Emergency Housing Assistance To Help You Avoid Homelessness
Those struggling to meet housing costs in this challenging economic period may be eligible for emergency government assistance to catch up on rent or mortgage payments. The U.S. government has provided significant support through the Emergency Rental Assistance (ERA) programs, which were established to help renters facing financial difficulties due to the COVID-19 pandemic.
Congress allocated over $46 billion for emergency housing assistance through two stimulus programs: ERA1, which provided $25 billion, and ERA2, which provided approximately $21.55 billion.
While many states have exhausted their grant amounts under both ERA programs and closed their programs to new applicants, others will continue to operate with ERA2 funding until those funds are depleted or through to the program’s sunset date on September 30, 2025.
The exact amount of remaining funds is not specified, but it is known that ERA programs have made over 10 million assistance payments to support housing stability for eligible renters.
Emergency Rental Assistance programs
The U.S. Congress approved $25 billion for emergency rental assistance in the Consolidated Appropriations Act of 2021 and an additional $21.55 billion in the American Rescue Plan Act of 2021. These funds were distributed through the Emergency Rental Assistance Program (ERA), which is administered by the U.S. Department of the Treasury.
The ERA program provides financial assistance to states, U.S. territories, local governments, and tribal governments to support households struggling with rent and utility payments due to the COVID-19 pandemic.
The ERA program primarily assists households that have experienced financial hardship due to the pandemic, including those who have qualified for unemployment benefits or faced reductions in household income. Eligible households can receive assistance for rent, utilities, and other housing-related expenses.
Check out: How to Access Federal Government Utility Assistance
The program aims to prevent evictions and support housing stability for low-income renters. While the ERA does not specifically address mortgage payments, it focuses on rent and utility assistance to help households at risk of homelessness or housing instability.
The ERA funds are allocated to support households with incomes below 80% of the area median income (AMI), although eligibility can be adjusted by the Department of Housing and Urban Development (HUD).
As of the latest updates, the federal government has begun reallocating ERA funds from areas with less need to those with greater need. This reallocation ensures that resources are effectively utilized to support households facing housing instability.
While there is no specific timeline for when the funds will be depleted, it is crucial for eligible households to apply for assistance promptly to ensure they receive support before programs exhaust their resources.
Federal housing assistance programs
For those struggling to pay rent, the federal Housing and Urban Development agency provides rental benefits on a long-term basis.
HUD provides three types of housing assistance through local housing agencies:
- Public housing: These rental units are owned by the local housing agency and rent is on a sliding scale based on income.
- Subsidized housing: Certain landlords agree to work with the local housing agency to provide rental units. The renter pays a share of the rent and the agency pays the remainder as a subsidy.
- Housing vouchers: The Housing Voucher Choice Program (previously known as Section 8) provides the renter a voucher that can be used to pay a portion of the rent on an apartment of their choice.
Eligibility for these programs is based upon where the individual’s income falls within the range of income in the community or region, plus what percentage of your income is going toward housing.
This means individuals who live in areas with a higher cost of housing might be eligible even though their income might be higher. With rent costs rising dramatically in some areas of the country, this could be an important factor for individuals whose income levels are lagging.
