CARES Program in Alabama: Who Is Eligible?

Background: How CARES Funds Reach Alabama Renters

Congress created the Emergency Rental Assistance Program in two rounds. ERA1, funded through the Consolidated Appropriations Act of 2021, allocated approximately $170 million to Alabama. ERA2, under the American Rescue Plan Act of 2021, added roughly $150 million more. These funds flow through the U.S. Treasury to state and local governments, which then distribute payments to eligible households.

In Alabama, the Department of Economic and Community Affairs serves as the primary state-level administrator, while larger cities and counties — including Huntsville, Birmingham, Mobile, and Montgomery — received direct allocations and run their own programs.

Eligibility Requirements

To qualify for CARES-funded emergency rental assistance in Alabama, a household must meet all three of the following criteria:

1. Income Below 80% of Area Median Income

At least one member of your household must have a qualifying income. For the Huntsville-Decatur-Albertville metro area, 80 percent of AMI translates to approximately $58,900 for a family of four. Single-person households have a lower threshold of around $41,250. Programs are required to prioritize applicants below 50 percent of AMI and those who have been unemployed for 90 or more days.

2. COVID-Related Financial Hardship

You must demonstrate that your household experienced financial hardship directly or indirectly related to the pandemic. This includes job loss, reduced hours or wages, increased medical expenses, childcare costs due to school closures, or the death of a household income earner. A signed self-attestation statement is typically sufficient — you do not need a formal letter from an employer.

3. Housing Instability Risk

Your household must be at risk of homelessness or housing instability. Acceptable proof includes a past-due rent notice, an eviction filing, a utility shutoff notice, or unsafe living conditions. Living in overcrowded housing or doubling up with another family also qualifies. A written statement describing your situation is accepted if you lack formal documentation.

What Expenses Are Covered

CARES-funded programs can pay for a wide range of housing-related costs. Approved expenses include:

• Past-due rent — up to 18 months of arrears dating back to March 13, 2020
• Current and future rent — up to 3 months of prospective payments, renewable up to 18 months total
• Utility bills — electricity, natural gas, water, sewer, trash removal, and propane
• Internet service — monthly broadband costs during the covered period
• Relocation costs — security deposits, first and last month rent, application fees, and moving expenses if you must relocate
• Temporary lodging — hotel or motel costs when no other shelter is available

Payments go directly to landlords and utility companies in most cases. If your landlord refuses to participate or cannot be reached after multiple documented attempts, some programs will issue payment directly to the tenant.

How to Apply

The application process follows a straightforward sequence, though timelines vary by administering agency:

1. Check availability — Call your local administering agency or dial 211 to confirm the program is still accepting applications in your county
2. Gather documents — Prepare photo ID, income verification, your lease, and proof of hardship. Review our rental assistance application guide for a detailed document checklist
3. Complete the application — Most agencies accept online, in-person, or mailed applications. Answer every question and attach all requested documents
4. Landlord verification — Your landlord will need to verify the rental amount and provide payment information. Some agencies contact the landlord directly
5. Review and payment — Processing takes 2 to 6 weeks. Payments go directly to your landlord and utility providers

For detailed guidance from the U.S. Treasury on the Emergency Rental Assistance Program, visit the Treasury Department's ERA resource page.

Current Status of CARES Funding in Alabama

The initial ERA1 and ERA2 allocations have been substantially spent across Alabama. However, several localities continue to distribute remaining funds. Huntsville, in particular, has been among the more efficient distributors in the state. If you missed earlier application windows, contact the Huntsville Housing Authority or your county's Community Action Agency to ask about any open programs.

Additionally, some Alabama cities have redirected unspent American Rescue Plan funds toward new housing stability programs that operate under similar eligibility guidelines. These newer programs may not carry the "CARES" label but serve the same population.

What If You Are Denied

If your application is denied, you have the right to know why. Common reasons include incomplete documentation, income above the threshold, or the program running out of funds. Request a written denial letter and ask about the appeals process. Many agencies allow you to resubmit with corrected information.

Even if CARES funds are unavailable, the Section 8 Housing Choice Voucher program and other ongoing assistance programs may be options worth exploring through the Huntsville Housing Authority application portal.

Frequently Asked Questions

Is the CARES program still available in Alabama?

The original CARES Act funding rounds are largely exhausted. However, remaining Emergency Rental Assistance allocations from the American Rescue Plan continue to be distributed in several Alabama counties. Call 211 or your local housing authority to check whether funds remain in your area. Newer programs funded by American Rescue Plan money may operate under similar eligibility criteria.

What expenses does the CARES program cover?

Covered expenses include up to 18 months of past-due and future rent, utility costs for electricity, gas, water, sewer, and trash, internet service bills, relocation costs such as security deposits and moving expenses, and temporary hotel or motel stays when necessary. Payments typically go directly to landlords and service providers.