The US Treasury disbursed $ 2.8 billion in rent assistance in November

Signage is visible at the headquarters of the United States Department of the Treasury in Washington, DC, United States, August 29, 2020. REUTERS / Andrew Kelly / File Photo

WASHINGTON, Jan. 7 (Reuters) – The U.S. Treasury Department on Friday said it disbursed approximately $ 2.9 billion in emergency rent assistance funds to 665,000 tenants and landlords in November, setting the program on its feet for bonds of 25 to 30 billion dollars for the year 2021..

The Treasury also said it had disbursed $ 1.1 billion to communities deemed eligible for more funds as part of a reallocation process launched in late September. More than three quarters of these transfers were made through voluntary transfers between communities in the same state.

Rent assistance funding of $ 46.5 billion was approved in two COVID-19 assistance bills in December 2020 and March 2021. But the locally administered program has been slow to accelerate, some jurisdictions taking longer to launch programs and others facing less demand from tenants and landlords. .

Communities that committed at least 65% of their first-round allocation were eligible for additional funds, while those that allocated less than 30% risked losing funds.

Many communities were looking for ways to improve their performance to prevent funding allocations from being shifted elsewhere.

The largest recipient of a voluntary transfer was Indianapolis, receiving $ 91.45 million from the statewide allocation from Indiana, according to Treasury data. Milwaukee County received $ 50 million from the Wisconsin statewide allowance, while the city of Milwaukee received $ 61 million and the city of Madison received $ 35 million.

The Treasury said communities seeking second round reallocation funds have until Jan.21 to do so.

“The Treasury encourages states and communities to use other sources of funds, including the $ 350 billion Coronavirus State and Local Fiscal Recovery Funds, to provide additional support to tenants – as several communities are already doing,” the department said.

November marked a new high for disbursements and the third consecutive month above $ 2.8 billion and 500,000 beneficiaries.

Reporting by David Lawder; Editing by Leslie Adler

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