More Rental Aid is Reaching Tenants 09/24 06:24
(AP) -- Almost a month after a federal eviction moratorium ended, the
Treasury Department said Friday that states and cities distributed money for
nearly 1.4 million payments in August and the pace picked up from the month
More than 16.5% of the tens of billions of dollars in federal rental
assistance reached tenants last month, compared with 11% in July. The latest
data from the department, which oversees the program, also found that states
and cities that were slow to get their programs off the ground are now sending
tens of millions of dollars out the door.
Treasury officials acknowledged they were not satisfied with the total
distribution. But they insisted that what has gone out so far represented
meaningful numbers and that the money was having an impact in helping keep
families in their homes.
The latest update comes as pressure is building to more quickly distribute
the money after the Supreme Court in late August allowed evictions to resume.
The court's conservative majority blocked the Biden administration from
enforcing a temporary freeze put in place because of the coronavirus pandemic.
Though evictions have not spiked in most communities, there is a concern
that millions of tenants who qualify for help could be tossed out before the
money arrives. As of Sept. 13, nearly 3.3 million people said they were very or
somewhat likely to face eviction in the next two months, according to the
Census Bureau's Household Pulse Survey. In the survey that ran through Aug. 30,
more than 3.6 million said they faced eviction.
Lawmakers approved $46.5 billion in spending on rental assistance but so far
states and cities are mostly allocating the first installment of $25 billion,
which must be spent by Sept. 30, 2022. Allocation of the second installment of
$21.5 billion, can go through through Sept. 30, 2025.
Treasury officials said the strong signs of progress came from New Jersey,
New York and South Carolina, which have struggled to get their programs going.
New Jersey, for example, sent out no money in the first quarter but now has
distributed 78% of its first-installment money and doubled the number of
households served in August compared with July.
Spending in Florida increased from $60.9 million in July to $141.4 million
in August while South Carolina went from $10.6 million to $25.3 million. New
York saw a jump from $8.5 million to $307 million.
Among cities and counties, New York, Los Angeles and Miami-Dade County in
Florida collective reached nearly 27,000 households and spent more than $347
million in August, compared with $800,000 in May.
But there were laggards.
Ohio, which started strong, saw its distribution decline slightly. Kentucky
saw a slight drop in spending from $13.1 million in July to $11.9 million in
August. Iowa only distributed $7 million in August.
"Nearly 1.5 million families helped is meaningful progress, but the overall
rate of spending emergency rental assistance remains too slow," Diane Yentel,
CEO of the National Low Income Housing Coalition, said in a statement.
Housing advocates blamed the slow rollout on the Treasury Department under
President Donald Trump, saying his administration was slow to explain how the
money could be spent. They say the guidance is clearer from the Biden
administration but the process still seems more focused on preventing fraud
than helping tenants.
The Treasury Department credited the increased spending in August to changes
that allow tenants to assess their income and risk of becoming homeless, among
other criteria. Many states and local government, fearing fraud, have measures
in place that can take weeks to verify an applicant qualifies for help.