ERA1 vs. ERA2 Funds, What's the Difference?
ERA1 vs. ERA2, What's the Difference?
Earlier this month, the U.S. Department of the Treasury issued revised guidance coinciding with the additional round of Emergency Rental Assistance funding. This guidance outlines requirements that Emergency Rental Assistance programs must follow in using "ERA1" funds as well as "ERA2" funds. As it pertains to our local assistance programs, all are still using ERA 1 funds, so no revisions have been made at this time.
Below we have outlined some of the most notable revisions made to funding/program criteria requirements. Please note, it is up to the interpretation of the county or municipality as to how these requirements are implemented if at all.
Q12. What outreach should be made by a grantee (program) to a housing provider or utility provider before determining that the landlord or utility provider will not accept direct payment?
ERA1 funds require programs to make reasonable efforts to obtain the cooperation of housing providers and utility providers to accept payments. Outreach to the housing/utility provider is considered complete after a number of attempts/measures have been made by the program or the housing provider confirms that they do not wish to participate.
ERA2 funds do not require programs to seek cooperation from housing/utility providers before providing assistance directly to a resident. However, in the utilization of ERA2 funds, if programs seek cooperation from the housing/utility provider before providing assistance to residents, the Treasury strongly encourages the program to apply the same ERA1 requirements.
Q30. Should grantees (programs) provide residents the option to apply directly for ERA assistance, rather than only accepting applications for assistance from housing providers?
Programs using ERA1 funds were strongly encouraged to provide an option for residents to apply for assistance rather than just accepting applications from housing/utility providers.
Programs using ERA2 funds are required to allow residents to apply directly for assistance even if the housing/utility provider does not choose to participate.
Note- All of our county/municipal programs already allow both parties to apply to participate in their programs.
These are among the most notable changes made to program requirements using ERA1 vs. ERA2 funding. For additional information on some of the more minor changes, local assistance programs, and more, please visit the links below.
U.S. Department of the Treasury Emergency Rental Assistance FAQs- Click here
Information on local emergency rental assistance programs- Click here
U.S. Department of the Treasury State and Local Program Fact Sheet- Click here