Requirements and Restrictions

Some of the requirements and restrictions to keep in mind when providing rental assistance to an eligible program participant include:

  • Combining ESG Financial or Rental Assistance with Other Subsidies (§ 576.105(d) and § 576.106(c)):
    • No financial or rental assistance can be provided to a household receiving the same type of assistance from another public source for the same time period (except 6 months of the tenant’s portion of arrears).
    • Rental assistance may not be provided to program participants who are currently receiving replacement housing payments under the URA.
    • Rental assistance may be provided to an eligible program participant who is living in a housing unit developed with Low Income Housing Tax Credits or other development subsidies. Development subsidies are not considered rental assistance under ESG and therefore, they do not trigger the use with other subsidies restriction.

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

  • Compliance Regarding Late Payments (§ 576.106(f))
    • The rental assistance agreement must contain the same payment due date, grace period, and late payment penalty requirements as the program participant’s lease.
    • The recipient or subrecipient must make timely payments to owners in accordance with the rental assistance agreement.
    • The recipient or subrecipient is solely responsible for paying (with non-ESG funds) late payment penalties that it incurs.

Persons living in public housing units, using housing choice vouchers, or residing in project-based assisted units cannot receive monthly rental assistance under ESG.

For more information on rental assistance activities under the Homelessness Prevention and Rapid Re-Housing components, please refer to § 576.105-106 of the ESG Program Interim Rule and the following resources: