The HEARTH Act Changes to HUD’s Homeless Assistance Programs

1. The HEARTH Act Changes to HUD’s Homeless Assistance Programs Norm Suchar October 2009

2. HEARTH Act Enacted May 20, 2009 Changes HUD’s McKinney-Vento Homeless Assistance programs First significant reauthorization since 1992 Overview

3. Major Changes More Administrative Funding Emphasizes Prevention Rapid Re-Housing Chronic homelessness Focus on Outcomes Rural Flexibility Overview

4. Timeline Most changes take effect in the NOFA to be released in Spring/Summer 2011 Regulations recently released Public comment period Overview

5. Formula and Competitive Funding Formula (ESG) 10% Formula (ESG) 20% Competitive (CoC) 90% Competitive (CoC) 80%

6. Changes to the ESG (Formula) Program

7. 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 Another way to look at ESG changes

8. Continuum of Care (competitive) Program

9. Continuum of Care (competitive) Application

10. Continuum of Care (matching funds)

11. 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 Additional Requirements

12. HMIS = Homeless Management Information System Collaborative Applicant is responsible for ensuring that everyone participates in HMIS HMIS

13. Incentives

14. HUD HUD Unified Funding Agency Project Sponsor Project Sponsor Project Sponsor Project Sponsor Project Sponsor Project Sponsor Unified Funding Agencies

15. 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) Unified Funding Agencies

16. Rural Areas

17. 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) Rural Areas

18. Definition of Homelessness/Eligibility

19. 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 Additional Changes

20. More focus on preventing homelessness and reducing lengths of stay in homelessness. Funding will focus on homelessness prevention, permanent supportive housing, and Rapid Re-Housing. Bigger role for Collaborative Applicants Implications

21. Norm Suchar Senior Policy Analyst National Alliance to End Homelessness nsuchar@naeh.org www.endhomelessness.org Contact