Idaho lost millions in unused federal rent aid

BOISE — For the second time this year, Boise and Ada County have received millions in emergency rent-assistance funding from the U.S. Treasury Department, and the city has approved a new round of $6.5 million to help renters.

But the local dollars pale in comparison to the amount in federal money that went unused by the state: The U.S. Treasury took back $63.6 million in Idaho rental assistance funds.

A total of $23.8 million has now come back to the state on a local level through reallocation, according to the latest data. And this reallocation has primarily benefited one place — 98% of federal rent aid has gone to Ada County.

The only other Idaho agency to receive reallocated emergency rent assistance was the Nez Perce Tribal Housing Authority in Lapwai, which was given $500,000.

The state received about $176 million in federal aid in February 2021 through a COVID-19 economic relief package that was passed during President Donald Trump’s administration. The money was intended to help struggling renters.

Idaho was one of 13 states that then had unused federal aid involuntarily recaptured by the U.S. Treasury Department because of failure to use the funds, and its $63.6 million total was higher than all but one other state’s. South Dakota had $79.5 million taken back.

The Treasury has been reallocating that money to local governments across the country. The most recent reallocation, in March, granted $7.2 million to Boise and $5.3 million to Ada County.

In the first round of reallocation, which came in January, Boise got $7.2 million and Ada County got $3.6 million.

Last week, the Boise City Council approved $6.5 million to be given to the Boise City/Ada County Housing Authority, which will distribute it for renters who apply for assistance.

The city still has about $9.7 million in federal rent assistance — this includes money that came before the Treasury reallocations — that the council has not yet approved for use.

Through the organization’s Emergency Rental Assistance Program, assistance will be given to those who are experiencing sudden financial hardships, housing instability, loss of income or have been affected by the COVID-19 pandemic. The organization set up an application portal on its website.

To qualify, household income must not exceed 80% of the area median, which is categorized as low income. According to the Idaho Housing and Finance Association chart, low income in Boise applies to a one-person household making $42,200 or less, a two-person household making $48,200 or less or a three-person household making $54,250 or less.

The assistance, which lasts a maximum of 15 months, is sent directly to landlords and utility companies.

Boise Mayor Lauren McLean said the city has already used $15 million in federal rental assistance to aid more than 3,200 households.

“Those aren’t numbers, those are working families who were able to stay in their homes. Now, we can do even more,” McLean said in a news release. “As we move out of this pandemic, people still need help with their rent.”

The U.S. Treasury Department has announced plans to begin recapturing “excess funds” in rental assistance given under a different COVID-19 relief package, President Joe Biden’s American Rescue Plan Act.

Idaho had originally been allocated $124 million in ARPA rent aid, according to Benjamin Cushman, communications coordinator for the Idaho Housing and Finance Association. Idaho received the first $50 million of that but must meet “spending thresholds” to receive the rest, Cushman said.

In March, the Idaho Legislature authorized Idaho Housing and Finance to distribute $38 million of that $50 million beginning July 1, and the state has indicated its willingness to work directly with Boise and Ada County. Idaho has asked the U.S. Treasury to approve a voluntary transfer of $16 million from the state fund to the city and county, according to Cushman.

“I want the public to understand that we are doing everything within our control and sphere of influence to ensure that as many emergency rental assistance dollars as possible stay within this state,” Maureen Brewer, Boise housing development manager, told the Idaho Statesman in a phone interview.