Recovery Act & Homelessness Prevention

As part of the American Reinvestment & Recovery Act of 2009, Congress allocated $1.5 billion to states and eligible municipalities for homelessness prevention and rapid re-housing programs.

On March 19, 2009, HUD issued a Notice (pdf) of allocations and requirements for accessing Homelessness Prevention Funds accessible through the Homelessness Prevention and Rapid Re-Housing Program (HPRP). Eligible grantees are state and local government agencies, who are in turn authorized to contract with private non-profit "sub-grantees" to implement the plans. All contracts with sub-grantees must be signed by September 30, 2009.

Target Populations

HPRP funds are to be used for homeless individuals and families (including those housed in emergency shelter), and individuals and families who are housed but at high risk for homelessness. The Notice states that HPRP "will provide temporary financial assistance and housing relocation and stabilization services to individuals and families who are homeless or would be homeless but for this assistance."

Eligible Activities

There are four categories of eligible activities: financial assistance, housing relocation and stabilization services, data collection and evaluation, and administrative costs.

Financial Assistance

Short- and medium-term rental assistance, security deposits, utility deposits, utility payments, moving cost assistance, and motel and hotel vouchers are allowable expenses.

Housing Relocation and Stabilization Services

Case management, outreach and engagement, housing search and placement, legal services, and credit repair are allowable expenses.

Ineligible Activities

Mortgage costs, construction and rehabilitation, credit card bills and consumer debt, car repair and transportation costs, travel costs, food, medical/dental, clothing/grooming, furnishings, pet care, entertainment activities, work and education materials, and direct cash assistance to program participants are not allowable expenses under HPRP.

Participant Eligibility and Requirements

Individuals and families receiving assistance must have at least an initial consultation with a case manager, be at or below 50% of area median income (AMI), homeless or at high-risk for becoming so, have no identifiable appropriate housing options, and lack the financial resources and social support networks necessary to remain in existing housing or to quickly obtain new housing.

For at-risk populations, the Notice lists a number of risk factors that may be considered. See the Notice linked above for the full list, but examples include recent or pending eviction or discharge from institutional setting, sudden and significant loss of income, extremely low income, and mental health and substance abuse issues.

New York State and Albany

New York State and cities and counties within New York State were allocated funding at the time of the Notice. New York City was authorized to receive nearly $74 million in funding. Other cities and counties across the state were authorized to receive a total of nearly $42 million. The State of New York was awarded an additional $25 million. In total, nearly $133 million in funding will be available for distribution across the state starting in September 2009. All funds must be exhausted within a three year period, with 60% being used in the first two years. Albany was allocated $1.5 million.