Prevention and Re-housing Assistance:
The New Emergency Solutions Grant
S. 808, the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, was introduced by Senators Reed (D-RI) and Bond (R-MO) and 12 original co-sponsors. The House version, H. R. 1877, was introduced by Representatives Moore (D-WI) and Biggert (R-IL) and 6 original co-sponsors.
As part of this reauthorization, funding for the Emergency Shelter Grant (ESG) would be distributed by the same formula to the same jurisdictions as it is now. However, there would be significant changes in the amount of funding and how that funding could be used. The new funding and program uses could provide a foundation for continuing or expanding prevention and re-housing initiatives through HPRP.
ESG would be renamed the “Emergency Solutions Grant,” signifying its shift to funding homelessness prevention and re-housing as well as emergency shelter.
Eligible activities would include the traditional shelter and outreach activities of the current ESG program, but would also include more prevention and re-housing activities – short- or medium-term rental assistance, housing relocation or stabilization services such as housing search, mediation, or outreach to property owners, legal services, credit repair, security or utility deposits, utility payments, final month rental assistance, and moving costs or other relocation or stabilization activities. These prevention activities are similar to those being funded under the Homelessness Prevention and Rapid Re-housing Program (HPRP) that is being operated by HUD as part of the American Recovery and Reinvestment Act.
Prevention and re-housing activities could serve people who are homeless or at risk of homelessness, including people who have less than 30 percent of area median income and move frequently for economic reasons, live doubled up, are facing eviction, live in a hotel or motel, live in severely overcrowded housing, or are exiting an institution.
Anybody considered homeless by other federal statutes could also be served with prevention or re-housing assistance.
Funding would increase to 20 percent of the amount available for homeless assistance.
This would be a significant increase over the existing allocation for ESG.
At least 40 percent of ESG funds would be dedicated to prevention and re-housing activities, although there is a hold-harmless provision that ensures that ESG grantees would not have to reduce funding for traditional shelter and outreach activities. In most communities, the amount of funding for emergency shelter and outreach would remain similar to current levels, but there would be much more funding for prevention and re-housing.
The maximum allowance for Administrative expenses would rise from 5 percent to 7.5 percent.
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