McKinney-Vento Homeless Assistance Reauthorization Enacted

On May 20, President Obama signed into law the Helping Families Save Their Homes Act. The Act includes the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. HEARTH consolidates the Supportive Housing Program, Shelter Plus Care, and Moderate Rehabilitation/Single Room Occupancy programs into a single Continuum of Care (CoC) program. The Act instructs HUD to release guidance on implementing the changes made by HEARTH within 12 months of the date of enactment. Changes made by HEARTH are effective 18 months after date of enactment.

The Act renames the Emergency Shelter Grant (ESG) the Emergency Solutions Grant. The bill maintains the current funding distribution formula, expands eligible uses, and increases ESG funding to 20 percent of the amount available for homeless assistance grants. The bill makes prevention and rehousing activities eligible for ESG, including short and medium-term rental assistance, housing relocation services, and utility payment assistance. At least 40 percent of ESG funds are to be used for prevention and rehousing activities. The administrative expense allowance is increased from 5 percent to 7.5 percent.

The Act expands the definition of homelessness to include persons in danger of losing their home within 14 days, instead of the current seven, and families or unaccompanied youth living unstably. Families or unaccompanied youth fall under the definition of living unstably if they: are defined as homeless under other federal programs; have experienced a long period without living independently in permanent housing; have moved frequently; and will continue to experience instability due to disability, domestic violence or abuse, or barriers to employment.

The Act modifies the definition of chronic homelessness to include families with children.

The Act requires 30 percent of funding, nationally, be used for new permanent supportive housing for individuals with a disabling condition or families with an adult member who has a disabling condition. At least 10 percent of funding must be used for permanent housing activities for homeless families. The Act also requires HUD to provide incentives, as determined by HUD, for strategies that are proven to reduce homelessness.

The Act simplifies application criteria for rural developments and continuums. Rural applicants will be scored only in comparison to other rural applicants. At least 5 percent of total funding will be available for rural applicants, unless there are not enough qualified applications. Up to 20 percent of funding can be used for capacity building activities.

CoCs are required to provide a match equal to 25 percent of the community’s total grant.

The Act requires HUD to release the Notice of Funding Availability (NOFA) for the homeless assistance funds no more than three months after appropriations legislation is enacted and to announce awards no later than five months after applications are due.

Related Links: Bill Text, Bill Summary