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Transcript of File the hearth_act_changes_to_hud_s_homeless_assistance_programs_presentation[1]
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The HEARTH Act Changes to HUD’s Homeless
Assistance ProgramsNorm SucharOctober 2009
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Overview
HEARTH Act
• Enacted May 20, 2009• Changes HUD’s McKinney-Vento Homeless
Assistance programs• First significant reauthorization since 1992
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Overview
Major Changes
• More Administrative Funding• Emphasizes
– Prevention– Rapid Re-Housing– Chronic homelessness
• Focus on Outcomes• Rural Flexibility
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Overview
Timeline
• Most changes take effect in the NOFA released in Spring/Summer 2011
• Not this NOFA or the next (Spring or Summer 2010)
• Regulations by May 2010• Public comment period
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Formula and Competitive Funding
Old (2008) New
Formula (ESG) 10%
Competitive (CoC) 90%
Competitive (CoC) 80%
Formula (ESG) 20%
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Changes to the ESG (Formula) Program
OldName: Emergency Shelter Grants
Distribution: Formula to Cities, Counties, and States
Admin: Up to 5% for administrative expenses
Eligible Activities: – Shelter renovating, rehab, conversion – Operating Emergency Shelter (limit of
10% for staffing)– Services in Shelter or for outreach (max.
30%)– Prevention (limited, targets people with
sudden loss of income, max 30%)
NewName: Emergency Solutions Grants
Distribution: Same
Admin: Up to 7.5% for administrative expenses
Eligible Activities: – Same as now plus HPRP activities
(except that prevention has to target below 30% of AMI)
– No cap on prevention, services, or staffing
– Minimum of 40% must be for prevention and Rapid Re-Housing (with a hold-harmless provision)
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Another way to look at ESG changes
New ESG = Old ESG + HPRP
• Roughly the same amount of funding for emergency shelters
• New funding for homelessness prevention and Rapid Re-Housing similar to HUD’s HPRP
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Continuum of Care (competitive) Program
Old3 programs• Supportive Housing Program
(SHP)—including permanent supportive housing, transitional housing, safe havens, and supportive services only projects
• Shelter Plus Care (SPC)—rental subsidies for permanent supportive housing
• Mod. Rehab./SRO—seldom used, provides long-term rental subsidies for moderate rehabilitation of single room occupancy buildings
NewSingle Continuum of Care program • Includes all of the eligible
activities of the 3 former programs
• More flexibility for mixing and matching eligible activities
• Explicitly specifies re-housing services as an eligible activity
• Up to 10 percent for admin. Costs (previous amount was 5% for SHP and 8% for SPC
• Reasonable costs for staff training
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Continuum of Care (competitive) Application
Old• Providers in community jointly
apply for funding• Stakeholders in community
review and rank applications• Application has two parts
– Exhibit 1 is the community wide part, which includes information about the number of homeless people, community resources and gaps, and capacity to administer homeless assistance
– Exhibit 2 includes individual project applications
New• Similar to existing process. • Application will be submitted by
Collaborative Applicant, which will be eligible for 3% of the communities award for admin.
• Application will be more focused on performance, including:
– Reducing lengths of homeless episodes
– Reducing recidivism back into homelessness
– Reducing the number of people who become homeless
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Continuum of Care (matching funds)
OldMatch requirement varies depending on activity
– 25% for services, must be cash
– 100% for rental assistance, must be in-kind services
– 100% for construction/rehab
– 33% for operating expenses
– No match for leasing
NewUniform 25% match except for leasing projects
– Match can be community-wide, meaning some projects can have higher matches to offset projects with lower matches
– Match can be cash or in-kind when documented by Memorandum of Understanding
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Additional Requirements
• Projects that serve families cannot refuse to serve families because of the age of the children (i.e. must serve families with adolescent children)
• Projects must identify person who will be responsible for coordinating child’s education
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HMIS
• HMIS = Homeless Management Information System
• Collaborative Applicant is responsible for ensuring that everyone participates in HMIS
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Incentives
Old• Communities that score well on
their application are eligible for a bonus permanent supportive housing project.
• In some years, the bonus project had to serve individuals without children experiencing chronic homelessness.
NewCommunities that score well will be eligible for a bonus for proven strategies, including—
– Permanent supportive housing for individuals or families with children experiencing chronic homelessness
– Rapid Re-Housing that serves homeless families
– Other activities that HUD determines are effective at reducing homelessness
– Communities that fully implement a proven strategy can receive a bonus to do whatever they determine is necessary
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Unified Funding Agencies
OldEach project submits to HUD an application for funding, and HUD enters into a contract with each project sponsor
NewCommunities may designate a Unified Funding Agency to receive a direct grant from HUD and then subgrant to project sponsors
Project Sponsor
Project Sponsor
Project Sponsor
HUD
Project Sponsor
Project Sponsor
Project Sponsor
HUDUnified Funding
Agency
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Unified Funding Agencies
• A Collaborative Applicant could apply to become a Unified Funding Agency (UFA) or HUD could designate a Collaborative Applicant as a UFA
• UFAs would be responsible for ensuring audits and appropriate fiscal controls
• UFAs would be eligible for up to 3% of a communities award for administrative expenses (on top of the 3% that a collaborative applicant could receive)
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Rural Areas
Old• Rural homelessness program
was never funded.• Rural Applicants were treated
the same as other applicants
NewRural Continuums of Care may apply for funding under a different more flexible set of conditions
– Allowed to serve people who are homeless or at risk of homelessness with their competitive funding
– May use up to 20% of funding for capacity building
– Compete with other rural programs for funding
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Rural Areas
Rural area defined as—• Being located in a rural state (Alaska, Idaho, Montana,
Nebraska, Nevada, New Mexico, North Dakota, South Dakota, or Wyoming);
• Being a CoC with no Metropolitan Statistical Areas; or• Being in a CoC with only a rural part of an MSA included
in the boundary (HUD will provide more specific definitions later)
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Definition of Homelessness/Eligibility
OldExcept for a small amount for prevention, homeless assistance could only serve homeless people which includes people living in the following places
– On the streets or in a place not meant for human habitation
– In an emergency shelter
– In a transitional housing program
– In housing, but being evicted within 7 days and not having resources or support networks to obtain housing
– Fleeing domestic violence
NewESG funding can be used to serve people at risk of homelessness. All programs can serve homeless people, including those previously considered homeless and
– People who are losing their housing in 14 days and lack support networks or resources to obtain housing
– People who have moved from place to place and are likely to continue to do so because of disability or other barriers
Communities may use up to 10% (more in some cases) of CoC funds to serve people who are living doubled up, or in motels.
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Additional Changes
• Bigger capital grants• Non-competitive renewals for PSH• 15-year contracts subject to funding for project-based
PSH• All Permanent Housing Activities are adjusted for
inflation at renewal
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Implications
1. More focus on preventing homelessness and reducing lengths of stay in homelessness.
2. Funding will focus on homelessness prevention, permanent supportive housing, and Rapid Re-Housing.
3. Bigger role for Collaborative Applicants
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Contact
Norm Suchar
Senior Policy Analyst
National Alliance to End Homelessness
www.endhomelessness.org