Late last month, the Department of Treasury announced that it planned to redirect unallocated Emergency Rental Assistance (ERA) funds from states that have not committed a significant share of these funds to those that have exhausted or nearly exhausted their allotments. Congress appropriated more than $45 billion for COVID-related rental relief, but most has yet to be deployed. New York, Texas and Oregon, for example, are among those states that have done well and could benefit from this decision. 

This matters, as the eviction crisis, like COVID, has not passed. With the expiration of the federal and some state and local eviction moratoria, evictions have quickly accelerated this fall. Local, state and federal eviction data collection and reporting are inadequate, so the extent of the crisis is not fully known. Available data most certainly underreport the crisis, which includes households who are illegally locked out of homes and those who vacate prior to courts formally posting eviction judgments. Millions of families remain at risk.  

Just 60% of the resources allocated through what is known as ERA 1, enacted in December 2020, have been committed. The rate for ERA 2, signed four months later, is just 13%.

There are many reasons why states and localities have not committed their ERA, which Congress funded in two different bills. For context, just 60% of the resources allocated through what is known as ERA 1, enacted in December 2020, have been committed. The rate for ERA 2, signed four months later, is just 13%. These figures, and other valuable data and resources, are drawn from both Treasury and the invaluable National Low Income Housing Coalition.  

Some states simply developed onerous applications for renters. Other states and localities have tenant laws weighted very much in favor of property owners and managers. And just half of the state and local programs authorize the use of ERA for other housing costs, including relocation expenses and late fees.  

What should Treasury do? The federal government should certainly prepare to reallocate ERA 1 program dollars from states that have not met certain metrics. Yet, the goal of ERA programs should be to sustain housing for as many households as possible, regardless of the competence or commitment of state and local administrators.  

One option is that Treasury should notify programs that the federal government will claw back uncommitted funds for distribution to states with ongoing needs. However, if they commit to certain federally approved rule changes, Treasury will delay the reallocation. Treasury should, for example, delay the transfers if states and localities allow for more self-attestation, broader uses of the funds and direct assistance to renters. These provisions would help families who cannot access key documents, have informal rental agreements, need to move, or cannot engage with their landlords to apply for help.  

These measures shouldn’t be controversial. Families need options, including assistance to move, in an ever-tightening housing market. The overwhelming majority of families want to pay their rent. And most landlords want to retain tenants and avoid vacancy loss and the costs of evictions. We can make ERA work for everyone. The ideas above show us how.