Emergency Assistance for Renters Act of 2021
Bill: H.R.1725 | Sponsor: Rep. Waters, Maxine (D-CA)
Policy area: Housing and Community Development

Summary:
Emergency Assistance for Renters Act of 2021
This bill provides additional FY2021 funding for the Department of the Treasury's Emergency Rental Assistance program, which was established in response to the COVID-19 pandemic. The program provides grants to states, local governments, and territories for financial assistance to households for rent, utilities, and other housing expenses. Low-income households that are at risk of homelessness and are experiencing unemployment or financial hardship are eligible. The aggregate period of assistance a household may receive under this program may not exceed 18 months.

To provide emergency assistance for renters to respond to the COVID-19 
                   pandemic, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Assistance for Renters Act 
of 2021''.

SEC. 2. EMERGENCY RENTAL ASSISTANCE.

    (a) Funding.--
            (1) Appropriation.--In addition to amounts otherwise 
        available, there is appropriated to the Secretary of the 
        Treasury for fiscal year 2021, out of any money in the Treasury 
        not otherwise appropriated, $21,550,000,000, to remain 
        available until September 30, 2027, for making payments to 
        eligible grantees under this section.
            (2) Reservation of funds.--Of the amount appropriated under 
        paragraph (1), the Secretary shall reserve--
                    (A) $305,000,000 for making payments under this 
                section to the Commonwealth of Puerto Rico, the United 
                States Virgin Islands, Guam, the Commonwealth of the 
                Northern Mariana Islands, and American Samoa;
                    (B) $30,000,000 for costs of the Secretary for the 
                administration of emergency rental assistance programs 
                and technical assistance to recipients of any grants 
                made by the Secretary to provide financial and other 
                assistance to renters;
                    (C) $3,000,000 for administrative expenses of the 
                Inspector General relating to oversight of funds 
                provided in this section; and
                    (D) $2,500,000,000 for payments to high need 
                grantees as provided in this section.
    (b) Allocation of Funds to Eligible Grantees.--
            (1) Allocation for states and units of local government.--
                    (A) In general.--The amount appropriated under 
                paragraph (1) of subsection (a) that remains after the 
                application of paragraph (2) of such subsection shall 
                be allocated to eligible grantees described in 
                subparagraphs (A) and (B) of subsection (f)(1) in the 
                same manner as the amount appropriated under section 
                501 of subtitle A of title V of division N of the 
                Consolidated Appropriations Act, 2021 (Public Law 116-
                260) is allocated to States and units of local 
                government under subsection (b)(1) of such section, 
                except that section 501(b) of such subtitle A shall be 
                applied--
                            (i) without regard to clause (i) of 
                        paragraph (1)(A);
                            (ii) by deeming the amount appropriated 
                        under paragraph (1) of subsection (a) of this 
                        Act that remains after the application of 
                        paragraph (2) of such subsection to be the 
                        amount deemed to apply for purposes of applying 
                        clause (ii) of section 501(b)(1)(A) of such 
                        subtitle A;
                            (iii) by substituting ``$152,000,000'' for 
                        ``$200,000,000'' each place such term appears;
                            (iv) in subclause (I) of such section 
                        501(b)(1)(A)(v), by substituting ``under 
                        section 2 of the Emergency Assistance for 
                        Renters Act of 2021'' for ``under section 501 
                        of subtitle A of title V of division N of the 
                        Consolidated Appropriations Act, 2021''; and
                            (v) in subclause (II) of such section 
                        501(b)(1)(A)(v), by substituting ``local 
                        government elects to receive funds from the 
                        Secretary under section 2 of the Emergency 
                        Assistance for Renters Act of 2021 and will use 
                        the funds in a manner consistent with such 
                        section'' for ``local government elects to 
                        receive funds from the Secretary under section 
                        501 of subtitle A of title V of division N of 
                        the Consolidated Appropriations Act, 2021 and 
                        will use the funds in a manner consistent with 
                        such section''.
                    (B) Pro rata adjustment.--The Secretary shall make 
                pro rata adjustments in the amounts of the allocations 
                determined under subparagraph (A) of this paragraph for 
                entities described in such subparagraph as necessary to 
                ensure that the total amount of allocations made 
                pursuant to such subparagraph does not exceed the 
                remainder appropriated amount described in such 
                subparagraph.
            (2) Allocations for territories.--The amount reserved under 
        subsection (a)(2)(A) shall be allocated to eligible grantees 
        described in subsection (f)(1)(C) in the same manner as the 
        amount appropriated under section 501(a)(2)(A) of subtitle A of 
        title V of division N of the Consolidated Appropriations Act, 
        2021 (Public Law 116-260) is allocated under section 501(b)(3) 
        of such subtitle A to eligible grantees described under 
        subparagraph (C) of such section 501(b)(3), except that section 
        501(b)(3) of such subtitle A shall be applied--
                    (A) in subparagraph (A), by inserting ``of section 
                2 of the Emergency Assistance for Renters Act of 2021'' 
                after ``the amount reserved under subsection 
                (a)(2)(A)''; and
                    (B) in clause (i) of subparagraph (B), by 
                substituting ``the amount equal to 0.3 percent of the 
                amount appropriated under subsection (a)(1)'' with 
                ``the amount equal to 0.3 percent of the amount 
                appropriated under subsection (a)(1) of section 2 of 
                the Emergency Assistance for Renters Act of 2021''.
            (3) High-need grantees.--The Secretary shall allocate funds 
        reserved under subsection (a)(2)(D) to eligible grantees with a 
        high need for assistance under this section, with the number of 
        very low-income renter households paying more than 50 percent 
        of income on rent or living in substandard or overcrowded 
        conditions, rental market costs, and change in employment since 
        February 2020 used as the factors for allocating funds.
    (c) Payment Schedule.--
            (1) In general.--The Secretary shall pay all eligible 
        grantees not less than 40 percent of each such eligible 
        grantee's total allocation provided under subsection (b) within 
        60 days of enactment of this Act.
            (2) Subsequent payments.--The Secretary shall pay to 
        eligible grantees additional amounts in tranches up to the full 
        amount of each such eligible grantee's total allocation in 
        accordance with a procedure established by the Secretary, 
        provided that any such procedure established by the Secretary 
        shall require that an eligible grantee must have obligated not 
        less than 75 percent of the funds already disbursed by the 
        Secretary pursuant to this section prior to disbursement of 
        additional amounts.
    (d) Use of Funds.--
            (1) In general.--An eligible grantee shall only use the 
        funds provided from payments made under this section as 
        follows:
                    (A) Financial assistance.--
                            (i) In general.--Subject to clause (ii) of 
                        this subparagraph, funds received by an 
                        eligible grantee from payments made under this 
                        section shall be used to provide financial 
                        assistance to eligible households, not to 
                        exceed 18 months, including the payment of--
                                    (I) rent;
                                    (II) rental arrears;
                                    (III) utilities and home energy 
                                costs;
                                    (IV) utilities and home energy 
                                costs arrears; and
                                    (V) other expenses related to 
                                housing, as defined by the Secretary.
                            (ii) Limitation.--The aggregate amount of 
                        financial assistance an eligible household may 
                        receive under this section, when combined with 
                        financial assistance provided under section 501 
                        of subtitle A of title V of division N of the 
                        Consolidated Appropriations Act, 2021 (Public 
                        Law 116-260), shall not exceed 18 months.
                    (B) Housing stability services.--Not more than 10 
                percent of funds received by an eligible grantee from 
                payments made under this section may be used to provide 
                case management and other services intended to help 
                keep households stably housed.
                    (C) Administrative costs.--Not more than 15 percent 
                of the total amount paid to an eligible grantee under 
                this section may be used for administrative costs 
                attributable to providing financial assistance, housing 
                stability services, and other affordable rental housing 
                and eviction prevention activities, including for data 
                collection and reporting requirements related to such 
                funds.
                    (D) Other affordable rental housing and eviction 
                prevention activities.--An eligible grantee may use any 
                funds from payments made under this section that are 
                unobligated on October 1, 2022, for purposes in 
                addition to those specified in this paragraph, provided 
                that--
                            (i) such other purposes are affordable 
                        rental housing and eviction prevention 
                        purposes, as defined by the Secretary, serving 
                        very low-income families (as such term is 
                        defined in section 3(b) of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437a(b))); and
                            (ii) prior to obligating any funds for such 
                        purposes, the eligible grantee has obligated 
                        not less than 75 percent of the total funds 
                        allocated to such eligible grantee in 
                        accordance with this section.
            (2) Distribution of assistance.--Amounts appropriated under 
        subsection (a)(1) of this section shall be subject to the same 
        terms and conditions that apply under paragraph (4) of section 
        501(c) of subtitle A of title V of division N of the 
        Consolidated Appropriations Act, 2021 (Public Law 116-260) to 
        amounts appropriated under subsection (a)(1) of such section 
        501.
    (e) Reallocation of Funds.--
            (1) In general.--Beginning March 31, 2022, the Secretary 
        shall reallocate funds allocated to eligible grantees in 
        accordance with subsection (b) but not yet paid in accordance 
        with subsection (c)(2) according to a procedure established by 
        the Secretary.
            (2) Eligibility for reallocated funds.--The Secretary shall 
        require an eligible grantee to have obligated 50 percent of the 
        total amount of funds allocated to such eligible grantee under 
        subsection (b) to be eligible to receive funds reallocated 
        under paragraph (1) of this subsection.
            (3) Payment of reallocated funds by the secretary.--The 
        Secretary shall pay to each eligible grantee eligible for a 
        payment of reallocated funds described in paragraph (2) of this 
        subsection the amount allocated to such eligible grantee in 
        accordance with the procedure established by the Secretary in 
        accordance with paragraph (1) of this subsection.
            (4) Use of reallocated funds.--Eligible grantees may use 
        any funds received in accordance with this subsection only for 
        purposes specified in paragraph (1) of subsection (d).
    (f) Definitions.--In this section:
            (1) Eligible grantee.--The term ``eligible grantee'' means 
        any of the following:
                    (A) The 50 States of the United States and the 
                District of Columbia.
                    (B) A unit of local government (as defined in 
                paragraph (5)).
                    (C) The Commonwealth of Puerto Rico, the United 
                States Virgin Islands, Guam, the Commonwealth of the 
                Northern Mariana Islands, and American Samoa.
            (2) Eligible household.--The term ``eligible household'' 
        means a household of 1 or more individuals who are obligated to 
        pay rent on a residential dwelling and with respect to which 
        the eligible grantee involved determines that--
                    (A) 1 or more individuals within the household 
                has--
                            (i) qualified for unemployment benefits; or
                            (ii) 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) 1 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)).
            (3) Inspector general.--The term ``Inspector General'' 
        means the Inspector General of the Department of the Treasury.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (5) Unit of local government.--The term ``unit of local 
        government'' has the meaning given such term in section 501 of 
        subtitle A of title V of division N of the Consolidated 
        Appropriations Act, 2021 (Public Law 116-260).
    (g) Availability.--Funds provided to an eligible grantee under a 
payment made under this section shall remain available through 
September 30, 2025.
    (h) Extension of Availability Under Program for Existing Funding.--
Paragraph (1) of section 501(e) of subtitle A of title V of division N 
of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is 
amended by striking ``December 31, 2021'' and inserting ``September 30, 
2022''.
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