May 2024 Emergency Rental Assistance Program Treasury, Assistance Listing 21.023
Summary
The May 2024 Compliance Supplement entry for the Department of the Treasury's Emergency Rental Assistance Program, Assistance Listing 21.023, which the document says is considered a higher risk program for 2024. It explains that ERA 1 was authorized by Division N, Title V, Section 501 of the Consolidated Appropriations Act, 2021 and codified at 15 USC 9058a, and ERA 2 by Title III, Subtitle B, Section 3201 of the American Rescue Plan Act and codified at 15 USC 9058c. The program's purpose is direct payments to eligible grantees to assist eligible households with rent, utilities, housing stability services and related costs.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“May 2024 Emergency Rental Assistance Program Treasury, Assistance Listing 21.023.”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-2024-era-compliance-supplement-home-treasur-d3e6ab7a6e/
, SHA-256 19fb7e4dc6b109a3782b051d15f28d40e46e01a72ddb852a4edd251d83e4a92b.Full text
May 2024 Emergency Rental Assistance Program Treasury
DEPARTMENT OF THE TREASURY
ASSISTANCE LISTING 21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM
I. PROGRAM OBJECTIVES
Note: This program is considered a “higher risk” program for 2024, pursuant to 2 CFR section
200.519(c)(2). Refer to the “Programs with Higher Risk Designation” section of Part 8,
Appendix IV, Internal Reference Tables, for a discussion of the impact of the “higher risk”
designation on the major program determination process.
Two pieces of legislation authorized funding for Emergency Rental Assistance. The
authorizations include some different legal requirements. Therefore, this Compliance
Supplement addresses the requirements as “ERA 1” and “ERA 2.” ERA 1 was authorized by
Division N, Title V, Section 501 of the Consolidated Appropriations Act, 2021 (the Act), Pub. L.
No. 116-260 (December 27, 2020), codified at 15 USC 9058a. ERA 2 was authorized by Title
III, Subtitle B, Section 3201 of the American Rescue Plan Act (ARPA), 2021, Pub. L. No. 117-2
(March 11, 2021), codified at 15 USC 9058c. Both ERA 1 and ERA 2 funding is defined as
“other financial assistance” per 2 CFR Part 200.1 and both ERA 1 and ERA 2 are administered
by Treasury as direct payments for specified use.
The purpose of ERA is to provide direct payments to eligible grantees to assist eligible
households with financial assistance and to provide housing stability services and, in the case of
ERA 2 as applicable, to cover the costs for other affordable rental housing and eviction
prevention activities. ERA grantees may provide assistance directly to eligible landlords and
utility providers on behalf of an eligible household or directly to an eligible household (See 15
USC 9058a(c)(2)(C)(i) and FAQ 12 for more detail on landlords and utility provider
participation in the program). Financial assistance for eligible households may include payment
of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears,
and other expenses related to housing. ERA grantees may also use funds to provide housing
stability services as authorized by the respective statutes.
II. PROGRAM PROCEDURES
A. Overview
ERA 1 provided $25 billion for the US Department of the Treasury (Treasury) to make
payments to States (defined to include the District of Columbia), US territories (Puerto
Rico, US Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), Indian
tribes or their tribally designated housing entities, as applicable, the Department of
Hawaiian Home Lands, and certain local governments with more than 200,000 residents.
These entities are collectively referred to as “eligible grantees” or “ERA 1 grantees.”
ERA 1 award funds may be used to provide financial assistance and housing stability
services to eligible households. All ERA 1 grantees that submitted the requested
documentation to Treasury and executed a financial assistance agreement received their
total ERA 1 award funds in one payment.
Compliance Supplement 2024 4-21.023-1
May 2024 Emergency Rental Assistance Program Treasury
ERA 2 provided $21.55 billion for Treasury to make payments to States (defined to
include the District of Columbia), US Territories (Puerto Rico, US Virgin Islands, Guam,
Northern Mariana Islands, and American Samoa), and local governments with more than
200,000 residents. These entities are collectively referred to as “eligible grantees” or
“ERA 2 grantees.” ERA 2 award funds may be used to assist eligible households with
financial assistance and to provide housing stability services and, as applicable, to cover
the costs for other affordable rental housing and eviction prevention activities.
Pursuant to 15 USC 9058c (c)(1), Treasury made initial payments of 40 percent of an
eligible grantee’s total award amount to each grantee under ERA 2 that submitted the
required documentation and executed the financial assistance agreement. Through
February 2022, Treasury made payments of the remaining 60 percent of ERA 2 grantees’
award funds after they certified that at least 75 percent of the initial ERA 2 payment had
been obligated pursuant to 15 USC 9058c(c)(2). Beginning in February 2022, Treasury
altered its ERA 2 payment tranche policy to allow grantees to receive the remainder of
their ERA 2 award funds in two payments (half of the remaining balance, followed by the
remaining balance), subject to potential reductions resulting from the implementation of a
statutory reallocation requirement with each tranche payment only made after grantees
certified that they have obligated at least 75 percent of the funds already disbursed
pursuant to 15 USC 9058c(c)(2).
Additional information on statutory differences between ERA 1 and ERA 2 are described
in the Emergency Rental Assistance Frequently Asked Questions (FAQs) posted at:
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program/faqs.
15 USC 9058a(b)(1)(A) directs Treasury to use US Census Bureau data for the most
recent year for which data is available for population calculations for determining the
populations of state and local governments. Funds are distributed via a per capita formula
allocation detailed on Treasury.gov that considers the minimum allocation of $200
million for states and the District of Columbia. Allocation amounts can be found via the
following link: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-
local-and-tribal-governments/emergency-rental-assistance-program/allocations-and-
payments.
Source of Governing Requirements
Emergency Rental Assistance (“ERA 1”), Division N, Title V, Section 501 of the Consolidated
appropriations Act, 2021 codified as 15 USC9058a.
Emergency Rental Assistance (“ERA 2”), Title III, Subtitle B, Section 3201 of the American
Rescue Plan Act, 2021,) codified as 15 USC 9058c.
Section 15011 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L.
No. 116-136), codified by 15 USC 9058a, as amended by Title VIII, Section 801(b) of
the Consolidated Appropriations Act, 2021 at 15 USC 9058c, on December 27, 2020.
Compliance Supplement 2024 4-21.023-2
May 2024 Emergency Rental Assistance Program Treasury
Treasury’s Frequently Asked Questions (FAQs) and related guidance available on Treasury.gov,
including important version changes over time that can be found on the ERA website.
Availability of Other Program Information
General information for ERA is available on Treasury’s website at
https://www.treasury.gov/ERA. Information includes the following documents:
ERA 1 authorizing statute: https://www.govinfo.gov/content/pkg/PLAW-116publ260/pdf/PLAW-
116publ260.pdf (See pages 889 - 899)
This document details information that is contained in the authorizing statute including funds
appropriated for ERA 1.
ERA 2 authorizing statute: https://www.govinfo.gov/content/pkg/PLAW-117publ2/pdf/PLAW-
117publ2.pdf (See pages 52 - 56)
This document details information that is contained in the authorizing statute including funds
appropriated for ERA 2.
15 USC 9058a(g)(1) regarding ERA 1 reporting: https://www.govinfo.gov/content/pkg/PLAW-
116publ136/pdf/PLAW-116publ136.pdf (See pages 260 - 262)
This document provides information on grantee reporting the use of funds.
ERA 1 Award Terms template: https://home.treasury.gov/system/files/136/Emergency-rental-
assistance-terms-FINAL.pdf (See pages 1 - 5)
This document provides award terms as a condition to the receipt of payment from Treasury for
ERA 1.
ERA 2 Award Terms template:
https://home.treasury.gov/system/files/136/ERA2_Grantee_Award_Terms_572021.pdf (See
pages 1 - 5)
This document provides award terms as a condition to the receipt of payment from Treasury for
ERA 2.
Treasury’s ERA Frequently Asked Questions (FAQs) and guidance are available at:
https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf (See pages 1-18)
Treasury released FAQs as guidance regarding ERA 1 and ERA 2 except where differences are
specifically noted.
Compliance Supplement 2024 4-21.023-3
May 2024 Emergency Rental Assistance Program Treasury
Treasury’s ERA 1 Reallocation guidance:
https://home.treasury.gov/system/files/136/UpdatedERA1ReallocationGuidanceSep6.pdf (See
pages 1 - 8)
The ERA 1 statute requires Treasury to identify “excess funds” for reallocation from amounts
Grantees have “not obligated” from their initial ERA 1 allocations.
Treasury’s ERA 2 Reallocation guidance: https://home.treasury.gov/system/files/136/ERA2-
Reallocation-Guidance-March-30-2022.pdf (See pages 1 - 6)
The ERA 2 statute requires Treasury to identify funds for reallocation from amounts allocated to
eligible Grantees, but not yet paid out to them.
ERA Compliance and Reporting guidance: https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-
assistance-program/reporting (See web page)
Treasury instituted a webpage that provides information and guidance on quarterly reporting and
compliance.
ERA Reporting Guidance: Addendum for ERA1 Final Report:
https://home.treasury.gov/system/files/136/ERA-Reporting-Guidance-Addendum-for-ERA1-
Final-Report.pdf (See pages 1-41)
This document describes requirements for the ERA1 Final Report “Final Report.”
Guidance from the Treasury Office of Inspector General (OIG) related to the reporting of ERA
fraud, waste, and abuse and any future monitoring of funds requirements (where applicable):
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program/fraud (See web page)
Treasury OIG provided guidance to grantees on what to do if they suspect fraud, waste, and
abuse.
ERA Promising Practices guidance: https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-
assistance-program/promising-practices (See web page)
This webpage describes examples of promising practices for ERA that identify program
strategies that promise to speed up program implementation, more efficiently deliver program
benefits, enhance program integrity, and improve tenant and landlord access to programs.
ERA Program and Service Design guidance: https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-
assistance-program/service-design (See web page)
Compliance Supplement 2024 4-21.023-4
May 2024 Emergency Rental Assistance Program Treasury
Treasury provided guidance on considerations for good program design and delivery.
III. COMPLIANCE REQUIREMENTS
In developing the audit procedures to test compliance with the requirements for this federal
program, the auditor must determine, from the following summary (also included in Part 2,
“Matrix of Compliance Requirements”), which of the 12 types of compliance requirements have
been identified as subject to the audit (noted with a “Y” in the summary matrix below), and then
determine which of the compliance requirements that are subject to the audit are likely to have a
direct and material effect on the federal program at the auditee. For each such compliance
requirement subject to the audit, the auditor must use Part 3 (which includes generic details about
each compliance requirement other than Special Tests and Provisions) and this program
supplement (which includes any program-specific requirements) to perform the audit. When a
compliance requirement is shown in the summary below as “N,” it has been identified as not
being subject to the audit. Auditors are not expected to test requirements that have been noted
with an “N.” See the Safe Harbor Status discussion in Part 1 for additional information.
A B C E F G H I J L M N
Matching, Procurement and
Equipment and
Cash
Period
Activities Allowable
Level of Effort, Suspension and Subrecipient Special
Real Property
Eligibility Reporting
Allowed or Costs/Cost Of Program Tests and
Unallowed Principles Management Management Earmarking Performance Debarment Income Monitoring Provisions
Y Y N Y N Y Y N N Y N Y
A. Activities Allowed or Unallowed
1. Activities Allowed
a. ERA 1 and ERA 2 funds may be used for administrative expenses,
housing stability services, and financial assistance on behalf of an eligible
household, as defined in the Treasury guidance. In the case of ERA 2,
beginning on October 1, 2022, grantees that have obligated 75 percent of
their allocations may choose to use up to 25 percent of their allocation for,
“other affordable rental housing and eviction prevention purposes, as
defined by the Secretary, serving very low-income families.” Treasury
released guidance for these additional uses as FAQ 46 in July 2022.
Where applicable, the final ERA 1 payment amount distributed by
Treasury to the ERA 1 grantee through an ERA 1 “redirect” and/or
“reallocation” process, pursuant to Treasury’s Reallocation Guidance, is
described on Treasury.gov. If a grantee receives redirected or reallocated
funds, the funds are subject to the same requirements under the ERA 1
Compliance Supplement 2024 4-21.023-5
May 2024 Emergency Rental Assistance Program Treasury
Award Terms previously accepted by the grantee in connection with their
ERA 1 award with the addition that grantees receiving reallocated ERA 1
funds may request from Treasury an extension of their final obligation
date from September 30, 2022, to December 29, 2022. All grantees that
submitted a request for reallocated funds requested this extension as part
of the request. Treasury subsequently granted all requests for extensions.
Please see the ERA page at Treasury.gov and ERA FAQs for the latest
guidance regarding eligible uses under ERA 1 and ERA 2. (See FAQs 1,
4-7, 16-20, 26-28, 35 and 39-42)
b. Administrative Expenses: The revised Award Terms for ERA 1 and ERA
2 awards issued by Treasury permits ERA grantees to use award funds
provided to cover both direct and indirect administrative costs. The cost of
a grantee contacting a landlord to encourage their participation and
acceptance of ERA assistance is one of many examples of an eligible
administrative cost. Under ERA 1, a grantee may use up to 10 percent of
the total award amount for direct and indirect administrative costs and
may use up to 10 percent of the total award amount for housing stability
services. Under ERA 2, a grantee may use up to 15 percent of the total
award amount for direct and indirect administrative costs and may use up
to 10 percent of the total award amount for housing stability services as
described below (See also FAQ 29).
c. Housing Stability Services: Under ERA 1, housing stability services
includes case management and other services related to the COVID-19
outbreak intended to help keep households stably housed. Under ERA 2,
housing stability services do not have to be related to the COVID-19
outbreak. For ERA 1 and ERA 2, housing stability services include those
that enable households to maintain or obtain housing. Such services may
include, among other things, eviction prevention and eviction diversion
programs; mediation between landlords and tenants; housing counseling;
fair housing counseling; housing navigators or promotors that help
households access programs or find housing; 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 support their ability to access
or maintain housing (See FAQ 23).
d. Financial Assistance: Financial assistance to households includes payment
of rent, rental arrears, utilities and home energy costs, utility and home
energy costs arrears, and other expenses related to housing pursuant to 15
USC 9058a(c)(2)(A). Please note that under the ERA 1 program, award
funds used for “other expenses” must be related to housing and “incurred
due, directly or indirectly, to the novel coronavirus disease (COVID-19)
outbreak” (See 15 USC 9058a(c)(2)(A)(v). However, the ERA 2 statute
Compliance Supplement 2024 4-21.023-6
May 2024 Emergency Rental Assistance Program Treasury
requires that “other expenses” be “related to housing” but does not require
that they be incurred due to the COVID-19 outbreak (See 15 USC
9058a(d)(1)(A)(V)). The amount of financial assistance for prospective
rent cannot exceed three months under a single household application (See
FAQ 10). There is no maximum dollar amount for the cumulative
financial assistance that may be provided on behalf of an eligible
household beyond the requirements set forth in the ERA FAQs. These
requirements include that amounts paid be based on documentation of
household income, leases, and equivalent forms (or for applicants unable
to present adequate documentation, a written attestation from the applicant
up to a monthly maximum of 100 percent of the greater of the Fair Market
Rent or the Small Area Fair Market Rent for the area in which the
applicant resides) and that the amount of assistance provided to any
household under ERA 1 and ERA 2, including assistance provided by
other ERA 1 and ERA 2 grantees cannot exceed 18 months (See FAQ 10).
Financial assistance arrears may only cover household expenses accrued
on or after March 13, 2020, up to a maximum of 15 months for ERA 1 and
a maximum of 18 months, under ERA 1 and ERA 2 combined. For
prospective rent assistance greater than three months up to the statutory
maximum of 18 months under ERA 1 and ERA 2, the household must
apply to the program again and the grantee must have sufficient funds.
Households may receive up to 12 months of assistance under ERA 1 and
an additional three months if necessary to ensure housing stability for the
household for a total of three months. This means that for ERA 1, the
maximum rental arrears monthly coverage period, where applicable, is 15
months where necessary for housing stability and households may only
receive up to three months of prospective rent, where applicable and
qualifying (See FAQ 10).
Examples of other costs for both ERA 1 and ERA 2 include relocation
expenses (including prospective relocation expenses), rental security
deposits, rental fees including application and screening fees, reasonable
accrued late fees, Internet service to a given rental unit, and rental bonds
where necessary to avoid an eviction order, as provided in the Treasury
guidance and subject to certain conditions (for example, that Internet
service expenses are eligible only if grantees establish policies governing
the appropriate of use for this purpose).
e. Other Affordable Rental Housing and Eviction Prevention Purposes:
Treasury released FAQ 46 on July 2022 to define these uses.
B. Allowable Costs / Cost Principles
The cost principles in 2 CFR Part 200, Subpart E (Cost Principles) except for 2 CFR
200.418 and 2 CFR 200.419 apply to ERA 1 and ERA 2.
Compliance Supplement 2024 4-21.023-7
May 2024 Emergency Rental Assistance Program Treasury
E. Eligibility
1. Eligibility for Individuals
To ensure eligibility requirements are met, household eligibility should be tested
to focus on whether grantees established and adhered to reasonable policies for
evaluating household applications within Treasury’s framework providing for the
use of self-attestation, categorical eligibility, and fact-specific proxies in
qualifying circumstances. Specific eligibility requirement can be found in ERA
FAQ 1.at https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf .
This approach to eligibility was implemented in accordance with 15 USC 9058a,
for ERA 1 in 15 USC 9058a(c)(2)(C)(ii) concerning documentation of payments
to households, 15 USC 9058a(f)(2)(A) and (B) concerning signature requirements
for applications and documentation required for tenants, 15 USC 9058a (k)(1)
concerning area median income determinations, and 15 USC 9058a (k)(3)(A)(I)
and (II) concerning eligible household determinations and attestation
requirements. This treatment is further explained in the ERA FAQs; 15 USC
9058a; and Treasury, Department of Justice, and Department of Housing and
Urban Development’s joint letter issued August 27, 2021 that can be accessed at
https://home.treasury.gov/system/files/136/Eviction-Moratorium-Joint-Letter.pdf.
To the extent that a grantee has established and consistently followed its own
reasonable procedures for implementing an eligibility determination process,
consistent with Treasury’s guidance, it is not Treasury’s expectation that grantees
should seek additional documentation from a beneficiary after the initial
determination of eligibility has been completed, including for those determined to
be eligible using self-attestation, categorical eligibility, or fact-specific proxies in
qualifying circumstances. Testing of individual household eligibility-related
documentation should be limited to material already collected by the grantee
during application as much as possible to avoid imposing undue burden on
households that remain at risk of housing instability.
Treasury guidance related to determining where an applicant lives and the amount
that they owe can be found in FAQ 5
https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf. 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
Compliance Supplement 2024 4-21.023-8
May 2024 Emergency Rental Assistance Program Treasury
management agent of the unit, or other reasonable documentation as defined by
the grantee in its policies and procedures.
Additional Treasury guidance related to income determination can be found in
FAQ 4 and related guidance
https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf. ERA 2
builds on the eligibility criteria in ERA 1 and permits additional flexibilities.
The ERA FAQs document the full eligibility considerations for grantees to extend
emergency assistance to vulnerable populations without imposing undue
documentation burdens. As described, 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.
Grantees must require all applications for assistance to include an attestation from
the applicant household that all information included is correct and complete. In
all cases, grantees must document their policies and procedures for determining
household eligibility to include policies and procedures for determining the
prioritization of households in compliance with the statute and maintain records
of their determinations.
Grantees may rely on a written attestation without further documentation of
household income from the applicant under three approaches:
a. Self-attestation Alone – In order to provide assistance rapidly during the
public health emergency related to COVID-19, the grantee may rely on a
self-attestation of household income, financial hardship, and/or risk of
homelessness and housing instability without further verification if the
applicant confirms in their application or other document that they are
unable to provide documentation, provided the other requirements detailed
in Treasury guidance are satisfied. 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 percent 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
available at https://www.huduser.gov/portal/datasets/fmr.html;
b. Categorical Eligibility – If an applicant household income has been
verified to be at or below 80 percent of the area median income (for ERA
1) or if an applicant household has been verified as a low-income family
as defined in Section 3(b) of the United States Housing Act of 1937 (42
USC 1437a(b)) (for ERA 2) in connection with another local, state, or
federal government assistance program, grantees are permitted to rely on a
Compliance Supplement 2024 4-21.023-9
May 2024 Emergency Rental Assistance Program Treasury
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; and/or
c. Fact-specific proxy – A grantee may rely on a written attestation from the
applicant household 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.
Grantees also 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.
Grantees have discretion to provide waivers or exceptions to certain
documentation requirements 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.
Pursuant to 15 USC 9058a(k)(3)(B), and 2 CFR 200.403, when providing ERA 1
assistance, the grantee must review the household’s income and sources of
assistance to confirm that the ERA 1 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, and the duplication requirement does not apply
to ERA 2; however, to maximize program efficacy, Treasury encourages grantees
to minimize the provision of duplicative assistance.
Treasury strongly encourages grantees to rely on the self-certification of
applicants with regard to whether their financial hardship meet statutory eligibility
requirements. Similarly, with respect to determining whether one or more
individuals within the household can demonstrate a risk of experiencing
homelessness or housing instability, Treasury indicates that a grantee may rely on
a past due utility or rent notice or eviction notice, evidence of unsafe or unhealthy
living conditions (which may include overcrowding) or any other evidence of
risk, as determined by the grantee. Treasury clearly indicates that a grantee may
rely on an applicant’s self-certification identifying the applicable risk factor or
factors, without further documentation, if other documentation is not immediately
available.
Beginning October 1, 2022, grantees that have obligated 75 percent of their
allocations, including funds received through reallocation, may choose to use up
to 25 percent of their allocation for, “other affordable rental housing and eviction
prevention purposes, as defined by the Secretary, serving very low-income
Compliance Supplement 2024 4-21.023-10
May 2024 Emergency Rental Assistance Program Treasury
families.” Treasury is interested in understanding whether a grantee made
payments to eligible beneficiaries at the point in time when the grantee made a
payment. Treasury released guidance for these additional uses at FAQ 46 in July
2022. See page 20 of https://home.treasury.gov/system/files?file=136/ERA-FAQ-
7.27.22.pdf.
In summary, eviction prevention purposes are those previously defined as housing
stability uses. For affordable housing, the eligible uses include operation or
development of affordable housing that utilizes another federal grant program for
affordable housing development and has a 20-year affordability covenant.
2. Eligibility for Groups of Individuals or Area of Service Delivery
Not Applicable
3. Eligibility for Subrecipients
Not Applicable
G. Matching, Level of Effort, Earmarking
1. Matching
Not Applicable
2. Level of Effort
Not Applicable
3. Earmarking
Under ERA 1, a grantee may use up to 10 percent of the total award amount for direct
and indirect administrative costs. Under ERA 2, a grantee may use up to 15 percent of the
total award amount for direct and indirect administrative costs and 10 percent of the total
award amount for housing stability services. See FAQ 29 at
https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf.
H. Period of Performance
Under 15 USC 9058a(e)(1), the period of performance for ERA 1 awards began on the date that
the grantee executed the ERA 1 Award Terms and ended on December 31, 2021. 15 USC 9058c
editorial notes provides that section 3201(h) of the American Rescue Plan Act extended the
award period of performance from December 31, 2021, to September 30, 2022. Pursuant to 15
USC 9058a(e)(2), Treasury extended the award period of performance to end on December 29,
2022 for ERA 1 grantees that receive reallocated funds. A listing of recipients that received
reallocation payments can be found at https://home.treasury.gov/policy-
Compliance Supplement 2024 4-21.023-11
May 2024 Emergency Rental Assistance Program Treasury
issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-
assistance-program/allocations-and-payments.
Under 15 USC 9058c(g), the period of performance for ERA 2 awards begins on the date that
Treasury and the grantee executed the ERA 2 Award Terms and ends on September 30, 2025.
All award funds not obligated or expended by the end of the period of performance date for ERA
1 and ERA 2 awards must be returned to Treasury as part of the award closeout process pursuant
to 2 CFR 200.344(d), including amounts distributed through redirection and reallocation. See
also the ERA 1 Closeout Resource at
https://home.treasury.gov/system/files/136/ERACloseoutResource_1-5-23.pdf.
L. Reporting
1. Financial Reporting
a. SF-270, Request for Advance or Reimbursement – Not Applicable
b. SF-271, Outlay Report and Request for Reimbursement for Construction
Programs – Not Applicable
c. SF-425, Federal Financial Report – Not Applicable
Note: ERA recipients do not submit SF-425 Reports. They provide a
subset of the data collected via the SF-425 in the ERA2 Compliance
Report in the Federal Financial Reporting section of the report via
Treasury’s portal.
2. Performance Reporting
a. Title of Report: ERA Compliance Report
PRA Number: 1505-0266 (ERA 1) and 1505-0270 (ERA 2)
Reporting Cycle: Quarterly
Authoritative Requirement: 15 USC 9058c; 2 CFR 200.328 (Financial
report); and 2 CFR 200.329 (Performance report)
Blank Copy of the Report:
https://home.treasury.gov/system/files/136/ERA-Treasury-Portal-User-
Guide-v2.pdf (see figures 3-7 for screenshots of user guide)
Report Instructions: https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program/reporting
Report Corrections: ERA2 recipients that submit a report prior to the due date
may recall a previously submitted report, make any edits, and resubmit the report
by the due date. In addition, when authorized by Treasury staff, ERA2 recipients
may revise submitted reports for the current quarter to address issues identified by
Treasury’s initial data quality/consistency validations. After the revision period
Compliance Supplement 2024 4-21.023-12
May 2024 Emergency Rental Assistance Program Treasury
ends, the submitted report is final within ORP’s reporting portal. Where the ERA2
recipient identifies an issue for revision after the revision period, recipients are
required to ensure the revised information is incorporated into the next quarterly
report.
Key Line Items-
1. Administrative Costs Ratio- Quantifiable Objective Criteria: Total
obligations and/or expenditures for administrative costs does not exceed
the relevant threshold of total allocation (10% across the prime and all
subrecipients for ERA 1, not to exceed 15% for ERA 2 across the prime
and all subrecipients), and the amounts reported for administrative costs
are accurate.
(See ERA Reporting Guidance, Appendix 7, Applicable Limitations on
Administrative Expenses, page 54 and for ERA2 see ERA 2 Reporting
Guidance, Appendix 7, Applicable Limitations on Administrative
Expenses, page 43)
2. Housing Stability Services Ratio- Quantifiable Objective Criteria: Total
obligations and/or expenditures for housing stability services is not greater
than 10% of the total amount allocated (For ERA1see ERA Reporting
Guidance, Appendix 7, Applicable Limitations on Administrative
Expenses, page 54 and for ERA2 see ERA2 Reporting Guidance,
Appendix 7, Applicable Limitations on Administrative Expenses, page
43). Examples of these services can be found in FAQ 23 on page 12 of
the July 27, 2022 FAQs located at
https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf.
3. System for Prioritizing Assistance- Quantifiable Objective Criteria: The
number of households with less than 50% Area Median Income (AMI)
receiving financial assistance is greater than the number of households
with greater than 50% AMI receiving assistance (For ERA1 see ERA
Reporting Guidance, Section E, Number of Unique Participant
Households at Certain Income Levels, page 29 and for ERA2 see ERA2
Reporting Guidance, Section E, Cumulative Number of Unique
Participant Households at Certain Income Levels, page 23)
Participant Households at Certain Income Levels Eligibility- Quantifiable
Objective Criteria: The total households receiving assistance is not greater
than the sum of Area Median Income (AMI) banded eligible households
with a 5 to 10% margin of error to avoid false positives for medium to
large recipients. Treasury is aware of some limited temporary income data
availability and reporting lag due to waterfall distribution models required
within the statutory design framework and related administrative
processing delays, as well as the use of fact-based proxies or assistance
based on participation in other programs. Does not apply to tribal
Compliance Supplement 2024 4-21.023-13
May 2024 Emergency Rental Assistance Program Treasury
recipients exempt from income reporting according to Treasury guidance
and policy (For ERA1 see ERA Reporting Guidance, Section E, Number
of Unique Participant Households at Certain Income Levels, page 29 and
for ERA2 see ERA2 Reporting Guidance, Section E, Cumulative Number
of Unique Participant Households at Certain Income Levels, page 23)
3. Special Reporting
Not applicable
4. Special Reporting for Federal Funding Accountability and Transparency Act
Although reporting on subaward information is applicable to ERA grantees
pursuant to the award term set forth in Appendix A to 2 CFR Part 170, which is
incorporated by reference in the ERA 1 and ERA 2 Award Terms, ERA grantees’
compliance with these reporting requirements is not subject to audit.
N. Special Tests and Provisions
1. ERA 1 Funds Redirection
Compliance Requirements
Pursuant to 15 USC 9058a(b)(1)(A) and Treasury’s implementing instructions to
requesting grantees, grantees are permitted to redirect ERA 1 funds when a locality
receives an ERA 1 award and subsequently transfers 100 percent of the ERA 1 award
funds received from Treasury to its eligible state and Treasury approves the transaction.
The redirection of award funds is finalized when the locality has submitted the relevant
redirection documentation to Treasury and Treasury has provided confirmation of
acceptance. At that time, the locality’s ERA 1 award is cancelled, and the locality has no
further legal obligation to Treasury under the ERA 1 award.
Audit Objectives
The state’s ERA 1 award is modified by the amount of the funds transferred from the
local government to the state and the state is responsible as the grantee for reporting on
the use of the transferred award funds that become subject to the requirements set forth in
the Award Terms previously accepted by the state in connection with its ERA 1 award. A
local government that has redirected 100 percent of its ERA 1 award funds to its state but
has not submitted the relevant redirection documentation to Treasury or is still awaiting
confirmation of acceptance of submitted documentation by Treasury, is still responsible
for complying with the ERA 1 Award Terms, including submitting Monthly and
Quarterly reports until their redirection forms were submitted and accepted by Treasury.
Compliance Supplement 2024 4-21.023-14
May 2024 Emergency Rental Assistance Program Treasury
Suggested Audit Procedures
a. Confirm that all voluntarily redirected ERA 1 award funds were approved by the
grantee’s authorizing official in accordance with Treasury guidance;
b. Verify that all redirected ERA 1 award funds were deposited to the official,
authorized bank account of the receiving grantee, as approved by Treasury; and
c. Confirm that all ERA 1 award funds received through the redirection process are
used in accordance with the ERA 1 Award Terms.
2. ERA Funds Reallocation
Compliance Requirements
Pursuant to 15 USC 9058a(d), Treasury is required to reallocate “excess” ERA 2 award
funds. Treasury’s objective in reallocations is to ensure ERA 2 award funds remain
available to grantees in accordance with their jurisdictional needs and demonstrated
capacity to deliver assistance while the ERA appropriations remain available. Treasury’s
ERA 2 reallocation guidance on Treasury.gov and previewed here describes how grantees
that have expenditure ratios below designated thresholds as of March 31, 2022, were
subject to involuntary reallocation, and had their calculated excess funds deducted from
their undisbursed ERA2 allocations. Treasury periodically assessed expenditures using
escalating expenditure benchmarks to identify excess funds for three quarterly
assessments, as specified in the ERA2 Reallocation Guidance. The guidance also
describes the voluntary reallocation process through which a grantee may request that
Treasury reallocate its ERA 2 award funds to other ERA 2 grantees in the same state or to
Treasury’s general pool of reallocated funds. Unlike with ERA1, Treasury did not
recapture any ERA2 funds paid out to a grantee; only undisbursed ERA2 funds were
subject to reallocation. Auditors should refer to the ERA 2 reallocation guidance at
https://home.treasury.gov/system/files/136/UpdatedERA1ReallocationGuidanceSep6.pdf
(See pages 1 - 8) Guidance for ERA 2 reallocation can also be found on this site at
https://home.treasury.gov/system/files/136/ERA2-Reallocation-Guidance-March-30-
2022.pdf (See pages 1 - 6).
Updated information regarding ERA 2 reallocation was posted as an update to
Reallocation Guidance in March 2022.
Audit Objectives
The reallocation expenditure ratio determines whether the grantee is subject to
involuntary reallocation due to an insufficient ratio and the amount of excess funds
subject to recapture by Treasury. Auditors should confirm the amounts reported as
expended and obligated accurately capture the grantee’s housing activity at the time of
submission, as reflected in a grantee’s award and/or financial systems, and that grantees
receiving reallocated funds met the Treasury criteria.
Compliance Supplement 2024 4-21.023-15
May 2024 Emergency Rental Assistance Program Treasury
Suggested Audit Procedures
a. Confirm that financial information certified by grantees used by Treasury to make
reallocation determinations is accurate and that excess funds that are subject to
involuntary recapture are returned to Treasury in accordance with Treasury’s
confirmation letter.
b. Auditors must confirm that financial information certified by grantees used by
Treasury to make reallocation determinations are accurate which includes
monthly expenditure and cumulative obligations levels, as described in the
Treasury reallocation guidance.
c. Confirm that ERA 2 expenditures reported quarterly by the grantee are inputs to
Treasury’s reallocation expenditure ratio are accurate.
d. Confirm that ERA 2 obligations certified in the Request for Reallocated Funds
form (1505-0266), included in the Request for Voluntarily Reallocated Funds, are
inputs into determining eligibility to receive reallocated funds are accurate.
Compliance Supplement 2024 4-21.023-16
May 2024 Higher Risk Designation
APPENDIX IV
HIGHER RISK DESIGNATION
INTRODUCTION
This Appendix includes a listing of programs with a “higher risk” designation and describes how that
designation impacts the major program determination process.
PROGRAMS WITH “HIGHER RISK” DESIGNATION
Uniform Guidance section 200.519(c)(2) states that “Federal agencies, with the concurrence of
OMB, may identify Federal programs that are higher risk. It also states that OMB will provide
this identification in the Compliance Supplement.”
As a result of the COVID-19 pandemic, many new federal programs were established and
funding was added to existing federal programs from the following Acts:
• Coronavirus Preparedness and Response Supplemental Appropriations Act
• Families First Coronavirus Response Act
• Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
• Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA)
• American Rescue Plan Act (ARP)
Funding arising from these sources is referred to as “COVID-19 funding,” or “COVID-19
programs”.
On November 15, 2021, the Infrastructure Investment and Jobs Act (IIJA) was signed into law.
It established new programs and provided additional funding for existing programs. Funding
arising from the IIJA is referred to as “IIJA funding” or “IIJA program”. The 2024 higher risk
list includes one program that includes IIJA funding.
The following table includes a complete list of programs that have been identified as “higher
risk” for audits subject to the 2024 Compliance Supplement either because of COVID-19
funding, IIJA funding, or because a Federal agency has identified the program to be higher risk.
Compliance Supplement 2024 8-IV-1 Appendix IV
May 2024 Higher Risk Designation
Agency Assistance Listing Number Title
(ALN)
HHS** 93.778/93.777/93.775 Medicaid Cluster
Treasury* 21.023 Emergency Rental Assistance
Treasury* 21.027 Coronavirus State and Local Fiscal Recovery
Funds
Interior** 15.252 Abandoned Mine Land Reclamation (AMLR)
Note:
* These programs were created by one of the laws cited at the beginning of this section and are
thus considered 100% COVID-19 funding.
** These programs were existing programs that received additional IIJA or COVID-19 funding
from one or more of the laws cited at the beginning of this section.
Impact of “Higher Risk” Status on Major Program Determination
Type A Program Considerations
A “higher risk” designation will often result in a Type A program or other cluster being audited
as a major program. However, an auditor is not precluded from determining that a “higher risk”
Type A program or other cluster qualifies as a low risk Type A program if both of the following
criteria are met:
1. the program otherwise meets the criteria for a low risk Type A program in section
200.518 of the Uniform Guidance; and
2. the percentage of COVID-19 funding or IIJA funding in the program or other cluster
during the non-federal entity’s fiscal year is not material to the program or other cluster
as a whole. For example, a recipient’s schedule of expenditures of federal awards may
include the Medicaid Cluster but the expenditures relevant to COVID-19 funding
included in the program during the June 30, 2024, fiscal year end is not material.
Alternatively, a recipient’s schedule of expenditures of federal awards may include
Emergency Rental Assistance expenditures for the June 30, 2024, fiscal year end, which
would be considered material because COVID-19 funding comprises the entire program.
Note that the inclusion of COVID-19 funding or IIJA funding within the Research &
Development (R&D) cluster does not create a “higher risk” designation for the R&D cluster.
Auditors should prepare audit documentation supporting the risk considerations and conclusions
for “higher risk” programs.
Compliance Supplement 2024 8-IV-2 Appendix IV
May 2024 Higher Risk Designation
Type B Program Considerations
Under section 200.518 of the Uniform Guidance, in certain circumstances the auditor must
identify Type B programs that are high risk using professional judgment and the criteria in section
200.519 of the Uniform Guidance, which includes consideration of whether a program has been
identified as “higher risk” by a Federal agency with the concurrence of OMB. Thus, there are no
changes to the normal risk assessment process for Type B programs identified as “higher risk.”
That is, the “higher risk” identification must be considered with the other factors in section
200.519.
Further, the auditor is not required to prioritize the assessment of risk for “higher risk” Type B
programs over other Type B programs.
Compliance Supplement 2024 8-IV-3 Appendix IV
File and source
- File
- department-of-the-treasury-2024-era-compliance-supplement-home-treasury-gov-14f7104f09.pdf
- Size
- 853,490 bytes
- SHA-256
- 19fb7e4dc6b109a3782b051d15f28d40e46e01a72ddb852a4edd251d83e4a92b
- Original
- home.treasury.gov