The American Rescue Plan Act (ARPA) allocated an unprecedented $350 billion in Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to states, counties, tribal governments, and cities to address the pandemic’s disproportionate public health and economic impacts on communities and households.

These funds can be used to address housing-related needs, from assisting households with rent, mortgage, utility, and relocation costs to supporting affordable housing development in areas most affected by the pandemic.

Given housing market challenges leading up to and during the pandemic—particularly for households of color, who are more likely to be cost burdened, face worst-case housing needs, and endure the disproportionate threat of eviction or foreclosure—these funds could make a big difference in recovery for these households.

To assess whether SLFRF allocations have empowered cities to develop new solutions to persistent housing challenges, we examined publicly available recovery plans for cities with populations of 250,000 or greater and with four or more census tracts with a rental assistance priority index score in the 99th percentile in the city or county, which indicates neighborhoods where low-income renters face greater risks of housing instability and homelessness. This resulted in a review of 29 cities across the US (file).

Based on the “allowable uses” in the US Department of the Treasury’s guidance (PDF), we categorized “housing uses” by the following:

  • emergency rental or utility assistance
  • eviction prevention and diversion programs, including legal services
  • emergency mortgage assistance and foreclosure prevention programs
  • housing vouchers
  • residential counseling or housing navigation assistance
  • affordable housing development, preservation, and rehabilitation
  • homelessness prevention services
  • other housing-related uses and supports

Read the full article about fiscal recovery funds for urban cities by Kathryn Reynolds, Katharine Elder, and Mikaela at Urban Institute.