Many other states have in recent months returned tens of millions of dollars in unused rental assistance because they have so few renters — but only Nebraska has flat out refused the aid.
States and localities have until September to spend their share of the first $25 billion allocated, known as ERA1, and the second $21.55 billion, known as ERA2, by 2025. So far, Treasury says $30 billion has been spent or allocated through February.that over $1 billion of ERA1 funds would be moved, for a total of $2.3 billion reallocated this year. Larger states like California, New York, New Jersey and Texas are getting hundreds of millions of dollars in additional money.
North Dakota returned $150 million of its $352 million, saying it couldn't effectively spend all the money by the deadline. The state believes the remaining funds are sufficient to meet the needs of those who are eligible.“Outrageous and unacceptable: turning back rental assistance funds when applications are piling up and people are being evicted," tweeted Democratic Rep. Karla Rose Hanson, of Fargo.
Meanwhile, organizations that are helping administer the rental assistance still available expect a continued need. The state has long faced a run on affordable housing, which has only been exacerbated during the pandemic. “Congress ... did not take into consideration Wyoming’s small population, income levels, actual renters’ needs, and that the majority of Wyoming households — 70% — are owner occupied,” said Rachel Girt, the state’s rental assistance communication coordinator, after the state returned $164 million out of $352 million. Another $2.8 million was shifted to the Northern Arapaho Tribal Housing Program and Eastern Shoshone Housing Authority.
But housing advocates say his decision will leave many vulnerable tenants without a lifeline. Tenants in rural areas often have access to fewer resources, including affordable housing, internet access and reliable transport.
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