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File the hearth_act_changes_to_hud_s_homeless_assistance_programs_presentation[1]

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