The Section 501 Emergency Rental Assistance program allows states to use certain funds to provide financial assistance to eligible households. These funds can help pay for rent, utilities, home energy expenses, and other related expenses. If eligible, your landlord or utility company will receive payments directly.
For the members of the household receiving financial assistance, the payments aren't considered taxable income. The funds are considered part of the gross income of the landlord or utility company receiving the payment on your behalf.