Today, President Obama will sign the American Recovery and Reinvestment Act of 2009, providing nearly $800 billion to stimulate the economy. The legislation includes $1.5 billion for a homelessness prevention fund that will provide assistance to homeless or at-risk individuals and families. The text of the legislative language regarding homelessness prevention can be found here.
Eligible activities are:
short- or medium-term rental assistance,
housing relocation and stabilization services,
housing search assistance,
mediation or outreach to property owners,
security or utility deposits,
rental assistance for a final month at a location,
moving costs assistance,
case management, and
other appropriate activities for homelessness prevention and rapid re-housing of persons who have become homeless.
Grantees must use HMIS or a comparable database. Up to five percent can be used for administrative costs, and funding will be distributed to jurisdictions using the Emergency Shelter Grant (ESG) formula. Grantees will have to spend 60 percent of the funds within 2 years of obligation from HUD and 100 percent within 3 years. HUD may reallocate funds from a grantees that do not meet the 2-year requirement to those that do. HUD has 30 days to issue guidelines about the use of funds.
For more information and materials to assist with implementation, please visit the Alliance's Homelessness Prevention and Re-Housing Web Page.