Emergency Rental Assistance Frequently Asked Questions

Section 501, Division N, of the Consolidated Appropriations Act, 2021, enacted December 27, 2020, allows States and political subdivisions, U.S. territories, Indian Tribes, and the Department of Hawaiian Home Lands (“Distributing Entity”) to use certain funds allocated by the Department of the Treasury to provide emergency rental assistance (“Section 501 Emergency Rental Assistance”) to households that require financial assistance to pay rent, utilities, home energy expenses, and other related expenses.

A1: No. Section 501 Emergency Rental Assistance payments made to eligible households are not considered income to members of the household.

A2: No. Section 501 Emergency Rental Assistance payments, including payments for utilities or home energy expenses, made to eligible households are not considered income to members of the household.

A4: Yes. Section 501 Emergency Rental Assistance is intended to help eligible households that require financial assistance to pay for rent, utilities, home energy expenses, and other related expenses, and the payments are excluded from income only for those households.  Rental payments you receive, whether from your tenant or from a Distributing Entity on your tenant’s behalf through a Section 501 Emergency Rental Assistance program, are includible in your gross income.

A5: Yes. Section 501 Emergency Rental Assistance is intended to help eligible households that require financial assistance to pay for rent, utilities, home energy expenses, and other related expenses, and the payments are excluded from income only for those households.  Utility payments your company receives, whether from a customer or from a Distributing Entity on the customer’s behalf through a Section 501 Emergency Rental Assistance program, are includible in your company’s gross income.