The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA Act), signed December 27, 2020, created the Emergency Rental Assistance Program (ERAP) with $25B.17
Less than three months later, the ARP built upon this critical relief to reduce evictions by extending and further funding that program.18 It provides an additional $21.6 billion in emergency rental assistance for low-income renters who have lost income or are experiencing other hardship and are at risk of losing their housing.19
The ERAP program (per the statutory language in its original form and in the ARP) specifically allows for a portion of the funding to be used for supportive services, even though the vast majority of the funds are to be used for direct rental assistance. Specifically, ARP states:
“Not more than 10 percent of funds received by an eligible grantee from payments made under this section may be used to provide case management and other services intended to keep households stably housed.”20
Guidance on use of funds:
Legal Aid services to assist individuals in maintaining stable housing (e.g. legal assistance in eviction proceedings) is a logical use of housing stability funds. Additionally, the U.S. Treasury has issued guidance regarding housing stability services allowed as part of the Emergency Rental Assistance Program. Specifically, the guidance states:
“Housing stability service related to the COVID-19 outbreak include those that enable eligible households to maintain or obtain housing. Such services may include housing counseling, fair housing counseling, case management related to housing stability, housing related services for survivors of domestic abuse or human trafficking, attorney’s fees related to eviction proceedings, and specialized services for individuals with disabilities or seniors that supports their ability to access or maintain housing.” 21(emphasis added)
It is also clear from the comments of many of the legislators who worked on this legislation that legal services were intended to be included. For example, Maxine Waters, California Congresswoman and Chairwoman of the U.S. House Committee on Financial Services, said in her statement for the record on the Consolidated Appropriations Act,
“The program also covers housing stability services, which should be interpreted to include case management, landlord mitigation, legal services, rehousing services, services to connect eligible households to other public supports, and referrals to other services for behavioral, emotional, and mental health.”22 (emphasis added)
Examples from other communities:
Several states and local communities – including Cuyahoga County - have already used a portion of the ERAP funding for legal services as a housing supportive service. Cuyahoga County provided Legal Aid with $1 million. Michigan, for example, spent $7 million dollars of their initial ERAP allocation on legal services for tenants.
Many more communities are expected to spend the ARP’s ERAP funding on legal services than the number that did so with initial ERAP funds. This is due in part to the U.S. Treasury’s clarification of its guidance on housing stability services with the release of the new funds. The second round of ERAP funding also has a longer timeline for use.