HomeMy WebLinkAbout4b. Emergency Rental Assistance ProgramEMERGENCY RENTAL ASSISTANCE PROGRAM (ERAP)
Victor Turner, Director
Neighborhood Services Dept.
City Council Work Session
March 2, 2021
Background
In December 2020, the Texas Department of Housing and Community Affairs (TDHCA) made
available $35.4 million in CDBG-CV funds to entitlement communities
Localities with existing COVID-19 rental assistance programs and indicated an interest to
participate in the Texas Emergency Rental Assistance Program (TERAP) were eligible to apply
TERAP assists households that are unable to pay rent and utilities due to the COVID-19 pandemic
Texas Emergency Rental Assistance Program (TERAP)
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TEXAS EMERGENCY RENTAL ASSISTANCE PROGRAM (TERAP)
A COMMUNITY DEVELOPMENT BLOCK GRANT CARES ACT (CDBG-CV) PROGRAM
Rent Payment
•Up to 6 consecutive months –(Includes rental arrears)
•At least one month must cover a month of future rent
Duplication of Benefits
•Prohibited; Cannot have already received six months of payment from CDBG funds or another payment
method covering the same time period
Contract Term:
•January 15, 2021 –January 15, 2022
ELIGIBLE ACTIVITIES
Emergency Rental Assistance
•Tenants/Landlords voluntarily apply
•Texas Eviction Diversion Program –Apply at TexasRentRelief.com
o Tenant/Landlord are referred by Justices of the Peace after the filing of an eviction
o Tenant/Landlord voluntarily apply
•Household Income must be at or below 80% AMI
•Administration: 10%
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Background
The U.S. Department of Treasury launched the $25 billion Emergency Rental Assistance
Program (ERAP)on Jan. 5, 20201.
The program was established by the Consolidated Appropriations Act of 2021.
ERAP assists households unable to pay rent and utilities due to the COVID-19 pandemic
Eligible grantees must use the funds to provide assistance to eligible households through
existing or newly created rental assistance programs.
U.S. Treasury Emergency Rental Assistance Program
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Emergency Rental Assistance Program (ERAP)
CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL APPROPRIATIONS ACT
(12/27/20)
Available Assistance -$27.4M
•Rent
•Rental arrears
•Utilities and home energy costs
•Other expenses related to housing
Up to 12 months of assistance (ADDITIONAL 3 MONTHS, IF NECESSARY)
Existing housing-related arrears that could result in eviction of an eligible
household is prioritized:
•Arrears must be paid prior to requesting future rent payments
•Future rent payments may only be committed for up to 3 months at a time
•Households may reapply for additional assistance at the end of 3-month period, if needed and
overall limit for assistance is not exceeded
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EMERGENCY RENTAL ASSISTANCE PROGRAM (ERAP)
CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL APPROPRIATIONS ACT
(12/27/20)
Qualifies for unemployment or has experienced a reduction in household income, incurred
significant costs, or experienced a financial hardship due to COVID-19
Demonstrates a risk of experiencing homelessness or housing instability
Total Household Income: ≤ 80% AMI
Rental assistance provided to an eligible household should not be duplicative of any other
federally funded rental assistance provided to such household
•Eligible households that include an individual who has been unemployed for the 90 days prior
to application for assistance
•Eligible households with income ≤ 50% AMI
Rental Assistance Programs
Eligibility Comparison
TERAP $1,840,489 ERAP $27,484,117
Income Eligibility
Length of Assistance
Under 80% AMI
Six (6) months
Under 80% AMI
12 months; (additional 3 months possible)
Other Eligibility
Requirements
Have suffered Financial Hardship
due to COVID-19
Eligible for Unemployment Benefits or have
suffered Financial Hardship due to COVID-19;
Must show Housing Instability (past due rent
notice, etc.)
Special Program
Requirements
Units built before 1978 must be inspected
for lead-based paint if assistance covers 3
months or more
Preference for Households under 50% AMI with
over 90 days unemployment
Rent Payments Rent limited to 120%of Local FMR;
Payments made to Landlord
Payments must be made to landlord or utility
provider; Landlord can apply on tenant’s behalf
(with tenant signature on application)
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TERAP PROGRAM
AGENCY PROGRAM AMOUNT
Emergency Rental Assistance $552,146.93
Salvation Army Emergency Rental Assistance $552,146.93
Tarrant County Samaritan
Housing, Inc.Emergency Rental Assistance $552,146.94
TERAP CONTRACTS TERAP Contracts $1,656,440.80
ADMINISTRATON Administration $184,048.98
TOTAL BUDGET $1,840,489.78
STATE PROGRAM PARTNERS/ALLOCATIONS
The Salvation Army
U.S. TREASURY PROGRAM PARTNERS
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APPLICATION PROCESS
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NEXT STEPS
March 3-5, 2021 –Neighborly Software Testing for Go Live date
March 8, 2021 –Neighborly Software Go Live date
Questions