Building the ability to disperse billions in rental aid assistance in the US

Congress has allocated billions for rental aid assistance amid COVID-19 but it takes time and infrastructure to distribute it to American renters:

Photo by Pavel Danilyuk on Pexels.com

With millions of Americans out of work due to the pandemic, the eviction moratorium helped keep people in their homes — but it also put a squeeze on landlords. To help, between the December and March COVID relief packages, Congress approved more than $46 billion in rental assistance. Exact amounts renters and landlords can receive depend on their income and where they live, but renters could get enough to cover rent from as far back as March 13, 2020, unpaid utilities and even, in some cases, future rent.

But by the end of May, only $1.5 billion had gone out. And officials are racing against the clock: The federal eviction moratorium ends July 31…

“While we have substantial funds through the American Rescue Plan, we as a nation have never had a national infrastructure to prevent unnecessary evictions,” White House American Rescue Plan Coordinator Gene Sperling said recently during an eviction prevention summit.

While there had been some state and local rental assistance programs, the scale of this program was beyond what they’d handled, a Treasury official said. State and local entities had to build IT systems and hire staff. Some programs did not even open until May or June — but since opening, a Treasury spokesperson said, there has been an exponential increase in renters getting money. Landlords and renters can apply directly for funds through their states, counties and in some cases tribal authorities depending on where they live.

Unprecedented times lead to unprecedented processes? Putting the money into the right hands in a timely manner is no easy task. The steps include:

-approving the monies and making it available

-letting people know that the money is available

-encouraging applications

-processing applications

-disbursing funds

-applying the funds to rent

-overseeing the program during the process and afterward

If it comes together, millions of Americans will be able to stay in their housing and landlords will rent they were waiting for.

Now, to tackle the broader issues of affordable housing in helpful locations…

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