HUD No. 05-125MN
(312) 353-6236 ext. 2666
January 25, 2005
BUSH ADMINISTRATION ANNOUNCES RECORD $1.4 BILLION TO HELP HUNDREDS OF THOUSANDS OF HOMELESS INDIVIDUALS AND FAMILIES
HUD funds will support 100 programs in Minnesota
MINNEAPOLIS - Housing and Urban Development Secretary Alphonso Jackson today announced Minnesota will
receive $22,204,080 to provide shelter and care for persons and families without a home of their own. The funding
to Minnesota is part of more than $1.4 billion announced nationwide - the largest single commitment of federal
funds supporting an unprecedented number of local projects on the front lines of caring for people who might otherwise be living on the streets.
Jackson announced the funding at a local homeless center in Los Angeles with California Governor Arnold Schwarzenegger.
"President Bush is deeply committed to supporting our most vulnerable neighbors and today I am pleased to
reconfirm that commitment," said Jackson. "This unprecedented level of funds will go directly to those on the front lines, who work tirelessly everyday to bring an end to chronic homelessness, and who provide services to the many individuals and families without a home of their own."
This is the fourth consecutive year HUD is providing record funding for homeless assistance and is part of a larger federal strategy being embraced by a growing number of state and local communities to end long-term or chronic homelessness.
HUD's funding is provided in two ways:
- Continuum of Care grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. HUD funds will assist the Continuum of Care in Minneapolis/Hennepin County ($8,321,081), Saint Paul/Ramsey County ($5,084,191), Rochester/Southeast Minnesota ($1,713,653), Dakota County ($957,885), Northeast Minnesota ($341,723), St. Cloud/Central Minnesota ($1,194,067), Northwest Minnesota ($130,697), Coon Rapids/Anoka County ($494,931), Moorehead/West Central Minnesota ($605,766), Duluth/Saint
Louis County ($548,156), Scott, Carver Counties ($74,927), Southwest Minnesota ($25,000) and Washington County ($209,432).
- Emergency Shelter Grants convert buildings into homeless shelters, assist in the operation of local shelters
and fund related social service and homeless prevention programs. Emergency Shelter Grants in
Minnesota total $2,502,571.
Combined, HUD's Continuum of Care and Emergency Shelter Grant programs will provide critically needed funding to more than 4,400 local programs in all 50 states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. As a result, more than a quarter-million persons will receive the housing and services they need to become self-sufficient. For a more detailed local summary of the funding announced today, visit HUD's website.
More than $1.2 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs
of their homeless clients. Continuum grants fund a wide variety of programs—from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.
Emergency Shelter Grants are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to
support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are
designed to move homeless persons toward permanent housing.
Approximately $322 million of the Continuum grants awarded today will fund new and existing programs through
HUD's Shelter Plus Care program which helps to pay rent and provide permanent housing for disabled homeless individuals and their families. The Shelter Plus Care program requires that HUD-funded projects help their clients
live independently and provide needed supportive services from funding sources other than HUD.
The Goal to End Chronic Homelessness
For nearly four years, HUD has increasingly emphasized the Bush Administration's goal of ending chronic
homelessness in its assistance programs. Research indicates that approximately 10 percent of all homeless persons experience long-term or chronic homelessness, or 150,000 people. These studies also find that this hardest-to-
serve population utilizes over half of all emergency shelter resources designed to assist homeless individuals and families. By shifting the federal emphasis toward meeting the needs of the most vulnerable homeless persons, more resources become available for those who experience homelessness as a temporary condition. To learn more about chronic homelessness, visit the Internet.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.
HIGHLIGHTS OF HUD'S HOMELESS ASSISTANCE
- Largest total award of Federal funds for homeless assistance in history - more than $1.4 billion is being
awarded to an unprecedented number of projects nationally, more than 4,400. This is also the fourth
consecutive year funding for homeless assistance has increased to record levels.
- 1,089 of the project awards being announced today target individuals experiencing chronic homelessness.
Total funding to these projects will exceed $370 million, a commitment that directly supports the national
goal of ending chronic homelessness by 2012.
- Approximately half of all funding announced today, totaling $628 million, is being awarded to more than
1,100 projects that provide permanent housing solutions for homeless persons.
- More than 900 local projects that primarily serve mothers and their children will receive $220 million.
- Approximately 400 shelters that primarily serve victims of domestic violence will receive $92.6 million.
- Nearly $33.8 million is being awarded to 133 projects that primarily target homeless veterans among
those they serve.
- Nearly 1,200 of the projects funded today are dedicated to providing housing and support services to
severely mentally ill clients. These persons are at high risk of experiencing long-term or chronic
- Nearly $372 million will support 1,193 local programs that primarily help homeless individuals with
substance abuse problems.
- More than $9 million to provide job training and other employment services for homeless individuals.