Notice Regarding Unobligated ERA1 Funds

Summary

Treasury notice of September 13, 2022 on deadlines for unobligated funds in the Emergency Rental Assistance program (ERA1) under section 501 of the Consolidated Appropriations Act, 2021. Initial ERA1 allocations remain available through September 30, 2022, and reallocated funds, with a 90-day extension, through December 29, 2022; funds not obligated by those statutory deadlines must be returned to Treasury. Treasury strongly encourages grantees that do not expect to obligate their funds to return them voluntarily by September 26, 2022 so it can reallocate them, prioritizing grantees in the same state; grantees may apply for reallocated funds by the same date. Grantees may also recharacterize certain expenditures from their ERA2 award to ERA1 if they meet ERA1 requirements and update their reports.

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

Full text

                             U.S. Department of the Treasury
        Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021
                       Notice Regarding Unobligated ERA1 Funds
                                    September 13, 2022
This Notice communicates important upcoming deadlines for the Emergency Rental Assistance
(ERA1) program authorized by section 501 of the Consolidated Appropriations Act, 2021
(the Act). It also identifies certain options available to states, local governments, territories,
Tribal governments or their Tribally designated housing entity, and the Department of Hawaiian
Home Lands (collectively, Grantees) participating in the ERA1 program that anticipate holding
unobligated ERA1 funds at the end of the program’s period of performance. In summary:

    •    Grantees are strongly encouraged to voluntarily return by September 26, 2022, ERA1
         funds that they do not expect to obligate for eligible purposes, so that Treasury may
         reallocate those funds to communities able to use them prior to the applicable deadline.
         Grantees may also apply for reallocated funds by this deadline.

    •    Under certain circumstances, a Grantee may recharacterize program expenditures as
         falling under its ERA1 award that were initially allocated to its award issued under the
         Emergency Rental Assistance (ERA2) program authorized by section 3201 of the
         American Rescue Plan Act of 2021 (ARPA).

Deadlines for Obligating ERA1 Award Funds

Under the ERA1 program’s authorizing statute, award funds received pursuant to each Grantee’s
initial allocation will remain available through September 30, 2022. Act § 501(e) & (l) (as
amended by § 3201(h) of ARPA). Pursuant to its statutory authority, Treasury has also granted,
and anticipates granting with additional reallocations, a 90-day extension of the availability of
ERA1 award funds received through reallocation. Reallocated ERA1 award funds will remain
available to Grantees through December 29, 2022.1

ERA1 award funds that have not been obligated for an eligible purpose by the relevant statutory
deadline must be returned to Treasury. Thus, each Grantee must return to Treasury funds from
its initial ERA1 allocation (i.e., funds not received through reallocation) that are not obligated or
expended by September 30, 2022.

Further, Grantees should expect that they may obligate and expend ERA1 award funds received
through reallocation through December 29, 2022. Any reallocated ERA1 award funds not
obligated or expended by December 29, 2022 must be returned to Treasury.


1
  On July 29, 2022, Treasury approved all 90-day extension requests pending as of that date. The Request for
Reallocated Funds submitted by all Grantees seeking additional funds—either via the initial electronic form or the
current application portal—includes language requesting an extension. Accordingly, any Grantee that received
reallocated ERA1 award funds as of July 29, 2022 requested, and received, an extension. Treasury anticipates
likewise granting 90-days extensions to Grantees that may receive ERA1 award funds through reallocation after that
date. No further action is required from Grantees that have received or requested funds through reallocation to
obtain an extension with respect to those funds.



                                                        1
Treasury cannot provide flexibility on these deadlines, as they are set by statute.

Information for Grantees Anticipating Unobligated Funds at Obligation Deadlines

Some Grantees anticipate that they will have unobligated ERA1 award funds as of the September
30, 2022 and December 29, 2022 obligation deadlines. Treasury urges Grantees to maintain
strong ERA1 programs that offer financial assistance to renters in their communities until their
available funds are fully obligated or until the end of the ERA1 award period of performance.
However, as a supplement to their existing ERA1 programs, Grantees may consider pursuing one
or more of the following approaches to reduce the amount of unobligated funds they have at the
end of the award period of performance.

Note that Treasury does not require Grantees to use the following approaches to minimize the
amount of unobligated funds they have by the end of the ERA1 award period of performance,
nor will Treasury penalize Grantees that decline to pursue them.

   1. Voluntarily Return Funds to Treasury Before Final ERA1 Reallocation

Treasury strongly encourages Grantees that do not anticipate obligating their ERA1 award
funds by the obligation deadlines to voluntarily return those funds to Treasury by
September 26, 2022. By returning funds that may otherwise expire, Grantees permit Treasury
to reallocate those funds to other Grantees to support communities in need of additional funds for
rental assistance and housing stability services.

As Treasury has done in prior rounds of reallocation, Treasury intends to prioritize reallocating
returned funds to other Grantees within the same state as the Grantee returning the award funds,
consistent with jurisdictional needs.

To initiate a return, please contact us by email at emergencyrentalassistance@treasury.gov for
instructions. Include the Grantee’s ERA1 Grantee number and the exact amount of ERA1 award
funds that the Grantee wishes to return.

Grantees with the capacity to expend additional reallocated funds may apply to receive
funds by September 26, 2022. Grantees should apply through Treasury’s online portal by
submitting a Request for Reallocated Funds. Treasury anticipates disbursing reallocated funds
by early October 2022.

   2. Recharacterize Expenditures

In certain circumstances, a Grantee may recharacterize as falling under its ERA1 award
expenditures that were initially allocated to its ERA2 award. While such recharacterization is
not prohibited, Grantees must ensure it complies with all applicable legal and programmatic
requirements, including the ERA1 Award Terms and ERA2 Award Terms.

Whether to characterize an eligible expenditure as drawing on funds from a Grantee’s ERA1
award or ERA2 award is generally determined by the Grantee and must be in accordance with
requirements set forth below. If a Grantee decides to recharacterize its expenditures initially
reported under one award as ultimately being funded by the other, the Grantee must update all


                                                 2
relevant award reports that the Grantee has previously submitted to Treasury to reflect the
recharacterization. When preparing their quarterly reports via Treasury’s portal, Grantees may
edit and update previously submitted data under the following sections:

   •   Subrecipients, Contractors, and Beneficiaries
   •   Recipient Subawards, Contracts and Direct Payments
   •   Expenditures

Grantees should consult the User Guide for Treasury’s portal for additional information on how
to update their reports.

Grantees that choose to recharacterize expenditures between their ERA1 and ERA2 awards must
comply with the applicable requirements set forth in the ERA1 and ERA2 statutes; the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in
2 CFR Part 200 (particularly 2 CFR §§ 200.302, 200.303, and 200.403-200.405); the ERA1 and
ERA2 Award Terms; Treasury’s ERA program guidance; and other applicable requirements,
including the Grantee’s own internal accounting policies and internal controls. Grantees should
note that the statutes authorizing ERA1 and ERA2 have differing requirements, including with
respect to the permissible uses of program funds; any funds recharacterized from ERA2 to ERA1
must have been used in compliance with all applicable ERA1 requirements.

                                             ***

If you have any questions, please contact us by email at
emergencyrentalassistance@treasury.gov and include your ERA1 Grantee number.




                                               3


File and source

File

ppr-int-a08978d1abc2c583-Notice-Regarding-Unobligated-ERA1-Funds-fd7a422643.pdf

Size

108,612 bytes

SHA-256

7e9bf9c3bf31bd95ab678fee62978dd1750d98109df3eb5cd3b36415a8d98745

Our copy

ppr-int-a08978d1abc2c583-Notice-Regarding-Unobligated-ERA1-Funds-fd7a422643.pdf

Original

home.treasury.gov