Authored by Monique Caston
There are several funding sources in the American Rescue Plan Act of 2021 (ARP), including Fiscal Recovery Funds (FRF), to finance housing needs in your community. Below are some resources to consider:
Title III of the ARP appropriates emergency funding to assist with mitigating housing-related hardships of those that have been negatively impacted by the pandemic. Just over half of that is Emergency Rental Assistance, while nearly $10 billion is earmarked for the Homeowner Assistance Fund (HAF)* and an additional $5 billion is for homelessness assistance and supportive services programs.
To receive FRF allocations, state, local, tribal and territorial government agencies are required to submit a request for funds through the U.S. Department of Treasury's (Treasury) submission portal. Additionally, $19.53 billion is set aside to support non-entitlement units of local government (NEUs) with populations under 50,000. Treasury will allocate funding for NEUs directly to states and territories, which will then distribute funds to eligible NEUs within their region. Each state and territory will have its own defined funding request process that NEUs must follow to receive FRF payments. At this time, there is no deadline for state, local, tribal and territorial government agencies to apply for FRF allocations; funding requests are being received on a rolling basis. However, individual states and territories may have set deadlines for NEUs to request FRF payments.
FRF allocations may be used in response to the negative economic impacts of the COVID-19 public health emergency. To address the immediate economic impacts of the COVID-19 pandemic on housing insecurity, in addition to emergency rental and mortgage assistance, FRF funds can also be used for housing counseling, expenses related to housing, supportive services and towards the development and/or rehabilitation of affordable housing.
*UPDATE ON HAF PLANS: Treasury is extending the deadline for states and territories to either submit HAF plans or notify Treasury of the date by which their HAF plan will be submitted from June 30, 2021, to July 31, 2021. This deadline does not apply to tribal governments.
For more information, or to learn how Baker Tilly’s public sector specialists can help your organization, contact our team.