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U.S. Department of the Treasury 

Emergency Rental Assistance 

Frequently Asked Questions 

Revised August 25, 2021 

The Department of the Treasury (Treasury) is providing these frequently asked questions (FAQs) 

as guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) 

established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. 

No. 116-260 (Dec. 27, 2020) and the Emergency Rental Assistance program (ERA2) established 

by section 3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (March 11, 2021). 

These FAQs apply to both ERA1 and ERA2, except where differences are specifically noted. 

References in these FAQs to “the ERA” apply to both ERA1 and ERA2. These FAQs will be 

supplemented by additional guidance.1

 Grantees must establish policies and procedures to govern 

the implementation of their ERA programs consistent with the statutes and these FAQs. To the 

extent that these FAQs do not provide specific guidance on a particular issue, a grantee should 

establish its own policy or procedure that is consistent with the statutes and follow it consistently. 

1. Who is eligible to receive assistance in the ERA and how should a grantee document the 

eligibility of a household? 

A grantee may only use the funds provided in the ERA to provide financial assistance and housing 

stability services to eligible households. To be eligible, a household must be obligated to pay rent 

on a residential dwelling and the grantee must determine that: 

i. for ERA1: 

a. one or more individuals within the household has qualified for unemployment 

benefits or experienced a reduction in household income, incurred significant 

costs, or experienced other financial hardship due, directly or indirectly, to the 

COVID-19 outbreak; 

b. one or more individuals within the household can demonstrate a risk of 

experiencing homelessness or housing instability; and 

1 On January 19, 2021, initial FAQs were released for ERA1. On February 22, 2021, the initial FAQs were revised to, 

among other things, clarify program requirements and provide additional flexibility with respect to documenting the 

eligibility of households. On March 16, 2021, FAQ 7 was revised to add rental security deposits as a permissible 

relocation expense and clarify that application or screening fees are permissible rental fees and FAQs 26–28 were 

added. On March 25, 2021, FAQ 29 was added. On May 7, 2021, these FAQs were revised to provide initial guidance 

for ERA2, to clarify differences between ERA1 and ERA2, and to clarify how ERA should be used to promote 

housing stability for eligible households. On June 24, 2021, these FAQs were revised to further clarify how to 

promote housing stability for eligible households; specifically, FAQs 14, 23, 31, 33, and 35 were revised and FAQs 

36–39 were added, in addition to other non-substantive changes. On August 25, 2021, these FAQs were revised to 

provide further clarification on the use of self-attestation and to describe methods of speeding payments to eligible 

households. Specifically, substantive revisions were made to FAQs 3, 4, 7, 11, and 38; FAQs 40-42 were added; and 

additional edits were made for clarity. 
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c. the household has a household income at or below 80 percent of area 

median income. 

ii. for ERA2: 

a. one or more individuals within the household has qualified for 

unemployment benefits or experienced a reduction in household 

income, incurred significant costs, or experienced other financial 

hardship during or due, directly or indirectly, to the coronavirus 

pandemic;

b. one or more individuals within the household can demonstrate a risk of 

experiencing homelessness or housing instability; and 

c. the household is a low-income family (as such term is defined in section 

3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))).2

While there are some differences in eligibility between ERA1 and ERA2, the eligibility 

requirements are very similar, and Treasury is seeking to implement ERA2 consistently with 

ERA1, to the extent possible, to reduce administrative burdens for grantees. 

The FAQs below describe the documentation requirements for each of these conditions of 

eligibility. These requirements provide for various means of documentation so that grantees may 

extend this emergency assistance to vulnerable populations without imposing undue 

documentation burdens. As described below, given the challenges presented by the COVID-19 

pandemic, grantees may be flexible as to the particular form of documentation they require, 

including by permitting photocopies or digital photographs of documents, e-mails, or attestations 

from employers, landlords, caseworkers, or others with knowledge of the household’s 

circumstances. Treasury strongly encourages grantees to avoid establishing documentation 

requirements that are likely to be barriers to participation for eligible households, including those 

with irregular incomes such as those operating small business or gig workers whose income is 

reported on Internal Revenue Service Form 1099. However, grantees must require all applications 

for assistance to include an attestation from the applicant that all information included is correct 

and complete. 

In all cases, grantees must document their policies and procedures for determining a household’s 

eligibility to include policies and procedures for determining the prioritization of households in 

compliance with the statute and maintain records of their determinations. Grantees must also have 

controls in place to ensure compliance with their policies and procedures and prevent fraud. 

Grantees must specify in their policies and procedures under what circumstances they will accept 

written attestations from the applicant without further documentation to determine any aspect of 

2 As of the date of these FAQs, the definition of “low-income families” in 42 U.S.C. 1437a(b) is “those families 

whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary [of 

Housing and Urban Development] with adjustments for smaller and larger families, except that the Secretary may 

establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s 

findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low 

family incomes.” 
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eligibility or the amount of assistance, and in such cases, grantees must have in place reasonable 

validation or fraud-prevention procedures to prevent abuse. 

2. How should applicants document that a member of the household has qualified for 

unemployment benefits, experienced a reduction in income, incurred significant costs, or 

experienced other financial hardship during or due to the COVID-19 outbreak? 

A grantee must document that one or more members of the applicant’s household either (i) 

qualified for unemployment benefits; or (ii) (a) for ERA1, experienced a reduction in household 

income, incurred significant costs, or experienced other financial hardship due, directly or 

indirectly, to the COVID-19 outbreak or (b) for ERA2, experienced a reduction in household 

income, incurred significant costs, or experienced other financial hardship during or due, directly 

or indirectly, to the coronavirus pandemic.3

 If the grantee is relying on clause (i) for this 

determination, or if the grantee is relying on clause (ii) in ERA2, the grantee is permitted to rely on 

either a written attestation signed by the applicant or other relevant documentation regarding the 

household member’s qualification for unemployment benefits. If the grantee is relying on clause 

(ii) for this determination in ERA1, the statute requires the grantee to obtain a written attestation 

signed by the applicant that one or more members of the household meets this condition. While 

grantees relying on clause (ii) in ERA1 must show financial hardship “due, directly or indirectly, 

to” COVID-19, grantees in ERA2 are also permitted to rely on financial hardship “during” the 

pandemic. 

It may be difficult for some grantees to establish whether a financial hardship experienced during 

the pandemic is due to the COVID-19 outbreak. Therefore, Treasury strongly encourages grantees 

to rely on the self-certification of applicants with regard to whether their financial hardship meets 

these statutory eligibility requirements. Further, because the standard in ERA2 is broader than the 

standard in ERA1, any applicant that self-certifies that it meets the standard in ERA1 should be 

considered to meet the standard for purposes of ERA2. 

3. How should a grantee determine that an individual within a household is at risk of 

experiencing homelessness or housing instability? 

The statutes establishing ERA1 and ERA2 both require that one or more individuals within the 

household can demonstrate a risk of experiencing homelessness or housing instability. Such a 

demonstration may include (i) a past due utility or rent notice or eviction notice, (ii) unsafe or 

unhealthy living conditions (which may include overcrowding), or (iii) any other evidence of risk, 

as determined by the grantee. Grantees may establish alternative criteria for determining whether a 

household satisfies this requirement, and should adopt policies and procedures addressing how 

they will determine the presence of unsafe or unhealthy living conditions and what evidence of risk 

to accept in order to support their determination that a household satisfies this requirement. A 

grantee may rely on an applicant’s self-certification identifying the applicable risk factor or 

factors, without further documentation, if other documentation is not immediately available. 

4. The statutes establishing ERA1 and ERA2 limit eligibility to households based on certain 

income criteria. How is household income defined for purposes of the ERA? How will income 

3

 Treasury is interpreting the two different statutory terms (“the COVID-19 outbreak” and “the coronavirus pandemic”) 

as having the same meaning. 
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be documented and verified? 

Definition of Income: With respect to each household applying for assistance, grantees may 

choose between using the Department of Housing and Urban Development’s (HUD) definition of 

“annual income” in 24 CFR 5.6094 and using adjusted gross income as defined for purposes of 

reporting under Internal Revenue Service Form 1040 series for individual federal annual income 

tax purposes.

Definition of Area Median Income: For purposes of ERA1, the area median income for a 

household is the same as the income limits for families published by the Department of Housing 

and Urban Development (HUD) in accordance with 42 U.S.C. 1437a(b)(2), available under the 

heading for “Access Individual Income Limits Areas” at 

https://www.huduser.gov/portal/datasets/il.html.5 When determining area median income with 

respect to Tribal members, Tribal governments and TDHEs may rely on the methodology 

authorized by HUD for the Indian Housing Block Grant Program as it pertains to households 

residing in an Indian area comprising multiple counties (see HUD Office of Native American 

Programs, Program Guidance No. 2021-01, June 22, 2021). 

Methods for Income Determination: The statute establishing ERA1 provides that grantees may 

determine income eligibility based on either (i) the household’s total income for calendar year 

2020, or (ii) sufficient confirmation of the household’s monthly income at the time of application, 

as determined by the Secretary of the Treasury (Secretary). 

If a grantee in ERA1 uses a household’s monthly income to determine eligibility, the grantee 

should review the monthly income information provided at the time of application and extrapolate 

over a 12-month period to determine whether household income exceeds 80 percent of area 

median income. For example, if the applicant provides income information for two months, the 

grantee should multiply it by six to determine the annual amount. If a household qualifies based on 

monthly income, the grantee must redetermine the household income eligibility every three months 

for the duration of assistance. 

For ERA2, if a grantee uses the same income determination methodology that it used in ERA1, it 

is presumed to be in compliance with relevant program requirements; if a grantee chooses to use a 

different methodology for ERA2 than it used for ERA1, the methodology should be reasonable and 

consistent with all applicable ERA2 requirements. In addition, if a household is a single family that 

the grantee determined met the income requirement for eligibility under ERA1, the grantee may 

consider the household to be eligible under ERA2, unless the grantee becomes aware of any reason 

the household does not meet the requirements for ERA2. Finally, if multiple families from the 

same household receive funding under an ERA2 program, the grantee should ensure that there is 

no duplication of the assistance provided. 

Documentation of Income Determination: Grantees in ERA1 and ERA2 must have a reasonable 

basis under the circumstances for determining income. A grantee may support its determination 

4 See https://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=24:1.1.1.1.5#se24.1.5_1609. 

5 Specifically, 80 percent of area median income is the same as the “low income limit” as published by HUD. For 

purposes of prioritizing rental assistance as described in FAQ 22 below, 50 percent of area median income for the 

household is the same as the “very low-income limit” for the relevant area. 
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with both a written attestation from the applicant as to household income and also documentation 

available to the applicant, such as paystubs, W-2s or other wage statements, tax filings, bank 

statements demonstrating regular income, or an attestation from an employer. In appropriate cases, 

grantees may rely on an attestation from a caseworker or other professional with knowledge of a 

household’s circumstances to certify that an applicant’s household income qualifies for assistance. 

Alternatively, a grantee may rely on a written attestation without further documentation of 

household income from the applicant under three approaches: 

 Self-attestation Alone – In order to provide assistance rapidly, during the public health 

emergency related to COVID-19 the grantee may rely on a self-attestation of household 

income without further verification if the applicant confirms in their application or other 

document that they are unable to provide documentation of their income. If a written 

attestation without further verification is relied on to document the majority of the 

applicant’s income, the grantee must reassess the household’s income every three months, 

by obtaining appropriate documentation or a new self-attestation. Income attestations 

should specify the monthly or annual income claimed by the household to ensure that the 

household meets the applicable ERA requirements and to enable appropriate reporting. 

Under this approach, grantees are encouraged to incorporate self-attestation to demonstrate 

income eligibility into their application form. Similarly, grantees may rely on selfattestations to demonstrate applicants’ financial hardship and risk of homelessness or 

housing instability as described above in FAQs 2 and 3 above. Thus, grantees are 

encouraged to simplify applications to allow for self-attestation for income eligibility 

during the public health emergency, as well as to allow self-attestation to demonstrate 

applicants’ financial hardship and risk of homelessness or housing instability as described 

above in FAQs 2 and 3. 

 Categorical Eligibility – If an applicant’s household income has been verified to be at or 

below 80 percent of the area median income (for ERA1) or if an applicant’s household has 

been verified as a low-income family as defined in section 3(b) of the United States 

Housing Act of 1937 (42 U.S.C. 1437a(b)) (for ERA2) in connection with another local, 

state, or federal government assistance program, grantees are permitted to rely on a 

determination letter from the government agency that verified the applicant’s household 

income or status as a low-income family, provided that the determination for such program 

was made on or after January 1, 2020.

 Fact-specific proxy – A grantee may rely on a written attestation from the applicant as to 

household income if the grantee also uses any reasonable fact-specific proxy for household 

income, such as reliance on data regarding average incomes in the household’s geographic 

area. 

Grantees also have discretion to provide waivers or exceptions to this documentation requirement 

to accommodate disabilities, extenuating circumstances related to the pandemic, or a lack of 

technological access. In these cases, the grantee is still responsible for making the required 

determination regarding the applicant’s household income and documenting that determination. 

Treasury encourages grantees to partner with state unemployment departments or entities that 

administer federal benefits with income requirements to assist with the verification process, 
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consistent with applicable law. 

5. ERA funds may be used for rent and rental arrears. How should a grantee document 

where an applicant resides and the amount of rent or rental arrears owed? 

Grantees must obtain, if available, a current lease, signed by the applicant and the landlord or 

sublessor, that identifies the unit where the applicant resides and establishes the rental payment 

amount. If a household does not have a signed lease, documentation of residence may include 

evidence of paying utilities for the residential unit, an attestation by a landlord who can be 

identified as the verified owner or management agent of the unit, or other reasonable 

documentation as determined by the grantee. In the absence of a signed lease, evidence of the 

amount of a rental payment may include bank statements, check stubs, or other documentation that 

reasonably establishes a pattern of paying rent, a written attestation by a landlord who can be 

verified as the legitimate owner or management agent of the unit, or other reasonable 

documentation as defined by the grantee in its policies and procedures. 

Written Attestation: If an applicant is able to provide satisfactory evidence of residence but is 

unable to present adequate documentation of the amount of the rental obligation, grantees may 

accept a written attestation from the applicant to support the payment of assistance up to a monthly 

maximum of 100 percent of the greater of the Fair Market Rent or the Small Area Fair Market 

Rent for the area in which the applicant resides, as most recently determined by HUD and made 

available at https://www.huduser.gov/portal/datasets/fmr.html. In this case, the applicant must also 

attest that the household has not received, and does not anticipate receiving, another source of 

public or private subsidy or assistance for the rental costs that are the subject of the attestation. 

This limited payment is intended to provide the most vulnerable households the opportunity to 

gather additional documentation of the amount of the rental obligation or to negotiate with 

landlords in order to avoid eviction. The assistance described in this paragraph may only be 

provided for three months at a time, and a grantee must obtain evidence of rent owed consistent 

with the above after three months in order to provide further assistance to such a household; 

Treasury expects that in most cases the household would be able to provide documentation of the 

amount of the rental obligation in any applications for further assistance. 

6. ERA funds may be used for “utilities and home energy costs” and “utilities and home 

energy costs arrears.” How are those terms defined and how should those costs be 

documented? 

Utilities and home energy costs are separately stated charges related to the occupancy of rental 

property. Accordingly, utilities and home energy costs include separately stated electricity, gas, 

water and sewer, trash removal, and energy costs, such as fuel oil. Payments to public utilities are 

permitted. 

All payments for utilities and home energy costs should be supported by a bill, invoice, or 

evidence of payment to the provider of the utility or home energy service. 

Utilities and home energy costs that are covered by the landlord will be treated as rent. 

7. The statutes establishing ERA1 and ERA2 allow the funds to be used for certain “other 
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expenses,” as defined by the Secretary. What are some examples of these “other expenses”? 

Under the statute establishing ERA1, funds used for “other expenses” must be related to housing 

and “incurred due, directly or indirectly, to the novel coronavirus disease (COVID-19) outbreak.” 

In contrast, the statute establishing ERA2 requires that “other expenses” be “related to housing” 

but does not require that they be incurred due to the COVID-19 outbreak. 

For both ERA1 and ERA2, other expenses related to housing include relocation expenses 

(including prospective relocation expenses), such as rental security deposits, and rental fees, which 

may include application or screening fees. It can also include reasonable accrued late fees (if not 

included in rental or utility arrears), and Internet service provided to the rental unit. Internet service 

provided to a residence is related to housing and is in many cases a vital service that allows renters 

to engage in distance learning, telework, and telemedicine and obtain government services. 

However, given that coverage of Internet would reduce the amount of funds available for rental 

assistance, grantees should adopt policies that govern in what circumstances that they will 

determine that covering this cost would be appropriate. In addition, rent or rental bonds, where a 

tenant posts a bond with a court as a condition to obtaining a hearing, reopening an eviction action, 

appealing an order of eviction, reinstating a lease, or otherwise avoiding an eviction order, may 

also be considered an eligible expense. 

All payments for housing-related expenses must be supported by documentary evidence such as a 

bill, invoice, or evidence of payment to the provider of the service. If a housing-related expense is 

included in a bundle or an invoice that is not itemized (for example, internet services bundled 

together with telephone and cable television services) and obtaining an itemized invoice would be 

unduly burdensome, grantees may establish and apply reasonable procedures for determining the 

portion of the expense that is appropriate to be covered by ERA. As discussed in FAQ 26 below, 

under certain circumstances, the cost of a hotel stay may also be covered as an “other expense.” 

8. Must a beneficiary of the rental assistance program have rental arrears? 

No. The statutes establishing ERA1 and ERA2 permit the enrollment of households for only 

prospective benefits. For ERA1, if an applicant has rental arrears, the grantee may not make 

commitments for prospective rent payments unless it has also provided assistance to reduce the 

rental arrears; this requirement does not apply to ERA2. 

9. May a grantee provide assistance for arrears that have accrued before the date of 

enactment of the statute? 

Yes, but not for arrears accrued before March 13, 2020, the date of the emergency declaration 

pursuant to section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance 

Act, 42 U.S.C. 5191(b). 

10. Is there a limit on how many months of financial assistance a tenant can receive? 

Yes. In ERA1, an eligible household may receive up to twelve (12) months of assistance (plus an 

additional three (3) months if necessary to ensure housing stability for the household, subject to the 

availability of funds). The aggregate amount of financial assistance an eligible household may 
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receive under ERA2, when combined with financial assistance under ERA1, must not exceed 18 

months. 

In ERA1, financial assistance for prospective rent payments is limited to three months based on 

any application by or on behalf of the household, except that the household may receive assistance 

for prospective rent payments for additional months (i) subject to the availability of remaining 

funds currently allocated to the grantee, and (ii) based on a subsequent application for additional 

assistance. In no case may an eligible household receive more than 18 months of assistance under 

ERA1 and ERA2, combined. 

11. Must a grantee pay for all of a household’s rental or utility arrears? 

No. The full payment of arrears is allowed up to the limits established by the statutes, as described 

in FAQ 10 above. A grantee may structure a program to provide less than full coverage of arrears. 

Grantees are encouraged to consider whether payments of less than the full amount of arrears may 

result in a significant disincentive for landlord participation in the ERA program. Moreover, 

consistent with FAQ 32, grantees should consider methods for avoiding evictions for nonpayment 

or utility cutoffs in cases where arrearages are paid only in part. 

12. What outreach should be made by a grantee to a landlord or utility provider before 

determining that the landlord or utility provider will not accept direct payment from the 

grantee? 

Treasury expects that in general, rental and utility assistance can be provided most effectively and 

efficiently when the landlord or utility provider participates in the program. However, in cases 

where a landlord or utility provider does not participate in the program, the only way to achieve 

the statutory purpose is to provide assistance directly to the eligible household. 

In ERA1, grantees must make reasonable efforts to obtain the cooperation of landlords and utility 

providers to accept payments from the ERA program. Outreach will be considered complete if (i) a 

request for participation is sent in writing, by mail, to the landlord or utility provider, and the 

addressee does not respond to the request within seven calendar days after mailing; (ii) the grantee 

has made at least three attempts by phone, text, or e-mail over a five calendar-day period to request 

the landlord or utility provider’s participation; or (iii) a landlord confirms in writing that the 

landlord does not wish to participate. The final outreach attempt or notice to the landlord must be 

documented. The cost of contacting landlords would be an eligible administrative cost. 

ERA2 does not require grantees to seek the cooperation of the landlord or utility provider before 

providing assistance directly to the tenant. However, if an ERA2 grantee chooses to seek the 

cooperation of landlords or utility providers before providing assistance directly to tenants, 

Treasury strongly encourages the grantee to apply the same ERA1 requirements as described 

above. 

13. Is there a requirement that the eligible household have been in its current rental home 

when the public health emergency with respect to COVID-19 was declared? 

No. There is no requirement regarding the length of tenure in the current unit. 
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14. What data should a grantee collect regarding households to which it provides rental 

assistance in order to comply with Treasury’s reporting and recordkeeping requirements? 

Treasury provided interim guidance to ERA1 grantees regarding reporting requirements covering 

the period January through May 2021. The interim guidance required grantees to report limited 

data elements for the first quarter of 2021, as well as monthly for April to August. A grantee’s 

failure to submit required reports to Treasury on a timely basis may constitute a violation of the 

ERA award terms. 

Treasury has provided grantees with additional guidance regarding quarterly reporting 

requirements. Grantees are required to submit reports in accordance with the additional guidance 

beginning with the first quarter of 2021 for ERA1 and the second quarter of 2021 for ERA2, with 

the first reports under the additional guidance being due in October 2021. 

ERA1 grantees will be required to submit monthly reports from September to December 2021, 

which will be consistent with monthly reports that were previously required for April to August. 

Treasury’s Office of Inspector General may require the collection of additional information in 

order to fulfill its oversight and monitoring requirements.6

 Grantees under ERA1 must comply 

with the requirement in section 501(g)(4) of Division N of the Consolidated Appropriations Act, 

2021, to establish data privacy and security requirements for information they collect; grantees 

under ERA2 are also encouraged to comply with those requirements.7

The assistance listing number assigned to the ERA is 21.023. 

15. The statute establishing ERA1 requires that payments not be duplicative of any other 

federally funded rental assistance provided to an eligible household. Are tenants of federally 

subsidized housing, e.g., Low Income Housing Credit, Public Housing, or Indian Housing 

Block Grant-assisted properties, eligible for the ERA? 

An eligible household that occupies a federally subsidized residential or mixed-use property or 

receives federal rental assistance may receive assistance in the ERA, provided that ERA1 funds are 

not applied to costs that have been or will be reimbursed under any other federal assistance. 

Grantees are required to comply with Title VI of the Civil Rights Act (which prohibits 

discrimination on the ground of race, color, or national origin in programs or activities receiving 

federal financial assistance) and should evaluate whether their policies and practices regarding 

assistance to households that occupy federally subsidized residential or mixed-use properties or 

receive federal rental assistance comply with Title VI. In addition, grantees are required to comply 

6

 Note that this FAQ is not intended to address all reporting requirements that will apply to the ERA but rather to note 

for grantees information that they should anticipate needing to collect from households with respect to the provision of 

rental assistance. 

7

 Specifically, the statute establishing ERA1 requires grantees to establish data privacy and security requirements for 

certain information regarding applicants that (i) include appropriate measures to ensure that the privacy of the 

individuals and households is protected; (ii) provide that the information, including any personally identifiable 

information, is collected and used only for the purpose of submitting reports to Treasury; and (iii) provide 

confidentiality protections for data collected about any individuals who are survivors of intimate partner violence, 

sexual assault, or stalking. 
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with the Fair Housing Act. With respect to ERA2, grantees must not refuse to provide assistance to 

households on the basis that they occupy such properties or receive such assistance, due to the 

disproportionate effect such a refusal could have on populations intended to receive assistance 

under the ERA and the potential for such a practice to violate applicable law, including Title VI 

and the Fair Housing Act. 

If an eligible household participates in a HUD-assisted rental program or lives in certain federally 

assisted properties (e.g., using a Housing Choice Voucher, Public Housing, or Project-Based 

Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter 

household may receive ERA1 assistance for the tenant-owed portion of rent or utilities that is not 

subsidized. Grantees are encouraged to confirm that the participant has already reported any 

income loss or financial hardship to the Public Housing Authority or property manager and 

completed an interim re-examination before assistance is provided. 

Treasury encourages grantees to enter into partnerships with owners of federally subsidized 

housing to implement methods of meeting the statutory requirement to prioritize assistance to 

households with income that does not exceed 50 percent of the area median income for the 

household, or where one or more individuals within the household are unemployed as of the date 

of the application for assistance and have not been employed for the 90-day period preceding such 

date. 

Pursuant to section 501(k)(3)(B) of Division N of the Consolidated Appropriations Act, 2021, and 

2 CFR 200.403, when providing ERA1 assistance, the grantee must review the household’s 

income and sources of assistance to confirm that the ERA1 assistance does not duplicate any other 

assistance, including federal, state, or local assistance provided for the same costs. 

Grantees may rely on an attestation from the applicant regarding non-duplication with other 

government assistance in providing assistance to a household. Grantees with overlapping or 

contiguous jurisdictions are particularly encouraged to coordinate and participate in joint 

administrative solutions to meet this requirement. The requirement described in this paragraph 

does not apply to ERA2; however, to maximize program efficacy, Treasury encourages grantees to 

minimize the provision of duplicative assistance. 

16. In ERA1, may a Tribe or Tribally Designated Housing Entity (TDHE) provide 

assistance to Tribal members living outside Tribal lands? 

Yes. Tribal members living outside Tribal lands may receive ERA1 funds from their Tribe or 

TDHE, provided they are not already receiving ERA assistance from another Tribe or TDHE, 

state, or local government. 

17. In ERA1, may a Tribe or TDHE provide assistance to non-Tribal members living on 

Tribal lands? 

Yes. A Tribe or TDHE may provide ERA1 funds to non-Tribal members living on Tribal lands, 

provided these individuals are not already receiving ERA assistance from another Tribe or TDHE, 

state, or local government. 
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18. May a grantee provide assistance to households for which the grantee is the landlord? 

Yes. A grantee may provide assistance to households for which the grantee is the landlord, 

provided that the grantee complies with the all provisions of the statute establishing ERA1 or 

ERA2, as applicable, the award terms, and applicable ERA guidance issued by Treasury, and that 

no preferences (beyond the prioritization described in FAQ 22) are given to households that reside 

in the grantee’s own properties. 

19. May a grantee provide assistance to a renter household with respect to utility or energy 

costs without also covering rent? 

Yes. A grantee is not required to provide assistance with respect to rent in order to provide 

assistance with respect to utility or energy costs. For ERA1, the limitations in section 501(c)(2)(B) 

of Division N of the Consolidated Appropriations Act, 2021, limiting assistance for prospective 

rent payments do not apply to the provision of utilities or home energy costs. 

20. May a grantee provide ERA assistance to homeowners to cover their mortgage, utility, 

or energy costs? 

No. ERA assistance may be provided only to eligible households, which is defined by statute to 

include only households that are obligated to pay rent on a residential dwelling. However, 

homeowners may be eligible for assistance under programs using funds under the Homeowner 

Assistance Fund, which was established by Treasury under the American Rescue Plan Act of 2021. 

21. May grantees administer ERA programs by using contractors, subrecipients, or 

intergovernmental cooperation agreements? 

Yes. Grantees may use ERA payments to make subawards to other entities, including non-profit 

organizations and local governments, to administer ERA programs on behalf of the grantees. 

The subrecipient monitoring and management requirements set forth in 2 CFR 200.331–333 will 

apply to such entities. Grantees may also enter into contracts using ERA payments for goods or 

services to implement ERA programs. Grantees must comply with the procurement standards set 

forth in 2 CFR 200.317–327 in entering into such contracts. Grantees are encouraged to achieve 

administrative efficiency and fiduciary responsibility by collaborating with other grantees in joint 

administrative solutions to deploying ERA resources. 

22. ERA requires a prioritization of assistance for households with incomes less than 50 

percent of area median income or households with one or more individuals that have not 

been employed for the 90-day period preceding the date of application. How should grantees 

prioritize assistance? 

Grantees should establish a preference system for assistance that prioritizes assistance to 

households with incomes less than 50 percent area median income8

 and to households with one or 

more members that have been unemployed for at least 90 days. Grantees should document the 

8

 For the definition of area median income, see FAQ 4 above. 
12 

preference system they plan to use and should inform all applicants about available preferences. 

Treasury will require grantees to report to Treasury on the methods they have established to 

implement this prioritization of assistance and to publicly post a description of their prioritization 

methods, including on their program web page if one exists, by July 15, 2021. 

23. ERA1 and ERA2 both allow for up to 10 percent of the funds received by a grantee to be 

used for certain housing stability services. What are some examples of these services? 

ERA1 and ERA2 have different requirements for housing stability services. 

Under ERA1, these funds may be used to provide eligible households with case management and 

other services related to the COVID-19 outbreak, as defined by the Secretary, intended to help 

keep households stably housed. 

Under ERA2, these services do not have to be related to the COVID-19 outbreak. 

For purposes of ERA1 and ERA2, housing stability services include those that enable eligible 

households to maintain or obtain housing. Such services may include, among other things, eviction 

prevention and eviction diversion programs; mediation between landlords and tenants; housing 

counseling; fair housing counseling; housing navigators or promotoras that help households access 

ERA programs or find housing; case management related to housing stability; housing-related 

services for survivors of domestic abuse or human trafficking; legal services or attorney’s fees 

related to eviction proceedings and maintaining housing stability; and specialized services for 

individuals with disabilities or seniors that support their ability to access or maintain housing. 

Grantees using ERA funds for housing stability services must maintain records regarding such 

services and the amount of funds provided to them. 

24. Are grantees required to remit interest earned on ERA payments made by Treasury? 

No. ERA payments made by Treasury to states, territories, and the District of Columbia are not 

subject to the requirement of the Cash Management Improvement Act and Treasury’s 

implementing regulations at 31 CFR part 205 to remit interest to Treasury. ERA payments made 

by Treasury to local governments, Tribes, and TDHEs are not subject to the requirement of 2 

CFR 200.305(b)(8)–(9) to maintain balances in an interest-bearing account and remit payments to 

Treasury. 

25. When may Treasury recoup ERA funds from a grantee? 

Treasury may recoup ERA funds from a grantee if the grantee does not comply with the 

applicable limitations on the use of those funds. 

26. May rental assistance be provided to temporarily displaced households living in hotels 

or motels? 

Yes. The cost of a hotel or motel room occupied by an eligible household may be covered using 

ERA assistance within the category of certain “other expenses related to housing” (as described in 
13 

FAQ 7) provided that: 

i. the household has been temporarily or permanently displaced from its primary 

residence or does not have a permanent residence elsewhere; 

ii. the total months of assistance provided to the household do not exceed the applicable 

time limit described in FAQ 10; and 

iii. documentation of the hotel or motel stay is provided and the other applicable 

requirements provided in the statute and these FAQs are met. 

The cost of the hotel or motel stay would not include expenses incidental to the charge for the 

room. 

Grantees covering the cost of such stays must develop policies and procedures detailing under 

what circumstances they would provide assistance to cover such stays. In doing so, grantees 

should consider the cost effectiveness of offering assistance for this purpose as compared to 

other uses. If a household is eligible for an existing program with narrower eligibility criteria 

that can provide similar assistance for hotel or motel stays, such as the HUD Emergency 

Solutions Grant program or FEMA Public Assistance, grantees should utilize such programs 

prior to providing similar assistance under the ERA program. 

27. May a renter subject to a “rent-to-own” agreement with a landlord be eligible for ERA 

assistance? 

A grantee may provide financial assistance to households that are renting their residence under a 

“rent-to-own” agreement, under which the renter has the option (or obligation) to purchase the 

property at the end of the lease term, provided that a member of his or her household: 

i. is not a signor or co-signor to the mortgage on the property; 

ii. does not hold the deed or title to the property; and 

iii. has not exercised the option to purchase. 

Homeowners may be eligible for assistance under programs using funds under the Homeowner 

Assistance Fund, which was established by Treasury under the American Rescue Plan Act of 

2021. 

28. Under what circumstances may households living in manufactured housing (mobile 

homes) receive assistance? 

Rental payments for either the manufactured home or the parcel of land the manufactured home 

occupies are eligible for financial assistance under ERA programs. Households renting 

manufactured housing or the parcel of land the manufactured home occupies may also receive 

assistance for utilities and other expenses related to housing, as detailed in FAQ 7 above. This 

principle also applies to mooring fees for water-based dwellings (houseboats). 
14 

29. What are the applicable limitations on administrative expenses? 

Under ERA1, not more than 10 percent of the amount paid to a grantee may be used for 

administrative costs attributable to providing financial assistance and housing stability services to 

eligible households. Under ERA2, not more than 15 percent of the amount paid to a grantee may 

be used for administrative costs attributable to providing financial assistance, housing stability 

services, and other affordable rental housing and eviction prevention activities. 

The revised award term for ERA1 issued by Treasury permits recipients to use funds provided to 

cover both direct and indirect costs. A grantee may permit a subrecipient to incur more than 10 or 

15 percent, as applicable, of the amount of the subaward issued to that subrecipient as long as the 

total of all administrative costs incurred by the grantee and all subrecipients, whether as direct or 

indirect costs, does not exceed 10 or 15 percent, as applicable, of the total amount of the award 

provided to the grantee from Treasury.) 

Further, the revised award term for ERA1 no longer requires grantees to deduct administrative 

costs charged to the award from the amount available for housing stability services. Rather, any 

direct and indirect administrative costs in ERA1 or ERA2 must be allocated by the grantee to 

either the provision of financial assistance or the provision of housing stability services. As 

required by the applicable statutes, not more than 10 percent of funds received by a grantee may be 

used to provide eligible households with housing stability services (discussed in FAQ 23). To the 

extent administrative costs are not readily allocable to one or the other of these categories, the 

grantee may assume an allocation of the relevant costs of 90 percent to financial assistance and 10 

percent to housing stability services. 

Grantees may apply their negotiated indirect cost rate to the award, but only to the extent that the 

total of the amount charged pursuant to that rate and the amount of direct costs charged to the 

award does not exceed 10 percent of the amount of the award. 

30. Should grantees provide tenants the option to apply directly for ERA assistance, rather 

than only accepting applications for assistance from landlords and owners of dwellings? 

For ERA1, Treasury strongly encourages grantees to provide an option for tenants to apply directly 

for funding, rather than only accepting applications for assistance from landlords and owners of 

dwellings. For ERA2, grantees are required to allow tenants to apply directly for assistance, even if 

the landlord or owner chooses not to participate, consistent with the statutory requirement for the 

funds to be used to provide financial assistance to eligible households. 

See FAQ 12 for additional information on grantees providing assistance to landlords and tenants. 

31. How should grantees ensure that recipients use ERA funds only for permissible 

purposes? 

Grantees should require recipients of funds under ERA programs, including tenants and landlords, 

to commit in writing to use ERA assistance only for the intended purpose before issuing a 

payment. Grantees are not required to obtain documentation evidencing the use of ERA program 
15 

funds by tenants and landlords. Grantees are expected to apply reasonable fraud- prevention 

procedures and to investigate and address potential instances of fraud or the misuse of funds that 

they become aware of. 

There may be instances when a landlord refuses to accept a payment from a tenant who has 

received assistance directly from a grantee for the purpose of paying the landlord. In these cases, 

the grantee may allow the tenant to use the assistance for other eligible costs in accordance with the 

terms of the grantee’s ERA programs. 

32. Can grantees prohibit landlords from pursuing eviction for nonpayment of rent for 

some period after receiving ERA assistance? 

With respect to landlords that receive funds under an ERA program for prospective rent or for 

rental arrearages, the grantee must prohibit the landlord from evicting the tenant for nonpayment of 

rent with respect to the period covered by the assistance. 

In addition, with respect to landlords that receive funds for rental arrears, to promote the purpose 

of the program the grantee is encouraged to prohibit the landlord from evicting the tenant for 

nonpayment of rent for some period of time, consistent with applicable law. 

In all cases, Treasury strongly encourages grantees to require landlords that receive funds under 

the ERA, as a condition of receiving the funds, not to evict tenants for nonpayment of rent for 30 

to 90 days longer than the period covered by the rental assistance. 

33. How can grantees work with other grantees to make their ERA programs consistent? 

Treasury encourages grantees with overlapping or contiguous jurisdictions to collaborate to 

develop consistent or complementary terms of their ERA programs and to coordinate in their 

communications with the public, to minimize potential confusion among tenants and landlords 

regarding assistance. Treasury also encourages grantees to reduce burdens for entities seeking 

assistance from multiple grantees across different jurisdictions, including utility providers and 

landlords with properties in multiple jurisdictions. 

34. Should a grantee require that a landlord initiate an eviction proceeding in order to apply 

for assistance under an ERA program? 

No. 

35. How can ERA assistance be used to support an eligible household moving to a new 

home? 

ERA funds may be used to provide assistance to eligible households to cover prospective 

relocation assistance, rent, and utility or home energy costs, including after an eviction. Treasury 

encourages grantees to provide prospective support to help ensure housing stability. See FAQ 7 

(regarding qualifying relocation expenses) and FAQ 10 (regarding time limits on assistance). 

Before moving into a new residence, a tenant may not yet have a rental obligation, as required by 
16 

the statutes establishing ERA1 and ERA2. In those cases, Treasury encourages grantees to provide 

otherwise eligible households with an official document specifying the amount of financial 

assistance under ERA programs that the grantee will pay a landlord on behalf of the household 

(such as for a security deposit or rent) if the landlord and the household enter into a qualifying lease 

of at least six months. Such documentation may expire after a certain period, such as 60 to 120 days 

after the issuance date. Treasury encourages grantees to work with providers of housing stability 

services to help these households identify housing that meets their needs. For purposes of reporting 

to Treasury, grantees may consider these commitments to be an obligation of funding until their 

expiration. 

36. What steps can ERA grantees take to prevent evictions for nonpayment of rent? 

Treasury strongly encourages grantees to develop partnerships with courts in their jurisdiction that 

adjudicate evictions for nonpayment of rent to help prevent evictions and develop eviction 

diversion programs. For example, grantees should consider: (1) providing information to judges, 

magistrates, court clerks, and other relevant court officials about the availability of assistance under 

ERA programs and housing stability services; (2) working with eviction courts to provide 

information about assistance under ERA programs to tenants and landlords as early in the 

adjudication process as possible; and (3) engaging providers of legal services and other housing 

stability services to assist households against which an eviction action for nonpayment of rent has 

been filed. 

37. How can grantees promote access to assistance for all eligible households? 

Grantees should address barriers that potentially eligible households may experience in accessing 

ERA programs, including by providing program documents in multiple languages, by enabling 

persons with disabilities to access the programs, and by conducting targeted outreach to populations 

with disproportionately high levels of unemployment or housing instability or that are low income. 

Grantees should also provide, either directly or through partner organizations, culturally and 

linguistically relevant outreach and housing stability services to ensure access to assistance for all 

eligible households. 

38. May grantees obtain information in bulk from utility providers and landlords with 

multiple units regarding the eligibility of multiple tenants, or bundle assistance payments for 

the benefit of multiple tenants in a single payment to a utility provider or landlord? 

Data-sharing agreements between grantees and utility providers or landlords with multiple units 

may reduce administrative burdens and enhance program integrity by providing information to 

validate tenant-provided information. Therefore, grantees may establish prudent informationsharing arrangements with utility providers and landlords for determining household eligibility. 

Grantees may also establish reasonable procedures for combining the assistance provided for 

multiple households into a single “bulk” payment made to a utility or landlord. Grantees should 

ensure that any such arrangements (1) comply with applicable privacy requirements; (2) include 

appropriate safeguards to ensure payments are made only for eligible households; and (3) are 

documented in records satisfying the grantee’s reporting requirements, including, for example, the 

amount of assistance paid for each household.” 
17 

In addition, to speed the delivery of assistance, grantees may adopt policies and procedures 

enabling landlords and utility providers to receive assistance based on reasonable estimates of 

arrears owed by multiple households, before their application and documentation requirements are 

satisfied. Specifically, a grantee may provide for payments based on such estimates if (1) the 

landlord or utility provider certifies that its estimate is reasonable based on information available to 

it at the time, (2) the grantee requires the landlord or utility provider to receive all required 

documentation within six months, and (3) the landlord or utility provider agrees in writing to return 

to the grantee any assistance the landlord or utility provider receives that the household was 

ineligible for or for which the required documentation is not received within six months. Grantees 

are encouraged to limit such payments to a portion of the landlord’s or utility provider’s estimate 

(for example, 50 or 75 percent of the estimated amount) to limit the risk of providing funds that are 

used for an ineligible purpose and subsequently must be returned. If an estimated payment is 

subsequently found to have been used for an ineligible household or an ineligible expense, or if the 

required documentation is not timely submitted, the payment will be considered an ineligible use of 

ERA funds by the grantee. 

39. If ERA program funds are used for a security deposit for a lease, to whom should the 

landlord return the security deposit at the end of the lease? 

Grantees should establish a policy with regard to the payment and disposition of security deposits, 

which should include a reasonable limit on the amount of a security deposit to be paid using ERA 

program funds. The amount of a security deposit should not exceed one month’s rent, except in 

cases where a higher amount is reasonable and customary in the local housing market. The 

treatment of security deposits is generally subject to applicable law and the rental agreement. In 

order to mitigate risks associated with the use of ERA program funds for security deposits, grantees 

should establish a minimum rental period, not less than four months, before a tenant is entitled to 

receive a returned security deposit that was paid for with ERA funds. To the extent that the security 

deposit is not returned to the tenant, it should be returned to the grantee. 

40. May ERA assistance be used for rental or utility arrears after the tenant no longer 

resides in the unit? 

In order to remove barriers a household may face in accessing new housing, a grantee may, at the 

tenant’s request, provide assistance for rental or utility arrears after an otherwise eligible tenant has 

vacated a unit. In addition to not engaging in further collection efforts regarding the arrears that are 

paid or related fees or expenses, as a condition to receiving payment, Treasury strongly encourages 

grantees to require the landlord or utility provider to agree not to pursue any further collection 

efforts against the household and ensure that any reports to credit agencies will confirm the 

matter’s resolution. In addition, grantees may consider requiring the landlord or utility provider to 

notify the tenant that payment has been received and that there will be no further collection efforts. 

41. May a grantee provide additional payments to landlords that enter into leases with 

eligible households experiencing circumstances that make it more difficult to secure rental 

housing? 

Grantees may use ERA funds to pay for an additional rental payment required by a landlord as a 
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condition to entering into a lease with a “hard-to-house” household that would not qualify under the 

landlord’s previously established, non-discriminatory, and lawful screening or occupancy policies. 

“Hard-to-house” applicants are those who, during the preceding 12 months, suffered an eviction; 

aged out of foster care or similar arrangements; were convicted of a criminal offense or released 

from incarceration; or experienced homelessness. The additional payment must be documented in 

the written lease agreement as additional rent and may not, in the aggregate, exceed one month’s 

rent (excluding the additional payment). Grantees should establish reasonable safeguards to ensure 

these additional rental payments do not incentivize landlords to adopt more stringent leasing 

policies and are otherwise compliant with any rent or security deposit restrictions imposed by state 

or local law. 

42. May a grantee provide ERA funds to another entity for the purpose of making payments 

more rapidly? 

To speed the delivery of assistance, grantees may enter into a written agreement with a nonprofit 

organization to establish a payment fund for the sole purpose of delivering assistance using ERA 

funds while a household’s application remains in process. A grantee may use such a process if: 

 The process is reserved for situations in which an expedited payment could reasonably be 

viewed as necessary to prevent an eviction or loss of utility services that precludes 

employing the grantee’s standard application and payment procedures on a timely basis. 

 The nonprofit organization has the requisite financial capacity to manage the ERA funds, 

such as being a certified community development financial institution. 

 The nonprofit organization deposits and maintains the ERA funds in a separate account that 

is not commingled with other funds. 

 The grantee receives all required application and eligibility documentation within six 

months. 

 The nonprofit organization agrees in writing to return to the grantee any assistance that the 

household was ineligible for or for which the required documentation is not received within 

six months. 

 Any funds not used by the nonprofit organization are ultimately returned to the grantee. 

If a payment made by the nonprofit organization is subsequently found to have been used for an 

ineligible household or an ineligible expense, or if the required application and eligibility 

documentation are not timely submitted, the payment will be considered an ineligible use of ERA 

funds by the grantee. Any administrative expenses attributable to a payment fund should be 

considered in accordance with FAQ 29.