Ohio transfers federal COVID-19 rental help to urban counties
More than $100 million of federal COVID-19 emergency rental assistance that was at risk of being sent out of Ohio will stay within the state, the Ohio Department of Development said this month.
However, every dollar that’s not spent by the end of March 31 could be taken away from the state government.
Around half of that $100 million amount is being transferred from the state government to Cuyahoga County. Summit County will get $15 million, Hamilton County will get $5 million and the rest will go toward the city of Toledo, the city of Cleveland and Lorain County.
Ohio was at risk of losing that money because the U.S. Treasury has been reallocating rental aid to governments doing a faster job of kicking the funds out to people behind on rent due to COVID-19’s economic fallout. Ohio volunteered to move those funds to faster-spending localities within the state.
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Ohio hovers near the bottom among state governments in its pace of distributing money to renters in need. According to the latest national data at the end of January, the Buckeye State ranked above 12 other states, expending 29% of almost all of its initial $560 million allocation.
The state had decided to distribute the money using community action agencies, local organizations assisting those in poverty. But like many other sectors of society, they faced challenges such as staffing shortages and COVID-19 infections.
Phil Cole, executive director of the Ohio Association of Community Agencies, said agencies have done a good job, considering the red tape surrounding the aid.
He noted that the state received the money much later than local governments did. Plus, community action agencies were also tasked with spending local governments’ portion of rental aid, with many choosing to spend that first before the state’s.
“It is all a business decision and people are being helped,” Cole said in an email.
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The Ohio Department of Development is still working on an online, central platform for people who need rental assistance to apply. The department did not respond by Wednesday with updated data, but there is at most around $260 million left absent spending numbers in February and March.
However, the federal government will be doing one final reallocation based on spending data ending March 31. Anything unspent could go to faster-spending local governments within Ohio and if not, toward other states.
“We’re not sure the local governments in Ohio will be able to absorb more of the state’s unspent ERA1 funds,” said Marcus Roth, who works at the Coalition of Homelessness and Housing in Ohio.
In addition to the newly received $100 million, some cities and counties are also beginning to work through a second tranche of rental assistance money.
While anything unspent by end of Thursday will be considered transferrable, it’s unlikely the U.S. Treasury will immediately take everything away. The final deadline is the end of September when the funds expire.
Titus Wu is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
Read More: Ohio transfers federal COVID-19 rental help to urban counties