Housing Funding
Emergency Shelter Grants to Improve Housing Assistance
The City is eligible to receive $6,168,104 in Emergency Shelter Grants (ESG) from the U.S. Department of Housing and Urban Development (HUD). Through the ESG entitlement formula, stimulus funding will be available for Homeless Prevention and Rapid Re-housing (HPRP) services to jurisdictions.
HPRP funds are intended to be used to prevent people from becoming homeless, divert those entering the shelter system to permanent housing options and rapidly re-house those that are already homeless. All funds must be expended within three years, with sixty percent of the funds spend within the first two years.
The City will enter into a sub recipient agreement with the San Diego Housing Commission (Commission) for administration of HPRP programs and services. The Commission will also develop a Rapid Re-housing program which will target individuals/families that are already homeless. A housing advocate will provide housing location assistance to rapidly re-house persons who may not have the capacity to find housing on their own. Ideally, the housing advocate will develop a network of landlords which can serve as resources to help place families in long term rental housing. Financial assistance will be provided through a tenant Based Rental Assistance (TBRA) program which can provide up to 18 months of a rental subsidy for eligible households.
In order to receive HPRP assistance, individuals and families must meet the following minimum criteria:
- An initial consultation with a case manager for eligibility determination
- Households must be at or below 50% area median income ($41,300)
- Must be homeless or at risk of becoming homeless without this assistance
- No alternative housing options are available, nor financial resources or support networks needed to retain existing housing
Receipt of grant funds from the HUD will be in September, 2009. Initiation of contracts and initiation of service delivery will be in September, 2009 as well.
The City of San Diego would like to invite the public to a Land Use and Housing workshop that will discuss program activities and finalize a budget for the 2009 Homeless Prevention and Rapid Re-housing Program in June (more details to come soon).
Upcoming Sources of Funds
Neighborhood Stabilization: (Competitive grants through HUD)
The act sets aside $2 billion to provide funding to for purchase, rehabilitation, and re-occupancy of foreclosed homes. The program was created last year in the housing stimulus bill and the City of San Diego was awarded $9.4 million for a local NSP program. Congress decided to make the program competitive this time around. HUD is required to obligate all funding within one year and recipients must expend half of their funds within two years and all of their funding within three years. The City should be very competitive for these funds given that the housing commission already has a HUD approved program in place.
Emergency Shelter Grants: (Formula)
Under the economic stimulus plan, according to our estimates HUD will be awarding approximately $6 million in ESG grants to the City. This is a considerable increase from our $600,000 FY 2008 allocation. These funds can be used to provide funding for foreclosure prevention and re-housing; case management and social services; renovation, major rehabilitation, or conversion of buildings for use as emergency shelters or transitional housing; shelter operating costs; and related activities. The City will be required to expend at least 60 percent of funds within 2 years of fund availability, and 100 percent within 3 years.
