NEW ORLEANS — The Mayor’s Office of Housing Policy and Community Development (OCD) today wrapped up the first round of its successful rental and utility assistance program, which distributed over $71 million dollars to assist more than 22,000 New Orleans households. Lifted up during the height of the COVID-19 pandemic, the Emergency Rental Assistance Program (ERAP) provided rental and utility assistance using CARES Act funding and provided a much-needed lifeline to residents in a global time of uncertainty.
“The implementation of our transformative emergency rental assistance program yielded positive results for our residents on their road to recovery during and following the height of the global pandemic,” said Mayor LaToya Cantrell. “We know that COVID-19 disproportionately impacted our people, and it was through this life-changing initiative over 22,000 families were prevented from being evicted from their homes. Advocating for federal dollars that provide funding for vital resources, such as emergency rental, utility and legal assistance, has been a consistent hallmark of my administration. We remain committed to meeting our people where they are and ensuring that all residents have access to the much-needed services and support our City offers.”
In April 2020, OCD began the first rental assistance program in response to the pandemic and its economic impacts. This pilot program proved to be a success after assisting 2,500 households. In early 2021, the U.S. Department of Treasury allocated $11.6 million to the City of New Orleans for ERAP. Since its implementation, the City has expended $65.1 million by dispersing funds directly to landlords or, by default, to tenants.
By July 2021, the City successfully exhausted the initial funding received and submitted a detailed letter to Secretary of Treasury Janet Yellen requesting additional dollars to continue the program. As a result, the City received an additional $39.9 million. Round 2 of ERAP was launched with more flexible guidelines, which allowed the approval process to move more swiftly. These dollars were provided directly to tenants, giving families the ability to resolve past due rental and utility balances. To date, the City has received a total allocation $105 million for both rounds.
Additionally, in March 2022, the City was able to redirect and allocate $1.7 million of emergency rental assistance funding to residents with past due New Orleans Sewerage and Water Board (SWB) bills. These reallocated funds assisted over 1,400 residents.
The emergency rental assistance program was implemented to help residents experiencing financial challenges due to loss of wages. The program provided eligible households with rental and utility assistance to help families avoid evictions or loss of utility services, which could lead to housing displacement. Eligible households were encouraged to apply online for the duration of the program. OCD also held 12 community events to allow residents to register and receive onsite approval.
“The New Orleans Emergency Rental Assistance program has provided Orleans Parish residents with direct financial assistance to help them maintain a stable residence since the beginning of the COVID-19 pandemic,” said Tyra Johnson Brown, Director of OCD. “Over 61 percent of households are rent burdened, spending more than 30 percent of their income on housing costs. Within the last two to three years, the cost of housing has increased, and families are struggling. This program has been a lifeline to over 22,000 families, allowing them to not have to choose between paying rent and putting food on their tables.”
An ERAP recipient expressed sincere appreciation of the City’s implementation of this program to ensure housing security during the pandemic. The recipient characterized it is an amazing program that placed residents back on their feet through an easy process and expressed that everyone involved was kind and helpful in getting the assistance that was needed.
Effective immediately, Round 2 of ERAP has been suspended until May 1, 2023 to allow OCD to submit all proper documentation related to Round 1 of ERAP to the Treasury Department. The program’s second round will reopen to applicants starting May 1. All services from Round 1 will be available, excluding SWB payment assistance.
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