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HUD FY 99 Budget
Congressional Justifications
Community Planning and Development
Homeless Assistance Grants
PROGRAM HIGHLIGHTS
| NA = Not Applicable |
| a/ | Amounts shown in this justification include funds for Native American homeless assistance in 1997. Beginning in 1998, such funding is included under the Native American Block Grant, and Native American tribes will not be eligible for McKinney Act homeless assistance programs, pursuant to P.L. 104-330. |
| b/ | Renewals for Section 8 SRO vouchers are funded under the Housing Certificate Fund. |
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SUMMARY OF BUDGET ESTIMATES
1. SUMMARY OF BUDGET REQUEST
The 1999 Budget proposes $1.15 billion for Homeless Assistance, an increase of
$327 million over 1998 funding, including $958 million for Homeless Assistance Grants and
$192 million for 34,000 Incremental Section 8 Vouchers for housing for individuals or families.
These vouchers are intended for homeless individuals and families who would other have the most difficult time in securing permanent housing resources. This Budget also proposes to use up to 1 percent of the funds appropriated for technical assistance.
The requested funding of $1.15 billion reflects the still significant unmet need for this vital assistance. The best indicator of unmet need for homelessness-related assistance is the difference between the requests for HUD competitive assistance and the amounts awarded with appropriated funds. For the 1996 and 1997 continuum of care competitions, demand continued to outweigh funding availability by approximately 2.4 to one. It should further be noted that unfunded applications, while one indicator of need, do not fully account for the pent-up need. Some organizations believe that there is just not enough money to address even their most critical needs, and therefore decide that the significant investment required to compete for funds is just not worth the effort.
The proposed level of funding would lead to the creation of 15,000 additional transitional beds linked to services and 3,500 additional permanent beds linked to services. These funds would also be used to renew funding for a significant portion of the estimated 125,000 transitional and 59,000 permanent beds already funded through 1998. Further, these funds are expected to leverage other public and/or private funds at a 1:1 ratio, or more.
In addition to the $958 million grants request, $192 million is proposed for Section 8 Incremental Vouchers for permanent housing for individuals and families. This level of funding would support approximately 34,000 vouchers. This assistance is for both disabled and non-disabled people leaving continuum of care transitional facilities and will address the tremendous need for additional permanent housing. Supportive Housing Demonstration Program and Supportive Housing Program funds through 1988 are expected to provide for the development or operation of 125,000 beds of transitional housing for homeless families and individuals. On average, usage of those beds turns over every 6-9 months as people receive the services and housing they need to achieve independent living. Very frequently, however, although people are ready to graduate to permanent housing, affordable permanent housing is not available to them. These Section 8 Incremental Vouchers will offer them the resource they so desperately need to move into the housing mainstream at the point at which they are ready to do so.
Homeless assistance is the primary program that contributes to the achievement of the Department's Strategic Objective #2, "Help communities and States establish a full continuum of housing and services designed to assist homeless individuals and families achieve permanent housing and self-sufficiency." The best approach to alleviating homelessness is through a community-based process that provides a comprehensive response to the different needs of homeless individuals and families. A comprehensive and coordinated housing and service delivery approach helps communities plan for and provide a balanced response. Communities establish cost-effective continuum of care systems that identify and fill gaps in housing and services that are needed to move homeless families and individuals into permanent housing. The continuum of care system serves the specific needs of all homeless sub-populations within a particular community. It is an inclusive process that is coordinated with non-profit organizations, State and local governmental agencies, housing developers and service providers, private foundations, local businesses and the banking community, neighborhood groups, and homeless or formerly homeless persons.
A typical continuum of care would include components such as outreach and assessment to identify an individual's or family's needs and connect them to facilities and services; immediate shelter as a safe, decent alternative to the streets; transitional housing with appropriate supportive services, such as job training, job placement, child care, substance abuse treatment, mental health services and instruction in independent living skills; and permanent housing or permanent supportive housing arrangements. With a continuum of care approach, the community can design a strategy that works best to assist homeless persons and families achieve permanent housing and self-sufficiency. The continuum of care model is based on the understanding that homelessness is not caused merely by a lack of shelter, but involves a variety of unmet needs-- physical, economic, and social. HUD helps communities develop holistic systems through a community-based process that provides a comprehensive response to the different needs of homeless individuals and families.
Our primary strategy since 1993 has been to foster continuum of care systems in communities with significant homeless populations throughout the United States. This has been accomplished by including such a strategy within the framework of the Consolidated Plan and by encouraging joint applications and coordinated approaches when issuing Notices of Funding Availability for homeless assistance under the competitive programs. Columbia University's 1996 study found that substantial progress has been made in getting communities to adopt a more coordinated and comprehensive approach to addressing the needs of homeless persons. It also found that with twice the amount of funds that had previously been available, the continuum of care program helps as many as 14 times the number of homeless persons with transitional and permanent assistance as were previously assisted.
2. CHANGES FROM 1997 ESTIMATES INCLUDED IN 1998 BUDGET
Obligations decreased by $953.4 million to reflect an adjustment in the timing of obligations. Previously, the Budget reflected that all available funds would be obligated by the end of 1997. Because 1997 competitive awards were made in December 1997, (already into FY 1998), obligation of these funds are not reflected in the 1997 actuals. The $757.8 million in actual obligations reflects the obligation of 1996 and prior year competitive funds that had been carried over into 1997, as well as of the majority of the 1997 Emergency Shelter Grant formula funds. Outlays increased by $33.6 million, reflecting a technical re-estimate of the outlay of prior year balances and more efficient administration of continuum of care programs by communities.
3. CHANGES FROM ORIGINAL 1998 BUDGET ESTIMATES
Obligations are estimated to increase by $954.6 million above the Budget estimate reflecting the full obligation of grants in 1998. Outlays are also expected to increase by $134.9 million, reflecting the faster drawdown and utilization of funds by communities using the continuum of care approach.
EXPLANATION OF INCREASES AND DECREASES
This Budget proposes $1.15 billion for Homeless Assistance in 1999, including $958 million for Homeless Assistance Grants and $192 million for Incremental Section 8 Vouchers. The
$1.15 billion for Homeless Assistance Grants represents an increase of $327 million over the 1998 funding of $823 million. The anticipated decrease in obligations represents the assumption that all outstanding funds in 1998 will be obligated by the end of the year. Outlays would increase by $170 million reflecting the continued increase in spendout of the above obligations.
PROGRAM DESCRIPTION AND ACTIVITY
1. Legislative Authority. The Supportive Housing, Shelter Plus Care, Section 8 Moderate Rehabilitation (Single Room Occupancy), Rural Homeless Grants, Safe Havens and Emergency Shelter Grants homeless assistance programs are authorized under the Stewart B. McKinney Homeless Assistance Act of 1987, as amended.
2. Program Area Organization. Reducing homelessness is one of HUD's top priorities. Comprehensive community-based efforts are necessary to address homelessness. The Consolidated Plan serves as the community's basis for applying for homeless assistance, identifying its needs and inventory, assessing the needs of homeless citizens, and linking efforts to address homelessness together with other housing and community development resources. Continuum of care homeless assistance programs facilitate the effective and efficient management of HUD's homeless assistance programs by:
- Reducing and preventing homelessness by supporting the creation and maintenance of community-based, comprehensive systems dedicated to returning families and individuals to self-sufficiency;
- Assisting States and local governments, in partnership with private nonprofit service providers, to use homeless funding more efficiently and effectively;
- Simplifying and making more flexible the provision of Federal homeless assistance;
- Maximizing a community's ability to implement a comprehensive system for providing assistance to homeless families and individuals;
- Enhancing the efficient and equitable distribution of homeless assistance;
- Reducing the Federal role in local decision making for homeless assistance programs;
- Reducing the costs to governmental jurisdictions and private nonprofit organizations in applying for an using assistance; and
- Advancing the goal of meeting the needs of the homeless population through mainstream programs and establishing continuum of care systems necessary to achieve that goal.
a. Program Purpose. HUD's homeless assistance programs provide Federal support to one of the nation's most vulnerable populations. These grants assist localities in establishing systems that can address the needs of different homeless populations while providing coordinated continuum of care systems that ensure the support necessary to help those who are homeless attain permanent housing and move toward self-sufficiency.
b. Eligible Applicants/Participants. While eligibility for the individual programs varies, in general, eligible applicants/participants are States, units of local government, nonprofit organizations and public housing authorities. Broad community participation in the development and implementation of a homeless strategy is encouraged to facilitate comprehensive, effective and coordinated approaches to homelessness.
c. Eligible Activities. Recipients are authorized to carry out activities to benefit homeless individuals and families, including acquisition, rehabilitation, new construction, operations, real property leasing, tenant assistance, supportive services, administration, and capacity building. These activities support the following types of projects: Emergency Assistance (prevention, outreach and assessment, and emergency shelter); Safe Haven Housing; Transitional Housing; Permanent Housing and Permanent Supportive Housing for Homeless Persons with Disabilities; Single Room Occupancy Housing, or other projects that the Secretary determines will further the purposes of this Program.
d. Program Allocation. Emergency Shelter Grants are distributed by formula; all other funds are distributed by competition. This Budget proposes that up to 1 percent of the funds appropriated be available for Technical Assistance, which has until now been available only under the Supportive Housing Program. However, such support is necessary for grantees of all homeless assistance programs to overcome a variety of problems that hinder successful completion and implementation of projects. These include difficulties with capital financing for initial acquisition and rehabilitation; resistance from residents to homeless shelters in their neighborhoods; and coordination of project development, project operations, and ongoing service delivery. Technical Assistance in the other homeless assistance programs would improve grantees' ability to carry out the program and to support the creation and development of continuum of care systems.
3. Performance Indicators.
a. Mission. To help homeless persons and families break the cycle of homelessness; and to move homeless persons and families to permanent housing and self-sufficiency.
b. Objectives and Benchmarks. Over the next 5 years, the Department intends to accomplish two overarching objectives: to hold communities fully accountable to develop and deliver their continuum of care systems; and, to help every homeless individual and family within our programs achieve permanent housing and self-sufficiency.
Other factors, such as poverty and individual challenges exacerbate problems that cause people and families to be without homes. Coordination and collaboration of housing and supportive services, i.e., continuum of care systems, are crucial to breaking the cycle of
homelessness. The attainable goal for some homeless persons is self-sufficiency to the extent possible. To this end, two of the benchmarks under this program are to increase the number of
transitional housing beds and permanent housing units, including those that are linked to supportive services. Another is to increase the number of persons that move from transitional to permanent housing.
STATUS OF FUNDS
1. Authorization. Homeless assistance programs are authorized under the
Stewart McKinney Homeless Assistance Act of 1987, as amended.
2. Balances Available.
a. Unobligated Balances. The following table compares the program obligations with funds available by year:
b. Obligated Balances. The status of obligated balances is as follows:
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Content Archived: January 20, 2009
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U.S. Department of Housing and Urban Development
451 7th Street S.W.
Washington, DC 20410
Telephone: (202) 708-1112 TTY: (202) 708-1455 |
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