The Emergency Solutions Grants Program (ESG): An Overview

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

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

3. Overview

4. Status of Regulatory Process 4

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

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

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.

9. HEARTH Focus on Outcomes • 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

11. The 5 Components of ESG • Street Outreach • Emergency Shelter • Homelessness Prevention • Rapid Re-Housing • HMIS

12. 1. Street Outreach Component • 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.

13. 2. Emergency Shelter Component • 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)

14. Street Outreach and Emergency Shelter Funding Ceiling • 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

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

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

17. Housing Relocation and Stabilization Services Allowable activities for both Homelessness Prevention and Rapid Re-housing components: *No financial assistance to a household for a purpose and time period supported by another public source.

18. Short/Medium-Term Rental Assistance 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 monthsof 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)

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

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.

22. Program Requirements

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

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

25. ESG Process Overview/Timeline Obligation & Expenditure Deadlines for States: • 60 days to obligate funds to subrecipients (for 2nd 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)

26. Building the Bridge: HPRP vs. ESG

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

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.

29. Focus on Rapid Re-Housing • 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

30. Next Steps

31. Implementation Questions • 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?

32. Additional Resources • 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

33. Questions?