February 08, 2010

The President’s FY 2011 Budget proposes $2.06 billion for homeless accounts, an 11 percent increase over the FY 2010 funding level. The Administration credits the success of HUD’s Homeless Assistance Grants programs and improvements made by the HEARTH Act, which restructured and reauthorized McKinney-Vento programs, for the increase. The Administration proposes $1.8 billion for continuum of care and rural housing stability assistance programs; $200 million for the Emergency Solutions Grants program, formerly the emergency shelter grants program; and $6 million for the national homeless data analysis project.

In the Section 8 Housing Choice Voucher account, the Administration proposes that $85 million be used for a competitive demonstration program, the Housing and Services for Homeless Persons Demonstration, to address homelessness. Two initiatives will be funded under this demonstration program.

The first initiative focuses on individuals with special needs who are homeless or at risk of homelessness. To meet both the affordable housing and services needs of these individuals, the Administration proposes a HUD and Health and Human Services (HHS) demonstration that combines Housing Choice Vouchers with health, behavioral health, and other support services to move and maintain up to 4,000 chronically homeless individuals with mental and substance use disorders into permanent supportive housing.

HHS has requested $16 million in their FY 2011 budget to provide wraparound funding through grants administered by the Substance Abuse and Mental Health Services Administration (SAMHSA). HUD and HHS will jointly design the competitive process and will conduct evaluations to determine the cost savings in the healthcare and housing systems, the ability to replicate, and the appropriate cost-sharing balance between federal agencies.

The second initiative focuses on stabilizing homeless families; it combines the efforts of HUD, HHS, and the Department of Education (DoE). Resources will be targeted to identify families who are homeless or at risk of homelessness, intervene with needed assistance, and provide tools to assist the family to escape poverty and reach its highest possible level of economic security.

HUD will set-aside 6,000 Housing Choice Vouchers for this demonstration and will design the competitive process jointly with HHS and DoE. Applicants will need to show a well-coordinated and collaborative program with their local Temporary Assistance for Needy Families (TANF) agency, public schools, and community partners.

For more information on the President’s FY 2011 Budget, see NCSHA’s budget analysis memo and funding chart.