KIM JOHNSON
REBECCA YAE
DISASTER HOUSING RECOVERY COALITION, C/O NATIONAL LOW INCOME HOUSING COALITION
BEST PRACTICES FOR STATE
AND LOCAL EMERGENCY
RENTAL ASSISTANCE
PROGRAMS
JANUARY 11, 2021
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INTRODUCTION
INTRODUCTION
R
ental assistance is crucial to ensuring low-income people remain stably housed as the economic
fallout from the coronavirus pandemic continues. The “Coronavirus Aid, Relief, and Economic Security
(CARES) Act,” enacted in March 2020, provided resources that many states and communities used for
rental assistance programs to help renters impacted by the pandemic. From those efforts, we have learned
valuable lessons for the programs that will be administering the $25 billion in emergency rental assistance
recently enacted by Congress.
The recent COVID-19 relief package passed and signed into law at the end of 2020 provides $25 billion in
Emergency Rental Assistance through the Coronavirus Relief Fund (CRF) administered by the U.S. Treasury.
These vital resources will be used by states, cities, territories, and tribal areas to provide emergency rental
assistance and preserve housing stability among renters experiencing COVID-19-related nancial hardships.
The U.S. Treasury will allocate funds to each state, the District of Columbia, and the U.S. territories. Cities
and counties with more than 200,000 residents can also request a direct allocation from the Treasury.
The program as enacted provides signicant exibility for how jurisdictions can operate rental assistance
programs provided they meet certain requirements.
Households are eligible for emergency rental assistance provided through the COVID-19 relief package
if they meet the following criteria: (1) one or more individuals qualied for unemployment benets
or experienced a reduction in household income, incurred signicant costs, or experienced other
nancial hardship directly or indirectly due to the pandemic; (2) the household can demonstrate a risk of
homelessness or housing instability; and (3) household income is below 80% of their area median income
(AMI). Jurisdictions must give priority to applicants with household incomes below 50% of AMI or with
household members who are unemployed at the time of application. More information about the housing
provisions in the bipartisan bill is available here.
This document outlines key considerations and answers frequently asked questions for states and local
jurisdictions as they plan to distribute the $25 billion in emergency rental assistance. While this new
infusion of emergency rental assistance is inadequate to keep all impacted renters stably housed for an
extended time, it is a signicant down payment on meeting tenants’ longer-term needs. Here, we provide
recommendations for program administrators and advocates to ensure marginalized populations can access
emergency rental assistance, those with the greatest needs are prioritized for assistance, and assistance is
distributed in an equitable manner. We also make recommendations for the U.S. Treasury to provide greater
clarity in its guidance to jurisdictions using these funds.
After the U.S. Treasury provides its program guidance and as we learn from our ongoing research on
emergency rental assistance programs, we will update this document.
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INTRODUCTION
INTRODUCTION
1 INTRODUCTION
3 DETERMINE ELIGIBILITY FOR EMERGENCY RENTAL ASSISTANCE
3 What is a demonstrated risk of housing instability?
3 Does immigration status affect eligibility for emergency rental assistance?
3 Are residents of federally assisted housing eligible for emergency rental assistance?
4 CREATE A SIMPLE AND ACCESSIBLE APPLICATION PROCESS
4 How can program administrators improve tenants’ accessibility to emergency rental
assistance?
4 What documentation of COVID-19-related hardship should programs require?
5 What other types of documentation do programs require?
5 Can landlords apply for assistance on behalf of their tenants?
6 SELECT ELIGIBLE TENANTS FOR ASSISTANCE
6 Who should program administrators target for emergency rental assistance?
6 Should programs use a lottery or a rst-come rst-serve method of distribution?
6 Can a lottery system ensure those with the greatest needs will be served?
7 DETERMINE WHAT EMERGENCY RENTAL ASSISTANCE WILL COVER
7 Can programs provide assistance for less than 100% of owed rent?
8 DETERMINE LANDLORD REQUIREMENTS
8 What other requirements are often asked of landlords?
9 IDENTIFY AND PARTNER WITH KEY ORGANIZATIONS
10 TRACK WHO RECEIVES ASSISTANCE
10 IDENTIFY ADDITIONAL FEDERAL FUNDING SOURCES
11 CONTINUE ADVOCACY FOR RESOURCES AND GUIDANCE
11 CONCLUSION
TABLE OF CONTENTS & QUESTIONS
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INTRODUCTION
INTRODUCTION
H
ouseholds are eligible for emergency rental assistance if they meet the following criteria: (1) one or
more household members experienced a reduction in household income, incurred signicant costs,
or experienced other nancial hardships directly or indirectly due to the pandemic; (2) the household
can demonstrate risk of homelessness or housing instability; and (3) household income is below 80% of AMI.
The relief package requires program administrators to give priority to households with incomes below 50%
of AMI or with unemployed members as of the date of application.
WHAT IS A DEMONSTRATED RISK OF HOUSING INSTABILITY?
The COVID-19 relief package provides states and jurisdictions with exibility in the evidence they require
for applicants to prove housing instability. Unless specic guidance is provided by the U.S. Treasury,
emergency rental assistance programs should use a broad denition of housing instability to avoid
creating a narrow window of eligibility that can preclude renters from eligibility. A broad denition of
housing instability should include self-certication (if allowed under Treasury’s forthcoming guidance) of
current housing-cost burden, doubling or tripling up with other households, accumulation or expectation
of back rental or utility payments, and currently experiencing homelessness at the time of application.
Program administrators should not require an eviction notice for eligibility, which is often too late to
prevent negative consequences for the tenant.
DOES IMMIGRATION STATUS AFFECT ELIGIBILITY FOR EMERGENCY RENTAL
ASSISTANCE?
Immigration status should not impact eligibility for emergency rental assistance. The relief package does
not place restrictions on emergency rental assistance based on immigration status. You can nd out how
immigration status affects eligibility for other assistance programs here. Programs like Washington State’s
Eviction Rent Assistance Program explicitly stated that U.S. citizenship is not an eligibility requirement.
ARE RESIDENTS OF FEDERALLY ASSISTED HOUSING ELIGIBLE FOR
EMERGENCY RENTAL ASSISTANCE?
Administrators should encourage HUD- and USDA-assisted residents (e.g., public housing, project-
based rental assistance, Housing Choice Vouchers, USDA 521 rental assistance) experiencing a decline
in income to immediately request an income recertication from their landlord or housing authority.
An income recertication can occur when an assisted household experiences a change in income (for
example, a job loss or reduced work hours) to recalculate how much the household needs to contribute
toward their rent. Assisted households experiencing a drop in income should request an income
recertication as soon as possible to reduce the amount of rent owed going forward.
Renters assisted by these programs, however, may still accrue back rent while their recertication is
processed. Emergency rental assistance program administrators should include exibility for residents
of federally assisted housing to access emergency rental assistance as needed. Residents of federally
assisted properties whose rents are not determined directly by their household incomes (e.g., Low
Income Housing Tax Credit properties) should be explicitly made eligible for emergency rental
assistance.
DETERMINE ELIGIBILITY FOR
EMERGENCY RENTAL ASSISTANCE
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INTRODUCTION
INTRODUCTION
A
short and simple application that requests basic eligibility information like current household
income, rental costs, and coronavirus-related hardship will increase accessibility and ease for tenants.
Administrators can use short initial applications to determine whether an applicant meets basic
eligibility requirements and then determine what additional documentation is necessary. Rather than creating
an application from scratch, administrators can adapt other programs’ existing applications for their own
program. Applications should be kept as simple and short as possible with as few additional documentation
requirements as possible. Some programs, like that in Osceola County, Florida, used a short online screening
application to initially determine eligibility. Washington State provided local program administrators with a
simple intake form for staff to ll out in screening households.
HOW CAN PROGRAM ADMINISTRATORS IMPROVE TENANTS’ ACCESSIBILITY
TO EMERGENCY RENTAL ASSISTANCE?
Program administrators can do a number of things to improve tenants’ awareness of and accessibility to
emergency rental assistance, including:
– Write program information and applications in simple language absent of jargon and complicated
language.
– Provide program information and applications in multiple languages.
– Distribute program information through a wide range of channels, including on-line, community
organizations, social service agencies, and 2-1-1 referral services.
– Provide multiple ways for tenants to submit applications, including on-line and through regular mail.
A paper option allows tenants with limited internet access to apply.
Provide intake assistance. Even with simple and jargon-free applications, tenants may still have difculty
navigating the application process and have questions. Where possible, one-on-one or group counseling
through phone calls or virtual sessions can help tenants understand the application requirements and
needed documentation. Group counseling sessions can reduce administrative burden.
WHAT DOCUMENTATION OF COVID-19-RELATED HARDSHIP SHOULD
PROGRAMS REQUIRE?
Our observations of existing programs suggest that excessive documentation requirements can prevent
tenants from completing their applications and over-burden program staff. Simple documentation
requirements may increase accessibility for tenants, reduce administrative barriers, and increase the
speed at which funding is distributed. The COVID-19 relief package suggests that applicants can attest
to economic hardship in writing. Therefore, administrators should consider utilizing a self-declaration
form in which applicants attest to an economic hardship due to the pandemic and other qualifying
criteria. For example, Utah used a detailed self-declaration form for applicants to calculate and declare
their annual income. Centro Legal de la Raza, a local nonprot administrator for emergency rental
assistance programs in the Bay Area, used a simpler self-certication form (in English; in Spanish) for
applicants to attest to income, tenancy, COVID-19 related hardship, and more.
The U.S Treasury should clarify in future guidance the ability of applicants to self-certify their eligibility for
assistance to allay the fears of hesitant administrators who fear the Treasury may expect more stringent
documentation.
CREATE A SIMPLE AND ACCESSIBLE
APPLICATION PROCESS
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WHAT OTHER TYPES OF DOCUMENTATION DO PROGRAMS REQUIRE?
Required documents should be easy for households to obtain, and program administrators should be
as exible as possible with their documentation requirements. Many programs, for example, require
a current lease from applicants to show proof of residency, which can exclude renters who have non-
traditional or month-to-month arrangements without a formal current lease. In these cases, program
administrators should allow an old rent check or signed afdavit in place of a lease.
Other examples of documentation required by previous emergency rental assistance programs funded
through CARES Act or other funding streams include:
– Paystubs or employer verication of decreased income.
– A notice of termination from an applicant’s employer.
– Acknowledgement from a state or federal unemployment insurance program that the tenant is
unemployed or furloughed.
– Self-certication of income, COVID hardship, or informal lease arrangements.
Without exibility for self-certication, documentation requirements may be a barrier for applicants,
especially those with non-traditional, gig-economy, or precarious employment prior to the pandemic.
CAN LANDLORDS APPLY FOR ASSISTANCE ON BEHALF OF THEIR TENANTS?
Landlords can assist tenants with applying for assistance. Landlords can also apply for rental assistance
on behalf of their tenants, but they must provide documentation of the application to their tenants and
obtain their tenants’ signatures. Any assistance landlords receive must be used to cover tenants’ rental
payments. Some existing programs, such as one in King County, Washington, created a system for
landlords to apply for assistance to speed up its distribution because they could submit applications for
more than one tenant at a time.
If a landlord refuses to accept a rental assistance payment directly from a state, local, or tribal grantee,
the grantee can instead provide funding directly to an eligible household for the household to pay their
landlord. Some existing programs, such as the third phase of Philadelphia’s CARES Act-funded program,
delivered direct-to-tenant rental assistance. The period for determining if a landlord is refusing to accept
rental assistance or is unresponsive should be kept to a minimum – e.g., seven days – to allow renters to
receive direct payments as soon as possible.
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INTRODUCTION
INTRODUCTION
T
he need for rental assistance in most places surpasses the amount of funding available, restricting the
number of eligible applicants who can receive aid and forcing program administrators to decide how
to allocate scarce resources. Programs funded through the COVID-19 relief package are required to
give preference to households with incomes below 50% of AMI or with unemployed members at the time of
application. Program administrators can set other priorities, as well.
WHO SHOULD PROGRAM ADMINISTRATORS TARGET FOR EMERGENCY
RENTAL ASSISTANCE?
A signicant share of emergency rental assistance should be targeted to households with the lowest
incomes (less than 30% of AMI). These renters typically have the fewest nancial supports to fall back on
and are most at risk of eviction and homelessness. According to NLIHC’s report The Gap, more than 7 of
every 10 extremely low-income renters were spending more than half of their income on housing even
before the pandemic. Those who have lost employment income during the pandemic will have far less
ability to repay their back-rent when their income recovers.
Program administrators can also target emergency rental assistance to areas with high shares of
housing instability, job loss, and populations disproportionately impacted economically by the
pandemic, including communities of color, which have been hardest hit by the pandemic. The Urban
Institute developed a tool that identies neighborhoods with high shares of residents at high risk for
homelessness, job loss, and coronavirus.
SHOULD PROGRAMS USE A LOTTERY OR A FIRST-COME FIRST-SERVE
METHOD OF DISTRIBUTION?
A lottery method, in which eligible applicants are selected at random to receive assistance, rather
than rst-come rst-serve, may be more equitable. First-come rst-serve systems may allow program
administrators to distribute funds more quickly by distributing funds as applicants are approved, but
they may inadvertently reward applicants who face fewer barriers to applying for assistance and exclude
historically marginalized populations who may not have immediate access to an application because of
slower access to information about the program, limited internet access, or language barriers.
A lottery method typically requires programs to set an application deadline prior to selecting recipients.
Some lottery-style programs set a single deadline to select applicants, as in Montgomery County,
Maryland, while others set rolling (periodic) deadlines to select applicants, as did United Lift in Riverside
County, California. Programs with single deadlines tend to open for brief windows of time (typically,
several weeks), which may not provide adequate time for many tenants to learn about the program and
apply. Rolling deadlines may give tenants facing signicant barriers in applying for assistance more time
to overcome them.
CAN A LOTTERY SYSTEM ENSURE THOSE WITH THE GREATEST NEEDS WILL
BE SERVED?
A weighted lottery system, as in Harris County, Texas, can ensure that populations with the greatest
need, such as extremely low-income renters, those experiencing unemployment, or families with children,
are more likely to receive assistance. A lottery system by itself, however, cannot ensure marginalized
populations have access to assistance; outreach, intake assistance, and other assets must also be
provided to those communities.
SELECT ELIGIBLE TENANTS FOR
ASSISTANCE
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INTRODUCTION
INTRODUCTION
P
rogram administrators can disburse emergency rental assistance for current and future rent, rental
arrears, utility and home energy costs, and utility and home energy costs in arrears. Emergency rental
assistance can cover up to 12 months of rent, with an additional three months if necessary to ensure
housing stability. For eligible applicants with rental arrears, program administrators can provide assistance for
prospective (future) rent only if they also provide assistance to reduce rental arrears. Program administrators
providing rental assistance for future months must recertify applicants’ eligibility every three months.
Because the need for assistance is greater than current resources, program administrators will need to
decide what share of rent and how many months emergency rental assistance will cover.
CAN PROGRAMS PROVIDE ASSISTANCE FOR LESS THAN 100% OF OWED
RENT?
Yes. To stretch the limited funding for emergency rental assistance, some existing program administrators
ask landlords to accept a fraction of rent as payment-in-full. This concession allows the program to serve
more tenants and still provides landlords with rental income.
Alternatively, program administrators can set a maximum amount of monthly emergency rental
assistance that a tenant can receive. This cap likely works best if it reects the local housing market.
Some programs, for example, use HUD’s Fair Market Rents to set maximum emergency rental assistance.
Others require tenants to contribute a portion of their income toward rent and the assistance covers the
remaining rent up to the maximum amount. In this case, some program administrators allow landlords
and tenants to negotiate a repayment plan for the tenant contribution. One challenge is determining
what share of rent landlords are willing to forgo for their tenants to receive rental assistance. A survey
in Philadelphia indicated that a large share of landlords were unwilling to accept the city’s initial level of
assistance - a at rate of up to $750 per month - as full payment of rent, which the city later increased.
DETERMINE WHAT EMERGENCY
RENTAL ASSISTANCE WILL COVER
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INTRODUCTION
INTRODUCTION
P
rogram administrators can make payments directly to a tenant’s landlord on behalf of tenants. In many
current programs, landlords are typically required to submit a W-9 form to the jurisdiction before
receiving payment.
If the landlord refuses to participate, the relief package authorizes program administrators to distribute
assistance directly to the tenant for the purpose of paying their rent. This option eliminates the barrier that
tenants faced in some existing programs when their landlords refused to participate, leaving eligible tenants
unable to receive help. As stated previously, program administrators should provide only a short amount of
time (e.g., up to seven calendar days) for landlords to participate and meet necessary requirements before
distributing assistance directly to tenants.
WHAT OTHER REQUIREMENTS ARE OFTEN ASKED OF LANDLORDS?
Approximately one in four emergency rental assistance programs in NLIHC’s database ask landlords
for additional requirements or concessions beyond accepting payment from the program. These
requirements can include:
– Additional unit inspections;
– Accepting a fraction (ex: 80%) of rent as payment-in-full;
– Forgiving back rent not covered by the program;
– Waiving late fees; and/or
– Promising not to move forward with an eviction for a specied length of time.
These concessions can stretch the limited supply of emergency rental assistance to cover more tenants
and secure additional tenant protections. Overly stringent concessions, however, can reduce landlords’
willingness to participate
DETERMINE LANDLORD
REQUIREMENTS
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INTRODUCTION
INTRODUCTION
J
urisdictions can partner with a variety of key organizations to implement their emergency rental
assistance programs, as well as provide outreach to marginalized populations who may be difcult to
reach. Some of these organizations include:
Organizations with experience in providing aid and support to people in need. Organizations connected
to and serving low-income communities can spread awareness of emergency rental assistance programs
through established networks, as well as use existing infrastructure and capacity to help shoulder program
administration.
– Numerous statewide programs relied on their network of Community Action Agencies, including
those in Wisconsin and Oregon. Their experience administering a variety of federal grants and
rental assistance and their connections with low-income communities uniquely suit them to support
emergency rental assistance programs.
– Many local programs worked with their United Way and 2-1-1 referral services in some capacity,
including administration and connecting renters to emergency rental assistance programs in their
area. It is essential that 2-1-1 operators are aware of all rental assistance programs so they can quickly
and appropriately connect callers to the assistance they need.
Organizations embedded in communities most impacted by housing instability and COVID-19. Working
with community organizations within the hardest-hit communities may help address issues of equity as they
often have close ties to and are trusted by the communities they serve, making it easier to reach people
who may not otherwise be aware of the resources available or who may be hesitant to reach out for help.
They can identify potential barriers posed by the application process and are better equipped to help
tenants in need of culturally-specic assistance. For example, the State of Oregon partnered with Oregon
Human Development Corporation to ensure rental assistance would reach agricultural farmworkers. The
State of Washington required local jurisdictions to partner with organizations operated by and for the
marginalized communities they assist and serve. Pierce County, Washington’s program administrators worked
with organizations led by people of color and members of the LGBTQ community to perform outreach to
historically marginalized people.
Landlords and housing owners/operators. Landlords and housing owners/operators are vital to emergency
rental assistance programs. Outreach to landlords to educate them about the availability of emergency
rental assistance and landlord-tenant mediation resources available in your area may increase landlord
participation. Direct communication with landlords can also ensure both landlords and tenants are aware of
additional requirements or concessions the landlord and tenant should be following. The State of Colorado
worked closely with its state apartment association to ensure that the Property Owner Preservation, one of
their two rental assistance programs, had the association’s support.
State and local elected ofcials. State and local elected ofcials are also powerful allies when establishing
emergency rental assistance programs. The Coalition on Homelessness and Housing in Ohio (COHHIO) sent
sign-on letters and performed persistent outreach to state and local leaders to build support and generate
buy-in for establishing a statewide program. In Indiana, state affordable housing advocates at Prosperity
Indiana partnered with the Indiana United Way to establish a Housing Stability Roundtable. The Roundtable
brought together resident representatives, for-prot and non-prot housing providers, anti-homelessness
advocates, tenants’ rights unions, state agencies, and representatives from the court and legal systems to
build a broad coalition of people dedicated to ensuring the state provides adequate rental assistance and
protections for people at risk of housing instability.
IDENTIFY AND PARTNER WITH KEY
ORGANIZATIONS
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INTRODUCTION
INTRODUCTION
T
he COVID-19 relief package requires jurisdictions to document and make available the number of
eligible households that receive assistance, the acceptance rate of applicants for assistance, the types
of assistance provided, and the average amount of funding provided per eligible household receiving
assistance. Program administrators are required to provide information for household income levels below
30% of AMI, between 30% and less than 50% of AMI, and between 50% and less than 80% of AMI. They
are also required to break down these data by the gender, race, and ethnicity of the primary applicant for
assistance.
T
he CARES Act, enacted in March 2020, provided three funding streams available for states and
localities to provide emergency rental assistance: Coronavirus Relief Funds (CRF), Community
Development Block Grants for Coronavirus (CDBG-CV), and Emergency Solutions Grants for
Coronavirus (ESG-CV). ESG-CV should be used primarily to address the needs of people experiencing
homelessness, but it can also be used for eviction prevention. The CARES Act allocated funds directly to
states or qualied local jurisdictions. Each of these three funding streams have different requirements.
– CRF: Grantee jurisdictions can use these exible funds to cover a broad number of expenses,
including rental assistance, so long as the expense is a necessary expenditure due to the public
health emergency and was not accounted for in the state or local government’s most recent budget.
Initially, jurisdictions had until December 30, 2020 to expend CRF funds, but the end-of-year
COVID-19 relief package extended the deadline to the end of 2021. Of the three funding streams,
CRF is the most exible in regard to whom the funds can serve and how. Learn more about CRF here,
and see how your state is allocating CRF funds here.
– CDBG-CV: Jurisdictions may spend CDBG-CV funds on rental, utility, and mortgage assistance for
up to six months. While CDBG typically may only be used to cover up to three months of rental
assistance, HUD’s Ofce of Community Planning and Development (CPD) extended the limit to six
months for CDBG-CV. However, extending the assistance past 100 days may subject covered units to
a lead-based paint hazard inspection. Learn more about CDBG-CV here, and see how much CDBG-
CV was allocated to your community here.
– ESG-CV: Jurisdictions can use funding from ESG-CV to address the needs of people experiencing
or at risk of homelessness, dened in the CARES Act as people at or below 50% AMI. See how
much ESG-CV was allocated to your community here. The Framework for an Equitable COVID-19
Homelessness Response provides best practices for using CARES Act funding to address the needs
of people experiencing homelessness.
TRACK WHO RECEIVES ASSISTANCE
IDENTIFY ADDITIONAL FEDERAL
FUNDING SOURCES
01/12/2021
DISASTER HOUSING RECOVERY COALITION, C/O NATIONAL LOW INCOME HOUSING COALITION
1000 Vermont Avenue, NW | Suite 500 | Washington, DC 20005 | 202-662-1530 | www.nlihc.org
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T
he $25 billion for emergency rental assistance in the COVID-19 relief package is an important down
payment to help renters through this public health and economic crisis. It is, however, not enough to
meet the unprecedented need. In May 2020, NLIHC estimated that ensuring housing stability for up
to a year for low-income workers struggling to pay their rent would cost $100 billion. Advocates will need to
push Congress for additional rental assistance in the coming months.
Guidance from federal agencies plays a signicant role in how jurisdictions will design their federally-funded
programs. Program administrators and advocates should encourage the U.S. Treasury to quickly provide
much-needed guidance that enables state and local governments to effectively and efciently distribute aid
to renters most in need of assistance. The guidance should:
Afrm state and local exibility in eligibility, documentation, and distribution.
Encourage programs to prioritize households with the greatest needs.
Discourage burdensome documentation requirements by afrming that applicants can self-certify their
nancial hardship due, directly or indirectly, to COVID-19.
– Afrm broad and less restrictive evidence of housing instability, including self-certication of income
below 30% of AMI, severe housing cost-burdens, overcrowding, or accumulation (or expected
accumulation) of rental arrears.
– Encourage timely, direct payments to tenants.
– For a complete list of recommendations for Treasury’s forthcoming guidance on the $25 billion in
emergency rental assistance, see a letter from NLIHC and the NLIHC-led Disaster Housing Recovery
Coalition to U.S. Treasury Secretary Steven Mnuchin here.
CONCLUSION
Emergency rental assistance programs are vital to ensuring people experiencing economic hardship can
remain safely and stably housed throughout the duration of the pandemic. It is crucial that state and local
governments distribute funding in a manner that is accessible, equitable, and reaches those most at risk of
housing instability and homelessness.
For more information, please contact Rebecca Yae ([email protected]) and Kim Johnson ([email protected]g).
CONTINUE ADVOCACY FOR
RESOURCES AND GUIDANCE
