July 9, 2009
SECRETARY DONOVAN AWARDS $712,946 RECOVERY ACT FUNDING TO PREVENT HOMELESSNESS IN CHATTANOOGA, TENNESSEE
Grant will also help rapidly re-house persons and families who fall into homelessness
CHATTANOOGA - U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $712,946 grant to the City of Chattanooga to rapidly re-house families who fall into homelessness, or prevent them from becoming homeless in the first place. The funding is provided through the American Recovery and Reinvestment Act of 2009
to help persons and families facing a sudden financial crisis due to the economic recession.
HUD's new Homeless Prevention and Rapid Re-housing Program (HPRP) provides a total of $1.5 billion for communities to provide short- and medium-term rental assistance and services to either prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be quickly re-housed and stabilized.
"This is money that will not only spare families the hardships of homelessness, but will save taxpayers significant money in the long run," said Donovan. "Often times, a little bit of financial assistance can make all the difference between finding a stable home and being forced to live in a shelter or on the streets."
Grants provided under HPRP are not intended to provide long-term support for individuals and families, nor will it
afford mortgage assistance to homeowners facing foreclosure. Rather, HPRP offers a variety of short- and medium-term financial assistance to those who would otherwise become homeless, many due to sudden economic crisis.
This can include short-term rental assistance (up to three months), medium-term rental assistance (up to 18 months), security deposits, utility deposits, utility payments, moving cost assistance, and hotel vouchers. Payments will not be made directly to households, but only to third parties, such as landlords or utility companies.
The program also provides assistance to rapidly re-house persons who are homeless and likely to remain stably housed, whether subsidized or unsubsidized, once the HPRP assistance concludes.
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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet