Rent Aid Program for Needy Nebraskans “On Track,” with Much of the $48M Still Available
The flow of getting funds out continues to speed up.
A once-controversial emergency rent aid program has distributed about $11 million to eligible Nebraskans, leaving more than three-quarters of the *$48 million* still available following its launch in September.
"We're pretty happy," said Shannon Harner, Executive Director of the Nebraska Investment Finance Authority (NIFA). She highlighted that getting funds out has been speeding up, which is positive news for many.
Challenges Due to High Demand
Given that the federally-provided funding had been shut off for a year, there was pent-up demand which led to some challenges early on. Extra staffing helped to improve the process, making fund distribution smoother and faster, Harner explained.
Since late September, about 1,800 applicants from almost all of Nebraska’s 91 smaller, more rural counties have received funding, according to an update from NIFA. Renters in Douglas and Lancaster counties are not eligible for this pool of funds but could apply for and distribute their own ERA aid.
Average Assistance Per Household
The average amount of assistance delivered to households in the eligible counties has been about $6,262. Sarpy County has had the most participants.
- $7 million was spent on past-due rent
- $3.8 million for future rent payments
- Some funds were also used for utilities and overdue internet bills
Diligent Distribution of Emergency Aid
Harner emphasized that NIFA and its community partners have been working hard to distribute the emergency aid to households experiencing financial hardship during the COVID-19 pandemic.
"We understand the relief and stability this program has provided to so many families across the state," she said, encouraging those who may qualify to apply.
Funds Available Until 2025
The program guidelines state that funds will be distributed until they run out or until September 2025 and do not have to be paid back. NIFA aims to disburse at least 75% of the $48 million by year-end. "We believe we are on track," Harner said.
Once the 75% mark is reached, remaining funds could be directed toward building affordable housing, a move Harner believes will have a long-term impact. The specifics of how many dwellings might be created or their forms are yet to be decided, she added.
Improved Process in Second Phase
Representatives who work with low-income families across the state say this second phase of the ERA process has been smoother compared to the first.
- Many previously complained about the cumbersome online application process managed by Deloitte, which kept many needy Nebraskans from accessing aid.
- Gov. Jim Pillen accepted the remaining funds after his election, leading to a better-managed fund distribution under NIFA's supervision.
Testimonies from Community Leaders
- Tanya Gifford from Lift Up Sarpy County noted that processing times improved to three to four weeks after initial issues.
- Araceli Santos-Ayala of McCook’s Community Action Partnership praised landlords' patience and NIFA for being responsive.
Fraud Precautions
Harner also mentioned that fraudulent applications have occasionally slowed the process. Most of these have been discovered in time, so few applicants have been turned over to state authorities.
Positive Impact on Rural Communities
Sandy Nation, a housing advocate, emphasized that the ERA program has been crucial for many families, especially in rural areas where housing is scarce. "Relieving stress and providing stability" is a significant benefit, she said, urging more people to apply even if they are unsure about their eligibility.
"The ERA program has helped so many families get past a really difficult time," Nation concluded.
For those looking to see if they qualify for assistance, details are available from NIFA and community partners across Nebraska. The funds offer a lifeline to many struggling families and aim to leave a lasting positive impact even after the immediate crisis has passed.
