Following a major crisis, having to think about where to live can be a significant challenge. With the help of Emergency Rental Assistance programs funded by the U.S. government, this burden can be eased, but there is a lot to sift through to figure it all out.
In this guide, we walk you through the most important elements of ERA, including eligibility requirements, how to apply, and what to expect if you are approved.
Table of Contents
- What is Emergency Rental Assistance?
- How does ERA work?
- Who is Eligible for ERA?
- What is the difference between ERA1 and ERA2?
- How Do I Apply For Aid?
- Is there an ERA limit?
- How long does it take to get approved for ERA?
- FAQ
What is Emergency Rental Assistance?
Emergency Rental Assistance (ERA) refers to federal programs designed to help individuals and families who are struggling to pay rent and utilities due to the financial impacts of crises such as the COVID-19 pandemic. These programs are typically funded by government sources and are built to give relief where it is most needed.
The purpose of ERA programs extends beyond merely providing financial aid for rent and utilities. These programs are designed with several key objectives in mind:
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Preventing Homelessness and Evictions: By helping with rent and utility payments, these programs aim to ensure housing stability for families and individuals who face financial hardship due to major crises.
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Economic Relief for Tenants and Landlords: Tenants receive assistance in paying their rent, which in turn helps landlords maintain their income streams, ensuring they can also meet their financial obligations such as mortgages and property maintenance.
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Supporting Community Stability: By preventing evictions and loss of housing, ERA programs contribute to the overall stability of communities, affecting everything from education to public health.
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Addressing the Impact of the Pandemic and Other Crises: The COVID-19 pandemic led to unprecedented economic disruptions, resulting in job losses and reduced incomes for many. ERA programs were specifically designed to address the cascading effect of these crises on housing security.
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Helping Vulnerable Populations: These programs often prioritize aid to the most vulnerable populations, including low-income families, those experiencing unemployment, and individuals at immediate risk of homelessness.
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Promoting Fair Housing: ERA programs also aim to promote fair housing practices by providing assistance irrespective of race, ethnicity, gender, and other protected characteristics, ensuring equitable access to housing support.
Overall, ERA programs are a critical component of broader efforts to provide safety nets and support systems for individuals and families facing economic hardships in the U.S., particularly during times of crisis.
How does ERA work?
Emergency Rental Assistance programs are funded by the federal government or other sources, such as state or local government funds. For example, in the United States, significant funding for ERA was provided through federal stimulus packages in response to the COVID-19 pandemic.
These funds are distributed to state, local, and tribal governments, which then administer the program at the local level. Each administering entity sets its own guidelines and application procedures based on the broader framework provided by the funding source.
Typically, payments are made directly to landlords and utility service providers. If a landlord or utility provider refuses to accept the payment, it may be paid directly to the tenant. The aim is to ensure that rent and utility bills are paid to prevent eviction and utility shut-off.
Who is Eligible for ERA?
Eligibility for Emergency Rental Assistance can vary depending on the specific rules of the program established by the state, local, or tribal government administering it. However, most programs generally have common criteria based on federal guidelines.
| Eligibility Criteria | Description |
|---|---|
| Income Level | Household income at or below a certain threshold, often 80% of the area median income (AMI). |
| Financial Hardship Due to the Pandemic | Demonstration of financial hardship directly or indirectly due to the COVID-19 pandemic, such as job loss or reduced hours. |
| Risk of Homelessness or Housing Instability | Evidence of a risk of experiencing homelessness or housing instability, like past-due rent or eviction notices. |
| Other Program-Specific Criteria | Additional criteria set by specific programs, such as prioritizing certain households. |
| Residency Requirements | Applicants must be residing in the area covered by the program and in the rental property for which they seek assistance. |
| Legal Status | Requirements for U.S. citizenship or legal residency, varying by program. |
| Rental Property Eligibility | The rental unit must be the applicant's primary residence, with specific rules about eligible property types. |
It's important to note that ERA programs are not limited to those who have not previously received rental assistance, but there may be limits on the total amount of assistance a household can receive. Additionally, these programs are designed to assist renters, not homeowners with mortgage payments.
What is the difference between ERA1 and ERA2?
The Emergency Rental Assistance program in the United States has two main funding phases, commonly referred to as ERA1 and ERA2. These phases differ in terms of their funding sources, program rules, and the flexibility they offer to local administrators. Here are the key differences:
| ERA1 | ERA2 | |
|---|---|---|
| Funding Source and Amount | Consolidated Appropriations Act of 2021, $25 billion | American Rescue Plan Act of 2021, $21.55 billion |
| Eligibility Criteria | Households with incomes not exceeding 80% of AMI, experiencing pandemic-related hardship | Similar criteria, with additional provisions for expanded eligibility |
| Priority and Distribution of Funds | Priority for households below 50% of AMI and those unemployed for 90 days | Continues prioritization, more flexibility in fund distribution |
| Period of Assistance | Up to 12 months, with a possibility of an additional three months | Potentially up to 18 months of assistance |
| Program Flexibility and Administration | More stringent documentation and application requirements | Increased flexibility, allows for self-attestation to reduce documentation burden |
How Do I Apply For Aid?
To apply for Emergency Rental Assistance (ERA), follow these steps, keeping in mind that procedures vary by location and program:
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Identify Your Local ERA Program: ERA programs are managed locally, with each program tailoring its policies to local community needs. Find a rental assistance program in your state, tribe, or local area using an online search or by contacting your local housing authority or dialing 2-1-1.
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Check Program-Specific Processes: Depending on your area, you might apply directly, or your landlord might need to initiate the application. This variation reflects the flexibility local programs have to meet community-specific requirements.
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Prepare Required Documentation: Gather essential documents like proof of income, identification, lease agreement, and any evidence of financial hardship.
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Submit Your Application: Complete and submit the application form as per your local program’s guidelines, which may be available online or in a physical format.
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Coordinate with Your Landlord if Necessary: Some programs require landlord participation or additional documentation from them.
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Follow Up and Track Your Application: Keep tabs on your application status to ensure timely processing and receipt of assistance.
Remember, the availability of funds and specific requirements can change, so apply promptly and stay updated on your local program's guidelines.
Is there an ERA limit?
ERA programs have certain limitations in terms of the amount and duration of the aid they offer, which vary depending on the specific program.
These limitations typically include caps on the total financial assistance a household can receive, either as a set dollar amount or as a limit based on the number of months of rent and utilities covered. For instance, many programs may provide assistance for up to 12 to 18 months, covering a combination of back rent (arrears) and future rent payments.
Additionally, programs often distinguish between the assistance provided for past due rent and future rent, with some prioritizing what is already overdue. Ongoing assistance may require recipients to periodically demonstrate continued eligibility, especially regarding income levels.
Limits may also apply to utility payment assistance, reflecting similar criteria as rent assistance. It's important to note that the availability of funds in an ERA program is contingent on the overall program funding, which is generally limited. Once these allocated funds are exhausted, the program might not be able to offer further assistance.
How long does it take to get approved for ERA?
While each ERA program may have its own processing timeline, some common factors influence how long it takes to get approved:
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Application Volume: High demand and a large number of applications can lead to longer processing times. Periods of peak demand, especially during economic downturns or after the announcement of new funding, can particularly slow down the process.
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Completeness of Application: Missing information or the need for additional documentation on an application can delay the approval process.
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Response Time for Additional Information: If the program requires additional information or clarification, the speed at which an applicant responds can also affect the total processing time.
On average, applicants might expect to wait several weeks to a few months for their applications to be processed and approved.
FAQ
What is the Maximum Financial Support Available?
The amount of assistance varies based on factors like geographic location, individual or family income, and the particular rules of your local ERA program.
What is the Method of Payment for Rental Aid?
Usually, the assistance is paid directly to landlords or utility providers. In cases where this isn't possible, the tenant may receive the funds directly.
Is Collaboration Between Tenant and Landlord Required for Application?
Yes, cooperation is generally needed since landlords often must provide necessary documents and might receive the payments directly.
Is a Formal Lease Agreement Mandatory to Qualify for ERA Assistance?
While a formal lease is typically required, some programs may accept alternative proofs of your rental situation.
Beyond Rent, What Expenses are Covered by ERA?
ERA funding can also cover utility bills, internet costs, and other housing-related expenses, subject to the rules of the specific program.
Which Types of Residences Qualify for ERA Assistance?
Eligibility varies but usually includes traditional rental housing. Specific program guidelines will provide more details.
Are Payments for Temporary Lodgings Like Hotels Covered by ERA?
ERA might cover hotel or motel costs in certain circumstances, particularly if these are your primary residence due to specific situations like homelessness.
How Does ERA Work With Rent-to-Own Agreements?
The applicability of ERA to rent-to-own leases varies by program, so it's important to consult the guidelines of the ERA program you're applying to.
What are the ERA Provisions for Tribal Members Outside Tribal Lands or Non-Tribal Individuals on Tribal Lands?
The ERA has particular rules for these situations. You should check with the relevant program for specific eligibility and application details.
Can Individuals in Government-Subsidized Housing Receive ERA Benefits?
Even if you live in subsidized housing, you may be eligible for ERA, although the benefits might be adjusted to prevent overlapping financial aid.
