FEMA Offers Full Reimbursement for Pandemic Shelter Costs—But Cities Are Still Jittery

Cities and counties have been slow to take advantage of the promise of full and retroactive FEMA reimbursement to expand emergency housing programs, frustrating housing advocates. What’s getting in the way?

2 minute read

May 16, 2021, 7:00 AM PDT

By LM_Ortiz


Over the last year, thousands of unhoused and vulnerable people have moved from the streets or congregate spaces into hotel and motel rooms thanks to a bevy of emergency housing programs aimed at reducing the spread of COVID-19. Shelterforce recently wrote about how these programs worked, and why some local governments were now purchasing hotels for long-term housing.

Though the need is still great, some of these emergency housing programs are winding down due to funding issues.

FEMA had been reimbursing cities, counties, and states 75 percent of the cost for COVID-related non-congregate shelter, but once other sources of funding ran out—like those provided by the federal CARES Act—local governments opted to shutter their hotel and motel lease programs.

There was cause for celebration earlier this year when the Biden administration announced that FEMA would provide 100 percent reimbursement for non-congregate shelter, retroactive to the start of the pandemic and through Sept. 30, 2021. Advocates said the move would make a major difference in the availability of COVID-safe shelter. “It will enable states and communities to address the urgent health and housing needs of people experiencing homelessness and other residents of congregate facilities during the pandemic,” the National Low Income Housing Coalition said in a statement after the announcement.

But cities and counties have so far been slow to take advantage of the promise of full and retroactive reimbursement to expand these emergency programs, frustrating many housing advocates. According to an investigation by Grist, only 23 local governments have submitted funding requests as of early April. What’s getting in the way?     

FEMA Fears

It turns out several things are, among them the fact that ... 

Friday, May 7, 2021 in Shelterforce Magazine

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.