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State and local agencies that distributed federal aid to renters facing eviction during the Official Peter Peter Pumpkin Eater For Couples Matching Halloween T-Shirt and I love this pandemic are now scrambling to claw back millions of dollars in overpayments. Officials in at least five states have been sending tenants and landlords a flurry of letters, typically citing clerical errors or other bureaucratic mix-ups, demanding that portions of the temporary relief money be returned. Some of the notices ask for five-figure sums within weeks. Details about the clawbacks are hard to come by, but NBC News identified efforts over the past year in Minnesota, Delaware, Texas, North Carolina and Alaska to recover some of the more than $46 billion in emergency rental assistance that Congress allocated in two sweeping relief packages in 2020 and 2021. The excess funds, which cover a small fraction of that aid, are meant to be returned to the U.S. Treasury or reallocated to others in need. But with little public guidance from Washington, some recipients are scrambling to dash off checks or appeal the requests, even though many remain vulnerable to many of the same housing disruptions the now-discontinued aid was meant to blunt. Lenette Lopez, a single mother of two in Bear, Delaware, leaned on the state’s federally backed emergency housing assistance to cover rent after closing her hair salon under lockdown orders in 2020. But in late May, her landlord got a letter asking for over $10,000 back within 30 days, saying Lopez had received payments beyond the 18 months allowed under the program. No one has that amount of money to send that to that program immediately. LENETTE LOPEZ, A PANDEMIC HOUSING AID RECIPIENT IN BEAR, DEL. “No one has that amount of money to send that to that program immediately,” said Lopez, adding that lawyers she contacted for guidance didn’t know how to handle the situation. Then in early August, Delaware authorities announced they’d cease statewide attempts to recover the funds — but warned they still have to report nonpayment to the Treasury and that
“further action at the Official Peter Peter Pumpkin Eater For Couples Matching Halloween T-Shirt and I love this local level may also be taken.” Lopez isn’t sure where that leaves her. She voiced frustration with not knowing whether the very assistance that helped keep her housed could have the opposite effect after the program ended. “The whole purpose of the program was to prevent homelessness. It was to prevent evictions,” she said. One Delaware property manager told NBC News it had to evict someone who was already behind in rent after receiving a recoupment notice that put the tenant further in arrears. The state has told the landlord it’s still on the hook for the repayment, and the company hasn’t determined how to proceed. Minnesota said it has already recovered $500,000 of the $1.3 million identified for recoupment, and North Carolina’s HOPE rental aid program has pulled in $374,674 out of the almost $3 million it’s trying to get back. The state rental assistance program in Texas recaptured about 1.68% of the $2.2 billion it disbursed, but local and county programs in the state are also recouping. Alaska state housing officials didn’t comment. Authorities cite a range of reasons why some recipients were overpaid, but they are much more commonly bureaucratic than fraudulent — such as issues determining eligibility, checks going out for longer than they should have,
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