HUD sent out the following by email today (please note that this announcement does not cover renewal projects that were submitted in Tier 2!):
Earlier today, Secretary Julian Castro announced $1.6 billion in grants to provide funding to 6,400 local homeless housing and service programs across the U.S., Puerto Rico, Guam, and the U.S. Virgin Islands. View a complete list of all the state and local homeless projects awarded funding.
The Tier 1 funding announcement that includes Renewal, New, Continuum of Care (CoC) Planning, and Unified Funding Agency (UFA) Costs, support the Obama Administration’s efforts to end homelessness by providing critically needed housing and support services to individuals and families experiencing homelessness. HUD will award approximately $300 million in Tier 2 grants in the spring to support hundreds more local programs.
“A safe, stable home is the foundation for opportunity in all of our lives,” said Secretary Castro. “That’s why we’re continuing to challenge communities to deploy proven strategies to help people experiencing homelessness find a place to call home. Through unprecedented partnership among every level of government and private, non-profit and philanthropic organizations, we know this goal is not just aspirational – it’s achievable.”
“More than 20 communities and two entire states have leveraged the leadership of their Continuums of Care to build systems that have ended homelessness among our nation’s veterans,” said Matthew Doherty, executive director of the U.S. Interagency Council on Homelessness. “Working together with state and local leaders, CoCs continue to prove that a combination of the right strategies, enough resources, and urgent action can end homelessness in America for everyone.”
This year’s grants are being awarded in the most competitive environment HUD has experienced in the CoC grant program. To compete most effectively, communities made very challenging decisions, often shifting funds from existing projects to create new ones that will have a more substantial and lasting impact on homeless populations.
Projects that straddled Tier 1 and Tier 2 will be announced along with other Tier 2 projects.
Adjustments to Funding
The conditional award amounts included for renewal projects may be different than the request that was submitted in the project application. The McKinney-Vento Act, as amended by the HEARTH Act, requires HUD to make certain adjustments to funding prior to award. These adjustments were made after the tiers were established and are as follows:
- Funds awarded for rental assistance were adjusted by applying the Fair Market Rent (FMR) in effect at the time of application submission (including decreases). View the FY 2016 Fair Market Rent Limits.
- Funds awarded for operating and leasing in permanent housing projects were increased based on the average increase in FMR amounts within a CoC’s geographic area, weighted for population density. Because operating and leasing costs do not decrease relative to rent amounts for specific units, adjustments were not made to these costs if the FMRs decreased in the geographic area.
- In addition to these required adjustments, projects were reviewed to ensure that they were consistent with the approved Grants Inventory Worksheet and CoC Program interim rule.
If you have additional questions or require more specific information, please submit a question to the e-snaps HUD Exchange Ask A Question (AAQ) portal or contact your local HUD CPD field office.