As posted earlier, the FY2014 CoC NOFA is out. I’ve put together a quick summary of this year’s competition. I expect that both local CoCs will have further guidance out soon.
The CoC application must be submitted to HUD on or before October 30, 2014. CoCs must notify project applicants by October 20, 2014 if they will be included in the application to HUD, so local funding competitions must close by that date. The deadlines dictate a rapid local competition–project applicants will need to submit proposals quickly. It is critical that any provider considering a new project begin planning immediately.
Availability of Bonus Permanent Supportive Housing Project
HUD will award approximately $40 million for new permanent supportive housing projects which will exclusively serve chronically homeless individuals or families. Based on the NOFA the Hampden County CoC is eligible for a bonus of at least $375,675, and possibly more, (There’s some confusing language in the NOFA; I’ve already requested clarification from HUD.) I don’t know the potential bonus for the Three-County CoC.
The following requirements apply to bonus projects:
- Must provide scattered site leasing or tenant-based rental assistance, or, if there is existing site control and the ability for occupancy within six months of award, operating costs or project-based rental assistance.
- Must request no less than 70% of total program funding for leasing, rental assistance or operating costs, and no more than 30% of the program funds for supportive services.
- Must demonstrate plan for rapid implementation, including ability to have first program participant housed within 6 months of grant award.
- Must agree to participate in the CoC’s coordinated assessment system, which must be implemented prior to execution of program grant award.
Scoring for bonus projects will be based on CoC need (based on a HUD-calculated need score and worth up to 60 points) and project quality (worth up to 40 points). The Hampden County CoC’s HUD-calculated need score is 60; the Three County CoC’s HUD-calculated need score is 15. Project quality scores are based on 5 factors: 1) Prioritizing Highest Need; 2) Using a Housing First model; 3) Demonstrated leveraging of mainstream services, especially Medicaid; 4) Leveraging of other resources (full points awarded for leveraging at least 200% of HUD award in cash and in-kind commitments); and 5) CoC Score from FY13-14 CoC application (which have been calculated but are not yet released).
Renewal and Reallocated Projects
HUD has calculated that it has sufficient resources to fully fund all renewal projects. However, HUD will continue its tiered process for selecting projects. Tier 1 will be the full renewal amount, minus 2%. Tier 2 will be the rest of the full renewal amount. The tiering process will mean that CoCs will again rank all renewal and reallocated projects, and will need to determine a process for Tier 1 to come in with a reduction of 2% (for the Hampden County CoC this is a reduction of $50,090.)
With the exception of the Permanent Supportive Housing Bonus, the only projects that may seek funding are renewals, new reallocated projects, and CoC planning costs. (Neither Western Mass CoC is eligible for UFA costs, the other allowable category.) New reallocated projects are made available from renewal projects that are reduced or eliminated, and the only projects eligible as reallocated projects are new permanent supportive housing projects where all units will be dedicated for use by chronically homeless and new rapid rehousing projects homeless families coming from the streets or shelter.