States race to hand out billions in rent aid before federal deadline to use it or lose it

Incoming New York governor Kathy Hochul faces multiple pressing challenges when she takes the helm this month. Among the most important for many residents of her state: Distributing nearly $800 million to needy renters before the federal government takes it back.

New York State received $1.3 billion from Congress last year as part of a an initial tranche of federal rent aid. As of this week, however, less than $100 million has made it to landlords to cover what their tenants owe in back rent. Federal guidelines allow the U.S. Department of Treasury to claw back unused funding starting September 30 and reallocate it to other states' programs that have used up at least 65% of their funding. That impending deadline worries some New York housing advocates, who fear the state could lose the rent aid if it is too slow in doling it out.