Treasury Department to ease rent relief backlogs with reallocations

More than $800 million could reportedly move in redistribution beginning next month

National /
Nov.November 29, 2021 02:48 PM
Secratary of the Treasury Janet Yellen (Getty, iStock)
Secratary of the Treasury Janet Yellen (Getty, iStock)

States struggling to keep rent relief efforts alive could soon benefit from a Treasury Department plan to reallocate funds.

Rental-assistance money would be shifted from municipalities with unused funds to those who desperately need it, the Wall Street Journal reported. Officials didn’t specify to the Journal which states and municipalities would gain and lose funds, nor how much would be reallocated.

The initial reallocation is set to be unveiled early next month, the Journal reported. More than $800 million could be on the move, both between and within states, as a network of more than 450 organizations and agencies are responsible for distributing aid.

Some rural states are among those that haven’t distributed much rent relief at all. Montana only distributed 11 percent of its $200 million pot by Sept. 30. North Dakota distributed only 4 percent by the same time.

Other states are set to shut down rent relief programs due to dwindling funds. Oregon and Texas are closing their programs off to new applicants and officials believe California and Illinois could fall in that line soon, according to the Journal.

New York’s portal for emergency rental assistance stopped accepting new applications as of Nov. 14. Gov. Kathy Hochul said the state had earmarked nearly all of its $2.4 billion in available funding and requested another $996 million from the Treasury Department.

Up to $20 billion of the $47 billion authorized by Congress for rent relief could be spent by the end of the year. Another $5 billion to $10 billion could be pledged to specific tenants and landlords, according to the Journal.

Only the first $25 billion authorized by Congress will be reallocated beginning in December. The other $21.6 billion in funds reportedly won’t be reallocated until March at the earliest.

Rent relief can be used by tenants for back rent, future rent and utilities. The assistance option was one major measure taken by the government to avoid mass evictions, as well as an eviction moratorium that expired earlier this year.

[WSJ] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Assemblymember Cristina Garcia (Wikipedia, iStock)
    Golf course housing bill dies on the green
    Golf course housing bill dies on the green
    CIM Group’s Shaul Kuba with renderings of the project at 6007 Sunset Blvd in Hollywood (Cim Group, Getty)
    CIM clears hurdle toward building 109-unit complex in Hollywood
    CIM clears hurdle toward building 109-unit complex in Hollywood
    From left: Mayoral candidates Rick Caruso, Karen Bass and Kevin de León (Getty Images, iStock)
    Feuer exits mayoral race, backs Bass
    Feuer exits mayoral race, backs Bass
    Harry Sidhu, Mayor of Anaheim (Getty Images)
    Feds probe Anaheim mayor over Angel Stadium sale
    Feds probe Anaheim mayor over Angel Stadium sale
    Candidate Rick Caruso, Councilman Joe Buscaino and Los Angeles City Hall (Rick Caruso, Joe Buscaino, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    City Councilman exits race, endorses Caruso for LA mayor
    City Councilman exits race, endorses Caruso for LA mayor
    Steve Soboroff and U.S. Rep. Karen Bass (Getty)
    Soboroff endorses Bass
    Soboroff endorses Bass
    Los Angeles mayoral candidates: Rick Caruso, Karen Bass and Kevin de Leon (Wikimedia, Rick Caruso, iStock)
    Real estate industry all over LA mayoral money game
    Real estate industry all over LA mayoral money game
    530 S Mapleton Dr, Los Angeles (Zillow)
    Justice Department wants Armenian ex-politician’s LA mega-mansion
    Justice Department wants Armenian ex-politician’s LA mega-mansion
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...