U.S. Department of the Treasury Is Applying Certain Provisions of the 2024 Revised Uniform Guidance to Emergency Rental Assistance (ERA2) Awards

Summary

U.S. Department of the Treasury notice, dated Wednesday August 13th, telling Emergency Rental Assistance (ERA2) grantees that certain provisions of the 2024 revised Uniform Guidance on equipment and supplies disposition now apply to their awards. ERA2 awards otherwise remain subject to the version effective November 12, 2020. Under 2 CFR 200.313(e), equipment with a current fair market value of $10,000 or less (instead of $5,000) may be retained, sold or disposed of with no further responsibility to Treasury, and a recipient selling equipment worth more than $10,000 may retain $1,000 (instead of $500) of the proceeds for selling and handling. Under 2 CFR 200.314(a) the same $10,000 and $1,000 figures apply to unused supplies, for dispositions on or after the date of the announcement.

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Full text

                                                  Notice
    U.S. Department of the Treasury is applying certain provisions of the 2024 revised Uniform
                  Guidance to Emergency Rental Assistance (ERA2) awards
                                         Wednesday August 13th


Dear ERA2 Grantee,
This email is to notify you that certain provisions of the 2024 revised Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) regarding
equipment and supplies disposition now apply to your ERA2 award.

Application of these provisions of the 2024 revised Uniform Guidance to the ERA2 awards will reduce
operational burden and provide greater operational flexibility for ERA2 grantees as they closeout their
ERA2 awards.

Background
The Office of Management and Budget (OMB) revised the Uniform Guidance, 2 CFR Part 200 on April
22, 2024 to improve the management of Federal financial assistance. These revisions generally do not
apply to awards, such as ERA2 awards, issued prior to October 1, 2024.

However, as discussed in the memorandum issued on January 21, 2025 by the Council on Federal Financial
Assistance (COFFA) re: 2 CFR Implementation and Flexibilities for Emergency and Major Disasters,
OMB has granted Federal agencies two class exceptions under its authority at 2 CFR 200.102(a) to permit
recipients with awards that were issued prior to October 2024 and not amended to apply certain specified
provisions of the Uniform Guidance by providing either: (i) a written notice to the recipients for either
classes of awards or specific awards made by the agency or (ii) written approval in response to requests
from their recipients to use the flexibilities.

Treasury is providing this notice that it is adopting certain of the 2024 revised provisions of the Uniform
Guidance for purposes of the ERA2 awards as discussed below.

Details
Other than as provided below, ERA2 awards, will remain subject to the provisions of the Uniform
Guidance that became effective on November 12, 2020 (85 FR 49506) at eCFR :: 2 CFR Part 200 (Nov.
13, 2020) -- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards.

Treasury will apply the 2024 revised versions of 2 CFR 200.313(e) regarding equipment disposition and 2
CFR 200.314(a) regarding supplies to your ERA2 award as follows:
Equipment and Supplies:



                                                     2
   •   Equipment purchased with ERA2 award funds with a current fair market value of $10,000 or less
       (instead of $5,000 or less, as provided under the previous version of the Uniform Guidance) may
       be retained, sold or otherwise disposed of with no further responsibility to Treasury. See 2 CFR
       200.313(e)(1).
   •   If equipment purchased with ERA2 award funds with a current fair market value of more than
       $10,000 (instead of more than $5000 under the previous version of the Uniform Guidance) is sold,
       the recipient or subrecipient may retain from the Federal share $1,000 (instead of $500 under the
       previous version of the Uniform Guidance) of the proceeds to cover expenses associated with the
       selling and handling of the equipment. See 2 CFR 200.313(e)(2).
   •   Unused supplies acquired with ERA2 award funds with the aggregate value of more than $10,000
       (instead of more than $5000 under the previous version of the Uniform Guidance) that is no longer
       needed for any Federal award may be retained or sold by the recipient. Treasury is entitled to
       compensation in an amount calculated by multiplying the percentage of ERA2 award funds used
       towards the cost of the original purchase(s) of equipment by the current market value or proceeds
       from the sale. See 2 CFR 200.314(a).
   •   If unused supplies purchased with ERA2 award funds with the aggregate value of more than
       $10,000 is sold, Treasury may permit the recipient or subrecipient to retain, from the Federal share,
       $1,000 of the proceeds to cover expenses associated with the selling and handling of the supplies.
       See 2 CFR 200.314(a).
   •   The increased equipment and supplies disposition thresholds will apply to all dispositions of
       equipment and supplies made on or after the date of this announcement, regardless of the date of
       the acquisition.

These changes will be incorporated into Treasury’s Portal and closeout process for ERA2 awards and
will be found in the ERA2 Closeout Resource (see:
https://home.treasury.gov/system/files/136/ERA2_Closeout_Resource.pdf.

Please review the information provided in this email, and as appropriate, update your internal policies
and procedures accordingly, train relevant staff, and ensure your financial and administrative systems are
compliant with the new requirements.

If you have further questions about the information in this email, please send us an email at
EmergencyRentalAssistance@treasury.gov.

Sincerely,
ERA2 Program Team




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