Recipients which are state governments, large cities, urban counties, and U.S. territories, receive ESG grants and make these funds available to eligible subrecipients, which can be either local government agencies or private nonprofit organizations. The recipient agencies and organizations, which actually run the homeless assistance projects, apply for ESG funds to the governmental grantee, and not directly to HUD. Feel free to view all CPD formula grants, including the ESG grant.
In accordance with the HEARTH Act, HUD has issued interim regulations for the Emergency Solutions Grants program along with corresponding amendments to the Consolidated Plan regulations. The Emergency Solutions Grants (ESG) program replaces the Emergency Shelter Grants program, and expands the eligible activities to include homelessness prevention and rapid re-housing components. While the ESG rule was published for effect, this interim rule provides the public an opportunity to comment on the policies and clarifications of statutory language implemented in the regulations.
The purpose of the ESG program is to assist individuals and families to quickly regain stability in permanent housing after experiencing a housing crisis or homelessness.
Recipients, which are state governments, metropolitan cities, urban counties, and U.S. territories, receive ESG funds from HUD and make these funds available to eligible subrecipients, which can be either local government agencies or private nonprofit organizations. Subrecipients that want to operate the homeless assistance and/or homelessness prevention projects must apply for ESG funds to the governmental recipient, and not directly to HUD.
ESG funds are available for five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and data collection through the Homeless Management Information System or HMIS. Recipients also receive administration funds with a statutory cap of 7.5 percent. Local government recipients may carry out all ESG activities directly, whereas state recipients may only carry out activities related to administrative costs and HMIS.
Below is a summary of the components and related eligible costs:
Street Outreach: funds may cover costs related to essential services for unsheltered persons, including emergency health or mental health care, engagement, case management, and services for special populations.
Emergency Shelter: funds may be used for renovation of emergency shelter facilities and the operation of those facilities, as well as services for the residents, including case management, child care, education, employment assistance and job training, legal, mental health, substance abuse treatment, transportation, and services for special populations.
Homelessness Prevention and Rapid Re-Housing: both components fund housing relocation and stabilization services (including rental application fees, security deposits, utility deposits or payments, last month's rent and housing search and placement activities). Funds may also be used for short- or medium-term rental assistance for those who are at-risk of becoming homeless or transitioning to stable housing.
HMIS: funds may be used to pay the costs for contributing data to the HMIS designated by the Continuum of Care for the area. Eligible activities include computer hardware, software, or equipment, technical support, office space, salaries of operators, staff training costs, and participation fees.
For more information on this program please contact Maria Frank, Housing and CD Supervisor at 364-3949, email: frankM@co.rockland.ny.us