HUD's FY99 Budget
Congressional Justifications
Office of Housing

Congregate Services Program

PROGRAM HIGHLIGHTS

NA = Not Applicable.

SUMMARY OF BUDGET ESTIMATES

1. SUMMARY OF BUDGET REQUEST

No appropriation is requested for a stand-alone Congregate Services program in 1999. Congregate services will be funded as an eligible activity under the Resident Opportunity and Supportive Services (ROSS) set-aside within the Community Development Block Grants (CDBG) program. The request of $7 million under the Resident Opportunity and Supportive Services set-aside will be used to extend, for a 1-year term, contracts which will expire in 1998 and 1999 contracts.

2. CHANGES FROM 1997 ESTIMATES INCLUDED IN 1998 BUDGET

The fiscal year 1998 Budget assumed that carryover of $88 thousand would be used in 1997 to amend existing projects. A total of $46 thousand was used and the remaining balance of $42 thousand is carried over into 1998 and will remain available for contract amendments.

3. CHANGES FROM ORIGINAL 1998 BUDGET ESTIMATES

During fiscal year 1998, $3.1 million will be used from the Supportive Services set-aside under the CDBG program to extend expiring Congregate Services contracts for a 1-year term during 1998.

EXPLANATION OF INCREASES AND DECREASES

Housing is requesting funding within the Resident Opportunity and Supportive Services set-side. It is currently estimated that $7 million will be required in 1999 to fund 1998 and 1999 expiring congregate services contracts for a 1-year term. Outlays from prior year obligated balances and 1998 obligations, under the Congregate Services account, are estimated at $7 million for fiscal years 1997-1999. The remaining $1 million of prior year obligated balances, under the Congregate Services account, will be disbursed in year 2000.

PROGRAM DESCRIPTION

The Congregate Housing Services program was authorized by the Housing and Community Development Amendments of 1978 to provide 3- to 5-year contracts to fund services for eligible residents of Public Housing and Section 202 Housing for the Elderly or Handicapped projects. The intent was to avoid costly and premature or unnecessary institutionalization of individuals and to reduce Government outlays for institutional care. The program was revised in 1992 to add other assisted housing programs.

The services provided are limited to those that are not currently available in each area. HUD requires at least one full meal each day and a service coordinator in all projects. Housekeeping, personal assistance and other services deemed essential for individuals to maintain semi-independent living also are eligible for funding.

PROGRAM ACTIVITY

One-hundred thirteen projects are participating in the program. Approximately 4,000 residents receive services. No new congregate services contracts are being awarded with the funds requested for 1999 under the Supportive Services set-aside within the Community Development Block Grants program. The 1999 requested funding will be used to simply extend the existing contracts for a 1-year term.