Homelessness Prevention and Re-Housing Program

Illinois to Receive $70 million to help prevent homelessness

In February 2009, President Barack Obama signed the American Recovery and Reinvestment Act into law. The Act authorized $1.5 billion in homelessness prevention and re-housing funding under the Emergency Shelter Grant Program (ESG). On March 19, HUD issued guidelines for use of the ESG homelessness prevention funds.

State and local governments in Illinois will be receiving over $70 million dollars of this funding. Funding for this program, now called the Homelessness Prevention and Re-Housing Program (HPRP), will be distributed via the ESG program funding formula, but will not be used for the traditional ESG purpose of operating emergency shelters.

Program Overview

The funding will provide financial assistance and services to prevent individuals and families from becoming homeless and help those who are experiencing homelessness to be quickly re-housed and stabilized. The funds under this program are intended to target individuals and families who would be homeless but for this assistance. The funds will provide for a variety of assistance, including: short-term or medium-term rental assistance and housing relocation and stabilization services, including such activities as mediation, credit counseling, security or utility deposits, utility payments, moving cost assistance, and case management.

Who are eligible grantees for the funds?

Eligible grantees include metropolitan cities, urban counties and states (for distribution to local governments and private nonprofit organizations). Illinois allocations are as follows. Links to draft plans and public comment period start and end dates are also presented.

What are the eligible uses for the funds?

Funding cannot be used for traditional ESG activities of operating emergency shelter; instead funds can be used to prevent homelessness, divert people from shelter and rapidly re-house those who become homeless.

There are four categories of eligible activities for the HPRP: financial assistance, housing relocation and stabilization services, data collection and evaluation, and administrative costs. Financial assistance is limited to the following activities: short-term rental assistance, medium-term rental assistance, security deposits, utility deposits, utility payments, moving cost assistance, and motel and hotel vouchers.

What is the timeline for the program to be implemented and funds spent?

Communities must submit an action plan for funding to HUD by May 18, 2009. HUD must approve of the plans within 45 days of submission, and agreements between grantees and sub-grantees must be signed by September 30, 2009.

The Recovery Act requires grantees to spend 60 percent of HPRP grant funds within two years of the date that funds become available to the grantees for obligation (the date that HUD signs the grant agreement), and 100 percent of funds within three years of that date.

For more information

HUD's page on the HPRP program is available by clicking this link here.