Examining the effectiveness and scope of the Emergency Rental Assistance, and other Funds programs
On an invitational note from the National Fair Housing Alliance, Janis Bowdler, a prominent figure within the Biden-Harris Administration, recently shared insights on racial equity and housing policies. Bowdler emphasized the administration’s commitment to fostering an inclusive economy that encourages all citizens to realize their full economic potential.
The first highlight of her discourse was the American Rescue Plan. Enacted amid the height of the pandemic, when unemployment peaked at 15% and millions of businesses closed, this policy aimed to alleviate the acute financial strains faced by millions of Americans, particularly those in communities of color.
She emphasized three pivotal programs under the Plan – the Emergency Rental Assistance program, the Homeowner Assistance Fund, and the State and Local Fiscal Recovery Funds.
The Emergency Rental Assistance program, representing the country’s first national infrastructure for eviction prevention, was established to aid families struggling with rent. By the end of 2020, one in five renting households were reportedly behind on payments. The program disbursed more than $46 billion in aid, making close to 10.8 million household payments and positively impacting the mental health of its recipients. Remarkably, over 85% of these payments were received by very low-income families.
The Homeowner Assistance Fund, which was designed to assist homeowners facing financial hardship, has reportedly made about $3.7 billion in payments to aid more than 318,000 homeowners till March 2023. Approximately half of this assistance has been provided to very low-income homeowners.
The third program discussed was the State and Local Fiscal Recovery Funds program. Authorized by the American Rescue Plan Act, it aimed to distribute $350 billion to governments across the country for their COVID-19 recovery initiatives. Significant steps were taken to ensure affordable housing, with governments permitted to use these funds to fully finance long-term affordable housing loans. As of March 2023, governments have budgeted $17 billion for close to 2,500 projects to meet housing needs and combat homelessness.
In her concluding statements, Bowdler underscored the importance of racial equity, asserting the need to acknowledge the vital contributions of communities of color, rural communities, and those impacted by pollution and climate change to the current workforce, consumer base, and home purchasing landscape. She emphasized that the Biden-Harris Administration’s housing investments were critical to building an economy that serves all Americans.
She also commended the tireless efforts of state, local, tribal, and territorial governments, non-profit and community-based organizations, industry partners, and advocates in driving these programs’ success. Bowdler concluded by expressing her gratitude towards their collaboration and partnership in this mission of creating an equitable economy.
U.S. Department of the Treasury. (2023, June 17). Treasury Announces New Initiatives to Promote Economic Growth.
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