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Department of Housing and Urban Development (HUD) H.R. 1, American Recovery and Reinvestment Act (ARRA) 2009

Department of Housing and Urban Development (HUD)
H.R. 1, American Recovery and Reinvestment Act (ARRA) 2009

Homeless Prevention and Rapid Re-Housing Program (HPRP)
Notice of Allocations, Application Procedures, and Requirements

Overview: On February 17, 2009, President Obama signed H.R. 1, ARRA, into law providing more than $13.6 billion to HUD. Congress designated $1.5 billion for the HPRP. The purpose of the HPRP is to provide financial assistance and services to either prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be quickly re-housed and stabilized.

On March 19, 2009, HUD issued a Notice detailing the requirements for the HPRP. The Notice may be accessed at http://www.hudhre.info/documents/HPRP_Notice_3-19-09.pdf. HUD must receive substantial amendments to the Consolidated Plan 2008 Action Plan no later than 60 days from the date of publication of the Notice, i.e. no later than May 18, 2009. HUD will complete its review of correctly completed substantial amendments no later than July 2, 2009. Funds must be obligated by September 30, 2009. Grantee must expend 60% of funds within 2 years of the date that HUD signed grant agreement. Grantee must expend 100% of funds within 3 years of the date HUD signed grant agreement.

Eligible Participants: Persons who are still housed but at risk of becoming homeless and persons who are already homeless. Whether homeless or housed, eligible participants must meet the following minimum criteria:
1.   Household must be at or below 50% of Area Median Income (HUD 2009 income limits for Los Angeles-Long Beach are $27,750 for a one-person household and $39,650 for a four-person household)
2.   Household must be either homeless or at risk of losing housing and meet both of the following criteria: (a) no appropriate subsequent housing options have been identified; AND (b) household lacks the financial resources and support networks needed to obtain immediate housing or remain in existing housing

Prevention Assistance: Targets individuals and families who are currently in housing but at risk of becoming homeless and need temporary rent or utility assistance to prevent them from becoming homeless or assistance to move to another unit. To aid with identification of potential participants, HUD has provided a list of risk factors that might be considered by grantees as they develop programs.   See Section IV.D.3. of the Notice (pages 23-25).

Rapid Re-Housing Assistance: Targets homeless individuals and families who need temporary assistance in order to obtain housing and retain it. Persons that meet one of the following criteria, along with the minimum requirements noted above, are eligible: (a) Sleeping in an emergency shelter; (b) Sleeping in a place not meant for human habitation; (c) Staying in a hospital or other institution for up to 180 days but was sleeping in a shelter or other place not meant for human habitation immediately prior to entry into the hospital or institution; (d) Graduating from or timing out of a transitional housing program; (e) Victims of domestic violence.

Ineligible Activities: HPRP funds cannot be used to pay for any mortgage costs or legal or other fees associated with retaining homeowners’ housing. Financial assistance or services to pay for expenses that are available through other ARRA programs, including childcare and employment training, is not eligible. See Section IV.B. of the Notice.

Eligible Activities: The intent of the HPRP is to provide funding for housing expenses to persons who are homeless or who would be homeless if not for this assistance. There are four categories of eligible activities for the HPRP program:   Financial Assistance, Housing Relocation and Stabilization Services, Data Collection and Evaluation, and Administrative Costs.

1. Financial Assistance is limited to short-term rental assistance, medium-term rental assistance, security deposits, utility deposits, utility payments, moving cost assistance, and motel and hotel vouchers. See Section IV.A.1. of the Notice.

Short-term and medium-term rental assistance: Short-term rental assistance may not exceed rental costs accrued over a period of 3 months.   Medium-term rental assistance may not exceed actual rental costs accrued over a period of 4 to 18 months. No program participant may receive more than 18 months of assistance under HPRP. Furthermore, HUD requires grantees and/or subgrantees to evaluate and certify the eligibility of participants at least once every 3 months for all persons receiving medium term rental assistance. Grantee may set a maximum amount of assistance or set a maximum number of times that an individual or family may receive assistance.

Rental assistance may also be used to pay up to 6 months of rental arrears for eligible program participants (these rental arrears payment must be factored when determining a participant’s total program period, which may not exceed 18 months).

Note that rental assistance payments cannot be made on behalf of eligible individuals or families for the same period of time and for the same cost types (i.e. rent, security deposits, utility deposits, utility payments, moving cost assistance, and motel and hotel vouchers) that are being provided through another federal, state or local housing subsidy program.

Security and utility deposits: Security and utility deposits can be made on behalf of eligible individuals for the same period of time in which assistance is being provided through another housing subsidy program, as long as separate cost types are being covered.

Utility payments: HPRP funds may be used for up to 18 months of utility payments, including up to 6 months of utility payments in arrears.

Moving cost assistance: HPRP funds may be used for reasonable moving costs, such as truck rental, hiring a moving company, or short-term storage fees for a maximum of 3 months.

Motel and hotel vouchers: HPRP funds may be used for reasonable and appropriate motel and hotel vouchers for up to 30 days.

2. Housing Relocation and Stabilization Services are limited to case management, outreach and engagement, housing search and placement, legal services, and credit repair. See Section IV.A.2. of the Notice.

Case management: Activities include counseling; developing, securing, and coordinating services; monitoring and evaluating program participant progress; protecting participants’ rights; developing an individualized housing and service plan.

Outreach and engagement: Services or assistance designed to publicize the availability of programs.

Housing search and placement: Services or activities designed to assist individuals or families in locating, obtaining and retaining suitable housing. These include tenant counseling; assisting participants to understand leases; securing utilities; making moving arrangements; representative payee services concerning rent and utilities; mediation and outreach to property owners related to locating and retaining housing.

Legal services: Services or activities provided by a lawyer or other person(s) under the supervision of a lawyer to help people stay in their homes. Legal advice and representation in administrative and court proceedings related to tenant/landlord matters or housing issues. Legal services related to mortgages are not eligible.

Credit repair: Services that are targeted to assist program participants with critical skills related to household budgeting, money management, accessing a free personal credit report, and resolving personal credit issues.

3. Data Collection and Evaluation. Data collection is limited to reasonable and appropriate costs associated with operating an HMIS for purposes of collecting and reporting data required under HPRP and analyzing patterns of use of HPRP. Ineligible activities include planning and development of HMIS systems, development of new software systems, and replacing state and local government funding for an existing HMIS. Grantees may be asked to participate in HUD-sponsored research and evaluation of HPRP. In that case, HPRP funds are eligible for costs of participating. See Section IV.A.3. of the Notice.

4. Administrative Costs. HPRP Funds may be used for pre-award administrative costs; accounting for the use of grant funds; preparing reports for submission to HUD; grantee or subgrantee staff salaries associated with administrative costs. See Section IV.A.4. of the Notice.

Reporting Requirements: Grantees are not required to report on uses of HPRP funds in their Consolidated Annual Performance and Evaluation Report (CAPER). The ARRA requires grantees to submit reports that will be used for postings on the Recovery.gov web site. Further information on reporting requirements may be found in Section VI. of the Notice.

Technical Assistance: On March 23, 2009, HUD will launch the HPRP Virtual Help Desk to answer questions about the program. See HUD’s Homelessness Resource Exchange website http://www.hudhre.info/index.cfm?do=viewHomelessPreventionFund for more information.