1. COSCDA Conference 2012 Washington, DC Michael Roanhouse, HUD March 12, 2012 The Emergency Solutions Grants Program (ESG): An Overview

2. Topics Overview of the ESG Regulation Components and Administration of ESG Program Requirements Building the Bridge: HPRP vs. ESG Substantial Amendment Process 22

3. Overview 3

4. Status of Regulatory Process 4

5. Overview of Homeless Definition Homeless definition has 4 categories: 1)Literally homeless individuals/families 2)Individuals/families who will imminently (within 14 days) lose their primary nighttime residence with no subsequent residence, resources or support networks 3)Unaccompanied youth or families with children/youth who meet the homeless definition under another federal statute and 3 additional criteria 4)Individuals/families fleeing or attempting to flee domestic violence with no subsequent residence, resources or support networks 55

6. 6 At-Risk of Homelessness definition has 3 categories applicable to: 1)Individuals and Families 2)Unaccompanied Children and Youth 3)Unaccompanied Children and Youth and their Families Overview of At Risk Definition

7. 7 FY 2012 Funding Allocation FY 2012 Allocation: $286 million * FY 2012 appropriations directed HUD to fund the ESG program for at least $250 million

8. Priorities in Developing the ESG Regulation Broaden existing emergency shelter and homelessness prevention activities. Emphasize Rapid Re-Housing. Help people quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. Enhance alignment of ESG regulations with other HUD programs – including CDBG, HOME, and Housing Choice Voucher (HCV) program. Support more coordinated and effective data collection, performance measurement, and program evaluation. 8

9. HEARTH Focus on Outcomes 9 CoC: performance measurement will focus on CoC performance as a system ESG: performance will impact CoC performance Length of time homeless Recidivism (subsequent return to homelessness) Access/coverage (thoroughness in reaching persons who are homeless) Overall reduction in number of persons who experience homelessness Job and income growth for persons who are homeless Reduction in first time homeless Other accomplishments related to reducing homelessness

10. Components and Administration of ESG 10

11. 11 1)Street Outreach 2)Emergency Shelter 3)Homelessness Prevention 4)Rapid Re-Housing 5)HMIS The 5 Components of ESG

12. 12 Serves unsheltered homeless persons Essential Services include street outreach services for: Engagement Case management Emergency health and mental health services Transportation Services for special populations* * Special Populations include Homeless Youth, Homeless Persons with HIV/AIDS, and Homeless Victims of Domestic Violence, Sexual Violence, and Stalking. 1. Street Outreach Component

13. 13 Serves people staying in emergency shelters Essential Services include: Case management Child care, education, employment, and life skills services Legal services Health, mental health, and substance abuse services Transportation Services for special populations Shelter activities include: Renovation (including major rehab or conversion) Operations (e.g., maintenance, utilities, furniture, food) 2. Emergency Shelter Component

14. 14 Street outreach and emergency shelter expenditures are capped Combined street outreach and emergency shelter expenditures from each fiscal year's ESG grant cannot exceed the greater of: ― 60% of that fiscal year's total ESG grant award ― The amount of FY 2010 grant funds committed to street outreach and emergency shelter activities Street Outreach and Emergency Shelter Funding Ceiling

15. 3. Homelessness Prevention Component Available to persons: – Below 30% of AMI – Homeless or at risk of becoming homeless Can be used: To prevent an individual or family from becoming homeless To help an individual or family regain stability in current housing or other permanent housing Eligible activities: Housing Relocation and Stabilization Services Short- and Medium-Term Rental Assistance 15

16. 4. Rapid Re-Housing Component Available to those who are literally homeless Can be used: To help a homeless individual or family move into permanent housing and achieve housing stability Eligible activities: Housing Relocation and Stabilization Services Short- and Medium-Term Rental Assistance 16

17. Housing Relocation and Stabilization Services 17 Allowable activities for both Homelessness Prevention and Rapid Re-housing components: Financial Assistance*Services Moving costs Rent application fees Security deposit Last month's rent Utility deposit Utility payments Housing search / placement Housing stability case management Mediation and legal services Credit repair/ budgeting/ money management *No financial assistance to a household for a purpose and time period supported by another public source.

18. Short/Medium-Term Rental Assistance 18 Allowable activities for both Homelessness Prevention and Rapid Re-housing components: Rental Assistance Definition: – Short-Term = up to 3 months – Medium-Term = 4 to 24 months Duration: Up to 24 months of rental assistance during any 3-year period, including one-time payment for up to 6 months of rent arrears on the tenant’s portion of the rent Type: Tenant-based or project-based

19. Short/Medium-Term Rental Assistance Standards for Both Homelessness Prevention and Rapid Re-Housing Components: FMR limits Rent reasonableness Minimum habitability standards Rental assistance agreement and lease No rental assistance to a household receiving rental assistance from another public source for same time period (except a one-time payment of up to 6 months of arrears) 19

20. Administrative Activities Eligible Administrative costs include: – Providing management, oversight, and coordination – Monitoring programs and evaluating performance – Training on ESG requirements – Preparing ESG & homelessness-related sections of the Consolidated Plan – Carrying out environmental review responsibilities State recipients must share a reasonable amount of funds for administrative costs with subrecipients that are units of general purpose local government Staff /overhead costs directly related to one of the program components are NOT subject to the administrative cost limit 20

21. Administrative Activities Amounts Up to 7.5% of grant may be used for administrative costs The 7.5% is calculated based on the entire FY 2011 allocation. IDIS will be set to allow draws up to 7.5% of the entire FY 2011 allocation. 21

22. Program Requirements 22

23. Program Requirements Required to use centralized/coordinated intake, implement ESG in coordination with CoC Coordinate with Continuums of Care on allocation of funds and performance measurements Consistency with Consolidated Plan Connecting participants with mainstream resources Regularly re-evaluating participant eligibility 23

24. Program Requirements Written standards are required to ensure consistent program administration Dollar-for-dollar match (cash or in-kind) HMIS Participation Financial reporting in IDIS Performance reporting 24

25. 25 Obligation & Expenditure Deadlines for States: 60 days to obligate funds to subrecipients (for 2 nd allocation of funds, this is 60 days from date HUD signed grant agreement amendment) Then, any subrecipients that are local governments have 120 days to obligate funds (to any non-profits or designate the local gov’t department to administer) ESG Process Overview/Timeline

26. Building the Bridge: HPRP vs. ESG 26

27. Building the Bridge: HPRP vs. ESG Communities will be able to draw upon their knowledge of and experience with HPRP to implement the new ESG. A few similarities between the two programs include: Promotion of homelessness prevention and rapid re-housing activities HPRP partners are already participating in ESG-required HMIS Both are bridge programs for the clients Emphasis on performance Larger goals of lessening the length of stay in shelters and reducing recidivism 27

28. Building the Bridge: HPRP vs. ESG Some of the important differences to note between the programs include: HPRP was a short-term stimulus program targeting individuals and families hit by the economic downturn, whereas ESG is a permanent program targeting those who are homeless for a variety of reasons ESG covers some activities not eligible under HPRP, such as emergency shelter and street outreach ESG uses the new homeless definition ESG requires greater collaboration with CoCs HPRP came with a greater level of funding ESG comes with a greater push for rapid re-housing over other program activities, such as homelessness prevention. 28

29. 29 HUD strongly encourages jurisdictions to target new funds toward assisting individuals and families living on the streets or in emergency shelter – Effective Rapid Re-housing can transition people out of homelessness quickly and decrease the overall number of people that are homeless in the community – Homelessness prevention is difficult to strategically target and potentially inefficient in reducing homelessness Rapid Re-housing should be given highest priority under ESG to ensure that existing resources – within and outside the homeless assistance system – are used as efficiently as possible Focus on Rapid Re-Housing

30. Next Steps 30

31. 31 What can we (as a community) learn from experience with Emergency Shelter Grants, and from HPRP best practices? What can we learn from challenges in implementing HPRP? What has HPRP taught us about our community’s needs? How can ESG address these needs? How will we consult and coordinate with CoC(s)? How will we ensure satisfactory HMIS participation by ESG subrecipients? How will we address unsatisfactory levels of HMIS participation? Implementation Questions

32. 32 HUD’s Homelessness Resource Exchange: www.hudhre.info – The published ESG Interim Rule with Consolidated Plan changes – Consolidated Plan Regulation (highlighting changes from the ESG Interim Rule) – Notice on application requirements FY 2011 ESG Second Allocation – ESG Helpdesk – Webinar recordings and slides – Additional guidance regarding the Consolidated Plan Regulations (user guide, FAQ, etc.) will be posted to HUD’s HRE in the near future Additional Resources

33. 33 Questions?