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Texas renters stand to lose $103 million in aid unless local officials move quickly - Houston Chronicle

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Federal money meant to help keep Texans in their homes is slipping away.

Tuesday morning, Montgomery County Commissioners Court had to vote to take back $3.3 million in federal funds it had previously designated for nonprofits to distribute to landlords and renters thrown into financial straits by the pandemic. That was on top of the $7.1 million from the rent relief fund it had already given back. And that could be just the beginning - Texas is at risk of losing as much $103 million in rent relief money in the coming months, according to an analysis by the housing advocacy group Texas Housers.

Housing advocates are sounding the alarms, calling on governments like Montgomery County to take steps to keep rent relief within Texans’ reach.

The U.S. Department of Treasury has been clawing back rent relief funds from local governments that have been slow to distribute them to landlords and renters, giving the money instead to governments that have acted more quickly. (On Tuesday, Harris County Commissioners Court was scheduled to vote on officially accepting and allocating $8.6 million that Treasury had reallocated to them, which combined with Houston’s reallocation will make $13 million available to renters in the city and county.)

The Treasury had set a series of progressive deadlines, by which point funds had to distribute 30, 40, then 50 percent of their initial emergency rental assistance funding or risk having the difference taken back. Governments that spent the money quickly and have since received additional funds will not be at risk. The final deadline is the end of March, by which point local governments are expected to have distributed all of their initial emergency rental assistance funding.

But governments like Montgomery County have a way to keep their rent relief funds within their residents’ reach. They could voluntarily reallocate the money to the Texas Rent Relief Fund, which renters anywhere in the state can access. Otherwise, the money would go back to the Treasury, which would reallocate the funds as it sees fit.

“Once (they recapture) that money, no one in Texas will have any say over how those funds are use,” said Ben Martin, a senior researcher at Texas Housers. “We really feel it’s very important for Montgomery County Commissioners to make a plan now and commit to voluntarily reallocating funds to the Texas Rent Relief Fund to serve people in Texas… and to keep people housed and avoid evictions.”

The largest Texas rent relief funds that may lose funding include Hidalgo County, which could lose up to $23 million, Dallas County, which could lose up to $17.7 million, Montgomery County, which could lose up to $10.2 million, Cameron County, which could lose up to $9.8 million, Brazoria County, which could lose up to $7.5 million, McLennan County, which could lose up to $6 million, Laredo, which could lose up to $6 million and Jefferson County, which could lose up to $6 million, according to Texas Houser’s analysis.

rebecca.schuetz@chron.com;

twitter.com/raschuetz

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Texas renters stand to lose $103 million in aid unless local officials move quickly - Houston Chronicle
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