronavirus Disease 2019 (COVID-19) pandemic. In response, the American Rescue Plan Act of 2021
(ARPA; P.L. 117-2), enacted in mid-March 2021, included nearly $43 billion in mandatory funding for
housing-related programs intended to assist people experiencing housing instability and homelessness. (In
addition to funding housing programs, ARPA provided cash to individuals [e.g., individual relief
payments, refundable tax credits, and enhanced unemployment benefits] that may also help families pay
their housing costs.)
ARPA appropriated funding to multiple federal agencies to provide housing assistance: the Department of
the Treasury, the Department of Housing and Urban Development (HUD), the Department of Agriculture
(USDA), the Bureau of Indian Affairs (BIA) at the Department of the Interior, and NeighborWorks
America, a government-chartered nonprofit organization.
Funded programs include those developed specifically to respond to the COVID-19 pandemic (e.g., the
Emergency Rental Assistance program and Homeowner Assistance Fund), as well as existing programs.
In some cases, ARPA directed that funding provided through existing programs be used in new ways to
serve people experiencing homelessness (e.g., Emergency Housing Vouchers and HOME funds); in other
cases, the funds are to be used to respond to the pandemic largely within existing program parameters
(e.g., Native American and rural housing programs).
This Insight includes a funding table followed by a list of each program funded and a brief description of
how funds can be used.
Table 1. Funding for Federal Housing Programs in ARPA
Funding
Agency Section of P.L. 117-2 ($ in billions)
Treasury §3201 Emergency Rental Assistance 21.550
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Funding
Agency Section of P.L. 117-2 ($ in billions)
Treasury §3206 Homeowner Assistance Fund 9.961
HUD §3202 Emergency Housing Vouchers 5.000
HUD §3205 Homelessness Assistance and Supportive Services Program 5.000
HUD §11003 Housing Assistance and Supportive Services Programs for 0.750
Native Americans
HUD §3208 Fair Housing Activities 0.020
USDA §3203 Emergency Assistance for Rural Housing 0.100
USDA §3207 Relief Measures for Section 502 and 504 Direct Loan Borrowers 0.039
NeighborWorks America §3204 Housing Counseling 0.100
BIA §11002 Bureau of Indian Affairs 0.100
Source: The American Rescue Plan Act (P.L. 117-2).
Emergency Rental Assistance (ERA) ($21.55 billion): The ERA program was initially
established and funded in the FY2021 Consolidated Appropriations Act (P.L. 116-260),
which provided $25 billion primarily to help renters pay for rent and utility costs
(including arrears), with funds administered by the Treasury Department and distributed
to states and counties based on population. Of the ARPA funding, $19 billion will be
distributed based on population, but $2.5 billion is available to “high-need” grantees, as
determined by the Treasury Secretary.
Homeowner Assistance Fund ($9.96 billion): ARPA establishes a new Homeowner
Assistance Fund through which Treasury will allocate funds by formula to states,
territories, and tribes to assist homeowners experiencing financial hardship during the
pandemic. Eligible uses of the funds include assistance with mortgage payments and
related expenses, such as utilities or homeowners insurance. At least 60% of funds must
assist homeowners with incomes no higher than 100% of area median income or 100% of
U.S. median income, whichever is greater. Remaining funds are to be prioritized to
socially disadvantaged individuals.
Emergency Housing Vouchers ($5 billion): Funds are appropriated to provide rental
subsidies through the Housing Choice Vouchers (HCV) program for people experiencing
homelessness, at risk of homelessness, and fleeing domestic violenc e; and to cover
related administrative expenses. The vouchers are to be distributed to local public
housing authorities, as determined by the HUD Secretary, and, unlike regular HCVs, after
FY2023 they cannot be reissued when families leave the program.
Homelessness Assistance and Supportive Services Program ($5 billion): Funds are
appropriated for HUD’s HOME program and distributed via the HOME formula, but
with certain changes to HOME program requirements that would otherwise apply. Funds
are primarily to benefit individuals and families who are homeless, at risk of
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homelessness, and fleeing domestic violence. Eligible activities include those that are
generally eligible under the HOME program as well as certain additional activities,
including supportive services. ARPA also specifies that grantees may use funds to acquire
non-congregate shelter units with the option to convert them to permanent housing.
Housing Assistance and Supportive Services Programs for Native Americans ($750
million): Funds are provided for the Native American Housing Block Grant ($450
million), allocated via that program’s formula; the Native Hawaiian Housing Block Grant
($5 million); and the Indian Community Development Block Grant ($280 million). The
funds are to be used to “prevent, prepare for, and respond to coronavirus” through
activities authorized under these programs. (Remaining funds are for technical assistance
and administrative costs.)
Fair Housing Initiatives Program (FHIP) ($20 million): Funds are provided for
HUD’s FHIP grantees to address fair housing complaints, conduct investigations, engage
in education and outreach, and account for increased program delivery costs.
Emergency Assistance for Rural Housing ($100 million): Funds are to be used to
support rental assistance for residents of rural rental properties (subsidized via the Section
515 or Section 514/516 programs) and to cover unpaid rent for unassisted tenants in those
properties.
Relief Measures for Section 502 and 504 Direct Loan Borrowers ($39 million): Funds
are provided for certain single-family direct loan programs administered by USDA’s
Rural Housing Service; namely, Section 502 Direct Home Loans and Section 504
Housing Repair Loans.
Housing Counseling ($100 million): Funds are provided to NeighborWorks America to
provide competitive grants to eligible housing counseling organizations for housing
counseling services. At least 40% of funds must be provided to counseling organizations
that target services to minority and low-income populations or serving neighborhoods
with high concentrations of minority and low-income populations.
Bureau of Indian Affairs ($100 million): Section 11002 includes, among other things,
$100 million for the BIA’s Housing Improvement Program, which assists eligible
members of federally recognized tribes in approved tribal service areas with repairs or
replacement of substandard housing.
Author Information
Katie Jones Libby Perl
Analyst in Housing Policy Specialist in Housing Policy
Maggie McCarty
Specialist in Housing Policy
Disclaimer
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This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
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