Spending Data Show Four in Ten Emergency Rental Assistance Programs are at Risk of Recapture and Reallocation of Funds

According to recent guidance issued by the U.S. Department of the Treasury, emergency rental assistance (ERA) programs that did not reach a 30% expenditure ratio by September 30 risk having a portion of their funds recaptured and reallocated to other grantees (see related article in this Memo to Members and Partners). The expenditure ratio is the amount of funds spent on financial assistance and housing stability services divided by 90% of the grantee’s total allocation to account for administrative costs. As of the end of August, 42% of all ERA grantees—including 37 state and 130 local grantees—had not yet reached the 30% expenditure ratio threshold and are at risk of fund recapture if they do not adequately increase their spending.

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