PART II: HUD's Major Non-Competitive Programs
Emergency Shelter Grants (ESG)

The ESG program is designed to help improve the quality of existing emergency shelters for the homeless; make available additional shelters and transitional housing, meet the costs of operating shelters and providing essential social services to homeless individuals; and help prevent homelessness. ESG provides funding to States, metropolitan cities, urban counties, and territories according to the formula used for the Community Development Block Grant (CDBG) program. ESG funding may be used for renovation, major rehabilitation, or conversion of buildings for use as emergency shelters or transitional housing; provision of essential social services for the homeless; payment of operating costs for shelters; and the development and implementation of homeless prevention activities, such as short-term mortgage/rent or utility payments, security deposits, first month rent, landlord-tenant mediation, and tenant legal services. For FY 2000, approximately $150 million is available through the ESG program.