Most Rental Assistance Funds Still Unspent, Reports Say

Most Rental Assistance Funds Still Unspent, Reports Say

( – On August 26, the US Supreme Court (SCOTUS) lifted the federal moratorium on evictions in an unsigned eight-page decision. The ruling created uncertainty for the future among tenants and landlords alike. The Biden administration asked the court to extend the CDC’s ban on evictions, but the judges refused the request.

Curiously, new reports indicate that nearly 90% of the funds allocated for rental assistance haven’t gone out to eligible individuals. President Joe Biden has encouraged states to distribute the funds, approved in recent COVID relief packages, but the money remains in state coffers for some reason.

On August 25, the US Department of Treasury published a press release encouraging state and local governments to expedite payouts of emergency rental assistance funds. According to the Treasury Department, state authorities have only distributed about $5.1 billion of the available $46.5 billion in rental relief funds since December. Reports point out that a total of $4.7 billion went directly to households needing assistance, and the rest covered administrative costs.

The Treasury Department concluded its notice with a discussion about seven new policies created to help state and local governments expedite payments.

Also posted is a link to a handy guide from the Consumer Financial Protection Bureau, which explains how landlords and tenants can apply to receive funds from the US Treasury’s Emergency Rental Assistance program to help with costs associated with rent, utility bills, and moving costs.

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