Treasury to shift rental assistance to places with demand

The Treasury Department has announced plans to start reallocating rental assistance money in a bid to get more cash into the hands of families facing eviction

The Treasury Department on Monday announced plans to start reallocating the billions of dollars in federal rental assistance in a bid to get more money into the hands of tenants facing eviction.

The move, which was required by Congress when it allocated the monies, follows the slow distribution of rental assistance in many parts of the country. A little more than 16.5% of the tens of billions of dollars in federal assistance reached tenants in August, compared with 11% a month earlier.

Lawmakers have approved $46.5 billion in spending on rental assistance and Treasury is targeting the first tranche of money known as ERA1 which amounts to $25 billion. States and cities are mostly allocating ERA1 money, which must be spent by Sept. 30, 2022. Allocation of the second installment of $21.5 billion, can go through through Sept. 30, 2025.

The goal, Treasury officials said, is to reallocate money from those programs either don't need it or don't have the desire to set up a program.