The way California defines whether or not emergency rental assistance has been “obligated” could put it at risk of forfeiting funds, a state watchdog says.
State and local governments administering emergency rental assistance programs may have to forfeit unspent funding if they do not get the money to renters by the end of the month.
While some programs have done better distributing the money than others, a recent audit of California rental assistance funds highlights a discrepancy between how the state and federal government classify the money as “obligated.” As a result of this issue, California could be at risk of losing $337 million in emergency rental aid, according to the report by California State Auditor Elaine Howle.
The U.S. Department of Treasury awarded jurisdictions in California $2.6 billion in emergency rental assistance in the first round of funding. Of that, California’s Department of Housing and Community Development is managing $1.8 billion.
Route Fifty
By Andrea Noble
SEP 24, 2021