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SHFinanceSourceGuide Corporation for Supportive Housing

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					SUPPORTIVE HOUSING FINANCING

           SOURCES GUIDE
       with special emphasis on programs

        in Arizona, California and Nevada




                    Prepared by:
             Kate Bristol & Debbie Greiff

                       For the:
          Corporation for Supportive Housing

                      Funded by:
    the U.S. Department of Housing & Urban Development


                     March 2004
                                  SUPPORTIVE HOUSING FINANCING SOURCES GUIDE

                                                                 TABLE OF CONTENTS

I. INTRODUCTION ....................................................................................................................................................1
II. SERVICES SOURCES INTRODUCTION ........................................................................................................... 10
   Services Sources Program Summaries - Federal ..................................................................................................... 14
      DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) MAINSTREAM FORMULA/BLOCK
      GRANT PROGRAMS......................................................................................................................................... 14
      EDUCATION FOR HOMELESS CHILDREN AND YOUTH .......................................................................... 19
      HEALTH CENTER GRANTS FOR HOMELESS POPULATIONS (HEALTH CARE FOR THE
      HOMELESS-HCH) ............................................................................................................................................. 22
      HUD-VA SUPPORTED HOUSING (VASH) PROGRAM & VA SUPPORTED HOUSING PROGRAM ...... 25
      MEDICAID ......................................................................................................................................................... 28
      PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) ............................... 36
      RYAN WHITE COMPREHENSIVE AIDS RESOURCES EMERGENCY (CARE) ACT PROGRAMS: ....... 40
      SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION (SAMHSA)
      DISCRETIONARY GRANTS ............................................................................................................................ 46
        DEVELOPMENT OF COMPREHENSIVE DRUG/ALCOHOL AND MENTAL HEALTH TREATMENT
        SYSTEMS FOR PERSONS WHO ARE HOMELESS ................................................................................... 48
        GRANTS TO EXPAND SUBSTANCE ABUSE TREATMENT CAPACITY IN TARGETED AREAS OF
        NEED .............................................................................................................................................................. 51
        TARGETED CAPACITY EXPANSION INITIATIVES FOR SUBSTANCE ABUSE PREVENTION (SAP)
        AND HIV PREVENTION IN MINORITY COMMUNITIES........................................................................ 54
      TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) ................................................................... 57
      TRANSITIONAL LIVING PROGRAM FOR OLDER HOMELESS YOUTH (TLP) ...................................... 62
      VETERANS' EMPLOYMENT PROGRAM (VETERANS' WORKFORCE INVESTMENT PROGRAMS
      (VWIP)) ............................................................................................................................................................... 64
   Services Sources Program Summaries - State ......................................................................................................... 66
      CALIFORNIA INTEGRATED SERVICES FOR HOMELESS ADULTS WITH SERIOUS MENTAL
      ILLNESS PROGRAM (AB 34/2034) ................................................................................................................ 66
      CALIFORNIA STATEWIDE SUPPORTIVE HOUSING INITIATIVE ACT (SHIA) ..................................... 69
III. DEVELOPMENT SOURCES INTRODUCTION ................................................................................................ 72
   Development Sources Program Summaries - Federal ............................................................................................. 74
      AFFORDABLE HOUSING PROGRAM (AHP) ............................................................................................... 74
      COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) .................................................... 77
      HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) ..................................................................... 80
      HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) ........................................................ 83
      LOW INCOME HOUSING TAX CREDIT PROGRAM (LIHTC) ................................................................... 86
      SUPPORTIVE HOUSING FOR THE ELDERLY (Section 202 Program)........................................................ 89
      SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (Section 811 Program) ........................... 91
      SUPPORTIVE HOUSING PROGRAM (SHP) .................................................................................................. 93
      VA LOAN GUARANTEE FOR MULTIFAMILY HOUSING PROGRAM ..................................................... 96
      HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM ................................................................. 98
   Development Sources Program Summaries - State ............................................................................................... 101
      ARIZONA BEHAVIORAL HEALTH FUNDS (House Bill 2003/Comcare Trust) ........................................ 101
      ARIZONA STATE HOUSING FUND ............................................................................................................. 103
      CALIFORNIA EMERGENCY HOUSING ASSISTANCE PROGRAM (EHAP) .......................................... 106
      CALIFORNIA MULTIFAMILY HOUSING PROGRAM (MHP).................................................................. 109
      CalHFA SPECIAL NEEDS FINANCING PROGRAM ................................................................................... 112
      STATE OF NEVADA LOW INCOME HOUSING TRUST FUND ................................................................ 114
IV. OPERATING SOURCES INTRODUCTION ................................................................................................... 116
   Operating Sources Program Summaries - Federal ................................................................................................. 120
      HOUSING CHOICE VOUCHER PROGRAM (Section 8) ............................................................................. 120
    MAINSTREAM HOUSING OPPORTUNITIES FOR PERSONS WITH DISABILITIES (Mainstream
    Program) ............................................................................................................................................................ 125
    SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY (SRO) PROGRAM......... 128
    SHELTER PLUS CARE (S+C) ........................................................................................................................ 131
V. INNOVATIVE FUNDING PROGRAMS AND INITIATIVES INTRODUCTION .......................................... 135
  Innovative Funding Programs and Initiatives Summaries - Federal ...................................................................... 136
    THE SAMARITAN INITIATIVE/COLLABORATIVE INITIATIVE TO END CHRONIC
    HOMELESSNESS ............................................................................................................................................ 136
    ENDING CHRONIC HOMELESSNESS THROUGH EMPLOYMENT AND HOUSING ............................ 140


Appendix 1: TARGET POPULATION BY SERVICE NEED OVERVIEW

Appendix 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW
I. INTRODUCTION

    A. Purpose of the Guide

    This Supportive Housing Financing Sources Guide was developed in response to a need identified by
    HUD Supportive Housing Program grantees in northern California, Arizona and Nevada. Its purpose
    is to help supportive housing sponsors identify potential financing and funding sources for supportive
    housing projects and programs. By providing both general information on categories of funding
    sources (what they are, how they flow, how to access them) and detailed information on more than 40
    sources and initiatives with the greatest potential for providing significant project funding, it is hoped
    that the guide will serve as a resource for organizations seeking to expand the supply of supportive
    housing.

    For the purpose of this guide, the definition of supportive housing is permanent affordable housing
    enriched with support services designed to help tenants, who are homeless and have disabilities or
    other chronic health conditions, to maintain their housing and achieve maximum independence.
    Some projects may mix permanent and transitional units and/or may use transitional housing dollars
    to provide time-limited services to some tenants. Certain funding sources for transitional housing are
    therefore noted in this document.

    The types of sources that have been included in this guide are:
     Government Sources. The guide focuses exclusively on government sources of funds or sources
       that are facilitated through government (e.g. the Low Income Housing Tax Credit Program). It
       does not include any private funding sources.
     Federal and State Sources. The guide provides information on funding that originates from the
       Federal government and from state governments in three western states: Arizona, California, and
       Nevada. It does not include any local funding sources.
     Permanent and Transitional. The guide focuses on sources that fund permanent supportive
       housing. Some sources that fund transitional housing are also included, while sources that fund
       only emergency shelter are not.

    B. How the Guide is Organized
    The guide is divided into four major sections. The first three sections contain detailed information on
    established funding sources organized by "use categories": Development, Operating, and Services.
    Development sources are those providing funding for both the hard and soft costs of new construction
    and rehabilitation (e.g. land acquisition, construction costs, architectural services). Operating sources
    provide subsidies to cover the gap between the costs of operating the building (e.g., utilities,
    maintenance, property management, etc.) and what the tenants can afford to pay in rent. Services
    sources cover the costs of supportive services for tenants (e.g. case management, mental health
    services). Each of these use categories is further defined in the introduction to their respective
    sections. Sources that can be used for multiple uses (i.e. both development and operating) have been
    placed in the category with which they are most commonly associated and then referenced in the
    other sections (e.g. HUD’s Supportive Housing Program has been placed in the Development section,
    and also referenced in the Operating and Services sections).

    The fourth major section of the guide discusses new and/or one-time innovative funding initiatives
    and efforts. These are new efforts to provide a permanent funding stream for services in supportive
    housing or to better leverage and coordinate existing federal resources [Housing and Urban
    Development (HUD), Health and Human Services (HHS), Veteran’s Administration (VA), etc.].


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    Each of the three use category sections are further divided into Federal and state funding sections.
    Sources are categorized according to the level of government where the funding originates, not
    necessarily the level at which it is accessed. For example, the Community Development Block Grant
    (CDBG) program will be categorized as a Federal source because the funds originate from HUD, a
    Federal department, even though supportive housing sponsors access these funds by applying at the
    State or local level.

    Although the classification system used in this guide categorizes information by where the source
    money originates, the lens by which the information is presented is how a supportive housing sponsor
    would access the resources. For example, if a source originates at the federal level but is accessed at
    the state level by supportive housing providers, the written description will describe the process by
    which the supportive housing provider could access the money at the state level.

    C. Grantmaking Context

         1. Types of Assistance

         Knowing the type of assistance and process by which the funds are allocated is critical to
         understanding a funding source. It affects not just how the funds flow, but who can access them
         and how. An understanding of the types of assistance and the grantmaking processes of key
         funding programs is critical for developing a successful financing strategy for establishing and
         sustaining supportive housing. The funding sources are allocated as one of two types of
         assistance, either by formula grant or competitive grants. This section provides a general
         description of formula and competitive types of assistance programs. In the individual funding
         source summaries, the type of assistance (formula or competitive) is identified for each source.

              a. Formula Grant Programs

              Formula grant programs are those where the federal government awards allocations of
              funding to more local levels of government - typically states, cities and counties – based on a
              formula. In some instances, formula or block grants are allocated to other types of eligible
              service areas, jurisdictions or entitlement communities, (e.g., Ryan White CARE Title I funds
              go to eligible metropolitan areas which can include more than one city or county). The
              distribution formulas for these grants are usually prescribed by law or administrative
              regulation and reflect demographic and/or service need factors in the specified geographic
              locality.

              Formula grants (including block grants) often support activities that are of a continuing nature
              and are not confined to a specific project. They tend to provide funding that is renewable
              from year to year. Formula grant funds are often relatively flexible, with the Federal
              government setting general eligibility criteria and specifying a range of activities or purposes,
              while leaving the specific funding strategies to be determined at the state and local level. For
              these reasons, formula grants are also sometimes described as funding “streams” – they offer
              reliable, ongoing sources of funding.

              Formula grants generally require that the recipient of the grant submit a planning document
              as a condition of receiving the funding, and report on progress made against the plan as a
              condition of sustaining the funding. In most cases, the grant recipient is allowed to determine
              the process by which the resources will be used within their locality to meet the needs the


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              program specifies. The recipient may use the funds to provide housing and services directly,
              or may develop a competitive process to sub-grant funds to project/program sponsors. The
              recipient may also allocate the funds by formula to a more local level of government (e.g. the
              State allocating funds to counties or cities, sometimes called political subdivisions of the
              state). In such cases, the sub-recipient may in turn choose to expend the funds directly to
              provide housing and/or services, or may award the funds competitively to sub-grantees. In
              some cases, the primary recipient is required to use one process or the other to distribute
              resources to those that will provide the actual programs and services designated in the
              funding program. Regardless of how the formula funds flow to the local level, the supportive
              housing sponsor generally accesses formula funds through a competitive process, either by
              applying directly to the primary grant recipient or to the sub-recipient in a competitive
              process.

              Some of the formula grants described in this guide come from the Department of Housing
              and Urban Development (HUD). HUD’s formula grants typically are allocated directly to
              entitlement areas, generally cities and in some cases counties, based on factors such as total
              population and on numbers of persons living in poverty. Since each state typically has
              communities that are too small to qualify to receive their own formula grant, HUD also
              awards an allocation of funding to the State government to distribute to those areas. These
              funds are generally administered at the local level by a city or county’s Department of
              Housing, Department of Housing and Community Development, or Department of Human
              Services.

              Another significant type of formula grant included in this guide is federal formula grants for
              services funding, the majority of which are administered by the Department of Health and
              Human Services (HHS). Unlike HUD formula grants, HHS block grants are generally
              allocated to states. The states provide services directly and/or sub-grant the resources to
              political subdivisions of the states (usually counties) or nonprofits by formula or competitive
              processes. These funds are generally administered at the local level by County Departments
              of Health and Human Services, Health Services, Mental Health Services, Substance Abuse
              Services, Behavioral Health Services, etc.

              The majority of services funding at the local level are federal block grant resources that have
              flowed down from the federal government to cities and counties. When they reach the local
              government entity, these federal resources are often combined with local general funds,
              special taxes or bonds, or redevelopment funds and are administered as local programs, from
              which supportive housing providers receive grants or contracts. As a result, the federal
              services block grant funds oftentimes appear "invisible" to the supportive housing sponsor -
              but may represent a portion of the resources it receives when it receives city or county
              services funding. (Federal block grants represent a fairly large share of state or local
              spending in some areas, such as substance abuse treatment, while usually representing a much
              smaller portion of state or local budgets for mental health services.)

              b. Competitive Grant Programs

              Competitive grants are allocated by a competitive process. Typically, the availability of
              funding is announced through a Notice of Funding Availability (NOFA), Request for
              Proposals (RFP), Request for Applications (RFA), or Solicitation-of-Grant Applications
              (SGA). Interested applicants apply to the relevant administrating entity. Proposals are
              evaluated (typically they are scored based on quantitative rating and ranking criteria) and
              those that are determined to be of the highest quality are funded.

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              Competitive grants are generally awarded for specific types of projects for fixed or known
              time periods. The funding is generally time limited and often cannot be renewed.

              Like formula grants, competitive grant programs define eligibility criteria, including which
              entities are eligible to apply for funding. Competitive grants tend to be more prescriptive
              than formula grants, specifying that the applicant must use the funds to carry out specific
              interventions or strategies for a very narrow target population. Some competitive grants are
              used as a mechanism to incentivize the implementation of new approaches or best practices in
              a given field.

              Some competitive sources are established and ongoing sources of project-specific funding,
              whose purpose, eligible uses and application process remain relatively consistent from year to
              year. However, there are other competitive sources that may be available for only a limited
              period of time, or whose focus shifts from one year to another. These sources usually consist
              of discretionary funds that have been given by Congress to a particular Federal department to
              use as the department sees fit. The department may choose to fund a specific programmatic
              approach or address a specific target population for three or four years – and then the
              programmatic focus could shift. These types of competitive grant programs are sometimes
              referred to as discretionary programs, programs of national significance, one-time initiative
              funding, etc.

              In the majority of cases, competitive funds are awarded directly to project sponsors or service
              providers. In some cases, eligible grantees for competitive programs are state and local
              governments as well.

              Many of the HUD funding sources for development and operations and many of the
              homeless-specific services funding programs are competitive grant programs.

         2. Opportunities and Challenges

         Each of the two primary types of assistance, formula and competitive, present unique
         opportunities and challenges for supportive housing providers.

         As noted above, formula grants are very attractive because they tend to be flexible, renewable,
         ongoing sources of funding. However, the challenge of using these streams is accessing them.
         Supportive housing sponsors oftentimes will have to build relationships with local administering
         entities and do considerable education and advocacy with local government officials to explain
         how funding supportive housing can be a very effective use and leverage of their resources.

         For supportive housing sponsors to get a foothold in a formula grant program, it may take
         multiple application attempts. And, sometimes programs and/or providers need to be able to
         demonstrate a certain level of capacity and experience to compete effectively with existing
         grantees and/or prospective applicants. Far and away the best way to get in the door in formula
         grant programs is to track the different funding streams and to look for those which have
         significantly increasing trends in their funding appropriations. When new funds are available,
         this can be an opportune time for new organizations to access these funds.

         Competitive grants offer a different set of opportunities and challenges. Because they are
         awarded through a competitive process on a project basis and don't generally provide ongoing or
         core funding over time, these funding pots can be much easier to access than formula programs.

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         However, as noted above, the grants tend to be time limited and non-renewable, and more
         restrictive than formula grants in terms of eligible uses of funding. While they often provide the
         critical one-time financing that is needed to develop new supportive housing units, they are not
         generally good sources for ongoing operating and services costs.

         3. Special HUD Requirements and Processes
         Historically, HUD has been the primary funder of all three use categories of funding
         (development, operating, services) for supportive housing for homeless people with disabilities
         and other special needs (although this is beginning to shift with new partnerships being formed
         between HUD and mainstream service systems to address chronic homelessness). To take
         advantage of these funding opportunities, it is important that supportive housing providers
         understand certain special HUD process and requirements that structure how the majority of
         HUD funds are allocated to projects.

              a. The HUD SuperNOFA

              Almost all of HUD’s competitive grant programs are announced at the same time each year,
              through what is known as the HUD “SuperNOFA.” Generally issued in the spring, the
              SuperNOFA is a coordinated announcement of approximately 20 HUD funding sources.
              Each source is issued as a separate NOFA, with its own deadline for receipt of proposals.
              Deadlines for these programs are usually in the period from May through August, with
              funding announcements generally made at the end of the year.

              It should be noted that some HUD funding competitions take place outside the SuperNOFA
              process, so project sponsors may want to regularly check the HUD webpage for new NOFAs.
              The SuperNOFA and other funding announcements can be found at:
              http://www.hud.gov/offices/adm/grants/fundsavail.cfm#grants

              The funding sources in this guide that are usually announced through the SuperNOFA
              process are:
              •   Housing Opportunities for Persons with AIDS (HOPWA) – Competitive component
                  only,
              •   Mainstream Housing for Persons with Disabilities (Mainstream Program),
              •   Section 8 Moderate Rehabilitation SRO Program (SRO),
              •   Shelter Plus Care Program (S+C),
              •   Supportive Housing Program (SHP),
              •   Supportive Housing for the Elderly (Section 202), and
              •   Supportive Housing for Persons with Disabilities (Section 811).

              b. Continuum of Care

              The Continuum of Care is one of several strategic planning processes HUD requires to ensure
              community-wide coordination and comprehensive planning regarding the use of federal
              resources to create housing opportunities (the Consolidated Plan, discussed below, is another
              such required process). The Continuum of Care requirement has two components: (1) a
              strategic planning process to identify and coordinate strategies for addressing homelessness in


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              the community; and (2) a process for screening, selecting and prioritizing applications for
              three funding sources: the Supportive Housing Program (SHP), the Shelter Plus Care
              Program (S+C) and the Section 8 Moderate Rehabilitation SRO Program (SRO).

              For every local jurisdiction in which there are organizations that wish to apply for funding
              under what are known collectively as the Continuum of Care programs (SHP, S+C, and
              SRO), HUD requires the establishment of a community-based planning body, usually referred
              to as the Continuum of Care (CoC) Board. The Board is responsible for the creation of a plan
              to deliver housing and services to homeless people.

              The CoC Board establishes a planning structure and calendar (usually through the creation of
              a set of subcommittees) and produces an annual CoC plan. It is required that the planning
              process be as inclusive as possible, including representation of nonprofit organizations
              serving homeless persons, and homeless individuals themselves.

              The elements of the CoC plan include: a description of the planning process; goals, strategies
              and specific action steps for ending homelessness (with a particular emphasis on chronic
              homelessness); an analysis of the existing housing and service resources in the community;
              an analysis of the gaps in the system; a discussion of how the community is using mainstream
              resources to support homeless housing and services; and discussion of the community’s
              priorities for the use of CoC funds.

              Once a year, through the SuperNOFA process, HUD announces the availability of CoC
              funding. In response to the NOFA, the CoC Board generally invites organizations from the
              jurisdiction to apply for SHP, S+C and SRO funds. The Board is empowered to establish its
              own application process. The proposals received are evaluated and ranked, based on criteria
              and priorities set forth in the CoC Plan. The proposals are then bundled together with the
              community’s Continuum of Care Plan and sent to HUD (in some communities, individual
              applicants send in their proposals separately, but each must include a copy of the CoC plan).

              HUD evaluates and scores each community’s CoC plan. If a plan does not meet a threshold
              cutoff point for scoring, the individual applications contained within it do not receive
              funding. HUD also evaluates each individual proposal to ensure it meets threshold quality
              criteria. However, HUD does not score or rank the individual proposals. Instead, it accepts
              the community’s ranking and awards funding to projects in the order listed in the CoC
              application, up to a predetermined “pro rata need” amount for that community. The “pro rata
              need” is essentially a funding allocation that is based on such factors as numbers of persons
              in poverty in the community.

              Applicants that are awarded funding through the CoC process generally enter into a contract
              directly with HUD – the CoC Board has no direct role in the administration of the funds.
              CoCs have the option, however, of having one organization – typically a local government
              entity such as a county Department of Human Services – serve as the grantee of all the CoC
              funds for the community and sub-granting to the individual project sponsors. Few
              communities have elected to use this option.

              c. Consolidated Plan

              The Consolidated Plan is a long-term housing plan that controls access to HUD funds used to
              expand affordable housing opportunities. It is a five-year comprehensive housing strategy,
              which is updated annually in a one-year action plan.

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              The funding sources discussed in this guide that are subject to the Consolidated Plan are:
              (1) Community Development Block Grant (CDBG);
              (2) Home Investments Partnerships Program (HOME); and
              (3) Housing Opportunities for Persons with AIDS (HOPWA).
              The Emergency Shelter Grant Program (ESG) is also controlled by the Consolidated plan, but
              that source has not been included here because it does not provide funds for supportive
              housing.

              The communities that are required to prepare a Consolidated Plan are those that wish to
              receive any of the funds listed above through a formula grant from HUD. These communities
              are referred to as “entitlement communities” or “participating jurisdictions.” Most entitlement
              communities/participating jurisdictions are cities or counties above a certain population
              threshold (please see the individual sections on CDBG and HOME for further information on
              entitlement communities and participating jurisdictions). In addition, all states must submit a
              Consolidated Plan that covers all “non-entitlement communities” within the state – those that
              are too small to receive funds directly from HUD.

              The Consolidated Plan must be submitted to HUD by state and local governments before they
              can receive their annual allocations for the programs subject to it. The plan consists of a
              housing needs assessment, which documents the need for affordable housing within a local
              community, state or community, and both a five-year comprehensive plan and a one-year
              action plan, which describe the activities that will be undertaken each year to address these
              needs.

              Community input into the Consolidated Plan is a HUD requirement. The local government
              entity preparing the plan is required to: (1) consult with public and private agencies serving
              people with disabilities, people who are homeless, and other groups with special housing
              needs; (2) ensure citizen participation through at least two public hearings; (3) publish a draft
              Consolidated Plan for public comments; and (4) summarize public comments on the
              Consolidated Plan and send them to HUD.

              To ensure that the Consolidated Plan adequately reflects the needs in the community,
              supportive housing project sponsors can be involved in the Consolidated Plan process in
              several ways, including attending public hearings, reviewing and commenting on
              Consolidated Plan drafts, gathering and submitting data documenting the need for supportive
              housing, and developing clear strategies to use funding controlled by the Consolidated Plan to
              address these needs

              As discussed in more detail in the sections on CDBG, HOME and HOPWA, once a locality
              receives its allocation of block grant funds subject to the Consolidated Plan, it is required to
              develop a competitive application process to award sub-grants of funds to individual project
              sponsors. Any project that receives funding must be consistent with the Consolidated Plan’s
              needs, goals and objectives.

         4. Definition of Terms in Source Summaries

         The categories used in this guide to present information on individual funding sources are defined
         below.

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         Program Name:
         Programs are listed according to their official descriptive name as assigned by the agency that
         administers the funds. Following the official name is the popular name, in parentheses. The
         popular name, which may sometimes be an acronym, is the name by which the program is
         commonly known or most often used by applicants and agencies.

         Administrative Agencies:
         Indicates the Federal or state department, agency, commission, council or instrumentality of the
         government, and the primary organizational sub-unit (the administering office) that has direct
         operational responsibility for managing the program. If a Federal program is also administered at
         the state level, information is provided on both the Federal and state administrative agencies.

         Type of Assistance:
         Indicates the form and manner in which the assistance is transmitted from the Federal or State
         government to grantees - either: (1) formula grant; or (2) competitive grant programs. Definitions
         of these terms may be found in Section 1.C. of this Introduction.

         Program Description:
         Provides a general overview of the program purpose, history (if applicable) and funding
         priorities.

         Eligibility Information:

         Eligible Projects/Programs:
         Describes the types of projects or programs that may be funded, such as permanent housing,
         transitional housing, or support services programs as well as any rating or scoring preferences or
         key selection criteria.

         Eligible Use of Funds/Activities:
         Describes the potential uses for the assistance provided (e.g. construction costs, rental assistance,
         case management), and the specific restrictions placed upon the use of funds.

         Eligible Applicants/Sponsors:
         Indicates what types of organizations are eligible to apply for the funding source. For formula
         grants, information is provided on the types of organizations that are eligible to receive formula
         grant allocations from the federal government, and those that may receive sub-grants from the
         primary recipient of the allocation.

         Eligible Target Populations:
         Lists ultimate beneficiaries of a program and/or which groups or populations are not eligible.

         Grant Loan Terms:

         Minimum/Maximum Award:
         Describes any statutory or regulatory restrictions on the maximum or minimum amount a grantee
         may receive through the funding source.

         Average Award:
         Indicates the typical average award amount based on the most recent data available as of
         September 2003. Most often, the average award is based on information from 2002 awards.

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         Term of Grant:
         Indicates the length of the grant term, and whether funding is renewable.

         Matching Requirements:
         Describes any statutory or regulatory matching requirements. The matching share represents that
         portion of the project costs not borne by the funding source for which the applicant is applying.
         Where matching requirements are passed down to a project/program sponsor, this is indicated.

         Formula:
         Describes the formula used for the allocation of funds in formula grant programs. Formulas are
         based on such factors as population, per capita income, poverty, service needs, and number of
         substandard housing units in a community.

         Application Process:
         Describes the basic procedural steps required to apply for funding through the given funding
         source. Also describes how Federal programs are implemented at the state level. Focuses in
         particular on how supportive housing sponsors can access the funds.

         CFDA Program Number:
         The Catalog of Federal Domestic Assistance (CFDA) is an online database of all Federal funding
         programs available to State and local governments (including the District of Columbia);
         federally-recognized Indian tribal governments; Territories (and possessions) of the United
         States; domestic public, quasi-public, and private profit and nonprofit organizations and
         institutions; specialized groups; and individuals. Almost every Federal source included in this
         guide is described in the CFDA. Every source has a unique CFDA Program Number, which can
         be used to locate the description of the source in the database found at www.cfda.gov.

         Authorizing Legislation/Statute:
         Lists the legal authority upon which a funding program is based (e.g. acts, amendments to acts,
         Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders,
         Presidential Reorganization Plans, or Memoranda from an agency head).

         Regulations/Guidelines:
         Lists the title, number, and in some cases, URL, for regulations, handbooks, manuals, and other
         officially published information pertinent to a program. Program regulations are published first in
         the Federal Register (FR) and later in the Code of Federal Regulations (CFR); therefore, citations
         to the CFR are listed.




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II. SERVICES SOURCES INTRODUCTION

         1. Definition of Services

                  Services in the context of supportive housing are generally those activities that assist
                  tenants to maintain their housing and live as independently as possible. Housing stability
                  is the basic and primary goal of service interventions in supportive housing.

                  The types of services that comprise the "support" in supportive housing emerge from the
                  varied needs of the people who live in the housing. Residents of supportive housing are
                  individuals and families who face complex challenges -- people who have been homeless,
                  and who also have very low incomes and often serious, persistent health issues and/or
                  disabilities or other barriers to housing stability. These challenges may include mental
                  illness, substance use and HIV/AIDS. They are oftentimes exacerbated by persevering
                  and chronic poverty.

                  Some of the services commonly found on-site or linked to supportive housing are:
                  • case management and services coordination
                  • outreach and engagement
                  • benefits counseling and advocacy
                  • mental health and substance use services and treatment
                  • primary health care
                  • medication assistance and/or management
                  • money management and other independent living skills training and assistance
                  • transportation
                  • education and vocational training
                  • career/job counseling, development and placement
                  • child care and youth programs
                  • support/peer support groups (e.g., abstinence, substance use management, domestic
                     violence, parenting, mental health, etc.)
                  • activities, classes, workshops and special events to promote relationship-building and
                     mutual aid

                  Services funding programs typically pay for some of the comprehensive services and/or
                  pay for many of the costs for services for a specific service-defined target population.
                  The challenge for supportive housing sponsors is to secure resources that can successfully
                  be blended together to provide ongoing support for this range of activities for the diverse
                  tenant population housed in supportive housing.

         2.   How Services Resources Flow

                  Services funding programs generally provide funding for:
                  • the delivery of particular services; and/or
                  • the utilization of a particular service strategy; and/or
                  • addressing the needs of a particular population, defined by its service needs.

                  A significant portion of funding for services needed in supportive housing comes from
                  the Federal government. Some of the relevant Federal agencies that provide mainstream
                  and/or homeless specific services funding relevant for supportive housing sponsors are:



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                  •    Department of Health and Human Services (HHS) and key departments within the
                       Department: the Substance Abuse and Mental Health Services Administration
                       (SAMHSA), Centers for Medicare and Medicaid Services (CMS), Health Resources
                       and Services Administration (HRSA) and Administration for Children and Families
                       (ACF);
                  •    Veterans Administration (VA);
                  •    Department of Education (ED);
                  •    Department of Labor (DOL);
                  •    Department of Justice (DOJ); and,
                  •    Social Security Administration (SSA).

                  Federal funding for services, like funding for development and operating costs, is
                  generally distributed by formula grants (including block grants) or by competitive grants.
                  (See the Introduction for an in-depth description of these types of assistance.)
                       1. Formula Grants
                       The majority of Federal service funding is allocated by formula grants - primarily
                       block grants. Formula grant programs for services are generally allocated to states
                       based on a distribution formula prescribed by law or administrative regulation,
                       reflecting the demographic and/or service need factors in the specified geographic
                       locality. In some instances, formula grants are allocated to other eligible service
                       areas, e.g., Ryan White CARE Title I funds go to eligible metropolitan areas defined
                       as areas with certain numbers of AIDS cases during the previous five years with a
                       certain population.
                       The states (or relevant eligible funding areas) provide services directly and/or sub-
                       grant the resources to political subdivisions of the states (e.g., counties, cities) or
                       nonprofits by formula or competitive processes. (In some rare instances, for-profit
                       organizations are eligible to receive funding.)
                       Many of the mainstream services funding programs (i.e., TANF, Medicaid,
                       SAMHSA Block Grants) are formula or block grant programs.
                       2. Competitive Grants
                       A competitive process for specific projects allocates project grants for services
                       generally for fixed or known periods. Many of the homeless-specific funding
                       programs are competitive grant programs, with the notable exception of the PATH
                       program.

                  Since the majority of services funding from the federal government is allocated by
                  formula grants and the majority of these funds eventually "flow" to the local level, a
                  portion of resources in community services systems at the local level are federal block
                  grant resources. These federal resources, however, are often combined with local general
                  funds, special taxes or bonds, or redevelopment funds and are administered as local
                  programs. The Federal services block grant funds oftentimes appear "invisible" to the
                  supportive housing sponsor but are a significant share of the resources it receives when it
                  applies for and receives city or county funding.




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                  State or local departments that typically are the eligible applicants/primary recipients or
                  sub-grantees of services formula or block grant funding include:
                  •    department of health and human services (or divisions within them such as public
                       health, mental health, substance abuse, behavioral health);
                  •    department of social services;
                  •    department of education and training and/or vocational rehabilitation;
                  •    department of employment and/or economic development;
                  •    workforce investment boards; and,
                  •    board of education or superintendents of schools.

                  In addition to Federal and local funding programs, states have also begun to develop
                  homeless-specific services funding programs or adjusting current ones to allow for the
                  provision of services to homeless people and/or the provision of services in a housing-
                  based setting. Unlike housing and operating funding programs, states oftentimes use
                  general fund resources to fund services. Like in the federal context, state programs are
                  allocated both by formula grant and on a competitive basis.

                  With all services sources, both federal and state (and local), demand tends to be very high
                  and competition fierce. Successful applicants typically need to have a strong track record
                  in service provision or services to a particular target population. In some instances,
                  professional licensure and/or accreditation is required. Successful applicants generally
                  demonstrate quality, capacity/experience, readiness, and leverage and/or commitments of
                  other funding. Even with these qualifications, high quality programs sometimes must
                  apply multiple times for some sources, simply due to the lack of sufficient funding
                  relative to the need.

         3.   Services Funding Program Summaries

                  The following Federal funding programs are summarized in this section:
                  •    DHHS Mainstream Block Grant Programs (Community Mental Health Services Block
                       Grant, Substance Abuse Prevention and Treatment Block Grant, Community Services
                       Block Grant, Social Services Block Grant, and Child Care and Development Block
                       Grant)
                  •    Education for Homeless Children and Youth
                  •    Health Care for the Homeless (HCH)
                  •    HUD/VA Supported Housing (VASH) & VA Supported Housing Programs
                  •    Medicaid
                  •    PATH
                  •    Ryan White CARE Act Programs: Titles I & II
                  •    SAMHSA Discretionary Grant Programs (Including Development of Comprehensive
                       Drug/Alcohol and Mental Health Treatment Systems for Persons who are Homeless;
                       Grants to Expand Substance Abuse Treatment Capacity in Targeted Areas of Need;
                       and Targeted Capacity Expansions Initiatives for Substance Abuse Prevention and
                       HIV Prevention in Minority Communities.)


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                  •    Temporary Assistance for Needy Families (TANF)
                  •    Transitional Living Program for Older Homeless Youth (TLP)
                  •    Veterans Workforce Investment Program (VWIP)

                  The following state funding programs are summarized in this section:
                  •    California Integrated Services For Homeless Adults with Serious Mental Illness Program
                       (AB 2034)
                  •    California Statewide Supportive Housing Initiative Act Program (SHIA)




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                     SERVICES SOURCES PROGRAM SUMMARIES - FEDERAL


        DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) MAINSTREAM
                          FORMULA/BLOCK GRANT PROGRAMS
                        Community Mental Health Services Block Grant
                 Substance Abuse Prevention and Treatment (SAPT) Block Grant
                           Community Services Block Grant (CSBG)
                              Social Services Block Grant (SSBG)
       Child Care and Development Block Grant (Child Care and Development Fund/CCDF)

ADMINISTRATIVE AGENCIES

Federal:

Community Mental Health Services (CMHS) Block Grant
Substance Abuse and Mental Health Services Administration (SAMHSA), Center for Mental Health
Services (CMHS)
(301) 443-4257
www.samhsa.gov/centers/cmhs/cmhs.html

Substance Abuse Prevention and Treatment (SAPT) Block Grant
Substance Abuse and Mental Health Services Administration (SAMHSA), Center for Substance Abuse
Treatment (CSAT), (301) 443-7541
www.samhsa.gov/centers/csat2002/csat_frame.html

Community Services Block Grant (CSBG)
Administration for Children and Families, Division of State Assistance, Office of Community Services,
(202) 401-9343
www.acf.dhhs.gov/programs/ocs/csbg

Social Services Block Grant (SSBG)
Administration for Children and Families, Division of State Assistance, Office of Community Services,
(202) 401-2333
www.acf.dhhs.gov/programs/ocs/ssbg

Child Care and Development Block Grant (Child Care and Development Fund/CCDF)
Administration for Children and Families, Administration on Children, Youth and Families, Child Care
Bureau, (202) 690-6782
www.acf.hhs.gov/programs/ccb/index.htm

AZ:      Arizona Department of Health Services, (602) 542-1001, www.hs.state.az.us

CA:      California Health and Human Services Agency, (916) 654-3454, www.chhs.ca.gov

NV:      Nevada Department of Human Resources, (775) 684-4000, www.hr.state.nv.us

TYPE OF ASSISTANCE
Formula


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The Federal Department of Health and Human Services has primary responsibility for allocating funds
related to health and human services, including prevention and treatment of substance use and mental
health issues, community services, social services and child care. In many cases, the bulk of Federal
services funding is distributed in block grants -- formula-based allocation grant programs usually going to
the state department (and oftentimes to the District of Columbia, Federally recognized Indian tribes and
territories) that is responsible for a particular type of service or charged with addressing the service needs
of a particular population (please see the Introduction Section of this guide for an overview of formula
grants, including block grants). The majority of Federal resources in community services systems are
Federal block grant resources. In some cases, ongoing funding for services in supportive housing are
funded through contracts with local departments of health, mental health, behavioral health and social
services using these dollars.

For supportive housing sponsors, what is important about these programs is to know they exist and that
there is oftentimes flexibility at the state and local level to use these resources to fund many of the
services most commonly found in supportive housing. In most cases these block grant programs are
combined with other locally generated or allocated funds to support the types of services or address the
service needs of particular target populations. Therefore, the best way to begin to track these funding
sources is to identify and contact the local government department responsible for overseeing specific
services, e.g., mental health, and/or target populations, e.g., people with HIV/AIDS. (If supportive
housing sponsors are in areas that are not "entitled" or "eligible" for specific funding, they should contact
the state department that administers the type of services or addresses the service needs of the target
population to inquire about the process for accessing block grant funding.) In the beginning, the process
of accessing mainstream resources to fund services in permanent supportive housing is oftentimes one of
education and gentle persistence.

(Note: The Substance Abuse and Mental Health Services Administration, SAMHSA, also runs another
formula grant program -- Projects for Assistance in Transition from Homelessness or PATH. This is a
block grant specifically designed to serve homeless people and is therefore not included in this summary
of mainstream services block grant programs. Please see the PATH summary for more information.)

The following are brief summaries of the mainstream HHS block grant programs which may be used at
the local level to fund supportive housing, however there are other HHS formula programs as well,
particularly those for specific target populations. (For example, Chafee Foster Care Independent Living
formula grant program targeting aging out foster youth, CFDA code 93.674; Promoting Safe and Stable
Families formula grant program targeting preserving at-risk families, CFDA code 93.556.)

PROGRAM DESCRIPTIONS/ELIGIBILITY INFORMATION

Community Mental Health Services (CMHS) Block Grant
The CMHS Block Grant funds states and territories to support and enhance capacity to provide
comprehensive, community-based systems of care for adults with serious mental illnesses (SMI) and
children with serious emotional disorders (SED) through outreach, mental and other health care services,
individualized supports, rehabilitation, employment, housing, and education.
Program authority is vested in the individual states, providing them a relatively flexible funding source.
However, inpatient services, cash payment to recipients, capital development, and purchase of major
medical equipment are ineligible uses of CMHS Block Grant funds. This program is the cornerstone of
the Federal partnership with states to plan and deliver state-of-the-art, community-based mental health
services for the target population where they live. To receive funding, CMHS must approve a state's
annual plan that articulates specific goals, objectives, and performance standards for the use of the
allocated funds. The plan must be developed with input from their State Planning Council. States


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generally allocate the majority of their funds to local political subdivisions, e.g., county mental health
departments, through a formula grant. For state formula grant allocations, see SAMHSA's website
(www.samhsa.gov, click on "State Summaries-Grant Awards" on the Funding page.)

Substance Abuse Prevention and Treatment (SAPT) Block Grant
The SAPT Block Grant funds states, tribes and territories to support substance abuse prevention and
treatment programs for people at risk of or abusing drugs and alcohol. (20% of funds allocated to states
must be spent on substance abuse primary prevention services.) While the program enables states and
localities to provide substance abuse prevention and treatment services through a variety of means, both
statute and regulations place special emphasis on provision of treatment and primary prevention services
to injecting drug users, and to women who use substances and are pregnant or with dependent children.
States have considerable flexibility in how they use these funds, however, inpatient hospital substance
abuse programs, cash payments to recipients, capital development, and needle-exchange and provision
programs are precluded. The block grant accounts for approximately 40% of public funds expended by
states and territories on substance prevention activities and treatment services. States and territories
annually submit a report and plan describing how they expended block grant funds from the previous year
and how they intend to obligate the funds in the coming year. States generally allocate the majority of
their funds to local political subdivisions, e.g., county mental health departments, through a formula
grant. For state formula grant allocations, see SAMHSA's website (www.samhsa.gov, click on "State
Summaries-Grant Awards" on the Funding page.)

Community Services Block Grant (CSBG)
CSBG funds states, tribes and territories to support a range of services to address the needs of low-income
individuals to ameliorate the causes and conditions of poverty through the following services and
activities: employment, education, income management, housing, nutrition, emergency services and
health. States apply annually for their CSBG award and are required to submit a state plan describing how
the state will carry out its program-related assurances. At least 90% of a state's allocations must be used
for grants to "eligible entities" -- qualified locally-based nonprofit community antipoverty agencies
(oftentimes called community action agencies) and other eligible entities which provide services to low-
income individuals and families. (For state formula grant allocations, go to:
www.acf.dhhs.gov/programs/ocs/csbg)

Social Services Block Grant (SSBG)
SSBG funds states, territories, and insular areas to support a broad array of social services directed toward
achieving economic self-support or self-sufficiency, preventing or remedying neglect, abuse, or the
exploitation of children and adults, preventing or reducing inappropriate institutionalization, and securing
referral for institutional care, where appropriate. Recent data show that the most prevalent services
provided with SSBG funds were: child day care, home-based services, child protective services, special
services for the disabled, social support services, adoption services, case management, adult protective
services, foster care services for children and prevention and intervention services. A waiver from the
Secretary of Health and Human Services is required to use SSBG funds for capital development and the
provision of medical care (other than family planning services, rehabilitation services or initial detox
services, unless it is an integral but subordinate part of a social service for which grants may be used). 10%
of SSBG funds may be transferred to other block grant programs for support of health services, health
promotion and disease prevention activities, and low-income home energy assistance. Within specific
limitations in the law, each state has the flexibility to determine what services will be provided, who is
eligible to receive services and how funds are distributed among the various services within the state. State
and/or local title XX agencies (i.e., county, city, regional offices) may provide these services directly or
purchase them from qualified agencies and individuals. (For state formula grant allocations, go to:
www.acf.dhhs.gov/programs/ocs/ssbg)


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Child Care and Development Block Grant (Child Care and Development Fund/CCDF)
CCDF funds states, territories and tribes to assist low-income families, families receiving temporary
public assistance, and those transitioning from public assistance in obtaining childcare so they can work
or attend training/education. Beneficiaries of CCDF funds must be children under age 13 (or, at the option
of the grantee, up to age 19 if physically or mentally incapable of self-care or under court supervision)
       who reside with a family whose income does not exceed 85 percent of the State median income
          adjusted for family size, and who reside with a parent (or parents) who is either working,
          attending job training or an educational program;
       or are in need of, or are receiving protective services..
 Except for approved construction of childcare facilities by tribal grantees, no CCDF funds may be used
 for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of
 any building or facility (other than remodeling or upgrading facilities to meet State and local child care
 standards.)

Under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996
("welfare reform"), the Child Care and Development Fund has changed Federally subsidized child care
programs in states by allowing them to serve families through a single, integrated child care system as all
child care funding is now combined under the Child Care and Development Block Grant Act. Subsidized
childcare services are available to eligible families through certificates or contracts with providers;
parents may select any legally operating childcare provider that meets basic health and safety
requirements set by states and tribes. All states, territories and tribes must submit comprehensive plans
every two years, which require public hearings regarding the plan; public comment is invited through this
process.

CFDA CODE, LEGISLATION/STATUTE, REGULATIONS/GUIDELINES

Community Mental Health Services (CMHS) Block Grant
CFDA Code: 93.958
Legislation: Public Health Services Act, Title XIX, Part B, Subpart I as amended, Public Law 106-
             310; 42 U.S.C. 300X
Regulations: 45 CFR Part 96

Substance Abuse Prevention and Treatment (SAPT) Block Grant
CFDA Code: 93.959
Legislation: Public Health Services Act, Title XIX, Part B, Subpart II as amended, Public Law 106-
             310; 42 U.S.C. 300X
Regulations: 45 CFR Part 96

Community Services Block Grant (CSBG)
CFDA Code: 93.569
Legislation: Community Opportunities, Accountability, Training, and Educational Services Act of
             1998, Title II, Section 201 and Sections 671-thru 679, Public Laws 97-35, 103-252,
             Public Laws 106-554 and 98-502
Regulations: 45 CFR 16, 45 CFR 74, 45 CFR 96

Social Services Block Grant (SSBG)
CFDA Code: 93.667
Legislation: Social Security Act, Title XX, as amended (see CFDA for full citation)
Regulations: 45 CFR 96



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Child Care and Development Block Grant (Child Care and Development Fund/CCDF)
CFDA Code: 93.575
Legislation: 42 U.S.C. 9858; Child Care and Development Block Grant Act of 1990; Personal
              Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193;
              Balanced Budget Act of 1997, Public Law 105-33; Consolidated Appropriations Act
Regulations: Child Care and Development Fund Final Rule, issued July 24, 1998




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                       EDUCATION FOR HOMELESS CHILDREN AND YOUTH


ADMINISTRATIVE AGENCIES

Federal:
Department of Education (ED), Office of Elementary and Secondary Education (OESE)
(202) 260-4412,
www.ed.gov/about/offices/list/oese/index.html and www.ed.gov/programs/homeless/index.html

AZ:      Arizona Department of Education, (602) 542-5460, www.ade.state.az.us/

CA:      California Department of Education, (916) 319-0791, www.cde.ca.gov/

NV:      Nevada Department of Education, (775) 687-9141, www.nde.state.nv.us/

TYPE OF ASSISTANCE
Formula

PROGRAM DESCRIPTION
This formula grant program is designed to:
                (1) ensure that homeless children and youth have equal access to the same free,
                    appropriate public education as other children;
                (2) provide activities for and services to ensure that these children enroll in, attend, and
                    achieve success in school;
                (3) establish or designate an office in each State educational agency (SEA) for the
                    coordination of education for homeless children and youth and responsible for
                    gathering comprehensive information about homeless children and youths and the
                    impediments to their regular attendance at school;
                (4) develop and implement programs for school personnel to heighten awareness of
                    specific problems of homeless children and youth; and,
                (5) provide grants to local educational agencies (LEAs) for the purpose of facilitating the
                    enrollment, attendance, and success of homeless children and youth in school.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Homeless children and youth in elementary and secondary schools (and homeless preschool children and
the parents of homeless children)

Eligible Projects/Programs:
Educational activities to facilitate enrollment, attendance and success in school of homeless children and
youths.

Eligible Use of Funds & Use Restrictions:
Activities that will facilitate the educational success of homeless children and youth, including: tutoring,
summer enrichment programs, the provision of school supplies, and professional development designed
to heighten educators' understanding of and sensitivity to the needs of homeless children and youth.



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Services provided with these funds cannot replace the regular academic program and must expand upon
or improve services provided as part of the regular academic program.

Eligible Applicants/Sponsors:
Departments of Education (State Education Agencies or SEAs) in the states, District of Columbia, Puerto
Rico, the outlying areas and schools serving Indian students that are funded by the Secretary of the Interior.
Only Local Education Agencies (LEAs) are eligible for state sub-grants.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
States don't receive less than $150,000.

Average Awards:
Average state award in FFY 2002 was $948,000.

Term of Awards:
One fiscal year.

Matching Requirements:
N/A

Formula:
States (and D.C and Puerto Rico) receive formula grant funds proportionate to the distribution of funds
under Section 1122 of the Elementary and Secondary Education Act of 1965, as amended (ESEA).

APPLICATION PROCESS
States (and the District of Columbia and Puerto Rico) receive their allocation annually. The state
educational agency (SEA) must distribute not less than 75 percent of their allocation in competitive sub-
grants to local educational agencies. States funded at the minimum level must distribute not less than 50
percent in sub-grants to local educational agencies (LEAs). States may reserve their remaining funds for
State-level activities. States are required to have an approved plan for addressing problems associated with
the enrollment, attendance, and success of homeless children in school. Biennial updates of State plans are
required for ongoing renewals.

Supportive housing providers should identify the state and local educational agencies to inquire about
potential funding. To identify the State education agency (SEA) and the State coordinators for this
program, go to the National Center for Homeless Education website, www.serve.org/nche/

CFDA CODE
84.196

AUTHORIZING LEGISLATION/STATUTE
McKinney-Vento Homeless Assistance Act of 1987, Title VII, Subtitle B, as amended, 42 U.S.C. 11431-
11435

REGULATIONS/GUIDELINES
Title 34 CFR Part 74; FY 2003 Draft Guidance for the Education for Homeless Children and Youth
Program (March 2003)

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ADDITIONAL RESOURCES
• To find the State education agency in your state a, go to the Department of Education's Education
  Resource Organizations Directory website, http://bco102.ed.gov/Programs/EROD/index.cfm
• National Center for Homeless Education, (800) 755-3277 www.serve.org/nche/
• National Law Center on Homelessness and Poverty, www.nlchp.org




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                   HEALTH CENTER GRANTS FOR HOMELESS POPULATIONS
                        (HEALTH CARE FOR THE HOMELESS-HCH)

ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Health Resources and Services Administration
(HRSA), Bureau of Primary Health Care, Divisions of Health Center Development and Health Center
Management, (301) 594-4300 and (301) 594-4420
 www.bphc.hrsa.gov

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Health Care for the Homeless (HCH) program delivers a full range of comprehensive primary health
care services to homeless people through a multi-disciplinary approach that combines aggressive outreach
with integrated systems of primary care, mental health and substance abuse services, case management
and client advocacy.

Part of the allocation for Community Health Centers (CFDA Code 93.224), Health Care for the Homeless
is a competitive grant program designed to promote and sustain the health status, outcomes and well-
being of homeless people, including homeless children.

In addition to direct federal grant funding, Health Care for the Homeless programs qualify for enhanced
Medicaid reimbursement provisions as Federally Qualified Health Centers (FQHCs.)

There have been significant increases in the HCH program in the past five years, i.e., $71.3 million in
Federal FY 1998 to $116 million in FFY 2003. Unlike many other grant programs or "funding pots",
HCH funding is renewable if HCH recipients meet their program objectives, i.e., it’s a grant program that
operates as a funding stream once an applicant has successfully implemented a HCH program.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Homeless individuals including but not limited to children, elderly persons, handicapped persons, families
with children, Native Americans, and veterans. Homeless individual is defined as an individual who lacks
housing (without regard to whether the individual is a member of a family), including an individual whose
primary residence during the night is a supervised public or private facility that provides temporary living
accommodations, an individual who is a resident in transitional housing, or a person who was homeless and
has been living in permanent housing for one year or less.

Eligible Projects/Programs:
HCH programs are encouraged to integrate both health and social services into individual care plans and
to provide a coordinated, comprehensive approach to the care they provide their homeless clients.
Applicants for this program are further encouraged to include homeless people in the development and
oversight of the HCH program in order to foster client-centered approaches to treatment.



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HCH funds can be used to provide eligible services in shelters, transitional housing and for up to 12
months in permanent housing, if the services were provided to the individuals when they were homeless.

The most likely use of this program to fund services in permanent supportive housing is when a Health
Care for the Homeless grantee (oftentimes a community health center) becomes a supportive housing
sponsor or partners with a supportive housing provider to provide a component of the services in the
housing. For a listing of HCH grantees in your community, go to the Directory on the Health Care for the
Homeless Information Resource Center website (www.bphc.hrsa.gov/hchirc/).

Please note that HCH funds can only be used to pay for eligible services for the first 12 months of a
resident's tenure in permanent housing if services were provided to these individuals when they were
homeless. For ongoing funding for some of the services paid for with time-restricted HCH grant funding,
the HCH grantee may pursue billing Medicaid for eligible services as a Federally Qualified Health Center
(see the Medicaid description for more information) or identify other sources of funds.

Eligible Use of Funds & Use Restrictions:
Outreach; primary health care, mental health and substance abuse services at locations accessible to
homeless individuals; 24-hour emergency primary health, mental health and substance abuse services;
referrals, as appropriate to medical facilities and to needed mental health services; outreach services to
inform homeless individuals of the availability of primary health, mental health and substance abuse
services; supplementary services (e.g., podiatry, dental and vision care, etc.) and, aid in establishing
eligibility for assistance, and in obtaining services under entitlement programs and housing programs.
HCC funds may be used to continue to provide the services listed above for up to 12 months to
individuals who have obtained permanent housing if services were provided to these individuals when
they were homeless.

Eligible Applicants/Sponsors:
Nonprofit private organizations and public entities, including State and local governmental agencies.
Applicants/sponsors may provide these services directly or through contract. Grantees and other
organizations with which applicants/sponsors contract for services under this program must have an
agreement with a State under its Medicaid program and be qualified to receive payments under the
agreement. About half of Health Care for the Homeless projects are administered by community and
migrant health centers; about half of the projects are administered by nonprofit coalitions, inner city
hospitals and local public health departments.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
$579,000 (most recent data available as of 9/1/03)

Term of Awards:
Grants are awarded for five years, although funding for years 2 - 5 is contingent upon available funding
and project performance.

Matching Requirements:
The applicant must assume part of the project costs determined on a case-by-case basis.



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Formula:
N/A

APPLICATION PROCESS
Eligible sponsors apply for HCH for a five-year period, although funding for years 2 - 4 is contingent
upon available funding and project performance. After the initial year, applications for funding are
submitted annually as budget period renewals. After the five-year project is completed, other local
organizations can compete with the previous HCH grant recipient in the same service area by submitting a
grant application. The program accepts applications for new service areas, called "new starts", only when
there is an increase in the program appropriation.

For information about current HCH grant funding opportunities, look at the HRSA Preview, published
twice a year, which is a consolidated announcement of all of HRSA's funding opportunities. (Visit
www.hrsa.gov, and click on Grants under the Funding site.)

CFDA CODE
93.151

AUTHORIZING LEGISLATION/STATUTE
Public Health Service Act, as Amended under the Health Centers Consolidation Act of 1996, Section
330(h), Public Law 104-299.

REGULATIONS/GUIDELINES
52 CFR 32347 "Availability of Funds for Project Grants for Health Services to the Homeless Population"

ADDITIONAL RESOURCES
• Health Resources and Services Administration (HRSA) Grants Application Center,
  (877) 477-2123
• Health Care for the Homeless Information Resource Center (HCHIRC), (888)439-3300,
  www.bphc.hrsa.gov/hchirc/
• National Health Care for the Homeless Council, Inc., http://www.nhchc.org/
• CSH Medicaid “White Papers”:
  http://www.csh.org/index.cfm?fuseaction=Page.viewPage&pageID=458




Corporation for Supportive Housing                 24
March 17, 2004
     HUD-VA SUPPORTED HOUSING (VASH) PROGRAM & VA SUPPORTED HOUSING
                                PROGRAM

ADMINISTRATIVE AGENCIES

Federal:
U.S. Department of Veterans Affairs (VA), Department of Veterans Affairs Health Care for Homeless
Veterans (HCHV) Programs, (202) 273-5764
www.va.gov/homeless/

TYPE OF ASSISTANCE
Authorization/mandate to Regional VA Medical Centers to provide clinical and case management
services to homeless veterans linked to housing

PROGRAM DESCRIPTION
Unlike many other services systems, the Department of Veterans Affairs (VA) provides, rather than
subcontracts out for many of the services commonly found in supportive housing for homeless veterans.
Some of the VA's homeless programs are designed to leverage the case management, primary and
behavioral health care, and other services the VA provides to homeless veterans with housing provided by
others. The HUD-VA Supported Housing Program and the VA Supported Housing Program are two such
programs.

HUD -VA Supported Housing (VASH) Program
Begun in 1992, the HUD-VASH program is a partnership between HUD and the VA to further the
objectives of serving veterans who are homeless and mentally ill and those with substance abuse disorders
by closely linking two interventions:
         (1)     Permanent affordable housing through the provision of housing subsidies from a special
                 needs setaside of HUD's Housing Choice Voucher Program (Section 8); and,
         (2)     Community-oriented outreach, clinical care and case management services.

Through 2002, HUD funded three rounds of almost 600 vouchers each (a total of 1,753) for this special
needs Section 8 program. (See the Introduction to the Operating section for more information about how
the special needs Section 8 programs work.) At the same time, VA medical centers formed clinical case
management teams at 34 sites, usually social workers or nurses to provide outreach, clinical care and case
management services to the veterans housed through the program.

VA Supported Housing Program
Like the HUD-VASH Program outlined above, staff in VA's Supported Housing Program provide
ongoing case management services to homeless veterans, with an emphasis on securing long-term
transitional or permanent housing and assisting veterans in retaining that housing. Emphasis is placed on
helping veterans find permanent housing and providing clinical support needed to keep veterans in
permanent housing. Staff in these programs operate without benefit of the specially dedicated Section 8
housing vouchers available in the HUD-VASH program, but are often successful in locating transitional
or permanent housing through local means, especially by collaborating with Veterans Service
Organizations. VA staff work with private landlords, public housing authorities and nonprofit
organizations to find housing arrangements.




Corporation for Supportive Housing                  25
March 17, 2004
For supportive housing sponsors serving homeless veterans with mental health and substance use issues,
both of these programs can be sources of in-kind clinical care and case management services linked to or
provided on-site in supportive housing. Essentially these programs are authorizations for VA Medical
Centers and Supported Housing Program sites to provide clinical care and case management services to
homeless veterans. To facilitate services to homeless veterans, each of the VA's 206 Vet Centers has an
identified staff person who functions as a homeless veterans coordinator.

ELIGIBILITY INFORMATION

Eligible Target Populations:
HUD-VASH Program: Homeless veterans with mental illness and/or those suffering from substance
abuse disorders.
VA Supported Housing Program: Homeless veterans.

Eligible Projects/Programs:
HUD-VASH Program: any project/program that has access to Section 8 vouchers through this set-aside
program (or because the local public housing authority has established a preference for veterans within
their existing mainstream Section 8 program) is eligible to request clinical care and case management
services from the VA.
VA Supported Housing Program: any project/program serving homeless veterans.

Eligible Use of Funds & Use Restrictions:
N/A

Eligible Applicants/Sponsors:
Programs serving the target population.

GRANT/LOAN TERMS
N/A

APPLICATION PROCESS

HUD-VASH Program: The best way to access these resources is by contacting the local Public Housing
Authority to determine if there are HUD-VASH vouchers and/or if it has a preference for veterans. If
either is the case in your community, after developing a partnership with the housing authority about how
the two interventions would be coordinated, contact the Homeless Coordinator in the Regional Office of
the VA (www.va.gov/homeless/index.cfm , go to Homeless Programs and Initiatives, and click on
Homeless Veteran Program Coordinators for access to state by state listings.)

VA Supported Housing Program. The best way to access these resources is to contact the Homeless
Coordinator in the Regional Office of the VA (www.va.gov/homeless/index.cfm , go to Homeless
Programs and Initiatives, and click on Homeless Veteran Program Coordinators for access to state by
state listings.)




Corporation for Supportive Housing                 26
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CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
HUD-VASH: Section 12 of Public Law 107-95

REGULATIONS/GUIDELINES
N/A

ADDITIONAL RESOURCES
• For more information about the services provided to homeless veterans through the Veterans Health
  Administration, go to the "VA Homeless Coordinators" page on the VA website at
  www.va.gov/homeless/. The Homeless Coordinator at each Homeless Veteran Coordinator Office can
  provide information about the services for Homeless Veterans provided through the Veterans Health
  Administration. Services include outreach, case management, referrals to benefits counselors, linkage
  to health care, and housing assistance. Each facility is unique and services vary among each medical
  center. To find the Homeless Coordinator in your area, go to the "VA Homeless Coordinators" page
  on the VA website at www.va.gov/homeless/




Corporation for Supportive Housing                27
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                                               MEDICAID

ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) (410) 786-
3870, www.cms.gov/medicaid

AZ:
Arizona Health Care Cost Containment System (AHCCCS), (602) 417-4000, www.ahcccs.state.az.us

CA:
California Department of Health Services (DHS), Medical Care Services (MCS), (916) 440-7800,
www.dhs.ca.gov/mcs/MedicalInformation/Med.htm , www.medi-cal.ca.gov

NV:
State of Nevada Department of Human Resources, Division of Health Care Financing and Policy (Nevada
Medicaid), (775) 684-3676, www.dhcfp.state.nv.us

TYPE OF ASSISTANCE
Formula

PROGRAM DESCRIPTION
The information in this summary is significantly drawn from the Corporation for Supportive Housing's
white papers issued under its Medicaid Project. For more detailed information, see the white papers
titled "Medicaid in Supportive Housing: Lessons for Policy-Makers," "The Basics of the Federal/State
Medicaid Program" and "Current Opportunities for Medicaid Financing" issued in March-April 2003
and available on their website at www.csh.org.

Medicaid is a Federal entitlement program, matched by state and local dollars, that funds health care for
low-income families and disabled or elderly individuals. The Medicaid health care reimbursement
program is jointly funded and administered by the Federal and state governments.

In layperson's terms, Medicaid is an insurance plan that has two payers -- the Federal and state
governments. That is, when a person insured by Medicaid gets sick and goes to a provider that accepts
Medicaid for health services, payment for those services is provided by a combination of funding from
the state and Federal governments. (The provider bills the appropriate unit of state government and is paid
by the state, at a price or “rate” set by the state, with a combination of state and Federal funds.)

Working within parameters defined by Federal law and administrative rules, each state develops a State
Medicaid plan that defines:
• who is eligible for Medicaid coverage;
• what kinds of services are covered under Medicaid (i.e., basic health services plus state options, the
   definition of "medical necessity," where services must be provided);
• who can provide services to be paid by Medicaid;
• rate structure (i.e., fee-for-service, case rates, capitation, etc.); and,
• other applicable requirements including billing procedures, record-keeping, and other administrative
   provisions.



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Federal law establishes some requirements but many important provisions are established under Medicaid
“options” that are allowed but not required. Most states have enacted Medicaid program changes to
require or allow some or all Medicaid recipients to enroll in managed care plans. Although most Federal
requirements apply regardless of whether the recipient is in a managed care or fee-for-service setting, the
application of these rules may shift from the state to managed care organizations.

In addition, many states have obtained Federal waivers to "carve out" mental health services, or other
services, separating the administration of these benefits from provisions which govern and reimburse the
delivery of other Medicaid benefits. A carve-out may allow a state mental health agency to establish
managed care programs (which may be administered by county government or a local mental health
authority) or otherwise limit service providers' ability to obtain Medicaid reimbursement for a defined set
of covered benefits. In that the primary way Medicaid can pay for services provided in supportive housing
is under benefits around mental health services, carve-out arrangements may impact the administration of
Medicaid benefits for services provided in supportive housing.

Carve-out arrangements can result in a confusing division of health care services or undermine the
integrated delivery of health care including "wraparound services." The supportive housing provider may
be able to contract with a state or county mental health department (or a managed care organization) to
provide, for example, rehabilitation services to tenants. But another public or private agency may have
responsibility for approving tenants' psychotropic prescriptions and/or hospital services; medical care may
be provided by yet another agency using a different set of administrative procedures. Because these
arrangements vary from state to state, supportive housing sponsors will need to determined how each of
the benefits they are to provide are administered.

Despite the challenges of using the Medicaid program to fund services in supportive housing, there are
numerous examples of governments and providers doing so; Medicaid is increasingly being viewed as a
reliable source of funding for services for residents of supportive housing with a range of health care
needs, particularly if the resident population includes significant numbers of persons with mental illness.

There are several ways Medicaid can be used to fund some of the services provided to supportive housing
tenants. Strategies currently in use or being explored in some states include funding services through:
• The Rehabilitation Option
• The Targeted Case Management (TCM) Option
• A combination of these first two options to fund Assertive Community Treatment (ACT) programs
    and other client-centered services
• Partnerships with Federally Qualified Health Centers (FQHCs)
• Home and Community Based Services 1915 (c) waivers
• Other Federal waivers
• The Assisted Living and Personal Care Option.

The two most successful strategies to date have been the Rehabilitation Option and partnering with
FQHCs to provide health and mental health services to supportive housing residents.

AZ: The Arizona Health Care Cost Containment System (AHCCCS) is Arizona's Medicaid program and
the State of Arizona's health care program for persons who do not qualify for Medicaid. In 1982, AHCCS
became the nation's first statewide Medicaid managed care system. AHCCCS contracts with health plans
and other program contractors, paying them a monthly “capitation” amount prospectively for each
enrolled member. The plan or contractor is then “at risk” to deliver the necessary services within the
capitated amount. AHCCCS receives Federal, state and county funds to operate, plus some monies from
Arizona’s tobacco tax.


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In contrast to the acute care and long term care program, behavioral health services are carved-out and
delivered through an Intergovernmental Agreement between AHCCCS and the Arizona Department of
Health Services (ADHS.) ADHS contracts with Regional Behavioral Health Authorities to deliver
behavioral health services to members.

CA: Medi-Cal is California's Medicaid health care program. Local county welfare/social services
departments manage Medi-Cal eligibility determinations. In California, specialty mental health services
were carved out from the provision of other Medicaid covered benefits. The State gives the counties a
fixed amount of state funding, based on the amount the State was paying to match Federal funds for
Medicaid-covered mental health services in past years. The counties are responsible for providing (or
contracting for the delivery of) specialty mental health services, including mental health services covered
by Medi-Cal, and for paying the State's share to match Medicaid reimbursements from the Federal
government. In essence, the counties operate de facto mental health managed care plans wherein they
contract with a limited number of providers to provide these services, through which Medi-Cal recipients
access these services. (Note: counties also have to provide or pay for mental health service to other
indigent patients not insured by Medi-Cal in certain circumstances.)

There are two exceptions to the mental health carve-out arrangement in California:
(1) primary care providers are still able to provide mental health-related services that fall under primary
    care, e.g., prescription of anti-depression medication.
             a. Federally Qualified Health Centers (FQHCs), generally community clinics or Health
                  Care for the Homeless programs, can deliver primary care and specialty mental health
                  services separate from the county's managed care system. In such instances, FQHCs are
                  paid for those services through an arrangement that pays for visits by licensed clinicians
                  (including physicians, nurse practitioners, psychiatrists, and LCSW’s). It is important to
                  note that FQHC reimbursement rates are relatively high because they are designed to
                  capture all of the costs associated with comprehensive care for vulnerable patients.

NV: Nevada outlines its Medicaid program in the Nevada Medicaid Plan. It currently operates a
traditional fee-for-service program except in Clark County where it contracts with two Medicaid HMOs
to provide Medicaid services to over 70,000 recipients. The State has a Request for Proposal through
which it hopes to expand managed care to several Northern Nevada counties potentially covering an
additional 20,000 recipients.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Federal law defines Medicaid eligibility in terms of "categorical" and "financial" criteria. To establish
eligibility, an individual must meet both criteria. Categorical criteria describe population groups that are
eligible; financial criteria require that recipients' income and resources do not exceed state limits set for
each group. In addition, a Medicaid recipient must be a citizen or have appropriate immigration status,
and must be a resident of the state paying for the services.

Federal law requires states to provide coverage to some "mandatory" groups, while allowing states
flexibility to extend or restrict coverage for other "optional" groups. Mandatory groups include: pregnant
women; children; low-income families with children; aged, blind and disabled individuals; and, low-
income, elderly Medicare beneficiaries. (Low-income parents and children are often eligible even if not
receiving welfare/TANF benefits, but often they do not apply.) Optional groups include: aged, blind or
disabled individuals who meet income and resource requirements of the SSI program but do not actually
receive benefits; persons enrolled in special home and community-based waiver programs;


Corporation for Supportive Housing                    30
March 17, 2004
institutionalized individuals with certain income limitations; and, disabled children 18 years and younger
who would be eligible if in an institution. The complex eligibility rules vary widely from state to state
and therefore the state Medicaid plan should be consulted for state-specific eligibility rules.

For service providers serving homeless people or supportive housing tenants, it is important to understand
that very low-income adults who are not "disabled" as defined by SSI eligibility standards, and who do
not have or are not living with dependent children, are generally not eligible for Medicaid. (There are
exceptions in a few states with 1115 waivers.) This group includes adults who have health conditions or
disabilities that are primarily attributable to substance abuse (which since 1996 has been excluded from
SSI eligibility.) In addition, the following groups have limited or no eligibility for Medicaid: immigrants,
people with asymptomatic HIV, and incarcerated people.

In addition to these mandated, optional and ineligible groups, states may choose to offer Medicaid
coverage to medically needy persons, disabled individuals who work and other groups covered under a
Federal Medicaid demonstration waiver. (For example, states have the option to extend eligibility for
people who qualify for SSI, based on disability level, but have earnings from work.)

Eligible Projects/Programs:
As mentioned above, there are several promising strategies for using Medicaid in supportive housing:
   Rehabilitation Option: Under the "rehab option," supportive housing providers can obtain
    reimbursement for services intended to restore the skills tenants need to live independently and to
    improve functioning impaired by mental illness (or in some states, chemical addiction.) Some key
    issues related to using the rehab option are:
    -- To qualify for reimbursement, services must be related to the tenant's identified diagnosis and
       based upon an individualized plan of care.
    -- Some covered services can be delivered by staff with a broad range of skills and training levels,
       subject to appropriate clinical oversight.
    -- Only some of the supportive housing tenants covered by Medicaid will be eligible for
       rehabilitation services, based on diagnosed mental illness or other medical necessity criteria
       established by the state.
    Most supportive housing providers that currently rely on Medicaid reimbursement for rehab option
    services are nonprofit agencies that also deliver Medicaid-reimbursed services in other settings, or
    have previously established contracts with local or state mental health (or behavioral care) authorities
    for residential, outpatient, or case management programs.
              a. Targeted Case Management Option: Some states have established targeted case
                 management (TCM) benefits that appear to match the service needs of many supportive
                 housing tenants, however there is limited experience using this option to pay for
                 supportive housing services.. The TCM option provides Medicaid coverage for
                 assessment, goal-setting, and flexible services that help tenants gain access to other
                 needed medical, social, and education services or benefits, especially when they allow
                 them to utilize necessary health services.
                  (1) Partnerships with Federally Qualified Health Centers (FQHCs): FQHCs (including
                      community clinics and Health Care for the Homeless Programs) can partner with
                      housing providers to deliver services to meet tenants' needs for health care, including
                      health education and mental health or substance abuse treatment services. This
                      strategy has some advantages: FQHC providers can use other grant funding; and
                      FQHC providers often qualify for Medicaid reimbursement at rates that are higher


Corporation for Supportive Housing                    31
March 17, 2004
                       than those available to other health care providers, in order to finance a more
                       comprehensive array of services to patients with complex health and social services
                       needs.
                  (2) Medicaid Waivers: Waivers of Federal rules allow states to use Medicaid in more
                      creative ways. Some states have obtained waivers to expand Medicaid coverage to
                      individuals who would not otherwise be eligible. For example, Massachusetts
                      obtained a waiver to extend coverage to some very low-income adults without
                      children, including people experiencing long-term unemployment and those with
                      HIV who do not currently qualify for SSI based on disability. Michigan used a
                      waiver to establish prepaid health plans, administered by county-sponsored mental
                      health agencies. Theses plans have implemented "person-centered planning" for
                      consumers with mental illness or chemical addiction. They have also established a
                      structured partnership at state and local levels that facilitates the production of
                      supportive housing and uses Medicaid financing to pay for flexible community living
                      supports. Although providing numerous opportunities for flexible, creative
                      approaches, Medicaid waivers require significant investment, leadership, and
                      creativity to make them work for supportive housing.

Eligible Use of Funds & Use Restrictions:
In order to receive Federal Medicaid funding, states must offer basic services to the mandatory,
categorically needy populations described above under Target Populations. Federal law requires all states
to provide Medicaid reimbursement for a broad array of clinical health services. These “mandatory”
services include hospital and physician services; certain dental services; nursing facility and home health
care; family planning; and related laboratory test and X-rays. States also receive Federal matching funds
for “optional” Medicaid services they may choose to cover, e.g., clinic services, prescription drugs, etc.,
within a wide range of Federally allowed options regarding eligibility, covered benefits and other
program specifications. All reimbursed services must be deemed "medically necessary" (although the
specific criteria and procedures used to apply this rule vary among states and types of services.) Each
State's interpretation of Federally-mandated services and additional coverage it has elected to provide are
laid out in its Medicaid plan.

Many of the health, case management, and supportive services provided to supportive housing tenants
appear to qualify for Medicaid reimbursement. To access Medicaid funding for supportive housing
services, a supportive housing project must house Medicaid-eligible tenants, provide services that are
Medicaid-fundable, and include a qualified service provider. Medicaid reimbursement requires that the
client, the service, and the provider are all qualified as Medicaid-eligible, with the provider having
sufficient administrative capacity to meet state and Federal billing and record-keeping requirements.

Eligible Applicants/Sponsors:
States receive Federal funds to match their expenditures for Medicaid-covered health care services.
Within broad Federal guidelines, provider participation requirements vary widely from state to state. In
order to bill for Medicaid, health care providers may complete a relatively simple certification or
registration process in one state or may be required to enter a detailed, executed contract in another.
Administrative requirements will vary from state to state as the state determines the billing structure that
providers must use. States may also delegate the administration of parts of the Medicaid program to local
governments (particularly in large urban areas such as New York City, and in states, such as California,
where counties play a large role in administering health and human services programs. Medicaid managed
care plans may further define provider eligibility. Again, states outline their interpretation of Federal
requirements and any additional requirements in the state Medicaid plan.



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In general four types of providers are relevant in terms of accessing Medicaid to pay for services to
supportive housing tenants:
                 (1) Federally Qualified Health Centers (FQHCs). FQHC is defined as a clinic that
                     serves populations in particular need of health care services, such as homeless and
                     very low-income people. Many public and nonprofit community health centers and
                     Health Care for the Homeless Programs, migrant health clinics, and primary care
                     centers located in public housing qualify for designation as FQHCs. Programs are
                     designated as FQHCs either because they receive a grant specifically for such care, or
                     because they have demonstrated to the Federal public health service that they are
                     serving the targeted high-need populations. FQHCs also serve uninsured persons and
                     provide a wide range of necessary, non-medical services, such as social assistance or
                     translation services. FQHCs receive Medicaid reimbursement for health care visits
                     provided to Medicaid-eligible consumers by physicians, psychiatrists, and other mid-
                     level medical practitioners, as well as qualified clinical social worker and
                     psychologists.
                 (2) Nonprofit community-based supportive housing agencies under contract with
                     (or otherwise recognized as a Medicaid provider by) local or state governments.
                     Although most supportive housing agencies are not eligible to directly bill Medicaid
                     for health care services provided by their staff, states may allow these providers to
                     receive Medicaid reimbursement through contracts with agencies that can bill for
                     Medicaid services, usually state or local governments. Alternatively, some states
                     allow providers to bill Medicaid without an established service contract, using
                     instead procedures for provider certification by a state or local government agency
                     (or by a managed care entity under terms specified by the state.)
                 (3) Nonprofit community-based supportive housing agencies not under contract
                     with (or otherwise recognized as a Medicaid provider by) local or state
                     governments. As noted, these agencies are generally not able to bill Medicaid,
                     although state law may allow licensed or credentialed individual practitioners to bill
                     for services provided in supportive housing settings.
                 (4) Individual Providers. State laws establish the qualifications, requirements, and
                     administrative process for the credentialing and/or licensing of clinical practitioners.
                     In general, sates allow most types of licensed professionals, e.g., doctors, to
                     participate in Medicaid. States define the settings and circumstances under which
                     individual providers may bill for their services and require additional administrative
                     procedures in order to become a Medicaid provider.

Although a potentially a significant funding stream for services for supportive housing tenants, Medicaid
is a complicated program that requires sophisticated administrative and financial capacity on the part of
the provider. Supportive housing programs that have been most successful in using Medicaid to fund
services have been those that include as the service provider an organization that has already been getting
Medicaid reimbursement for more traditional reasons, e.g., a community clinic, Health Care for the
Homeless provider, or a non-profit agency already delivering outpatient or residential mental health
services under contract with a county mental health department.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A




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Average Awards:
N/A

Term of Awards:
States are awarded funds quarterly on a Federal fiscal year, based on their estimates of funds needed to
provide medical assistance to the needy.

Matching Requirements:
States receive Federal funds to match their expenditures for Medicaid-eligible health care, based on an
allocation formula which renders the Federal share anywhere from 50 to 80 percent. In some states, local
governments share responsibility for the state’s share of costs for some Medicaid covered benefits. For
Medicaid-eligible providers of services, there are no match requirements, although providers often need
to utilize other funds to cover costs that exceed Medicaid payment rates, or for services to individuals
who are not eligible for Medicaid benefits. There are pre-determined reimbursement rates and in some
cases some Medicaid benefits are administered through managed care arrangements whereby providers
receive a fixed amount of resources per eligible beneficiary to provide a specific range of services.

Formula:
States receive Federal funds to match their expenditures for health care, based on an allocation formula
that includes factors such as the state's current fiscal year budget, the relative income level of the state's
population, etc. These criteria are used to determine the state's match requirement for Medicaid funding.

APPLICATION PROCESS
States apply to the Federal government making budgetary requests based on previous year Medicaid
expenditures.

The best ways for supportive housing providers to begin exploring using Medicaid reimbursements to
fund services in supportive housing is by:
            a. contacting the State or, in many places, the local public health or mental health agency;
                 and/or
            b. contacting a community clinic, Health Care for the Homeless program, or other health
                 care provider that provides medical or mental health services to Medicaid beneficiaries,
                 homeless people, and other low-income people.

If Medicaid seems a likely funding process, supportive housing sponsors should begin to ensure that those
tenants and prospective tenants who are Medicaid-eligible receive coverage. This oftentimes requires SSI
advocacy, as some supportive housing tenants that are eligible for Medicaid have difficulty getting
through the process and/or have been denied.

CFDA CODE
93.778

AUTHORIZING LEGISLATION/STATUTE
Social Security Act, Title XIX, as amended. (See CFDA for full citation.)

REGULATIONS
42 CFR, Subchapter C




Corporation for Supportive Housing                    34
March 17, 2004
ADDITIONAL RESOURCES
• CSH published five white papers under the CSH Medicaid Project on the challenges and
  opportunities of using the Medicaid program to fund services in supportive housing. www.csh.org
  (Go to Resources, Funding Resources, Medicaid Resources)854
• "Casualties of Complexity, Why Eligible Homeless People are not Enrolled in Medicaid," Patricia A.
  Post, National Health Care for the Homeless Council, 2001. (http://www.nhchc.org/Publications/)
• "Recovery in the Community, Funding Mental Health Rehabilitative Approaches Under Medicaid,"
  Bazelon Center for Mental Health Law, 2001.
• Center for Health Care Strategies has published two reports on homeless people accessing Medicaid
  through managed care. www.chcs.org
• Links to state Medicaid pages can be found at: http://www.geocities.com/CapitolHill/5974




Corporation for Supportive Housing               35
March 17, 2004
            PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS
                                      (PATH)


ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services
Administration (SAMHSA), Center for Mental Health Services (CMHS), Division of Knowledge
Development and Systems Change, Homeless Programs Branch, (301) 443-3706, www.samhsa.gov and
www.pathprogram.samhsa.gov

AZ:
Arizona Department of Health Services*, (602) 542-1001, www.hs.state.az.us/bhs/path.htm

CA:
California Department of Mental Health*, (800) 896-4042 or (916) 654-3565, www.dmh.cahwnet.gov

NV:
Nevada Department of Human Resources, Division of Mental Health & Developmental Services*, (775)
684-5943, http://mhds.state.nv.us/

*   For PATH state contacts, go to www.pathprogram.samhsa.gov, “PATH Grantees”.

TYPE OF ASSISTANCE
Formula

PROGRAM DESCRIPTION
Established under the McKinney Act, PATH is a formula grant program that provides funding to States
and Territories to provide a wide array of community support services for people who are seriously
mentally ill (SMI), as well as individuals with co-occurring substance abuse disorders (dual diagnoses),
and homeless or at risk of homelessness. PATH funds are often targeted to support three levels of service
considered critical to assisting homeless people with serious mental illnesses: outreach to those not being
served by the mental health system; engagement of these individuals in treatment and services; and
transition of clients to mainstream mental health treatment, housing, and support services. Funds are
targeted to ensure access for homeless people to the mainstream mental health system, affordable
housing, and treatment options for those with dual diagnoses.

States have considerable flexibility in how they expend their funds; some states have chosen to allocate a
portion of PATH funding to pay for services in supportive housing for people who are homeless and
mentally ill.

This is a very promising source of funding for services in supportive housing, both because it is an
ongoing funding stream and because there have been very significant increases in the funding level for the
PATH program over the past five years, i.e., $23 million in Federal FY 1998 to $47 million for FFY
2003. (This is still a relatively modest level of funding compared to the resources provided by
SAMHSA’s block grant programs for mental health or substance abuse services.)




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ELIGIBILITY INFORMATION

Eligible Target Populations:
Individuals who are:
• homeless or at imminent risk of homelessness; AND
• seriously mentally ill; OR
• suffering from a co-occurring serious mental illness and substance abuse disorder

Eligible Projects/Programs:
Funds may be used at the discretion of the state to achieve program objectives (within eligible uses and
use restrictions listed below.) PATH funds generally go to mental health services providers. They have
been used in some states to pay for services in supportive housing projects.

Eligible Uses of Funds and Use Restrictions:
Outreach; screening & diagnostic services; habilitation and rehabilitation services; community mental
health services; alcohol or drug treatment services; staff training; case management services; supportive
and supervisory services in residential settings; referrals for primary health services, job training, and
education services and relevant housing services; and, a limited set of housing services and services to
help clients access housing resources. (No more than 20% of a state's allocation can be spent on housing
services.)

Eligible housing services include: minor renovations/repairs; housing planning; technical assistance in
applying for housing assistance; improving coordination of housing services; security deposits; costs
associated with matching eligible homeless individuals with appropriate housing situations; and, one-time
rental payments to prevent evictions.

Funds may not be used for: supporting emergency shelters or construction of housing facilities; inpatient
psychiatric or substance abuse treatment costs; or to make cash payments to intended recipients of mental
health or substance abuse services.

For supportive housing providers serving people who are seriously mentally ill and homeless, many of the
services delivered in supportive housing fit within eligible uses of PATH funds, however, states have the
discretion to decide how to achieve the program objectives and how to prioritize use of PATH funds.

Eligible Applicants/Sponsors:
States, District of Columbia and Territories. States are required to expend the funds in grants to political
subdivisions of the State, i.e., county mental health departments, and/or nonprofit private entities.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
Minimum award: $300,000 ($50,000 for Territories)

Average Awards:
$347,000 (most recent data available as of 9/1/03)

Term of Awards:
Annual awards




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March 17, 2004
Matching Requirements:
States must match the Federal funds on a 1:3 basis (including cash or in-kind contributions) with private
or public non-Federal sources. Territories have no match requirements. There is no match requirement for
the sub-grantees of the States.

Formula:
Formula is based on the urban population of a state, compared to the urban population of the entire United
States. The formula is cited in Section 524 of the Public Health Services Act, as amended by Public Law
101-645.

APPLICATION PROCESS
States (District of Columbia and territories) receive PATH funds from the federal government on a
formula basis. The state agency responsible for administering the PATH program then allocates the funds
according to its own discretion, e.g., competitive grants, allocation formulas, combinations of the two. If
PATH funds are further allocated to units of local government, i.e., counties, they also will set priorities
for how to use PATH funds. The sub-grantee may use the funds for any of the federally eligible activities
listed above.

Supportive Housing sponsors/programs serving homeless people who have mental illness wishing to
access PATH funds for supportive housing should contact the state contact for the PATH program and/or
the appropriate local government subdivision or nonprofit that administers/manages PATH funds.

CA: The California Department of Mental Health (DMH) administers the PATH funds awarded to the
state, and awards the majority of its allocation to county mental health departments through a formula
grant. In 1999, DMH set aside a portion of the State's PATH funds for competitive grants to supportive
housing programs.

AZ: The AZ Department of Health Services administers the funds awarded to the state, and awards the
funds to the three providers serving the areas of the state with the largest numbers of homeless
individuals: Southwest Behavioral Health Services, CPSA and NARBHA.

CFDA CODE
93.150

AUTHORIZING LEGISLATION/STATUTE
Public Health Service Act, Title V, Part C, Section 521, as amended, 42 U.S.C. 290cc-21 -35; Stewart B.
McKinney Homeless Assistance Amendments Act of 1990, Public Law 101-645

REGULATIONS/GUIDELINES
45 CFR 92, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
Local Governments. PHS Policy Statement, DHHS Publication No. (OASH) 94-50,000, (Rev.) April 1,
1994.

ADDITIONAL RESOURCES
• SAMHSA: www.samhsa.gov and www.samhsa.gov/grants/grants.html
• Catalog of Federal Domestic Assistance: www.cfda.gov (use the CFDA code above)
• PATH site maintained for the Center for Mental Health Services by Policy Research Associates:
  www.pathprogram.com. (See PowerPoint presentation "Using Mainstream Resources to Serve PATH


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March 17, 2004
    Consumers" by Carol Wilkins, Corporation for Supportive Housing, on the Technical Assistance
    page.)
•   National Resource Center on Homelessness and Mental Illness: www.nrchmi.samhsa.gov




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March 17, 2004
      RYAN WHITE COMPREHENSIVE AIDS RESOURCES EMERGENCY (CARE) ACT
                              PROGRAMS:
                TITLE I: GRANTS TO ELIGIBLE METROPOLITAN AREAS (EMAS)
                          TITLE II: GRANTS TO STATES AND TERRITORIES



ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Health Resources and Services Administration
(HRSA), HIV/AIDS Bureau, (301) 443-6745
www.hab.hrsa.gov and www.hab.hrsa.gov/programs.htm

AZ:
Arizona Department of Health Services, Bureau of Epidemiology and Disease Control, Office of
HIV/AIDS, (602) 364-3280, www.hs.state.az.us/phs/hiv/

CA:
California Health and Human Services Agency, Department of Health Services, Office of AIDS, (916)
449-5900, www.dhs.ca.gov/ps/ooa/ooaindex.htm

NV:
Nevada State Health Division, Bureau of Community Health, HIV/AIDS Program Office, (775) 684-5900
www.health2k.state.nv.us/BCH/ and www.health2k.state.nv.us/hiv/HIV.htm

*   For contacts for Ryan White CARE Act programs, go to www.hab.hrsa.gov , click on the Programs
    page and click Contacts under the applicable program.

TYPE OF ASSISTANCE
Formula and Competitive

PROGRAM DESCRIPTION
The Ryan White CARE Act provides funding to localities, states and other public or private nonprofit
entities to develop, organize, coordinate and operate more effective and cost-efficient systems for the
delivery of essential health care and support services to medically underserved individuals and families
affected by HIV disease. The Ryan White CARE Act established a variety of AIDS programs to address
the unmet health needs of persons living with HIV disease in order to improve the availability and quality
of community-based outpatient primary health care and support services that enhance access to and
retention in care.

CARE Act-funded services are intended to reduce the use of more costly inpatient care, increase access to
care for underserved populations, and improve the qualify of life for those affected by the epidemic.
CARE Act programs fund local and State programs that provide medical care and support services;
healthcare provider training; and, technical assistance to help funded programs address implementation
and emerging HIV care issues.

The CARE Act established programs under five titles or parts, of which Titles I and II are most relevant
for supportive housing providers. While Titles I and II do not directly fund the development or operation


Corporation for Supportive Housing                  40
March 17, 2004
of permanent or long-term supportive housing for people with AIDS, they will fund housing-related
services (including emergency financial assistance, emergency housing, housing referrals, and some
transitional housing assistance) and supportive services to residents in supportive housing.

Title I: Grants to Eligible Metropolitan Areas (EMAs) or HIV Emergency Relief Project Grants
Title I establishes formula and competitive supplemental grants to fund community-based health care, and
early intervention and support services in localities that are most severely affected by the HIV/AIDS
epidemic, called Eligible Metropolitan Areas (EMAs). Title I funding to EMAs includes formula and
supplemental components, and Minority AIDS Initiative funds targeted for services to minority
populations. Supplemental grants are awarded competitively based on demonstration of severe need and
other criteria. The formula and supplemental grant components of Title I are most relevant for supportive
housing sponsors.

Title II: Grants to States or Territories or HIV Care Formula Grants
Title II establishes a formula grant program to all States and Territories to improve the quality, availability,
and organization of their health care and support services for individuals and families with HIV/AIDS. Title
II funds a wide range of services including (and in addition to direct health and support services)
continuation of health insurance coverage and pharmaceutical treatments. Title II funding to States or
Territories includes: a base formula component; the AIDS Drug Assistance Program (ADAP); and grants to
States for Emerging Communities -- those reporting between 500 and 1,999 AIDS cases over the most
recent five years. The base formula grant component of Title II is most relevant for supportive housing
sponsors. Decisions about the use of Title II funds are made at the sate and/or local consortia level.

Some communities receive funding from both formula grant programs, some from one or the other.
Relative to supportive housing sponsors accessing these CARE Act funds, Title I and II formula grants
are generally not distinguished at the local level and are administered together as CARE Act funds.
Except where there are significant differences, the balance of this summary will describe the formula
grant components of Title I and II CARE Act programs together.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Low-income individuals with HIV/AIDS and their families/caregivers. The most likely users of CARE
Act services include people with no other source of health care and those with Medicaid or private
insurance whose care needs are not being met.

Eligible Projects/Programs:
Programs that provide an effective, appropriate and cost efficient continuum of health care and support
services for individuals and families with HIV disease.

Eligible Use of Funds & Use Restrictions:
Title I funds may be used for the provision of health and support services, including:
• outpatient and ambulatory health services including substance abuse and mental health treatment;
• early intervention services, including outreach, counseling and testing, and referral services designed
    to identify HIV-positive individuals who know their HIV status;
• support services (including case management, home health and hospice care, emergency and short-
    term housing assistance, transportation assistance, nutrition services, and day/respite care) to the
    extent that these support services facilitate, enhance, support, or sustain delivery, continuity or
    benefits of health services; and,
• inpatient case management services that expedite discharge and prevent unnecessary hospitalization.


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March 17, 2004
Title I funds may not be used for: construction, rehabilitation, or long-term rental assistance and only a
small portion of Title I funds may directly provide housing services.

Title II funds may be used for all of the uses of Title I plus:
• establishment and operation of HIV consortia;
• continuity of insurance coverage; and,
• pharmaceutical treatments through the AIDS Drug Assistance Program (ADAP.

Ryan White funds can support the wide variety of health care needs and other supportive services
described above delivered in a variety of settings, including housing. As such, they are commonly used to
fund the supportive services in permanent supportive housing targeted for people with HIV disease. For
example, primary medical care and support services for residents of permanent housing are eligible under
the primary medical care and supportive services categories, not out of housing assistance. Likewise,
substance abuse services can be provided to residents in a supportive housing program as long as they are
funded under the substance abuse category, not one of the housing-related categories.

There are two categories of housing related expenditures to which Ryan White funds may be allocated:
Housing Referral Services and Short-term or Emergency Housing.

(1) Housing Referral Services include assessment, housing search and placement, and advocacy to
    assist persons living with HIV/AIDS to obtain and maintain stable housing. To be eligible for Ryan
    White funding these services must be provided by case managers or other professionals who possess a
    comprehensive knowledge of local, state, and Federal housing programs and how they can be
    accessed.

(2) Emergency assistance refers to programs that are of very short duration and are intended to assist
    individuals or households in situations of immediate housing crisis. Examples of emergency
    assistance include hotel or motel vouchers, emergency shelter stays, homeless prevention assistance
    such as one-time rent payments, assistance moving to a new location, or payments to cover bed nights
    in an emergency alcohol or substance abuse detoxification program. Housing funds used for
    detoxification services are only allowed if the treatment provider requires payment for the housing
    and does not receive Ryan White funds from the substance abuse category to cover this expense.

    Short-term assistance refers to programs or payments that are designed to stabilize an individual’s
    housing situation, and to support his or her transition to long-term sustainable housing. Short-term
    housing assistance includes transitional housing programs, short-term rental assistance, temporary
    living assistance, and short-term residential treatment. As with funds to pay for detoxification
    services, Ryan White funds can pay for residential treatment if the treatment provider requires
    payment for the housing portion of the program and does not receive Ryan White funds from the
    substance abuse category to cover this expense.

The key thing to consider when reviewing potential use of Ryan White funds in supportive housing is
whether you're seeking funding for transitional or permanent supportive housing, and which types of
funding are needed -- capital/development, operations and/or services. Again, there are only two specific
eligible housing assistance categories (Housing Referral Services and Short-term or Emergency Housing)
that mainly are applicable to emergency and transitional housing. Yet many of the services that make up
the "support" in transitional and permanent supportive housing for people living with HIV/AIDS can be
funded with Ryan White funds under the health and support services provisions. And, a critical
component to using Ryan White resources for tenants in housing is to link these eligible services to
residents of housing.

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March 17, 2004
Eligible Applicants/Sponsors:

Title I: Formula grants are awarded to Eligible Metropolitan Areas (EMAs) defined as areas that have
reported at least 2,000 AIDS cases during the previous 5 years and have a population of at least 500,000.
EMAs range in size from one city/county to more than 26 different political entities, and some span more
than one state. Supplemental grants are awarded competitively to EMAs that demonstrate: severe need; a
plan to use the funds responsively and in accordance with local demographics; an ability to use the funds
cost-effectively; the commitment of local resources to combat HIV/AIDS, and members on the HIV
planning council that is inclusive and representative of the population living with HIV disease. Title I
funding is evenly split between formula and supplemental grants. Public and private nonprofit entities are
eligible to receive sub-grants from Title I EMAs.

The CARE Act requires each EMA to establish an HIV Health Services Planning Council which develops
a comprehensive plan for the organization and delivery of health care and supportive services to people
living with HIV/AIDS in its area, along with strategies for identifying HIV-positive persons not in care
and strategies for coordinating services to be funded with existing prevention and substance abuse
treatment services. In addition, the plan must comply with any local plan regarding the provision of such
services to people living with HIV/AIDS, e.g., Consolidated Plan, HOPWA funding. The Planning
Council identifies and prioritizes funding needs and advises on an effective mechanism to allocate funds.
Planning Council membership must "reflect the local epidemic" and include members with specific
expertise, e.g., health care planning, housing for the homeless, incarcerated populations, substance abuse
and mental health treatment, or represent other CARE Act and Federal programs. At least 33% of Council
members must be people living with HIV who are consumers of CARE Act Title I services.

Ryan White Title I funds are commonly used for supportive services for HOPWA-funded housing
projects.

Title II: Formula grants are awarded to all 50 States, the District of Columbia, Puerto Rico, Guam, the
U.S. Virgin Islands and five newly eligible U.S. Pacific Territories and Associated Jurisdictions. Most
States provide some services directly, while others work through subcontracts with public or nonprofit
entities, and Title II HIV Care Consortia, for the provision of services. A consortium is an association of
public and nonprofit health care and support service providers and community-based organizations that
plans, develops, and delivers services for people living with HIV disease.) In some limited cases, for-
profit entities are eligible for sub-contracts. Except where ADAP funds are concerned, decisions about the
use of Ryan White Title II funds are made at the local level by the state and/or local consortia.

Many communities receiving both Title I and II funds have one body that serves as both the HIV Health
Services Planning Council and HIV Care Consortia. Eligible sub-grantees of Ryan White CARE funds
include public or nonprofit entities. For-profit entities are eligible only if they are the sole available
providers of quality HIV care in the area.

Current CARE Act EMAs are:
AZ:     Phoenix
CA: Los Angeles, Oakland, Orange County, Sacramento, San Diego, San Francisco, San Jose, Santa
        Rosa-Petaluma
NV: Las Vegas




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March 17, 2004
GRANT/LOAN TERMS

Minimum/Maximum Awards:
Title II: Minimum of 100,000 if state has fewer than 90 estimated living AIDS cases or $250,000 if state
has at least 90 living AIDS cases. (No minimum grant amount for Territories.)

Average Awards:
N/A

Term of Awards:
Annual awards

Matching Requirements:
Title I: N/A

Title II: States with more than one percents of total AIDS cases reported in the U.S. during the previous
two years must contribute a match with their own resources, according to a formula.

Formula:
Title I formula grants are based on the estimated number of living cases of AIDS over the most recent 10-
year period. Beginning in FY 2004, if accurate and reliable data exist, formula funds will be based on
HIV prevalence -- AIDS cases and HIV infections that have not yet progressed to AIDS. Title I formula
grants have no matching requirements.

Title II formula grants are based on a formula that historically has been based on reported AIDS cases.
Beginning in FY 2004, if accurate and reliable data exist, formula funds will be based on HIV prevalence
-- AIDS cases and HIV infections that have not yet progressed to AIDS.

APPLICATION PROCESS
EMAs and States and Territories are the eligible applicants for formula components of CARE Act
programs. All previous EMAs are can apply for Title I Supplemental project grants. To determine if you
are located in an EMA, see the HRSA/HAB website (www.hab.hrsa.gov Programs, Title I).

Supportive housing sponsors wishing to access CARE Act funds to deliver services in supportive housing
should contact the local and/or state HIV Planning Council or CARE consortium in charge of Ryan White
CARE Act planning and fund allocation processes. HIV planning councils or consortia typically do needs
assessments no less than every three years; develop plans that address particular service needs (e.g.,
primary health, substance abuse and mental health treatment, housing, etc.); prioritize the service needs;
outline which service needs will be addressed by Ryan White funding and which will be addressed by
other funding. Sometimes the Planning Council or consortium issue RFPs or use other competitive
funding mechanisms to allocate the resources for the prioritized service needs to be addressed by Ryan
White funding.

(Tip: Permanent supportive housing sponsors seeking Ryan White Care Act funding for supportive
services should apply under supportive and early intervention services categories, not under housing
assistance categories. Transitional supportive housing sponsors may apply under housing assistance
categories for programmatic and operating costs of their programs)

CFDA CODE
93.914 & 93.917


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March 17, 2004
AUTHORIZING LEGISLATION/STATUTE
Public Health Service Act, Title XXVI, Parts A and B, as amended, Public Law 106-345, Ryan White
Care Act Amendments of 2000.

REGULATIONS/GUIDELINES
PHS Grants Policy Statement, DHHS (OASH) Publication No. 94-50,000 (Rev.) April 1, 1994. Program
guidelines and instructions are included in the application kit. HHS has developed a series of public
policies that provide further guidance on allowable use of funds, including HAB Policy 99-02 detailing
eligible housing-related costs.

ADDITIONAL RESOURCES
• "Housing is Health Care: A Guide to Implementing the HIV/AIDS Bureau (HAB) Ryan White CARE
  Act Housing Policy", funded by U.S. Department of Health and Human Services Health Resources and
  Services Administration, HIV/AIDS Bureau, with John Snow, Inc. and AIDS Housing of Washington.
  www.hab.hrsa.gov/tools/guidance/housing.htm (This document is also available on the AIDS Housing of
  Washington website, referenced below.)
• AIDS Housing of Washington (AHW), www.aidshousing.org, In particular, "Financing AIDS
  Housing", "Ryan White CARE Act and Housing Assistance Fact Sheet", "HIV/AIDS Housing
  Solutions" on the Resources/Resource Library page of the website.
• For information about current Ryan White CARE Act grant funding opportunities that are not
  formula-based, look at the HRSA Preview, published twice a year, which is a consolidated
  announcement of all of HRSA's funding opportunities.(www.hrsa.gov, click on Grants under the
  Funding site.)
• AIDS Education Global Information System (AEGIS), www.aegis.com




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March 17, 2004
         SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION
                       (SAMHSA) DISCRETIONARY GRANTS



ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services
Administration (SAMHSA), (301) 443-8387
www.samhsa.gov or www.samhsa.gov/grants/grants.html

TYPE OF ASSISTANCE
Competitive

The majority of SAMHSA's budget is dedicated to formula and block grant programs. Most of the
remaining funds are allocated for discretionary programs, including the Projects of Regional and National
Significance (PRNS).

In order to increase the fields' ability to anticipate funding opportunities and program requirements,
SAMHSA has proposed a new way to announce and solicit applications for discretionary funding
opportunities, effective for FFY 2004. Under the proposed plan, SAMHSA will issue four standard grant
program announcements available on an ongoing basis: Services Grants, Infrastructure Grants, Best
Practices Planning and Implementation Grants, and Service-to-Science Grants. Each grant program
announcement will describe the general program design (i.e., purpose, standard of evidence base, award
size, eligibility, allowable activities, review criteria, etc.) and provide application instructions. These
announcements will be used in conjunction with brief Notices of Funding Availability (NOFAs) that will
announce the availability of funds for specific grant opportunities each fiscal year identifying the unique
parameters of each program, the application deadlines, and any exceptions to the standard grant programs.
For examples of "evidence" that applicants can cite in support of a particular service or practice and
performance measures for Services or Best Practices grants, see Appendix A of each of the four standard
grant announcements.

SAMHSA will continue to address the needs of various populations (e.g., homeless, children and youth,
women) as it has in the past. In its new approach to announcing and soliciting applications for its
discretionary grants, SAMHSA will announce the population(s) to be targeted in the NOFA that will link
an applicant to one of the four new standard grant announcements. Specific funding opportunities
announced in NOFAs will still be managed by one or more of SAMHSA's three programmatic centers:
the Center for Mental Health Services (CMHS), the Center for Substance Abuse Prevention (CSAP), the
Center for Substance Abuse Treatment (CSAT).

In general, supportive housing sponsors should familiarize themselves with the Services and Best
Practices Planning and Implementation standard grant programs as the majority of discretionary funding
for substance abuse and mental health services that can be used in supportive housing will be found there.
(Services Grants provide funding to implement substance abuse and mental health services. Best Practices
and Implementation Grants help communities and providers identify practices to effectively meet local
needs, develop strategic plans for implementing/adapting those practices and pilot-test practices prior to
full-scale implementation.)




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Although determined each year in the federal budget process, there are several discretionary programs
that SAMHSA has sponsored in the past that are included in the proposed FFY 2004 budget that may be
of special interest for supportive housing sponsors:
•   Development of Comprehensive Drug/Alcohol and Mental Health Treatment Systems for
    Persons Who Are Homeless (Short Title: Treatment for Homeless Persons)
•   Grants to Expand Substance Abuse Treatment Capacity in Targeted Areas of Need (Short
    Title: Targeted Capacity Expansion)
•   HIV/Substance Abuse Prevention for High Risk Populations

The balance of this summary will provide descriptions of these funding opportunities as they operated in
FFY 2003. All three of the funding opportunities will fall under the Services Grants program in the new
grant announcement/solicitation proposal discussed herein. (Please review FFY 2004 NOFAs for program
changes, particularly in terms of award amounts, grant periods.)

APPLICATION PROCESS
Standard grant announcements, specific NOFAs and a Snapshot of anticipated fiscal year funding
opportunities will be posted on SAMHSA’s web page and will be available from SAMHSA's
clearinghouses on an ongoing basis. (Go to www.samhsa.gov and click on Grant Opportunities.) NOFAs
will be published in the Federal Register and on the Federal grants website www.grants.gov. Because
this is a new process, it is possible that during the phase-in period, important changes may need to be
made. SAMHSA will date each version of each of the standard announcements and the NOFAs will refer
applicants to the current version.

CFDA CODE
93.243 Projects of Regional and National Significance (PRNS). General term for SAMHSA's
discretionary funding programs.

AUTHORIZING LEGISLATION/STATUTE
Public Health Services Act, as amended; Title V, Section 509; 42 USC 290bb, and Section 516;
Children's Health Act of 2000, Public Law 106-310; and Section 520 A-J, 581 and 582 of the Public
Health Services Act.

REGULATIONS/GUIDELINES
45 CFR Parts 74 and 92 and the PHS Grants Policy Statement

ADDITIONAL RESOURCES
• SAMHSA's National Clearinghouse for Alcohol and Drug Information (NCADI), www.health.org,
  (800) 729-6686




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     DEVELOPMENT OF COMPREHENSIVE DRUG/ALCOHOL AND MENTAL HEALTH
            TREATMENT SYSTEMS FOR PERSONS WHO ARE HOMELESS
                        (Short Title: Treatment for Homeless Persons;
            sometimes referred to as Grants for the Benefit of Homeless Individuals.)

ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services
Administration (SAMHSA), Center for Substance Abuse Treatment, (301) 443-7945 www.samhsa.gov or
www.samhsa.gov/grants/grants.html

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
Competitive program to enable communities to expand and strengthen their treatment services for
homeless individuals with substance abuse disorders, mental illness, or with co-occurring substance abuse
disorders and mental illness.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Homeless individuals with a diagnosable substance abuse disorder, diagnosable mental illness, or with co-
occurring substance abuse disorder and mental illness. This population includes single adults, families,
veterans, and runaway and street youth with long or multiple episodes of homelessness.

"Homeless" persons are those who lack a fixed, regular, adequate nighttime residence, including persons
whose primary nighttime residence is: a supervised public or private shelter designed to provide
temporary living accommodations; a time-limited/nonpermanent transitional housing arrangement for
individuals engaged in mental health and/or substance abuse treatment; or a public or private facility not
designed for, or ordinarily used as, a regular sleeping accommodation. "Homeless" also includes those
who are "doubled up" defined as sharing another person's dwelling on a temporary basis where continued
tenancy is contingent upon the hospitality of the primary leaseholder or owner and can be rescinded at
any time without notice.

Eligible Projects/Programs:
Applicant projects must demonstrate a thorough understanding of the current knowledge and practices in
the identification and treatment of homeless people with substance abuse disorders, mental illness, and/or
co-occurring disorders. Programs must be able to show that their program design and service
interventions are founded on evidence-based practice, best practice, or promising practice.

Applicants need to describe the treatment, services and housing resources within the community where
the proposed project will be conducted as well as the roles of participating organizations, how they will
support the proposed project, including letters of commitment from participating and coordinating
organizations. Applicants must show how treatment services are linked with housing programs and other
services for homeless persons.



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March 17, 2004
Eligible Use of Funds & Use Restrictions:
Substance abuse and/or mental health treatment services for homeless people, including:
• strengthen or expand an existing substance abuse treatment and/or mental health services program to
   include persons who are homeless;
• provide substance abuse treatment and/or mental health services to persons participating in homeless
   programs;
• provide substance abuse treatment and/or mental health services and related supportive services to
   maintain persons in stable housing;
• develop referral linkages with community services providers to create a "no wrong door" approach
   for accessing substance abuse and mental health treatment and services for their clients;
• promote immediate entry to substance abuse treatment and/or mental health services by increasing
   treatment capacity where gaps exist;
• enable participation in substance abuse treatment and/or mental health services by providing wrap-
   around services such as transportation or child care.
Housing Access and Stability:
• link homeless people with substance abuse and/or mental illness to housing and promote residential
   stability;
• build linkages among substance abuse treatment providers and/or mental health services providers,
   housing providers, and homeless service providers;
• purchase groceries or household supplies and pay utility bills, on an emergency or short-term basis,
   which are necessary to enable a person to remain housed.
Education Activities:
• educate individuals on how to refer persons who are homeless to appropriate substance abuse
   treatment and/or mental health services;
• train direct care providers and other in the system serving the target population about provision of
   substance abuse treatment and/or mental health services to persons who are homeless.
Grant funds may not be used to pay for housing (other than residential substance abuse treatment or
residential mental health programs), to carry out syringe exchange programs, or to pay for
pharmacologies for HIV antiretroviral therapy, STDS, TB and heptatitis B and C.

Eligible Applicants/Sponsors:
Community-based public and private non-profit entities. Community-based public entities are those
public entities located in the community and would include tribal and local governments that provide
community-based services. Private nonprofit entities include community-based and faith-based
organizations. States are not eligible to apply. Applicants need not be direct providers of substance abuse
treatment or mental health services. Eligible applicants also include providers of homeless services,
primary health care, housing, and other closely linked services for persons with substance abuse, mental
illness, or co-occurring disorders.

Only existing, experienced providers with demonstrated infrastructure and expertise will be funded: if the
applicant or any partners in the proposed system is a direct provider of substance abuse treatment or
mental health services, a minimum of two years experience and licensure/accreditation prior to the date of
the application is required. If the applicant is not a direct provide of substance abuse treatment or mental
health services, the applicant must document a commitment from such to participate in the proposed
project.

Currently there are about 30 grants made under this program of which approximately half have been for
services in permanent supportive housing or transitional housing/residential settings.


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March 17, 2004
GRANT/LOAN TERMS
To meet the goal of geographic diversity, SAMHSA usually funds no more than two applications per state
per year.

Minimum/Maximum Awards:
FY 2003, maximum amount was $600,000 per year in total costs.

Average Awards:
FY 2003, average awards were from $450,000 - $600,000 per year in total costs.

Term of Awards:
Grants were awarded for a period of up to 3 years (although statutorily the period can be up to 5 years.)
Annual awards are made subject to continued availability of funds and progress achieved by the grantee.

Matching Requirements:
N/A

Formula:
N/A

APPLICATION PROCESS
Annual NOFA with one application submission per year.

AUTHORIZING LEGISLATION/STATUTE
Public Health Services Act, Section 506, as amended

REGULATIONS/GUIDELINES
45 CFR Parts 74 and 92; PHS Grants Policy Statement; Last published Guidance for Applicants: No. SP
03 -005; Last published Guidance for Applicants: No. TI 02-006




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              GRANTS TO EXPAND SUBSTANCE ABUSE TREATMENT CAPACITY
                              IN TARGETED AREAS OF NEED
                       (Short Title: Targeted Capacity Expansion or TCE)


ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services
Administration (SAMHSA), Center for Substance Abuse Treatment, (301) 443-8453, www.samhsa.gov or
www.samhsa.gov/grants/grants.html

TYPE OF ASSISTANCE
Competitive grants with 1/3 of TCE funds for applicants within states and communities with no active
TCE grants at time awards are made

PROGRAM DESCRIPTION
Competitive program to expand or enhance substance abuse treatment capacity in local communities.
The Targeted Capacity Expansion (TCE) program is designed to address gaps in treatment capacity by
supporting rapid and strategic responses to demands for alcohol and drug treatment services and/or
innovative solutions to unmet needs in communities with serious, emerging substance abuse problems.

Because States receive substantial funding for substance abuse treatment services via the Substance
Abuse Prevention and Treatment (SAPT) Block Grant, SAMHSA/CSAT uses TCE to target specific local
needs that address national treatment priorities and has an interest in funding projects that are consistent
with SAMHSA priorities, especially: co-occurring disorders, closing the substance abuse treatment gap,
homelessness, aging and criminal justice; and that are consistent with SAMHSA cross-cutting principles:
evidence-based treatments, collaboration across community agencies, recovery, cultural competence,
community and faith-based programs, violence prevention, and cost-effectiveness.

Two of the examples listed that are consistent with these priorities and principles are: substance abuse
treatment and related support services for homeless persons and substance abuse treatment and related
supported services for the elderly and individuals with physical and emotional disabilities.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Not specific as such however indicates that SAMHSA is interested in funding projects that are consistent
with its priorities. (See above.)

Eligible Projects/Programs:
In addition to basic eligibility requirements, provision of direct substance abuse treatment must be part of
the proposed project and at least one provider of substance abuse treatment services must be identified
within the proposal to provide them. TCE grants will not be awarded to applicants that propose only to
provide screening, referral or case management when these services are not clearly and specifically linked
to treatment services. The TCE program must provide treatment in outpatient, day treatment or intensive
outpatient, or residential programs. If the applicant organization is not a direct provider of substance
abuse treatment services, the applicant must document a commitment from an experienced, licensed
substance abuse treatment provider to participate in the proposed project.


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Eligible Use of Funds & Use Restrictions:
Substance abuse treatment service expansion and/or enhancement. Expansion of substance abuse
treatment services by increasing the availability of treatment services and access to treatment for a larger
number of clients. Enhancement of services by improving the quality or intensity of treatment services.

Eligible Applicants/Sponsors:
Local governments and federally recognized Tribal authorities and their major organizational units with
broad planning, policy, and service coordination responsibilities. Hospitals, community health centers,
school systems, or court systems are not eligible. Community-based organizations are not eligible to
apply directly for these grants, even if providing services under contract to a unit of government.
However, CSAT encourages local government applicants to develop partnerships with these organizations
for the provision of services as part of their proposed TCE projects.

Applicants must meet two additional criteria:
               (1) All direct providers of substance abuse services involved in the proposed project
                   must be in compliance with all requirements for licensing, accreditation or
                   certification.
               (2) All direct providers of substance abuse treatment services must have been providing
                   treatment services for a minimum of two years prior to the date of application. At
                   least one substance abuse treatment provider must meet the two-year requirement
                   within the jurisdiction covered in the application.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
Maximum: FY 2003, $500,000 in total costs per year.

Average Awards:
N/A

Term of Awards:
Grants are awarded for up to 3 years. Annual continuation awards depend on the availability of funds and
progress achieved.

Matching Requirements:
N/A

Formula:
N/A, however, CSAT reserves up to one third of TCE funds for applicants within States and communities
that have no active TCE grants at the time awards are made.

APPLICATION PROCESS
SAMHSA anticipates an annual NOFA with two submission/review cycles per year (in January and
September)

AUTHORIZING LEGISLATION/STATUTE
Public Health Services Act, Section 509



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REGULATIONS/GUIDELINES
45 CFR Parts 74 and 92; PHS Grants Policy Statement; Last published Guidance for Applicants: No. PA
03-001




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         TARGETED CAPACITY EXPANSION INITIATIVES FOR SUBSTANCE ABUSE
         PREVENTION (SAP) AND HIV PREVENTION IN MINORITY COMMUNITIES
                (Short Title: Minority SAP and HIV Prevention Services Program)


ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services
Administration (SAMHSA), Center for Substance Abuse Prevention, (301) 443-2332, www.samhsa.gov or
www.samhsa.gov/grants/grants.html

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
Competitive grant program to help community-based organizations expand their capacity to provide and
sustain effective, integrated substance abuse prevention and HIV prevention services in high risk minority
communities disproportionately impacted by the HIV/AIDS epidemic.

The goal of this program is to increase access to substance abuse prevention and HIV prevention
programs in areas with hard to reach populations and high incidence rates of substance abuse and HIV
infection, such as rural communities, by increasing both the number and quality of prevention programs
in traditionally under-served areas.

The program is designed to be implemented in three phases:
Phase I:   Strategic Planning/Start-Up to deliver effective, integrated substance abuse prevention and
           HIV prevention services. (Not to exceed 9 months)
Phase II: Implementation activities including involvement of target population and community
           representatives, recruitment and retention of target population participants, and delivery of
           substance abuse prevention and HIV prevention services.
Phase III: Evaluation and Sustainability, including compiling, analyzing and reporting on the outcomes
           of the services delivered and completing the approved sustainability plan designed to ensure
           continuation of services.

ELIGIBILITY INFORMATION

Eligible Target Populations:
This program seeks to increase and sustain the availability of effective, integrated substance abuse
prevention and HIV prevention services for women, youth and other at-risk populations in African-
American, Hispanic/Latino, American Indian/Alaska Native, and Asian-American/Pacific Islander
communities which have traditionally been underserved or not served at all.

Other at-risk populations may include:
• adolescents
• female adolescents and women
• runaway youth
• homeless individuals
• commercial sex workers

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•   individuals re-entering the community from prison, jail or juvenile justice facilities
•   partners of individuals in or re-entering the community from correctional facilities
•   gay, lesbian, bi-sexual, transgender and questioning individuals
•   individuals, both male and female, with a history of sexual abuse or intimate partner violence
•   migrant workers, or other immigrant populations living away from home for extended periods
•   immigrants from countries with high HIV seroprevalence rates

Eligible Projects/Programs:
Projects that increase the provision of effective substance abuse prevention and HIV prevention services;
increase the number of community based organizations that provide such services; and increase the
capacity of such organizations to successfully sustain their integrated prevention services.

Eligible Use of Funds & Use Restrictions:
Effective, integrated substance abuse prevention and HIV prevention services in high risk minority
communities.

Funds may not be used for:
• substance abuse treatment services
• mental health treatment services
• HIV/AIDS treatment services
• primary health care services
• any services or treatments that would be covered under public or private programs such as Medicaid
   or Medicare

Eligible Applicants/Sponsors:
Domestic public and private non-profit entities. State and local government agencies are not eligible.

GRANT/LOAN TERMS
SAMHSA/CSAP intends to achieve overall program balance in terms of geography and race/ethnicity of
target populations. An attempt will be made to distribute awards across all regions of the country and
across all targeted minority groups; however, this funding criterion will be balanced against the priority
score.

Minimum/Maximum Awards
Maximum: $350,000 in total costs per year.

Average Awards:
FY 2003, $250,000 - 350,000 in total costs per year.

Term of Awards:
Grants are awarded for up to five years. Annual continuation awards depend on the availability of funds
and progress achieved.

Matching Requirements:
No cost sharing requirements, however, all successful applicants will develop and implement a
sustainability plan to ensure continued provision of services subsequent to cessation of Federal funding.

Formula:
N/A



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APPLICATION PROCESS
Annual NOFA with one application submission per year.

AUTHORIZING LEGISLATION/STATUTE
Public Health Services Act, Section 516

REGULATIONS/GUIDELINES
45 CFR Parts 74 and 92; PHS Grants Policy Statement; Last published Guidance for Applicants: No. SP
03 -005




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                    TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)

ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services, Administration for Children and Families, Office of Family
Assistance, (202) 401-5139 www.acf.hhs.gov/programs/ofa/index.htm

AZ:
Arizona Department of Economic Security, Division of Benefits and Medical Eligibility-Family Assistance
Administration,* www.de.state.az.us/faa/cash.asp

CA:
California Health and Human Services Agency, Department of Social Services,*
www.dss.cahwnet.gov/cdssweb/california_169.htm

NV:
Nevada Department of Human Resources, Welfare Division, (775) 684-0500,
www.welfare.state.nv.us/elig_pay/tanf_home.htm

*   For telephone numbers, see website for local welfare offices.

TYPE OF ASSISTANCE
Formula

PROGRAM DESCRIPTION
In 1996, Congress established the Temporary Assistance for Needy Families program (TANF), creating a
flexible block grant that replaced the former cash assistance entitlement program, Aid to Families with
Dependent Children (AFDC). TANF provides funds that must be matched by the states for income
support and a wide range of service for eligible needy families and individuals.

There are two sources of TANF program spending, each with its own requirements and restrictions: (1)
the federal TANF block grant to the states; and, (2), state TANF spending required to match the Federal
block grant called "maintenance of effort" (MOE) spending. (States must spend 75 - 80% of the fiscal
year 1994 state spending level they had spent under the AFDC program.) TANF and MOE funds are
disbursed to subdivisions of government, usually counties.

Federal TANF funds are provided to states with different restrictions on use, depending on what types of
benefits are provided. Regulations impose time limits on aid (generally 18 months for a single period of
assistance and not more than 5-years lifetime for most welfare recipients) as well as work and child
support requirements for any family receiving benefits from TANF funds. Welfare benefits and Medicaid
are de-linked as well.

States are afforded a great deal of flexibility in deciding how to spend TANF funds as long as the
expenditure is reasonably calculated to accomplish a purpose of the TANF program, as follows:
• assisting needy families so that children can be cared for in their own homes;
• reducing dependency of needy parents by promoting job preparation, work and marriage;
• preventing out-of-wedlock pregnancies; and,
• encouraging the formation and maintenance of two-parent families.


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In general, states have more discretion in spending MOE funds than Federal TANF funds as follows: state
MOE funds may be used for more flexible purposes, but must serve a more limited pool of TANF-eligible
families; Federal TANF funds can serve a broader population but may have more restrictions or
prohibitions regarding allowable uses.

While benefits provided under the first two TANF purposes are limited to parents and families that meet
the state's definition of "needy" (defined as financially deprived according to income and related criteria),
Federal TANF funds may be used to provide services that are not considered "assistance" to a broader
population of families (e.g., non-custodial parents).

That is, under certain circumstances states do not have to limit services to the "needy." Under TANF
purposes 3 and 4, states may use Federal TANF funds to extend benefits that are not considered
"assistance" to individuals or family members regardless of their income or household composition (i.e.,
who are not "needy"), but who meet other objective eligibility criteria established by the state.

Nevertheless, when either Federal TANF or state MOE funds are used to provide "assistance," applicable
TANF requirements pertain. When making plans to use TANF funds for a particular service, the state
determines whether Federal or state funds are the most appropriate source for that activity. (For further
details on the definition of "assistance" see the final TANF regulations 45 CFR 260.31.)

Annual TANF block grant allocations to the states are based on federal funding levels from 1994 or 1995
(by choice of the state), when welfare caseloads were much higher. Due to dramatic declines in caseloads
and fixed funding levels, states across the nation have had surplus TANF dollars. These excess funds
gave states new opportunities to provide a wide range of needed work supports to eligible families,
including transportation and child care assistance, substance abuse and mental health treatment, domestic
violence and housing assistance.

As such, TANF (and state MOE spending) can be an important revenue source for housing assistance and
services in supportive housing for homeless families, non-custodial parents, and transition-aged youth,
subject to certain limitations. The purposes of supportive housing -- providing stable, affordable housing
coupled with the services necessary to promote long-term self-sufficiency -- complement and reinforce
the purposes of the TANF program. Unfortunately, in the last two years TANF surpluses have dwindled
due to rising caseloads because of the down turn in the economy and states are using TANF funds to
supplant other declines in social services funding.

ELIGIBILITY INFORMATION

Eligible Target Populations:
States determine eligible target populations within Federal guidelines that provide:
• Low-income families who meet the state's income guidelines, have a minor child living with an adult
    relative in the home, and have not exceeded their five-year lifetime limit for receiving TANF
    assistance (i.e., "needy" families with children.)
• Former recipients of TANF cash assistance (for certain TANF activities)
• Non-custodial parents of TANF-eligible families (for certain TANF activities)
• Non-needy families or individuals (who don't meet the state's TANF income level or certain other
    restrictions) for activities related to prevention of out-of-wedlock pregnancy and encouragement of
    the formation and maintenance of two-parent families.

Please note: TANF imposes complex requirements regarding the immigration status of TANF recipients.
(Consult PRWORA.)

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Supportive housing sponsors serving TANF-eligible families and/or non-custodial parents of TANF-
eligible families who have multiple barriers to work or transition-aged youth have the best case for getting
surplus TANF funds based on their ability to meet fundamental TANF purposes, i.e., stable affordable
housing improves employment outcomes; housing and services to transition-aged youth to prevent and
end homelessness can meet the goal of preventing out of wedlock births.

Eligible Use of Funds & Use Restrictions:
In addition to cash benefits, states may spend their TANF funds on job training, employment services
(e.g., job search, job placement, work subsidies, etc.), childcare assistance (e.g., child care, subsidies,
after-school and summer activities, etc.), transportation, education and training, substance abuse
counseling, mental health services, non-medical substance abuse services (e.g., counseling, room and
board costs at residential treatment programs), vocational rehabilitation services, housing/rental assistance
(including security deposits, payments of back rent to prevent evictions, subsidies, loans, etc.), case
management services, and other supportive services in support of TANF's program purposes. States also
may transfer a limited portion of their assistance grant funds to the Child Care and Development Block
Grant (CCDBG) and the Social Services Block Grant (SSBG) Programs. States may not use TANF funds
for capital costs or medical services.

In general, TANF funds and/or state funds used to match them may be used to pay for many of the
services that would be included in a supportive housing project for eligible families, particularly if the
services are designed to help families participate in welfare to work activities or address barriers to
employment. TANF funds may also be used for some services in projects serving youth leaving the
foster care system. As a general matter, the populations to be served and the types of services to be
offered will determine the most appropriate source of funds (TANF or MOE) and the requirements that
must be met.

While TANF funds may also be used for time-limited assistance with housing operating costs (e.g., rent
subsidies), there are complex issues involved with this strategy. Many of the provisions that apply to
TANF and state MOE funding may make it easiest to use this as a source of funding in transitional
housing programs, but there are opportunities in permanent supportive housing as well. (See citations
below in Additional Resources.)

Eligible Applicants/Sponsors:
State governments, Territories, the District of Columbia, and all federally recognized Tribes in the lower
48 states and 13 specified entities in Alaska are eligible.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
N/A

Term of Awards:
Annual awards

Matching Requirements:
The TANF program has an annual cost-sharing requirement, referred to as "maintenance of effort"
(MOE). Every fiscal year, each state must spend a certain minimum amount of its own resources to help

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eligible families in ways that are consistent with the purposes of the TANF program. The rate is
determined by whether the state meets the work participation rates: if it does, it must match TANF funds
with an amount equal to 75% of what it spent for fiscal year 1994 or 1995 (by choice of state) on AFDC
and AFDC-related programs; if it does not, it must provide an 80% match.

Formula:
TANF funding is allocated to states based on a formula that matches state spending for AFDC in fiscal
year 1994 or 1995 (by choice of state). (See Matching Requirements above.)

APPLICATION PROCESS
States and others that operate TANF programs must develop a State plan that must be approved by the
Department of Health and Human Services. Federal and state matching funds are generally administered
by local government welfare departments.

Supportive housing sponsors serving tenants who are TANF-eligible will, in most instances, need to
advocate at the state and local levels to access TANF funds for services in supportive housing. The
leverage (or "selling point") for supportive housing sponsors is the comprehensive, wraparound support
provided in supportive housing for people with multiple barriers to work.
AZ:      Arizona's TANF program is called the Cash Assistance Program.
CA:      California's TANF program is called CalWORKs. -- California Work Opportunity and
         Responsibility to Kids.
NV:      Nevada's TANF program is called TANF.

CFDA CODE
93.558

AUTHORIZING LEGISLATION/STATUTE
Social Security Act, Title IV, Part A, as amended: Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA), Public Law 104-193; Balanced Budget Act of 1997, Public Law
105-33.

REGULATIONS/GUIDELINES.
TANF Final Rule, published in Federal Register on April 12, 1999 (Vol. 64, No 69). Program rules for
State programs found at 45 CFR Parts 260 - 265. Tribal TANF Final Rule, published in Federal Register
on February 18, 2000 (Vol. 65, No. 34). Tribal program rules found at 45 CFR Part 286.

ADDITIONAL RESOURCES
• "Using TANF Funds to Finance Essential Services in a Supportive Housing Program for Homeless
  Families and Young Adults," Doreen Straka, Constance Tempel, Corporation for Supportive
  Housing, and Karen Lipson, Kalkines, Arky, Zall & Bernstein LLP, www.csh.org (Resources by
  Topic, Services Planning/TANF)
• "The Increasing Use of TANF and State Matching Funds to Provide Housing Assistance to Families
  Moving from Welfare to Work - 2001 Supplement", Barbara Sard and Tim Harrison, The Center for
  Budget and Policy Priorities, www.cbpp.org/12-3-01hous.pdf
• "Helping Families Achieve Self-Sufficiency: A Guide on Funding Services for Children and
  Families through the TANF Program," Department of Health and Human Services, Administration
  for Children and Families, Office of Family Assistance, www.acf.hhs.gov/programs/ofa/funds2.htm


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•   HUD's website describing using surplus TANF funds to fund services
    http://www.hud.gov/pih/programs/ph/wtw/4HH.html
•   All the State Welfare Children and Families home pages are accessed at
    www.acf.dhhs.gov/news/welfare/stlinks.htm




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         TRANSITIONAL LIVING PROGRAM FOR OLDER HOMELESS YOUTH (TLP)

ADMINISTRATIVE AGENCIES

Federal:
Department of Health and Human Services (DHHS), Administration for Children & Families
(ACF), Family and Youth Services Bureau (FYSB), (202) 205-8102
 www.acf.hhs.gov/programs/fysb/tlp.htm

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
Part of the Runaway and Homeless Youth Program, the Transitional Youth Program for Older Homeless
Youth (TLP) is a national competitive grants program to fund transitional living projects that provide
shelter, skills training and support services for homeless youth, including pregnant and parenting youth,
ages 16 to 21 for a maximum of 18 months. The goal of the program is to help older homeless youth
achieve self-sufficiency and avoid long-term dependency on social services.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Homeless youth, including pregnant and parenting youth, ages 16 through 21 years old.

Eligible Projects/Programs:
Transitional Living Programs are required to provide youth with stable, safe living accommodations and
services that help them develop the skills necessary to move to independence for a maximum of 18
months.
    Shelter or Living accommodations must be provided through: a group home facility, family host
    homes and/or "supervised apartments" (either agency-owned apartment buildings or "scattered site"
    apartments rented directly by young people with support from the agency)
    Skills training must include, but is not limited to: basic life skill-building (including consumer
    education and instruction in budgeting, using credit, housekeeping, menu planning and food
    preparation); interpersonal skills building (including enhancing young people's abilities to establish
    positive relationships with peers and adults, make decisions, and manage stress); educational
    advancement (such as GED preparation, post-secondary training or vocational education); and, job
    preparation and attainment (such as career counseling and job placement)
    Support services must include, but are not limited to: mental health care (including individual and
    group counseling); physical health care (including routine physicals, health assessments, and
    emergency treatment); and, education, information, and counseling to prevent, treat, and reduce
    substance abuse.

In addition, FYSB encourages grantee programs to support a Positive Youth Development approach. This
approach suggests the best way to prevent risky behavior is to help young people achieve their full
potential by employing strategies that build skills and provide leadership and community-involvement
opportunities.



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Eligible Use of Funds & Use Restrictions
Shelter, skills training and support services for a maximum of 18 months. (See definitions above under
"Eligible Projects/Programs.")

Eligible Applicants/Sponsors
States, localities, private entities (including federally recognized Indian organizations, faith-based and
community-based organizations), and coordinated networks of such entities unless they are part of the law
enforcement structure of the juvenile justice system. Legislation authorizing TLP requires that priority for
funding be given to agencies with experience in providing direct services to runaway and homeless youth.

GRANT/LOAN TERMS

Minimum/Maximum Amounts:
N/A

Average Awards:
$150,000 (most recent data available as of 9/1/03)

Term of Awards:
Awards are made for 3 - 5-year project periods.

Matching Requirements:
Grantees are required to provide a 10% match to TLP funds. Cash or in-kind contributions qualify as the
non-Federal share, although cash matches are encouraged.

Formula:
N/A

APPLICATION PROCESS
Grants are awarded competitively through an annual NOFA announced in the Federal Register.

CFDA CODE 93.550

AUTHORIZING LEGISLATION/STATUTE
1988 Amendments to the Runaway and Homeless Youth Act (RHYA), Title III of the Juvenile Justice
and Delinquency Prevention Act (JJDPA); Missing, Exploited and Runaway Protection Act of 1999,
Public Law 106-71

REGULATIONS/GUIDELINES
Contact FYSB Headquarters Office for available literature.

ADDITIONAL RESOURCES
• National Clearinghouse on Families and Youth, (301) 608-8098, www.ncfy.com
• Administration on Children, Youth and Families Operations Center, (800) 351-2293




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                          VETERANS' EMPLOYMENT PROGRAM
                 (VETERANS' WORKFORCE INVESTMENT PROGRAMS (VWIP))

ADMINISTRATIVE AGENCIES

Federal:
Department of Labor (DOL), Office of the Assistant Secretary for Veterans' Employment and Training
(OASVET), (202) 693-4719, www.dol.gov/vets/

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Veterans' Employment Program (also called Veterans' Workforce Investment Programs or VWIP) is
a competitive grant program to support employment and training programs to attempt to place eligible
veterans into gainful employment.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Veterans with service-connected disabilities, veterans who have significant barriers to employment,
veterans who served on active duty in the armed forces during a war or in a campaign or expedition for
which a campaign badge has been authorized, and veterans who were recently separated from military
service.

Eligible Projects/Programs:
Programs can provide for, but are not limited to training (formal classroom or on-the-job training),
retraining, job placement assistance, and support services, including testing, counseling. Grantees may
choose to supplement the core training by offering other services that also enhance the employability of
participants.

Eligible Use of Funds & Use Restrictions:
• Activities to enhance services provided to eligible veterans by other providers of employment and
    training services funded by Federal, State, local or tribal governments;
• Activities to provide innovative employment and training services and projects to eligible veterans
    not currently provided by other public employment and training service providers; and,
• Outreach and public information activities to develop and promote maximum job and training or
    retraining opportunities.

Eligible Applicants/Sponsors:
State governors compete for the majority of the grant funds. Discretionary funds are open to all
applicants, as determined by the ASVET.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A



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Average Awards:
N/A

Term of Awards:
Generally two year grants with the second year funding based on performance and availability of funds.

Matching Requirements:
No requirements, although it is recommended.

Formula:
N/A

APPLICATION PROCESS
Grants are awarded through a competitive RFP process (sometimes called Solicitation-of-Grant
Applications or SGA) conducted in even-numbered years. Specific deadlines are published in the Federal
Register and the SGA Document.

CFDA CODE
17.802

AUTHORIZING LEGISLATION/STATUTE
Workforce Investment Act of 1998, Section 168 Veterans' Workforce Investment Programs; Public Law
105-220; 29 USC 2913.

REGULATIONS/GUIDELINES
N/A

ADDITIONAL RESOURCES
• For more information about DOL's employment and training programs for veterans, contact the
  Veterans' Employment and Training Service office in your area which can be found at
  http://www.dol.gov/vets/aboutvets/contacts/main.htm
• Department of Labor National Toll-Free Call Center, Live assistance Monday - Friday,
  8 am - 8 pm EST, (866) 487-2365




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                       SERVICES SOURCES PROGRAM SUMMARIES - STATE

      CALIFORNIA INTEGRATED SERVICES FOR HOMELESS ADULTS WITH SERIOUS
                         MENTAL ILLNESS PROGRAM
                                 (AB 34/2034)

ADMINISTRATIVE AGENCIES

CA:      CA Department of Mental Health, Systems of Care Division, Systems Planning, Development
         and Evaluation--Planning, Grants and Revenue Enhancement (PGRE), (916) 651-6281,
         www.dmh.cahwnet.gov/PGRE/default.asp

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
Begun in FY 1999-2000, this is a flexible program designed to provide community mental health services
and outreach to mentally ill adults and transition-age adults who are homeless or at risk of homelessness.

The primary purpose of the program is to outreach to the target population, and to enable local personal
service coordinators to develop service plans directed by clients themselves. This will enable people with
mental illness who are homeless or at risk of homelessness, to live in the most independent, least
restrictive housing feasible in the local community; engage in the highest level of work or productive
activity appropriate to their abilities and experience; create and maintain a support system consisting of
friends, family and participation in community activities; access an appropriate level of academic
education or vocational training; obtain an adequate income; self-manage their illness; reduce or eliminate
antisocial or criminal behavior, thereby reducing or eliminating their contact with the criminal justice
system, and enable them to live in the community.

The majority of the funds allocated for this program are awarded to existing grantees to support ongoing
programs (subject to performance and State budget allocations.) There are however, opportunities for
eligible jurisdictions to apply for ongoing or one-time cost grants through a competitive process, subject
to availability of funding.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Adults and transition age adults (18-25) with serious mental illness who are homeless or at-risk of
homelessness or incarceration, and/or families who have a family member with severe and persistent
mental illness living with them. Adults voluntarily or involuntarily hospitalized as a result of a severe
mental illness are eligible as well as people who have untreated severe mental illness for less than one
year that don’t require a full range of services but are at-risk of homelessness unless a comprehensive,
individual and family support services plan is implemented.

Eligible Projects/Programs:
Projects that propose housing and new services for the targeted population (including employment
services) are eligible. Eligible housing is defined as shelter, transitional and permanent supportive
housing, with a priority on permanent supportive housing.


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Eligible Use of Funds & Use Restrictions:
Funds must be used for new services, and not to supplant funding for existing programs.
•   Capital Costs. Capital costs are eligible. Acquisition, rehabilitation and new construction are
    eligible.
•   Operating Costs. Allows for payment of operating costs such as rental subsidies, assistance or first
    and last month’s rent.
•   Services Costs. Costs associated with expanding the “adult system of (mental health) care” which is
    defined as encompassing an array of multidisciplinary services aimed at specific outcomes for clients
    including maximizing independence and self-reliance, and housing stability.
    Services may include outreach, mental health services, substance abuse services, family support and
    consultation services, parenting support, peer support or self-help group support, personal service
    coordination, and other services deemed necessary to maintain the tenant's stability.
(AB 1475 referenced above includes a new provision requiring counties that receive a grant after January
1, 2004 to enter into contracts with sponsors of supportive housing projects to the greatest extent possible.
In addition, participating counties are encouraged to commit a portion of their grants to rental assistance
for a specified number of housing units in exchange for the counties' clients have the right of first refusal
to rent the assisted units.)

Eligible Applicants/Sponsors:
Eligible applicants are local county mental health agencies or cities with independent mental health
agencies, however, renewal funding for existing grantees is prioritized.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
No stated grant limits

Average Awards:
N/A

Term of Awards:
1-year awards.

Matching Requirements:
None required, but emphasis on leveraging local funds.

Formula:
N/A

APPLICATION PROCESS
In general, current grantees subject to funding and performance, receive renewal funding. If funding
allows, letters of invitation are issued for:
• expansion of existing grantee programs and/or one-times costs; and,
• ongoing funding and/or one-time costs for eligible jurisdictions that do not receive AB 34/2034 grants
    and current grantees that have grants for one-time costs.




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Supportive housing providers wishing to access AB 34/2034 funds for supportive housing should identify
whether the county they are located in receives funding. If so, they should contact administering local
county mental health agency (or independent mental health agency of a city, where applicable) to explore
becoming a sub-grantee or partnering with the administering agency. If the county in which supportive
housing sponsors wish to operate does not receive AB 34/2034 funding, they should explore partnering
with the local mental health agency to apply for funding when available.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
AB 34/2034/334:
AB 34 (Steinberg/1999) Chapter 617, Statutes of 1999; AB 2034 (Steinberg/2000) Chapter 518, Statutes
of 2000; AB 334 (Steinberg/2001) Chapter 454, Statutes of 2001. Proposed minor changes contained in
AB 1475 (Steinberg/2003), recently signed by the Governor.

REGULATIONS/GUIDELINES
N/A




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         CALIFORNIA STATEWIDE SUPPORTIVE HOUSING INITIATIVE ACT (SHIA)

ADMINISTRATIVE AGENCY

CA:
CA Department of Mental Health, Systems of Care Division, Systems Planning, Development and
Evaluation--Planning, Grants and Revenue Enhancement (PGRE), (916) 653-2634,
www.dmh.cahwnet.gov/PGRE/default.asp

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
Begun in FY 1999/2000, SHIA is designed to encourage the development of permanent, affordable
housing with supportive services that enables low income Californians with disabilities to stabilize their
lives and regain a stake in the community. SHIA is a competitive statewide program that awards grants to
cover services and/or operating costs in supportive housing for the target population. Due to the budget
crisis in CA, the SHIA program received no funding allocations for FY 2002-2003 and 2003-2004. The
program sunsets on January 1, 2009.
SHIA also established the Supportive Housing Program Council, an interagency council comprised of
State officials and their designees (Health and Welfare Agency and Business, Transportation and Housing
Agency); directors or designees of various State departments (Mental Health, Developmental Services,
Social Services, Health Services, Aging, Housing and Community Development, Alcohol and Drug
Programs, California Housing Finance Agency, Rehabilitation, Employment Development, and the
California Tax Credit Allocation Committee); and three consumer representatives from the target
population. With DMH as its lead agency, the Council's charge is to promote interagency coordination
and collaboration in the implementation of SHIA.

ELIGIBILITY INFORMATION

Eligible Target Populations:
The eligible population is very low-income adults having one or more disabilities, including mental
illness, HIV or AIDS, substance abuse, or other chronic health conditions, individuals with developmental
disabilities, and may, among other populations, include families with children, elderly persons, young
adults aging out of the foster care system, individuals exiting from institutional settings or homeless
people and veterans.

Eligible Projects/Programs:
Applicants must demonstrate that the proposed project meets local priorities for supportive housing;
provides evidence that affordable housing will be provided and linked to appropriate supportive services;
and, the request supplements and does not supplant existing funding. Projects must demonstrate a local
commitment to provide funding for the purpose of developing and operating supportive housing.

Supportive housing that utilizes existing affordable housing units, leased units, or units developed through
new construction or acquisition and rehabilitation are eligible.

Threshold Requirements include:



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       1. Only permanent supportive housing is eligible; transitional or time-limited housing is not
           eligible;
       2. A project must consist of a minimum of five units targeted to the SHIA population;
       3. Housing units must meet HUD’s Housing Quality Standards;
       4. Property management must be provided by an experienced property management firm;
       5. If rent subsidies are requested:
    -- The term of the rental subsidies requested must be no less than three years;
    -- Eligible household income may not exceed 30% of State Median Income (SMI);
    -- Rent levels must be set at a maximum of 30% of 30% of SMI. (In projects utilizing SHP
       operating funds, HUD rent restrictions take precedence.)

Eligible Use of Funds & Use Restrictions:
Operating Costs. SHIA funds can be used for a minimum of 3 years and a maximum of 15 years of
project-based rent subsidies. The funding for the fifteen-year commitment is held by HCD and disbursed to
grantees on an annual basis. While the award is based on a projected shortfall for the full grant period, the
disbursement amount for a given year may be adjusted based on the projected shortfall for that year.
SHIA rent subsidy funds cannot be used on units that have Section 8, Shelter Plus Care, or other similar
“deep” rent subsidies attached to them. SHIA rent subsidy funds will not be reserved on a forward
commitment bases in anticipation of a rent or operating subsidy contract not being renewed. Project
sponsors may apply at the point at which that source has not renewed.
SHIA rent subsidy funds may be used for units with Supportive Housing Program (SHP) operating
subsidies, however, only to cover the difference between: (1) the SHP subsidy amount plus the tenant’s
rent payment at 30% of their income; and, (2) the cost of operating the unit. Additional SHIA rent subsidy
funds will not be reserved in anticipation of the possible future loss of SHP funding.
Services Costs. SHIA funds can be used to pay for service costs for a period of 3 years.
• Specific services. Services may include health care, mental health, and substance abuse prevention
   and treatment, family support, vocational, education and employment services, counseling, case
   management, and ‘other services that benefit the target population’. Funds may also be used for
   program evaluation.
• Start up. Up to $25,000 of the grant amount may be used for one-time startup costs including, for
   example, equipment or furniture purchase, hiring staff, designing evaluation, or hiring a consultant.
Capital Costs. Capital costs are not eligible.

Eligible Applicants/Sponsors:
Nonprofit service or housing agencies, local government, or groups of local nonprofit and/or government
agencies.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The per project grant limit is capped at $2 million, however, an application from a single jurisdiction for
several projects can apply for a maximum of $3 million.

Average Awards:
N/A


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Term of Awards:
Services: 3 year funding
Rent Subsidies: No less than 3 years and no more than 15 years of project-based rent subsidies.

Matching Requirements:
All grantees must match their SHIA funding in the following amounts:
• $.50 for each $1 awarded in the first year;
• $1 for each $1 awarded in the second year; and,
• $1.50 for each $1 awarded in the third year (and beyond in the case of rental subsidies for a maximum
    of fifteen years.)

The match can be cash, services or resources of comparable value. Match may include residential rental
income, non-SHIA sources of operating/rent subsidies, or funding from other sources to pay for housing
development or supportive services costs for units that will service the SHIA target population. Funding
for capital costs (i.e., acquisition, construction, rehabilitation) will be considered match only if the
housing is restricted for permanent affordable housing for the SHIA target population for no less than 10
years.

Formula:
N/A

APPLICATION PROCESS
When SHIA receives an annual appropriation, the Department of Mental Health issues a Request for
Applications (RFA) usually for a single application process. Applicants are selected by an interagency
review panel with representation from the Supportive Housing Program Council.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
AB 2780 (Aroner), Statues of 1998, Chapter 310, Chapter 4 commencing with Health & Safety Code
section 52350. Amendments contained in SB 1592 (Burton/2000). Proposed extension of January 1, 2004
sunset is contained in AB 1475 (Steinberg/2003), recently signed by the Governor.

REGULATIONS/GUIDELINES
N/A

ADDITIONAL RESOURCES
• For more information about the program, the FY 2001-2002 program RFA can be viewed at
  www.dmh.ca.gov/PGRE/docs/TOTALRFA.pdf




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III. DEVELOPMENT SOURCES INTRODUCTION

    A. Definition of Development

    In this guide, “development” sources are defined as those sources that may be used to fund “bricks
    and mortar.” Development costs are the capital costs associated with acquiring, creating and/or
    rehabilitating housing units. Eligible uses of these sources generally fall into two broad categories:
    hard costs and soft costs. Hard costs include such items as land acquisition, construction and
    rehabilitation work, and offsite improvements (such as sewers, utilities, etc.). Soft costs include such
    items as architectural services, appraisals, engineering, legal costs, fees and permits, rent-up costs,
    etc. Development funding is generally offered in the form of either a loan (may be deferred, residual
    receipts, or low interest); grants; or equity (wherein the source anticipates a return of some sort on
    their investment).

    B. How Development Sources Flow

    A significant portion of development funding originates at the Federal government level, with the
    Department of Housing and Urban Development. These HUD sources generally flow to project
    sponsors in one of two ways: (1) through formula grants (including block grants), where funds flow
    from HUD to a local government entity (usually a county or city, and sometimes a state) and from
    there to individual project sponsors; or (2) through competitive grants, which are awarded directly by
    HUD to the project sponsor. Please see the General Introduction for further explanation of formula
    and competitive grants.

    There are two major sources of Federal funding for housing development that do not originate from
    HUD: the Home Loan Bank’s Affordable Housing Program (AHP) and the Low Income Housing Tax
    Credit Program. Both these sources are accessed through a competitive application process, as
    described in the detailed source summaries.

    With the exception of HUD, very few of the Federal departments offer funding for housing
    development. The VA is currently developing a Loan Guarantee Program for Multifamily Housing,
    but the majority of VA funding is restricted for supportive services.

    Besides federal sources, the other significant source of funding for supportive housing development is
    at the State level. In addition to administering federal block grant funds for housing development,
    most States have developed their own locally generated housing sources. Typically, States attempt to
    develop dedicated revenue streams to fund housing programs, rather than tapping into state general
    funds. In California, the MultiFamily Housing Program recently received a significant infusion of
    funds from a voter approved bond measure (Proposition 46). The State of Arizona’s Housing Trust
    Fund is funded by an allocation of unclaimed property deposits, while the State of Nevada’s Housing
    Trust fund receives dollars from a real estate transfer tax. The majority of state programs for housing
    development are project grants – sponsors access the funds through a competitive application process,
    announced through a NOFA.

    With all development sources, both federal and state, demand tends to be very high and competition
    fierce. Successful applicants typically need to have a strong track record in housing development.
    Successful projects generally need to demonstrate both feasibility (e.g. readiness, commitments of
    other funding, a workable pro forma) and quality (e.g. appropriate location, quality of design,
    appropriate level of support services). Yet even a high quality project must sometimes apply multiple
    times for some sources, simply due to the lack of sufficient funding for affordable housing.

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    C. Development Funding Program Summaries

    The following Federal sources are summarized in this section:
        Affordable Housing Program (AHP)
        Community Development Block Grant Program (CDBG)
        Home Investment Partnership Program (HOME)
        Housing Opportunities for Persons with AIDS (HOPWA)
        Low Income Housing Tax Credit Program
        Supportive Housing for the Elderly (Section 202)
        Supportive Housing for Persons with Disabilities (Section 811)
        Supportive Housing Program (SHP)
        VA Homeless Providers and Per Diem Program
        VA Loan Guarantee for Multifamily Housing Program

    The following state Sources:
           Arizona Behavioral Health Funds (House Bill 2003/Comcare Trust)
           Arizona State Housing Fund
           California Emergency Housing Assistance Program (EHAP)
           California Multifamily Housing Program (MHP)
           California Special Needs Financing Program (CalHFA)
           Nevada Low Income Housing Trust Fund

    The following sources may also be used for development, but are grouped under the Services Section:
           Transitional Living Program for Older Homeless Youth (TLP)
           California Integrated Services for Homeless Adults with Serious Mental Illness (AB2034)




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                 DEVELOPMENT SOURCES PROGRAM SUMMARIES - FEDERAL

                                     AFFORDABLE HOUSING PROGRAM
                                                (AHP)

ADMINISTRATIVE AGENCIES

Federal:
Federal Home Loan Bank
(202) 408-2500
http://www.fhfb.gov/FHLB/FHLBP_housing_AHP.htm

State and Local:
Federal Home Loan Bank of San Francisco
(415) 616-2542
http://www.fhlbsf.com/ci/grant/ahp/default.asp

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Federal Home Loan Bank’s (FHLB) Affordable Housing Program (AHP) provides gap financing for
affordable housing projects that can include transitional and permanent supportive housing. Projects
serving homeless populations, special needs populations, and very low-income households receive
additional points in the application scoring process. This source is quite popular with supportive housing
project sponsors due to the flexibility of the funds and the ability to fill financing gaps in the later phases
of developing a financing package.

The AHP subsidizes the cost of housing for very low-income and low- or moderate-income owner-
occupied and rental housing. The subsidy may be provided in the form of a grant or a below market
interest rate loan from the FHLB to a member lender bank that is partnering with a housing developer
(typically a non-profit organization).

Each of the FHLB’s 12 District Banks contributes at least 10% of its annual net earnings to its AHP. In
2003, a combined total of $200 million is available for the AHP throughout the United States.

ELIGIBILITY INFORMATION

Eligible Target Populations:
At least 20% of the units in a rental development must be occupied by and affordable for very low-
income households (50% of AMI). AHP funds may also be used to fund additional units targeted to
households with incomes up to 80% of AMI.

Eligible Projects/Programs:
 Transitional Housing
 Permanent Supportive Housing
 Affordable Rental Housing
 Owner-Occupied Housing


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Eligible Use of Funds and Use Restrictions:
 New construction
 Acquisition
 Rehabilitation
 Refinancing
 Won’t cover operating reserves

Eligible Applicants/Sponsors:
Organizations seeking to develop a supportive housing project must partner with a FHLB member, who
will sponsor the developer’s application for funding. While the project sponsor typically prepares the
application, it is the FHLB member institutions (which include community banks, thrifts, credit unions
and Community Development Financial Institutions) that actually apply for the AHP funds. While non-
profit organizations and government entities are not the only types of eligible partners, they receive a
competitive advantage in the scoring of applications over other types of organizations.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The maximum funding award from the San Francisco Home Loan Bank’s AHP Program is $1,000,000.

Average Award:
$3,000 to $5,000 per unit (2002 data)

Term of Award:
N/A

Matching Requirements:
There are no set matching requirements, but projects are scored based on financial feasibility and the
amount of funding already committed from other sources. Generally, the less a sponsor requests from
AHP, the more competitive their application will be. In 2002, the majority of successful projects
requested funding of approximately $5,000 per unit.

Formula:
N/A

APPLICATION PROCESS
The FHLB operates the AHP through its 12 District Banks located throughout the United States. Project
sponsors in California, Arizona and Nevada apply through the San Francisco Home Loan Bank, the
District Bank for the western states. While a single set of regulations governs the program, each District
Bank establishes its own 100 point scoring system and funding priorities, so it is critical for applicants to
obtain information and an application package from the correct local District Bank.

The San Francisco Home Loan Bank offers two funding cycles per year – usually in April and October.
Grants are awarded on a competitive basis. Interested applicants must approach a FHLB member
institution to request sponsorship of its application.

CFDA CODE
N/A



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AUTHORIZING LEGISLATION/STATUTE
Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA)

REGULATIONS/GUIDELINES
112 CFR Part 951
http://www.fhfb.gov/FHLB/FHLBP_housing_regs.htm

ADDITIONAL RESOURCES
• National Neighborhood Coalition: http://www.neighborhoodcoalition.org




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                     COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
                                       (CDBG)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office Block Grant Administration
(202) 708-1577
http://www.hud.gov/progdesc/cdbgent.cfm

State and Local:
For a list of entitlement programs and state programs, go to:
http://www.hud.gov/offices/cpd/about/cpdalloc.cfm

TYPE OF ASSISISTANCE
   Formula to jurisdiction
   Both the states and the entitlement communities establish their own process for awarding of
     CDBG funds, typically through a competitive application process.

PROGRAM DESCRIPTION
CDBG provides eligible metropolitan cities and urban counties (called "entitlement communities") with
annual formula grants that they can use to revitalize neighborhoods, expand affordable housing and
economic opportunities, and/or improve community facilities and services, principally to benefit low- and
moderate-income persons.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Grantees must use at least 70% of CDBG funds for activities that principally benefit low- and moderate-
income persons (those earning no more than 80% of area median income).

Eligible Projects/Programs:
  Emergency Shelter
  Transitional Housing
  Permanent Supportive Housing
  Support Services Programs

 Note: CDBG can be used for a wide range of non-housing facilities and activities as well (i.e.
 community facilities, playgrounds, infrastructure, social services, etc.)

Eligible Use of Funds and Use Restrictions:
CDBG funds may be used for a range of activities directed toward neighborhood revitalization, economic
development and provision of improved community facilities and services. Eligible uses that relate to
supportive housing include:
         Hard and soft costs of acquisition, rehabilitation and in limited circumstances, new
            construction (see http://www.oup.org/about/ch2.pdf)
         Support services
         Administrative costs

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Eligible Applicants/Sponsors:
States and entitlement communities are eligible to receive a Federal allocation of CDBG funds.

Entitlement communities are: communities with 50,000 or more residents, other local governments
designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000.

A separate component of CDBG – the State CDBG Program – provides funding to State governments.
State programs must sub-grant to projects in non-entitlement communities (rural areas and/or
communities with less than 50,000 people).

There are currently over 90 CDBG entitlement communities in California, Arizona and Nevada. These
states each operate a state CDBG program that allocates funds to non-entitlement communities.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
N/A

Term of Awards:
 Grants for development activities are awarded on a one-time basis
 Grants for support services are awarded for a one-year term and may be renewed.

Matching Requirements:
There are no match requirements.

Formula:
The formula determining the amounts each entitlement community or State will receive is based on such
factors as poverty and poor housing conditions.

APPLICATION PROCESS
Each state and entitlement community establishes its own competitive process for awarding of CDBG
funds to sub-grantees. States and entitlement communities receive their allocation of funds on an annual
basis. They must submit a Consolidated Plan to HUD in order to receive the CDBG funds for which they
are eligible.

CFDA CODE
14.218 (Entitlement grants)
14.228 (States Program)

AUTHORIZING LEGISLATION/STATUTE
Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383




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REGULATIONS/GUIDELINES
24 CFR Part 570
CDBG Regulations: http://www.hud.gov/offices/cpd/communitydevelopment/rulesandregs/regulations/index.cfm
HUD CDBG Guidebook: http://www.oup.org/about/cdbgpguide.html

ADDITIONAL RESOURCES
• HUD Community Development Library
  http://www.hud.gov/offices/cpd/communitydevelopment/library/index.cfm




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                     HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office of Affordable Housing Programs
(202) 708-2470
http://www.hud.gov:80/progdesc/home1a.cfm

State and Local:
Contact information for participating jurisdictions (states and local governments) can be found at:
www.hud.gov/offices/cpd/affordablehousing/programs/home/contacts/index2.cfm

TYPE OF ASSISTANCE
   Formula to jurisdictions
   Each state and entitlement community establishes its own competitive process for awarding of
     HOME funds to sub-grantees.

PROGRAM DESCRIPTION
HOME is the largest Federal block grant to State and local governments designed exclusively to create
affordable housing for low-income households. Each year it allocates more than $1 billion to the States
and hundreds of localities nationwide. HOME provides formula grants that communities use to:
construct, acquire, and/or rehabilitate affordable housing for rent or homeownership; or, provide direct
rental assistance to low-income people.

HOME funds are awarded annually as formula grants to participating jurisdictions. HUD establishes
Home Investment Trust Funds for each grantee, providing a line of credit that the jurisdiction may draw
upon as needed. The program's flexibility allows States and local governments (usually the eligible
grantee for HOME funds, see below) to use HOME funds for grants, loans, loan guarantees or other forms
of credit enhancement, or rental assistance or security deposits.

ELIGIBILITY INFORMATION
Participating jurisdictions may target funds in a particular manner, so long as the requirements listed
below are met.

Eligible Target Populations:
 For rental housing and rental assistance, at least 90 percent of benefiting families must have incomes
    that are no more than 60 percent of the HUD-adjusted median family income for the area.
 In rental projects with five or more assisted units, at least 20% of the units must be occupied by
    families with incomes that do not exceed 50% of the HUD-adjusted median.
 The incomes of households receiving HUD assistance must not exceed 80 percent of the area median.

Eligible Projects/Programs:
           Transitional Housing
           Permanent Supportive Housing
           Affordable rental housing
           Homeownership units


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Eligible Use of Funds and Use Restrictions:
 Hard and soft costs of new construction, acquisition, and rehabilitation
 Tenant-based rental assistance (up to two years, can be renewed)
 Assistance to homeowners
 Technical assistance

Eligible Applicants/Sponsors:
States and “Participating jurisdictions” (PJs) are eligible to receive a Federal allocation of HOME funds.
PJs are those communities that are eligible for at least $500,000 under the HOME formula Communities
that do not qualify for an individual allocation under the formula can join with one or more neighboring
localities in a consortium.

States and PJs are required to expend the HOME funds in sub-grants to:
           Local government entities
           Non-profit organizations

States must sub-grant to projects in localities that do not have their own formula allocation (rural areas
and/or small communities that do not quality as PJs).

CHDOs. Participating jurisdictions must reserve at least 15 percent of their allocations to fund housing to be
owned, developed, or sponsored by nonprofit groups designated as Community Housing Development
Organizations (CHDOs). A CHDO is: “a private non-profit, community-based service organization that has
obtained or intends to obtain staff with the capacity to develop affordable housing for the community it
serves.” CHDOs must serve a clearly defined geographical area. Additionally, 1/3 of the members of the
CHDOs Board of Directors must be representatives of the low-income community – a requirement many
developers find difficult to meet.

There are currently 44 PJs in California, Arizona and Nevada. These states each operate a state HOME
program that allocates funds to communities within the state that do not receive a formula allocation.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
N/A

Term of Awards:
Funds are awarded on a one-time basis and are not generally renewable.

Matching Requirements:
Every dollar of HOME funds must be matched (except for administrative costs) with 25 cents from
nonfederal sources, which may include donated materials or labor, the value of donated property,
proceeds from bond financing, and other resources.

Formula:
Program funds are allocated to participating jurisdictions on the basis of a formula that considers the
relative inadequacy of each jurisdiction's housing supply, its incidence of poverty, its fiscal distress, and
other factors.

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APPLICATION PROCESS
Each state and entitlement community establishes its own competitive process for awarding of HOME
funds to sub-grantees. States and PJs receive their allocation of funds on an annual basis. They must
submit a Consolidated Plan to HUD in order to receive the HOME funds for which they are eligible (see
Introduction for further discussion of Consolidated Plans).

CFDA CODE
14.239

AUTHORIZING LEGISLATION/STATUTE
National Affordable Housing Act, Title II, 1990, as amended.

REGULATIONS/GUIDELINES
24 CFR Part 92
HOME Regulations: http://www.hud.gov/offices/cpd/affordablehousing/lawsandregs/regs/home/index.cfm
HOME Income and Rent Limits:
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/index.cfm
HOME Program Guide: http://www.hud.gov/offices/cpd/affordablehousing/library/homeguide.pdf

ADDITIONAL RESOURCES
Building Home, A Program Primer:
http://www.hud.gov/offices/cpd/affordablehousing/library/building/index.cfm




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                       HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
                                        (HOPWA)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office of HIV/AIDS Housing
(202) 708-1934
http://www.hud.gov/offices/cpd/aidshousing/programs/index.cfm

State and Local:
A list of recipients of HOPWA formula grants may be found here:
http://www.hud.gov/offices/cpd/aidshousing/reporting/execsummary/index.cfm

TYPE OF ASSISTANCE
The program includes both a formula and a competitive grant component.
States and cities often establish their own competitive process for awarding of HOPWA funds to sub-
grantees.

PROGRAM DESCRIPTION
The purpose of the HOPWA Program is to provide States and localities with the resources and incentives
to devise long-term comprehensive strategies for meeting the housing needs of persons with AIDS or
related diseases and their families.

Approximately 90% of the funding is distributed to states and cities in formula grants, while the
remaining 10% is available competitively on an annual basis for model projects or programs.
Competitive grants are also available for technical assistance for sponsors of HOPWA-funded housing.
In FY 2002, 25 competitive grants were awarded.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Low-income persons with HIV or AIDS and their families

Eligible Projects/Programs:
 Transitional housing
 Permanent supportive housing
 Short-term and long-term rental assistance programs
 Emergency assistance programs
 Support services programs, including Information and Referral or housing counseling programs

Eligible Use of Funds and Use Restrictions:
         New construction (for SRO dwellings and community residences only)
         Acquisition, rehabilitation, lease and repair of facilities to provide housing and services
         Operating costs for housing
         Project- or tenant-based rental assistance
         Short-term rent, mortgage and utility payments


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             Support services (including, but not limited to health, mental health, assessment, permanent
              housing placement, drug and alcohol abuse treatment and counseling, day care, nutritional
              services, intensive care and assistance in accessing benefits)
             Housing information services
             Technical assistance
             Administrative Expenses
             Other activities as approved by HUD (competitive grants only)

Eligible Applicants/Sponsors:

Formula Grants
State and cities with the largest numbers of cases of AIDS are eligible to receive a Federal allocation of
HOPWA formula funds. States receive an allocation for those communities that do not quality for a direct
formula allocation.

HOPWA formula funds are awarded to the following cities. In California: Los Angeles, Oakland,
Riverside, Sacramento County, San Diego, San Francisco, San Jose, and Santa Ana. In Arizona: Phoenix
and Tucson. In Nevada: Las Vegas. Each State also receives an allocation to serve those communities
that do not qualify for their own allocation. There are a total of 108 HOPWA formula grant recipients
nationwide.

States and cities are required to expend formula HOPWA funds in sub-grants to:
           Local governments
           Non-profit organizations

Cities must serve the eligible metropolitan statistical area (EMSA) in which they are located (e.g. San
Francisco’s allocation is spent for programs that serve San Francisco, Marin and San Mateo counties).

Competitive Grants
Eligible applicants include:
           States
           Local governments
           Non-profit organizations

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
N/A

Term of Awards:
Grants of formula funds to sub-grantees are generally awarded on a one-year basis and may be renewed.
Competitive grants are not renewable.

Matching Requirements:




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There are no matching requirements for formula grants. For competitive grants, the capacity to leverage
resources (including in-kind contributions) is one of five standard factors considered in the applicant
selection process.

Formula:
Formula HOPWA funds are allocated using a formula based on population size and the number of people
living with HIV/AIDS as confirmed by the CDC.

APPLICATION PROCESS

Formula Grants
States and cities receive their allocation of funds on an annual basis. They must submit a Consolidated
Plan to HUD in order to receive the HOPWA funds for which they are eligible (see Introduction for
further discussion of Consolidated Plans). There is no mandatory process for sub-granting funds to
projects and programs. Some states and cities spend the funds directly on housing and services; some
award the funds using a competitive application process, some use the funds to renew existing contracts
with housing and service providers.

Competitive Grants
HUD issues a NOFA annually as part of the SuperNOFA process. Applicants for competitive funds
submit proposals directly to HUD.

CFDA CODE
14.241

AUTHORIZING LEGISLATION/STATUTE
AIDS Housing Opportunity Act, Public Law 101-624.

REGULATIONS/GUIDELINES
24 CFR Part 574
HOPWA Regulations: http://www.hud.gov/utilities/intercept.cfm?/offices/cpd/aidshousing/pdf/cfr24_574.pdf

ADDITIONAL RESOURCES
   HUD webpage on AIDS Housing: http://www.hud.gov/offices/cpd/aidshousing/index.cfm
   National AIDS Housing Coalition: http://www.aidshousing.org
   AIDS Housing of Washington: http://www.aidshousing.org




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                          LOW INCOME HOUSING TAX CREDIT PROGRAM
                                         (LIHTC)

ADMINISTRATIVE AGENCIES

Federal:
U.S. Department of the Treasury, Internal Revenue Services. There is no central phone number or
webpage for the federal Low Income Housing Tax Credit Program. Project sponsors should contact their
state program:

Arizona:
Arizona Department of Housing
(602) 771-1000
http://www.housingaz.com/RentalAssistance/default.asp

California:
Tax Credit Allocation Committee
(916) 654-6340
http://www.treasurer.ca.gov/ctcac

Nevada:
State of Nevada Department of Business and Industry, Housing Division
Northern Office: (775) 687-4258
Southern Office: (702) 486-7220
http://ww.nvhousing.state.nv.us

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Low Income Housing Tax Credit Program (LIHTC) creates an incentive for private investment in
low-income housing development by giving federal tax credits to investors. Private investors, such as
banks and corporations, buy the tax credits from the affordable housing developer. The developer uses
these proceeds from the sale of tax credits, known as “equity,” to construct or rehabilitate housing.
Investors receive a federal tax credit over a ten-year term.

There are two types of tax credits: 9% and 4%. With 9% credits, the investor can claim up to
approximately 9% of many of the costs of the development annually, over a ten-year period. Four
percent credits net approximately 4% of costs. Projects that obtain tax-exempt bond financing are
automatically eligible for an award of 4% tax credits.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 A minimum of 40% of the units must be rent-restricted and occupied by households whose incomes
    are 60% or less of the area median gross income, adjusted for family size, or;
 20% of the units must be rent-restricted and occupied by households whose incomes are 50% or less
    of the area median gross income, adjusted for family size.


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Eligible Projects/Programs:
 Only permanent rental housing projects are eligible for tax credits, with some minor exceptions for
    transitional housing when used in conjunction with specific federal programs (e.g. McKinney Act
    Funds).
 Credits can be allocated for new construction or rehabilitation projects.

Eligible Use of Funds and Use Restrictions:
 Capital Costs: Both hard and soft costs
 Operating Costs: Capitalized rent reserves and other reserves

Eligible Applicants/Sponsors:
 Non-profit organizations
 For-profit individuals, joint ventures, partnerships, limited partnerships, trusts, corporations or limited
    liability corporations
 Government entities
 Any combination of the above

Owners of projects funded by the LIHTC program are generally either a limited liability corporation or a
limited partnership, in order to take maximum advantage of the tax credit. The sponsor is the general
managing partner (manages the project), while the investors are limited partners (receive the tax credit
benefit).

It should be noted that securing and administering an allocation of tax credits is a very complex and
highly technical process. Identifying potential investors and negotiating a syndication deal (the process
by which the developer “sells” the credits) is particularly complicated. For these reasons, tax credit
programs require developers to meet very stringent experience and capacity requirements, which typically
include prior experience with administering an award of tax credits. Organizations that have never before
attempted to secure a tax credit reservation are strongly advised to partner with an experienced housing
developer.

The Point Allocation or Project Scoring section of each states’ QAP will provide the details about the
method used by each state to take into consideration an applicant’s plans to serve a special needs
population; use this link to access the most recent QAP’s for each state:
http://www.housingonline.com/lihtc/qaps.htm


GRANT/LOAN TERMS

Minimum/Maximum Awards:
Tax credits are allocated based on certain eligible costs of the project. They are sold at a price that is
negotiated based on variables such as the market, project type, sponsor, and timing of when the equity
comes into the project.

Average Awards:
N/A

Term of Awards:
Funds must be expended and units placed in service within a very strict time frame.

Matching Requirements:


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There are no matching requirements, but leveraging is often a factor in the rating and ranking of
proposals.

Formula:
N/A

APPLICATION PROCESS
The Federal government allocates Low-income Housing Tax Credits to states based on a per capita
formula. Each state must prepare a “Qualified Allocation Plan” (QAP), which establishes criteria for
evaluating applications, including any local priorities or set-asides.

Each state establishes its own tax credit program based on federal requirements and the QAP. California
has also established a state tax credit program to supplement the federal program. Each state establishes
its own competitive application process and scoring system. In California, the Tax Credit Allocation
Committee issues a NOFA twice a year, generally in spring and summer. The Arizona Department of
Housing and the Department of Business and Industry, Housing Division, in Nevada hold competitions
annually, usually in the spring.

Demand for tax credits is very high because of the relatively large amounts of equity that may be secured,
so these funds are among the most competitive of all development sources. In Arizona and California,
only about 25% of applications are successful.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
Public Law No. 99-514

REGULATIONS/GUIDELINES
IRS Code Title 26, Subtitle A, Chapter 1, Subpart A, Part IV, Subpart D, Section 42.
IRS Regulations: http://www.fourmilab.ch/ustax/www/t26-A-1-A-IV-D-42.html
State QAPs online: http://www.housingonline.com/lihtc/qaps.htm

ADDITIONAL RESOURCES
      National Housing and Rehabilitation Association: http://www.housingonline.com/lihtc.htm
      The Enterprise Social Investment Corporation, Tax Credits 101:
        http://www.enterprisefoundation.org/esic/taxcredit101/index.asp
      IRS Website, Low Income Housing Tax Credit Real Estate Tips:
        http://www.irs.gov/businesses/small/industries/article/0,,id=98884,00.html
      An excellent resource on tax credits is Tax Credits for Low Income Housing, 11th Edition, Joe
        Guggenheim, 2000. Copies may be ordered directly from author at: (301) 320-5771. This
        document is not available on line.




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                              SUPPORTIVE HOUSING FOR THE ELDERLY
                                     (SECTION 202 PROGRAM)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Multifamily Housing
(202) 708-3000
http://www.hud.gov/progdesc/2eldrl14.cfm

State/Local:
N/A

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The purpose of this program is to expand the supply of affordable housing with supportive services for
the very low-income elderly by providing capital advances to finance the construction and rehabilitation
of the units. The capital advance does not have to be repaid as long as the project serves very low-income
elderly persons for 40 years. The program also provides Project Rental Assistance to cover the difference
between the HUD-approved operating cost per unit and the tenant's rent. Project Rental Assistance
contract payments can be approved up to 5 years, with contracts renewable based on the availability of
funds. (The program is similar to Supportive Housing for Persons with Disabilities/Section 811).

ELIGIBILITY INFORMATION

Eligible Target Populations:
Very low-income persons (50% of AMI) age 62 or older

Eligible Projects/Programs:
Housing for seniors

Eligible Use of Funds and Use Restrictions:
 Property acquisition, site improvement, conversion, demolition, relocation, and other development
    expenses associated with supportive housing for the elderly.
 Project rental assistance/operating subsidies
 Only a minimal developer fee is allowed to be taken from this source.

Eligible Applicants/Sponsors:
 Applicants must be a private non-profit organization with prior experience in housing or related social
    service activities.
 Under certain circumstances, the owner may be a for-profit limited dividend organization with a
    nonprofit entity as the sole general partner.
 Government entities are not eligible for funding under this program




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GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
Grants awarded in FY 2002 competition ranged from $495,100 to $12,582,900, with an average grant
amount of $4,115,500.

Term of Awards:
Project rental assistance contracts are for periods up to 5 years, and may be renewed for up to a one-year
term based on availability of funds.

Matching Requirements:
As a minimum capital investment, project sponsors must deposit into a special escrow account 0.5% of
the HUD-approved capital advance, up to a maximum of $25,000 for national sponsors and $10,000 for
other sponsors.

Formula:
The formula used for allocating funds to the HUD field offices consists of two data elements from the
2000 Census: (1) number of elderly renter’s households of all sizes age 65 and over and (2) number of
elderly households age 60 and older living alone with income below the poverty level.

APPLICATION PROCESS
HUD issues a Notice of Funding Availability for the 202 Program on an annual basis, as part of the HUD
SuperNOFA. Project sponsors apply directly to their local HUD field office for funds. Organizations
compete for funds that have been allocated to their local field office on a formula basis.

CFDA CODE
14.157

AUTHORIZING LEGISLATION/STATUTE
Housing Act of 1959, as amended; Section 801 of the National Affordable Housing Act, Public Law 101-
625, 42 U.S.C. 12701; Housing Community Development Act of 1992, Public Law 102-550; Rescissions
Act, Public Law 104-19, and American Homeownership and Economic Opportunity Act of 2000, Public
Law 106-569.

REGULATIONS/GUIDELINES
24 CFR Part 891
Section 202 HUD Handbook: http://www.hudclips.org (click on document #4571.3); or call the HUD Multifamily
Clearinghouse at (800) 685-8470.




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                   SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES
                                (SECTION 811 PROGRAM)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Multifamily Housing
(202) 708-3000
http://www.hud.gov/offices/hsg/mfh/progdesc/disab811.cfm

State/Local:
N/A

TYPE OF ASSISTANCE
This is a competitive grant program that functions within a formula allocation to HUD districts.

PROGRAM DESCRIPTION
The purpose of this program is to expand the supply of affordable housing with supportive services for
the very low-income people with disabilities by providing capital advances to finance the construction
and rehabilitation of the units. The capital advance does not have to be repaid as long as the project
serves very low-income people with disabilities for 40 years. The program also provides Project Rental
Assistance to cover the difference between the HUD-approved operating cost per unit and the tenant's
rent. Project Rental Assistance contract payments can be approved up to 5 years, with contracts renewable
based on the availability of funds. (The program is similar to Supportive Housing for Seniors/Section
202).

Each project must have a supportive services plan. The appropriate State or local agency reviews a
potential sponsor's service plan to determine if the plan is well designed to meet the needs of persons with
disabilities and must certify to the same. Services may vary with the target population but could include
case management, training in independent living skills and assistance in obtaining employment. However,
residents cannot be required to participate in supportive services as a condition of occupancy.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Very low-income persons (50% of AMI) age 18 or older with a physical disability, developmental
disability, or chronic mental illness

Eligible Projects/Programs:
Permanent supportive housing for very low-income persons with disabilities

Eligible Use of Funds and Use Restrictions:
 Property acquisition, site improvement, conversion, demolition, relocation, and other development
    expenses associated with supportive housing for the disabled.
 Project rental assistance/operating subsidies
 Only a minimal developer fee is allowed to be taken from this source.

Eligible Applicants/Sponsors:


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   Applicants must be a private non-profit organization with a 501(c)(3) tax exemption from the IRS.
   Under certain circumstances, the owner may be a for-profit limited dividend organization with a
    nonprofit entity as the sole general partner.
   Government entities are not eligible for funding under this program

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
Grants awarded in FY 2002 competition ranged from $254,500 to $3,775,700, with an average grant
amount of $1,077,494.

Term of Awards:
Project rental assistance contracts are for periods up to 5 years, and may be renewed for up to a one-year
term based on availability of fund.

Matching Requirements:
As a minimum capital investment, project sponsors must deposit into a special escrow account 0.5% of
the HUD-approved capital advance, up to a maximum of $10,000.

Formula:
The available program funds for a given fiscal year are allocated to HUD's local field offices according to
factors that include the number of persons age 16 years or older with a work disability and those without a
work disability.

APPLICATION PROCESS
HUD issues a Notice of Funding Availability for the 811 Program on a annual basis, as part of the HUD
SuperNOFA. Project sponsors apply directly to their local HUD field office for funds. Organizations
compete for funds that have been allocated to their local field office on a formula basis.

CFDA CODE
14.181

AUTHORIZING LEGISLATION/STATUTE
National Affordable Housing Act, Public Law 101- 625, 42 U.S.C. 8013, 104 Stat. 4324, 4331; American
Homeownership and Economic Opportunity Act of 2000, Public Law 106-569.

REGULATIONS/GUIDELINES
24 CFR Part 891
Section 811 HUD Handbook: http://www.hudclips.org (click on document #4571.2); or call the HUD Multifamily
Clearinghouse at (800) 685-8470.




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                                     SUPPORTIVE HOUSING PROGRAM
                                                 (SHP)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office of Special Needs Assistance Program (SNAPS)
(202) 708-0614 ext. 4473
http://www.hud.gov/offices/cpd/homeless/programs/shp/index.cfm

State/Local:
For local Continuum of Care contact information, go to:
http://www.hud.gov/offices/cpd/homeless/programs/cont/coc/index.cfm

TYPE OF ASSISTANCE
This is a competitive grant program that functions within a formula allocation to the local continuum of
care.

PROGRAM DESCRIPTION
The Supportive Housing Program (SHP) is one of three sources collectively known as Continuum of Care
funding (the other two are the Shelter Plus Care and Section 8 Moderate Rehabilitation SRO Programs).
These programs are also often referred to as HUD McKinney funding or Targeted Homeless Assistance
Programs.

The SHP program provides grants to develop, operate and provide services in supportive housing (both
permanent and transitional) that enable homeless persons to live as independently as possible. The
program now operates under a statutory directive that 30% of all funds must go to permanent supportive
housing. Consequently, the vast majority of new projects funded with this source have been, and will
continue to be, permanent housing.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Only homeless persons may receive assistance from SHP-funded projects. The definition of
homelessness that applies to SHP funding may be found here:
http://www.hud.gov/offices/cpd/homeless/library/shp/understandingshp/eligibleapplicants.cfm

Eligible Projects/Programs:
 Transitional housing providing stays of up to 24 months)
 Permanent housing for homeless persons with disabilities.
 Safe Havens, defined as projects with a 25 person maximum occupancy, serving hard to reach
    homeless persons who have severe mental illness, are on the streets and have been unable and
    unwilling to participate in supportive services. Safe havens must provide 24-hour residence for an
    unspecified duration (i.e. no time limit on length of stay) and must provide private or semi-private
    accommodations.
 Supportive Services Only programs designed to address the special needs of homeless persons, where
    the sponsor is only providing the services


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   Innovative Supportive Housing programs or projects that are outside the scope of the four project
    types listed above
   Homeless Management Information Systems (HMIS). SHP funds may be used to pay the costs of
    implementing and operating a computerized HMIS. These funds may not be used for planning
    purposes.

Eligible Use of Funds and Use Restrictions:
 New construction (up to a maximum of $400,000, regardless of where the project is located)
 Acquisition and/or rehabilitation (up to a maximum of $400,000 for both activities combined,
    regardless of where the project is located)
 Real property leasing
 Operation of housing facilities
 Supportive services
 HMIS activities
 Administration

Eligible Applicants/Sponsors:
Applicants eligible to request funds through the local CoC process and receive an award from HUD
include:
 Non-profit organizations
 Community mental health organizations that are public non-profit organizations
 States
 Local governments
 Other government entities, including Housing Authorities

Only a locally constituted Continuum of Care may apply to HUD for CoC funding, which includes
requests for SHP, S+C and Mod. Rehab. (Technically, HUD does allow an individual organization to
submit a “solo” application for SHP funding, but such proposals, since they are not submitted as part of
an overall Continuum of Care plan, will rarely, if ever, receive funding.)

Please see the Introduction section of this guide for further information about CoC plans and CoC
funding.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
N/A

Term of Awards:
Initial awards for operating and/or services, leasing and HMIS may be one, two or three year terms. The
term of renewal grants is determined by the CoC based upon available funding. Most CoCs renew grants
for one-year terms.

Matching Requirements:

   Development: 1:1


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   Operating: 25% of costs must be matched by another source
   Services: 20% of costs must be matched by another source
   Use of leveraged resources is among the criteria used to score the overall CoC plan. CoCs are
    strongly encouraged to seek out mainstream resources to support activities within their housing and
    service system.

Formula:
HUD allocates for each CoC a certain “pro rata need” funding amount. The pro rata need is calculated
based on a formula that uses the same indices of need as are used in the CDBG program (including such
factors as poverty and poor housing conditions). The pro rata need is adjusted to help communities meet
the burden of renewing existing SHP grants. In the past years, HUD has also incentivized the creation of
permanent supportive housing by giving an additional pro rata need adjustment to communities who place
a new permanent housing project first on their ranked list of projects.

APPLICATION PROCESS
Sponsors must apply for funding through their local Continuum of Care process.
Each year HUD issues a NOFA announcing the availability of Continuum of Care funding. CoCs are
required to conduct a community-based planning process to determine goals and strategies for addressing
homelessness and priorities for funding for the coming year. The CoC also is required to conduct a
broadly publicized application process whereby individual project sponsors submit proposal to the CoC
body, which rates and ranks all applications received. The CoC then submits its CoC Plan along with a
ranked set of funding applications to HUD. HUD awards funding to projects in the order they have been
ranked by the CoC, up the community’s adjusted pro rata need amount.

CFDA CODE
14.235

AUTHORIZING LEGISLATION/STATUTE
McKinney-Vento Homeless Assistance Act of 1987, Title IV, Subtitle C, as amended

REGULATIONS/GUIDELINES
24 CFR Part 583
http://www.hud.gov/offices/cpd/homeless/rulesandregs/regulations/583shp/index.cfm
SHP Desk Guide: http://www.hud.gov/offices/cpd/homeless/library/shp/shpdeskguide/index.cfm




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               VA LOAN GUARANTEE FOR MULTIFAMILY HOUSING PROGRAM

ADMINISTRATIVE AGENCIES

Federal:
Department of Veterans Affairs, Multifamily Housing Program
http://www.va.gov/homeless/page.cfm?pg=8

State/Local:
N/A

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The VA’s Loan Guarantee for Multifamily Housing Program is a new initiative that authorizes the VA to
guarantee loans made by mortgage lenders for the creation of multifamily transitional housing for
homeless veterans. No more than 15 loans with an aggregate value of $100 million will be guaranteed
within 5 years. This program is not yet fully operational. The VA will fund a small number of pilot
projects in FY04. Full implementation of the program will not begin until FY05. Interested applicants
should track program activity on the VA’s Homelessness website. (http://www1.va.gov/homeless).

ELIGIBILITY INFORMATION

Eligible Target Populations:
Projects must serve homeless veterans, but may also serve veterans that are not homeless and persons
who are not veterans. It has not yet been established what percentage of tenants must be homeless
veterans in order for the project to be eligible.

Eligible Projects/Programs:
Only transitional housing projects, defined as having a maximum length of stay of 24 months, are eligible
for loan guarantees. To be eligible, projects must:
     Provide supportive services including job counseling
     Require veterans to seek and maintain employment
     Require veterans to pay reasonable rent
     Require sobriety as a condition of occupancy; and
     Serve other veterans in need of housing on a space available basis.

Eligible Use of Funds and Use Restrictions:
    New construction,
    Acquisition and renovation of existing property
    Refinancing of existing loans,
    Facility furnishings
    Working capital for organizations

Eligible Applicants/Sponsors:
Not yet specified



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GRANT/LOAN TERMS

Minimum/Maximum Awards:
Maximum loan amounts have not yet been established. The amount financed will be a maximum of 90%
of project costs.

Average Awards:
No guarantees have been awarded under this program (as of 9/1/03)

Term of Awards:
Unknown

Matching Requirements:
Loan guarantees are to be made in connection with a state, local government or non-governmental entity's
funding or providing substantial property or services for the project.

Formula:
N/A

APPLICATION PROCESS
Contact the Homeless Coordinator in the Regional Office of the VA
(http://www.va.gov/homeless/index.cfm, go to Homeless Program and Initiatives and click on Homeless
Veteran Program Coordinators to access state by state listings.)

CFDA CODE
None

AUTHORIZING LEGISLATION/STATUTE
Homeless Veterans Comprehensive Assistance Act of 2001

REGULATIONS/GUIDELINES
U.S. Code Title 38, Chapter 20, Subchapter VI, Sections 2051-2054.
http://uscode.house.gov/title_38.htm (click on Chapter 20)




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                   HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM

ADMINISTRATIVE AGENCIES

Federal:          U.S. Department of Veterans Affairs (VA), Department of Veterans Affairs Health Care
                  for Homeless Veterans (HCHV) Programs, www.va.gov/homeless/

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Grant and Per Diem Program is a competitive program which awards grants to establish and operate
new supportive housing (defined as up to 24 months) and/or supportive services programs for homeless
veterans who need assistance in their transition from homelessness to an independent living situation,
with the goal of helping homeless veterans achieve residential stability, an increase in skill level and
income and greater self-determination.

The Grant and Per Diem Program has two components:
   Grant: funds the capital costs of purchasing, renovating or constructing supportive housing or
    supportive services centers serving homeless veterans. Supportive housing must be transitional,
    defined as up to 24 months. Supportive service centers typically offer case management, housing
    referrals, vocational development, counseling, etc.
   Per Diem: pays operating and services costs in transitional housing or homeless service centers. Grant
    recipients receive priority in the allocation of per diem payments.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Homeless veterans

Eligible Projects/Programs:
Transitional supportive housing (up to 24 months) or service centers, offering services such as case
management, education, crisis intervention, counseling, etc., are eligible for these funds. Priority goes to
Grant recipients for Per Diem funds.

Grant: 75% of clients served in the program must be homeless veterans.

Per Diem: Those applying for Per Diem funds only ("non-grant programs") qualify if they meet the
following criteria:
 at least 75% of those receiving supportive services are veterans; and,
 provide supportive housing or a homeless service center.

Besides general quality selection criteria, there is a "strong emphasis" on applicants demonstrating that
the program has established strong relationships with the local VA medical center facilities, as well as
other community-based services minimize duplication of services. Additionally, preference is given to
new programs in underserved areas.

Eligible Use of Funds and Use Restrictions:

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Grant: acquisition, renovation and construction of transitional supportive housing or supportive service
centers that serve homeless veterans as well as the cost to purchase vans that provide outreach and
services to homeless veterans. Grant funds cannot be used for operational costs, including salaries or to
lease buildings with the exception of a capital lease, defined in the regulations at 38 CFR section 17.701.

Per Diem: overhead, operating costs, including salaries and other costs associated with service delivery,
in transitional housing or homeless service centers.

Eligible Applicants/Sponsors:
Private nonprofits and public entities, i.e., state and local government entities. Priority in awarding Per
Diem funds goes to Grant recipients.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
Per Diem: Maximum amount payable under the Per Diem component is $26.95 per day per homeless
veteran being served. (Per Diem payments are made as reimbursements on a monthly basis.) The
maximum hourly per diem rate for a service center not connected with supportive housing is 1/8 of the
daily cost of care not to exceed the current VA State Home rate for domiciliary care. Payment for a
veteran in a service center will not exceed 8 hours in a day.

Average Awards:
N/A

Term of Awards:
N/A

Matching Requirements:

Grant: VA will pay 65% of total project costs matched by 35% by recipients. Cash and cash equivalents
count towards the match. In-kind donations may be counted toward the match as long as the in-kind
donations are part of the project, e.g., donated architect's time, donated building materials.

Per Diem: No matching requirements for this component, however there's a maximum per diem amount
of $26.95 per homeless veteran per day. To pay for the balance of operating and service costs, however,
veterans in supportive housing may be asked to pay rent if it does not exceed 30% of the veteran's
monthly-adjusted income. In addition, "reasonable" fees may be charged for services not paid with Per
Diem funds.

Formula:
N/A

APPLICATION PROCESS
The VA issues an annual NOFA (as funding permits) for the "Grant" component of the program, which is
usually issued between January and March. Approved Grant applicants need not re-apply separately for
Per Diem payments; Grant recipients will be automatically considered for receipt of Per Diem payments
using the original Grant application.



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Programs that have not applied for Grants but are interested in Per Diem payments must apply under a
separate "Per Diem Only" NOFA that is offered at other times depending on fund availability.

CFDA CODE
64.024

AUTHORIZING LEGISLATION/STATUTE
Homeless Veterans Comprehensive Services Programs Act of 1992, Sections 3 and 4, Public Law 102-
590; 38 U.S.C. 7721 note; Public Law 104-110

REGULATIONS/GUIDELINES
Title 38 Code of Federal Regulations, Part 17.700-17.731, VA Homeless Providers Grant and Per Diem
Program

ADDITIONAL RESOURCES
For more information about the services provided to homeless veterans through the Veterans Health
Administration, go to the "VA Homeless Coordinators" page on the VA website
(www.va.gov/homeless/). Services include outreach, case management, referrals to benefits counselors,
linkage to health care, and housing assistance. Each facility is unique and services vary among each
medical center.




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                   DEVELOPMENT SOURCES PROGRAM SUMMARIES - STATE

                                ARIZONA BEHAVIORAL HEALTH FUNDS
                                     (House Bill 2003/Comcare Trust)

ADMINISTRATIVE AGENCIES

State/Local:
Arizona Department of Health Services, Division of Behavioral Health Services
(602) 364-4558
http://www.hs.state.az.us/bhs/

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Arizona Department of Health Services, Division of Behavioral Health Services is a major funder of
supportive housing development in the state. In 1981 a class action suit, Arnold v. Sarn, was filed on
behalf of mentally ill adults in the state alleging breach of duty by the department. The plaintiffs
prevailed in court and in 1989 the state and county were ordered to establish a comprehensive system of
community-based mental health care. The Department has prioritized the creation of permanent
supported housing options as one of the keys to satisfying that requirement.

Since the mid-1990s, the Department has moved aggressively to secure HUD funds to expand the supply
of supportive housing for persons with serious and persistent mental illness, by applying for and obtaining
grants from the SHP, S+C, Section 811 and Section 8 Programs. Additionally, the Department has
garnered significant State resources to create housing units. These state funds have come from three
primary sources:
(1) State General Funds;
(2) Tobacco Litigation Funds. In 2000 the Department received a one-time allocation of $50 million
    through House Bill 2003;
(3) Comcare Trust funds. In 1998 the Department assumed control of Comcare, which had held the
    contract as the Department’s Regional Behavioral Health Authority for Maricopa County. Liquidated
    assets from Comcare Trust proceeds are being used to lease and purchase units in Maricopa County,
    the state’s most populous region and the area with the greatest number of mentally ill adults.

The Department’s housing activities are carried out through their five Regional Behavioral Health
Authorities (RBHAs), which administer the majority of the housing dollars. .

ELIGIBILITY INFORMATION

Eligible Target Populations:
Low-income adults with serious mental illness

Eligible Projects/Programs:
 Transitional Housing
 Permanent Supportive Housing

Eligible Use of Funds and Use Restrictions:

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         New construction
         Acquisition
         Rehabilitation
         Leasing
         Support Services

Eligible Applicants/Sponsors:
Each RBHA selects the organizations to whom they will sub-grant funds. The vast majority of awards
have gone to non-profit housing and social service organizations.

GRANT/LOAN TERMS

Maximum/Minimum Awards:
N/A

Average Awards:
N/A

Term of Awards:
N/A

Matching Requirements:
There are no set matching requirements

Formula:
N/A

APPLICATION PROCESS
Each RBHA receives an allocation of funding from the Department. The RBHA organizes a planning
group consisting of local housing providers, which then determines how the funds will be expended.
Projects selected for funding are submitted to the Arizona Department of Housing for risk assessment and
feasibility analysis. Interested organizations should contact their local RBHA to inquire about the process
for receiving funding. Contact information for the RBHAs can be found at the Department of Health
Services website, listed above.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
Arizona House Bill 2003

REGULATIONS/GUIDELINES
None




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                                     ARIZONA STATE HOUSING FUND

ADMINISTRATIVE AGENCIES

State/Local:
Arizona Department of Housing
Northern Office: (602) 771-1000
http://www.housingaz.com/RentalAssistance/default.asp

TYPE OF ASSISTANCE
This is a competitive program that functions within target allocations.

PROGRAM DESCRIPTION
The State Housing Fund Program is comprised of two funding sources: the state’s allocation of federal
HOME funds and State Housing Trust fund dollars.
On an annual basis, the Department establishes specific funding goals for each geographic area of the
state, as well as for each eligible activity (rental housing, homeownership, homelessness prevention, etc.).
Within the geographic and activity goals, the Department seeks to allocate 25% of funding to projects
serving Special Populations. The actual amount of funding awarded to each area and activity depends on
the quantity and quality of applications received.

Funds are provided in the form of a loan. Term and conditions of each loan are determined on a project-
by project basis.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 In rental properties with 5 or more assisted units, 20% of the households must initially earn less than
    50% of the area median income adjusted for household size, and the remaining households must
    initially earn less than 60% of the area median income adjusted for household size.
 In rental properties with less than 5 assisted units, households initially earning less than 60% of the
    area median income adjusted for household size.
 Assisted homeowners may not have incomes that exceed 80% of the area median income adjusted by
    family size

Additional restrictions may apply depending on the type of activity for which the sponsor is applying.

 Eligible Projects/Programs:
 Emergency shelter
 Transitional housing
 Permanent housing
 Homeownership housing
 Owner-occupied housing rehabilitation
 Support service programs (homelessness prevention, fair housing education)

Eligible Use of Funds and Use Restrictions:
 New construction
 Acquisition


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   Rehabilitation
   Emergency repairs for owner occupied housing
   Operating subsidies for new special needs housing projects
   Homelessness prevention
   Fair Housing education
   State special projects and initiatives

Eligible Applicants/Sponsors:
 Units of local government, including cities, towns and counties;
 Tribal governments, tribally designated housing entities, and housing authorities;
 Public Housing Authorities;
 Regional Councils of Government;
 Other State Agencies;
 Non-Profit Agencies, including Community Housing Development Organizations (CHDOs).

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The maximum amount any applicant, entity or developer may receive during a 12-month period is
$500,000.

Average Awards:
N/A

Matching Requirements:
There are no matching requirements.

Formula:
N/A

APPLICATION PROCESS
The Department of Housing issues a Notice of Funding Availability for the State Housing Fund in July, at
the beginning of each fiscal year. The NOFA establishes application deadlines for each type of housing
activity for the year. For rental housing, applications are generally accepted on a quarterly basis. The
NOFA and application can be downloaded from the Department’s webpage, listed above.

Applications are subject to a threshold review, financial and technical review, and funding committee
review and recommendation. Projects are awarded points based on criteria outlined in the Program
Summary and Application Guide. Projects can earn points for very low income targeting, and for setting
aside units for special needs populations and families with children.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
Arizona Revised Statutes 41-3955 and 44-313.




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REGULATIONS/GUIDELINES
Program Summary and Application Guide:
http://www.housingaz.com/UPLOAD/2004_SHF_Program_Summary.pdf




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                 CALIFORNIA EMERGENCY HOUSING ASSISTANCE PROGRAM
                                      (EHAP)

ADMINISTRATIVE AGENCIES
State/Local:
California Department of Housing and Community Development
 (916) 445-0845 (Operating Grants)
http://www.hcd.ca.gov/ca/ehap/ehap.html

(916) 327-2130 (Capital Grants)
http://www.hcd.ca.gov/ca/ehap/ehapcd.html

TYPE OF ASSISTANCE
The program includes both a formula and a competitive grant component

PROGRAM DESCRIPTION
The EHAP Program funds emergency shelters and transitional housing projects serving homeless
individual and families through (1) deferred loans for capital development; and (2) program operating
grants. Operating grants may be used to fund facility operations and to pay for supportive services.

EHAP funds are divided into two distinct programs: Program Operating Facility Grants (EHAP), which
are formula grants; and EHAP Capital Development (EHAPCD) loans, which are competitive. Counties
receive their allocation of operating grant funds from HCD on an annual basis.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Individuals and families who are homeless or at-risk of homelessness

Eligible Projects/Programs:
 Emergency shelter
 Transitional housing
 “Safe havens” (see SHP for definition)

Permanent housing projects are not eligible for EHAP funding

Eligible Use of Funds and Use Restrictions:

For operating facility grants:
 Facility operations and administration
 Residential rent assistance
 Leasing or renting rooms for provision of temporary shelter
 Capital development activities up to $20,000 per site
 Administration of the award (limited to 5%)
 Support services

For capital development loans:
 New construction


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   Acquisition/rehabilitation
   Major equipment purchase
   Administration of the award (limited to 5%)

Eligible Applicants/Sponsors:
 Non profit organizations
 Local government agencies

GRANT/LOAN TERMS

Minimum/Maximum Awards:
 Operating grants range from $50,000 to $100,000. In counties with allocations of less than $50,000, a
   single grant of less than $50,000 may be awarded.
 The maximum loan amount for capital development is $500,000.

Average Awards:
N/A

Term of Awards:
Operating grants are for one-year terms and may be renewed.

Matching Requirements:
There are no set match requirements, but leveraging of funds is part of the rating and ranking criteria.

Formula:
Operating funds grants are allocated to all counties based on a formula that combines poverty and
unemployment indicators. Twenty percent of the allocation is available to non-urban counties.

APPLICATION PROCESS

Operating Grants (Formula Grants)
Designated local boards (DLBs) issue notice of funds availability (NOFAs), rate and rank applications
and making funding recommendations to the State. . HCD reviews and confirms the recommendations
and issues contracts to the providers. In the counties where no DLB exists, HCD issues a statewide
NOFA, and applications are made directly to HCD.

Capital Grants (Competitive Grants)
HCD issues a NOFA for EHAPCD when funding is available. In counties with a DLB, the board advises
HCD on the relative merits of the applications in their counties. However, HCD rates and ranks each
application competitively.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
Health and Safety Code, Chapter 11.5, commencing with Section 50800, Part 2, Division 31 (1993
Statutes). Amendments contained in SB 1593 (Burton/2000) Chapter 106 (Statutes of 2001).



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REGULATIONS/GUIDELINES
Health and Safety Code, Title 25, Division I, Chapter 7, Subchapter 12, commencing with Section 7950-
7976. http://ccr.oal.ca.gov/




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                         CALIFORNIA MULTIFAMILY HOUSING PROGRAM
                                          (MHP)

ADMINISTRATIVE AGENCIES

State/Local:
Department of Housing and Community Development (HCD), Division of Community Affairs
(916) 327-2886
http://www.hcd.ca.gov/ca/mhp/

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
MHP provides low-interest loans to developers of affordable housing. The program has recently
expanded as a result of the passage of Proposition 46, the $2.1 billion housing bond measure passed by
California voters in 2002. Proposition 46 allocated $800 million to the MHP Program to support
affordable housing development, plus an additional $195 for the development of supportive housing, and
$20 million for the development of support services facilities associated with MHP-funded affordable and
supportive housing projects.

The MHP program defines Supportive Housing as units that are offered as permanent housing and linked
to supportive services, where occupancy is restricted to households that both (1) are homeless or at risk of
homelessness and (2) include a disabled adult. The MHP program also defines “Special Needs
Population Project Units” as units that are restricted to certain special needs groups that may not meet all
of the qualifications required to occupy Supportive Housing Units, but who still need services linked to
their housing (such as disabled households who are not homeless). Sponsors whose projects include
either Supportive Housing or Special Needs Population Project Units must provide HCD with a specific,
feasible plan for delivery and funding of needed services in order to be eligible.

HCD has established separate eligibility criteria and application processes for general MHP funding and
MHP Supportive Housing funding. Details are provided in the Eligibility Information and Application
Process sections.

ELIGIBILITY INFORMATION

Eligible Target Populations:
  The project must serve households whose income does not exceed 60% of AMI, as adjusted by
    household size. Deeper income targeting will secure a competitive advantage in project scoring.
  To be eligible for Supportive Housing units, households must be homeless or at-risk of homelessness,
    and include a disabled adult.
  “Special Needs Populations" means Disabled Households, agricultural workers, single parent
    households, survivors of physical abuse, homeless persons or persons at risk of becoming homeless,
    chronically ill persons including those with HIV and mental illness, displaced teenage parents (or
    expectant teenage parents), homeless youth, as defined in Government Code section 11139.5,
    individuals exiting from institutional settings, chronic substance abusers, or other specific groups with
    unique housing needs as determined by the Department. “Special Needs Populations” do not include
    seniors or the frail elderly unless they otherwise qualify as a Special Needs Population.
Eligible Projects/Programs:

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   The project must involve development and construction of new rental housing; acquisition and
    rehabilitation of rental housing; or conversion of a nonresidential structure to a rental housing
    development.
   The project must contain a minimum of 5 units
   Transitional housing is eligible for general MHP funding, but not for supportive housing funding
   Projects receiving nine percent tax credits are ineligible. HCD will not hold MHP funds pending the
    outcome of a nine percent tax credit application.
   Applicants may request funding for the development of support services space, provided the space is
    for the delivery of services directly related to the housing assisted by the requested MHP funds.

Eligible Use of Funds and Use Restrictions:
 MHP funds are provided as permanent financing only, and may be used to take out construction loans
    used to cover project development (capital) costs
 MHP funds may be used to capitalize a project operating reserve account up to certain limits
 Program funds may not be used for the cost of supportive services, although the costs of on-site
    supportive services coordination may be treated as a project operating cost, payable from operating
    income.
 MHP funds must be attributable to the costs of “restricted” units (MHP units and units subject to a
    long-term regulatory agreement with occupancy and rent restrictions similar to those of MHP) or to
    the costs of facilities used for childcare, after-school care, and social services that are integrally linked
    to the restricted units.

Eligible Applicants/Sponsors:
Sponsors and borrowing entities may be organized on a for-profit or not-for-profit basis. Any individual,
public agency or private entity capable of entering into a contract is eligible to apply, provided that they
or their principals have successfully developed at least one affordable housing project. (Sponsors of
projects where at least 70 percent of the units consist of Special Needs Population units or Supportive
Housing projects are provided with additional flexibility in meeting “experience” criteria.)

GRANT/LOAN TERMS

Minimum/Maximum Awards:
 For general MHP applications, the maximum loan per project is $10,000,000. The maximum loan
   amount per “restricted” unit is a function of unit size, location, and affordability level.
 For Supportive Housing applications, the maximum loan per project is $7,000,000
 Nonresidential Space for Supportive Services funding, can be provided in addition to these limits.

Average Awards:
N/A

Term of Awards:
N/A

Matching Requirements:
There are no matching requirements. However, leveraging of funds is prioritized in project scoring.

Formula:
N/A



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APPLICATION PROCESS
There are separate application processes for general MHP funds and MHP supportive housing funds.
Both are competitive programs, in which applicants respond to a NOFA and are scored on a point system.
However, applications for supportive housing are accepted on a rolling “over the counter” basis, while
applications for regular MHP funds are accepted twice a year (in 2003 the deadlines were January and
August). It is anticipated that HCD will continue to issue MHP NOFAs on a semi-annual basis.

Projects that include at least 35% Supportive Housing units apply for funding under the MHP Supportive
Housing NOFA, even if they also include Special Needs Population Project units or general affordable
MHP units. Projects that contain Special Needs Population Project units but not Supportive Housing
units are required to apply for under the regular MHP NOFA. Sponsors receive a competitive advantage
in application scoring in the general MHP competition for serving special needs populations.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
Housing and Emergency Shelter Trust Fund Act of 2002 (SB 1227); SB 1121 (Alarcon), Statues of 1999;
Health and Safety Code, Chapter 6.7, commencing with Section 50675;

REGULATIONS/GUIDELINES
California Code of Regulations, Title 25, Division 1, Chapter 7, Subchapter 4, commencing with Section
7300. http://ccr.oal.ca.gov/




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                          CALHFA SPECIAL NEEDS FINANCING PROGRAM

ADMINISTRATIVE AGENCIES

State/Local:
California Housing Finance Agency (CalHFA)
(916) 322-3991
http://www.calhfa.ca.gov/

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Special Needs Financing Program offers low interest rate financing for the development of rental
housing to serve a broad range of special needs tenants in need of supportive services. The program is
designed to serve special needs populations by reducing interest rates on multifamily loan products,
including permanent loans, bridge loans and loans to construction lenders. Interest rates are determined
on a individual loan basis depending on the special needs population served.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 All projects must serve a clearly defined special needs population that requires a stable, long-term
    supportive housing environment.
 Special needs populations include tenants with the following characteristics: disabilities, including
    physical, developmental and mental disabilities; chronic health problems including HIV/AIDS;
    individuals or families with substance abuse recovery issues; youth emancipating out of foster care;
    and residents in need of specialized services.
 All special needs units must be reserved for residents at 50% of the AMI or lower.

Eligible Projects/Programs:
 Multifamily permanent housing projects
 40% of the units must serve a clearly defined special needs population that requires a stable, long-
    term supportive housing environment. (Projects that target 100% special needs tenants may receive a
    lower interest rate.)

Eligible Use of Funds and Use Restrictions:
 New construction
 Acquisition/rehabilitation

Eligible Applicants/Sponsors:
 Non-profit organizations
 For profit entities
 Government entities

GRANT/LOAN TERMS

Minimum/Maximum Awards:


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   The program will fund 80% Loan to Value; or 90% of cost, whichever is less
   There is a $300,000 loan minimum. There is no maximum.

Average Awards:
N/A

Term of Awards:
N/A

Matching Requirements:
CalHFA requires the borrower to maximize other available housing financing resources. Local funding is
strongly recommended.

Formula:
N/A

APPLICATION PROCESS
Applicants may contact CalHFA at any time to discuss a prospective project. Funding is open year-round
and is available on a first-come, first-served basis.

To initiate the process, the applicant must submit a pre-application package. Projects that meet CalHFA’s
review criteria will be invited to submit a loan application. Upon receipt of a completed application, the
project will go through CalHFA’s loan review and approval process, which generally takes three to four
months. Final loan commitments are granted by the CalHFA Board of Directors, which meets every other
month.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
None

REGULATIONS/GUIDELINES
None




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                    STATE OF NEVADA LOW INCOME HOUSING TRUST FUND

ADMINISTRATIVE AGENCIES

State/Local:
State of Nevada Department of Business and Industry, Housing Division
Northern Office: (775) 687-4258
Southern Office: (702) 486-7220
http://www.nvhousing.state.nv.us/low_income/liindex.htm

TYPE OF ASSISTANCE
Formula

PROGRAM DESCRIPTION
The Low Income Housing Trust is a state-funded program for affordable housing. The trust is funded
through a real estate transfer tax (10 cents on every $500 of value). These funds are used by the state as a
match for federal HOME dollars, which are also administered through the Housing Trust. Participating
Jurisdictions (PJs) throughout Nevada also receive their own allocations of HOME funds, which are
administered locally (see HOME section for details).

The purpose of the Trust is to expand and improve the supply of rental housing in the state of Nevada
through new construction and rehabilitation of multifamily housing projects. In FY2003 the Housing
Trust will award approximately $5.5 million in grants.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Households assisted must be at or below 60% of median income.

Eligible Projects/Programs:
 Transitional housing
 Permanent supportive housing
 Affordable rental housing
 Owner-occupied housing
 Emergency services and homelessness prevention programs

Eligible Use of Funds and Use Restrictions:
 New construction
 Acquisition
 Rehabilitation
 Tenant-based rental assistance (see HOME)
 Emergency assistance/homelessness prevention activities
 Technical assistance

Eligible Applicants/Sponsors:
Four PJs are eligible to receive an allocation of State Trust Fund dollars: Clark County (Las Vegas),
Washoe County (City of Reno), the Western Nevada Development District, and Henderson. The state
also receives an allocation, which is used to fund projects in rural areas and can also be used at the


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administrator’s discretion. Fifteen percent of the trust funds are set aside for emergency assistance and
homeless prevention activities (emergency rent payments, deposits, etc.) and are allocated to nonprofit
organizations statewide.

The PJs are required to expend the funds in sub-grants to
 Non profit organizations
 Local government entities
 Non profit organizations partnering with a for-profit developer

GRANT/LOAN TERMS

Minimum/Maximum Awards:
N/A

Average Awards:
Between1991 and 2002, the program made 48 awards to new construction multifamily housing projects,
with an average grant amount of $225,000. It made 33 awards to rehabilitate multifamily housing
projects, with an average grant amount of $114,000.

Term of Awards:
Awards for homelessness prevention are for one-year and may be renewed.

Matching Requirements:
There are no set matching requirements.

Formula:
The Housing Trust Funds are allocated to four PJs using a formula based on the most recent state estimate
of the population in that area.

APPLICATION PROCESS
Potential applicants should contact the Participating Jurisdiction that oversees the area in which the
project is located to inquire about the application process. PJs receive their allocation of Housing Trust
Funds annually. The PJs typically administer their Housing Trust funds in conjunction with their HOME
Program. The PJs issue a NOFA annually and award sub-grants on a competitive basis. Contact
information for each PJ can be found on the Housing Division webpage, listed above.

CFDA CODE
N/A

AUTHORIZING LEGISLATION/STATUTE
1991 SB 417

REGULATIONS/GUIDELINES
Nevada Revised Statues, Chapter 319; Nevada Administrative Code, Chapter 319, Sections 512-594
Administrative Guidelines for the Housing Trust Fund:
http://www.nvhousing.state.nv.us/low_income/TRUST%20FUND%20ADMINISTRATIVE%20GUIDE
LINES.pdf



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IV. OPERATING SOURCES INTRODUCTION

    A. Definition of Operating Sources

    “Operating sources,” as defined in this guide are those sources that may be used to pay for the costs
    of operating and/or maintaining the housing or physical component of supportive housing. Operating
    costs in a project owned by a housing sponsor include all costs of maintaining the project once it is
    ready for occupancy, such as property management, utilities, maintenance, insurance, security, debt
    service or other loan payments, and operating and replacement reserves. In projects leased by the
    sponsor (either single site or scattered site), operating costs generally include the cost of leasing the
    units and any maintenance that is not covered by the owner/landlord.

    In market-rate housing, the rents collected from tenants generally are sufficient to cover not only all
    operating costs, but also provide a revenue stream that the owner/developer takes as profit. In
    affordable housing, and particularly supportive housing, the rents collected from tenants are generally
    not sufficient to cover operating costs because the rent charged to tenants are kept at below-market
    rates in order to be affordable to households with low-, very-low or extremely-low incomes. In high
    cost areas, even when a building is owned free and clear (without debt), tenant rents are not sufficient
    to cover operating costs. In order to make a project "pencil out" (have income equal expenses) a
    project sponsor needs to receive an ongoing source of funding to supplement tenant rents. Such
    funding streams are known as operating subsidies, rent subsidies, or rental assistance.

    Operating subsidies supplement the difference between what the tenant can afford to pay and the rent
    the sponsor could charge under market-rate conditions. To determine the level of subsidy to be
    provided, operating or rental subsidy programs specify the percentage of a tenant's income that can be
    used to pay rent, sometimes called the tenant portion, and determine what the market would bear for a
    particular size of rental unit in a particular locality, sometimes called the fair market rent.

    Operating subsidies generally take three forms:
    1. project-based;
    2. tenant-based; and,
    3. sponsor-based.

    Project-based subsidies are those that are "attached" to particular housing units. The project sponsor
    receives an amount of funds for each subsidized unit that is equal to the difference between the tenant
    portion and the fair market rent. Project-based subsidies are generally not moveable – when a tenant
    moves the subsidy remains with the unit. Project-based subsidies generally tend to be used for single
    site projects, with the subsidy attaching to some or all of the units in a building.

    Tenant-based subsidies attach to an individual or family. With this type of subsidy, the tenant
    receives the entitlement to a housing subsidy (sometimes called a voucher) that allows him or her to
    rent a unit in the private market from either for-profit or non-profit owners. Like in the project-based
    type of subsidy, the tenant is responsible for the tenant portion and the owner of the property is
    subsidized for the difference between the tenant portion and the fair market rent. Unlike most project-
    based subsidies, however, tenant-based subsidies remain with the tenant when and if he or she
    chooses to move. When a tenant leaves a unit, the rental subsidy is provided to the landlord of the
    unit he or she subsequently leases. Tenant-based vouchers are most often used in programs in which
    housing is secured though scattered site leasing.



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    A third type of operating subsidy is sponsor-based. In these types of projects, the subsidy attaches to
    a specific housing sponsor, typically a non-profit housing developer or supportive housing provider.
    The sponsor may use the subsidy to subsidize any unit that the sponsor controls, either through
    ownership or leasing. As with the other forms of subsidy, the sponsor receives an amount of funds
    for each subsidized unit that is equal to the difference between the tenant portion and the fair market
    rent. When the tenant in a sponsor-based unit moves, he or she does not retain the subsidy – it
    remains with the sponsor. Sponsor-based subsidies are moveable in the sense that the sponsor may
    choose to move the subsidy from one unit to another.

    The most well-known and widely available source of operating subsidy is HUD’s Housing Choice
    Voucher Program, commonly known as the Section 8 Program. Under this Program, tenants pay 30%
    of their adjusted income for rent and utilities, while HUD pays the difference between the tenant’s
    portion and a HUD-determined Fair Market Rent (FMR), which is based on actual market rents for
    the metropolitan area in which the project is located. The Section 8 Program provides both project-
    based and tenant-based subsidies, described in greater detail in the Section 8 section. (Most other
    operating subsidy programs are based on adaptations of the Section 8 Program model.)

    HUD has also established other operating subsidy programs modeled on the Section 8 program,
    including the Section 8 Moderate Rehabilitation SRO Program and the Shelter Plus Care Program
    (the only program that offers sponsor-based subsidies). Some development sources can also be used
    for operating subsidies, including the SHP Program, Section 202 and Section 811. In addition, some
    state government funders have created operating subsidy programs, such as California’s Supportive
    Housing Initiative Act Program. The Arizona's State Housing Fund and the State of Nevada's Low
    Income Housing Trust Fund can in some cases be used for operating subsidies. Lastly, in some
    limited cases, private funders and foundations have established rent subsidy programs.

    B. How Operating Sources Flow

    Section 8 operating subsidies typically flow from HUD to Local Housing Agencies (LHAs), also
    known as Housing Authorities, and from there to individual tenants, projects or sponsors. The way
    the funds are allocated by the LHA differs significantly depending on the types of subsidy (tenant-,
    project- or sponsor-based) and the funding program.

    Tenant-based subsidies flow from the Housing Authority to an individual tenant. While the LHA
    actually pays the subsidy to the landlord directly, the voucher, which represents the LHA’s
    commitment to provide a subsidy, belongs to the tenant.

    In the Section 8 Program and most programs modeled after Section 8, individuals who wish to receive
    a tenant-based subsidy must place their name on a waiting list and wait for an extended period of time
    before receiving a voucher. Because the eligibility criteria for Section 8 are relatively broad (any
    family with children, senior or disabled person earning at or below 50% of median income is eligible)
    and funding for new vouchers very limited, waiting lists tend to be very long – it is not uncommon for
    applicants to wait five years or more for assistance – and are often closed for extended periods of
    time. HUD imposes very strict rules on LHAs about managing the waiting list. It must be
    maintained in a strict order. When a voucher is available it must go the person at the top of the list, if
    they are eligible. Housing authorities have the ability to establish waiting list “preferences” for
    particular groups, giving them priority on the list. Some housing authorities have established such
    preferences for homeless persons. Preferences for specific types of disabilities, however, are
    prohibited. It should be noted that there is one significant tenant-based operating source, the Shelter
    Plus Care Program (S+C) that does not require that tenants be selected from the Housing Authority’s


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    regular waiting list and allows Housing Authorities much greater flexibility in allocating vouchers
    than in the Section 8 Program.

    Project-based subsidies flow from LHAs to the owner/sponsor of individual projects. In Section 8
    programs, project sponsors/owners apply for rental subsidies directly from the Housing Authority.
    Each Housing Authority establishes its own process and criteria for awarding project-based vouchers
    to eligible projects, within specific federal regulations and guidelines. The LHA executes a contract
    with the sponsor/owner to provide subsidies for a given period of time, for as long as 10 years,
    subject to the availability of funding. It should be noted that with Section 8 project subsidies, while
    the subsidy attaches to particular units, the tenants who occupy those units must come from the LHAs
    waiting list. This imposes some significant restrictions on the sponsor, as it limits the pool of
    potential tenants and requires tenants be taken in the order they appear on the LHAs list. However,
    there are ways that sponsors and LHAs can work together to create a preference system to help the
    sponsor obtain tenants who need the supportive services the provider is offering. The S+C program
    is a significant exception – it does not require that tenants be on the Section 8 waiting list.

    The only funding program currently offering sponsor-based subsides is the S+C program. Under this
    program, LHAs apply to HUD in partnership with non-profit sponsor/owners who request funding for
    specific numbers of units. The sponsor receives an initial contract from the LHA for a five-year
    term. As with the other forms of S+C subsidy, tenants for the units receiving tenant-based subsidies
    do not have to come from the Section 8 list, so sponsors have a great deal of flexibility in tenant
    selection.

    Generally speaking, only Housing Authorities are eligible to apply to HUD for most types of housing
    subsidies. However, as described above, non-profit sponsors/owners are eligible sub-grantees for
    project-based and sponsor-based subsidies. While supportive housing providers generally cannot be
    sub-recipients of tenant-based subsidies, there are ways they can access tenant-based subsidies on
    behalf of their clients. These opportunities generally come from Section 8 set aside programs such as
    the Mainstream Program Vouchers for People with Disabilities (see program summary). Under these
    programs, HUD awards LHAs special allocations of Section 8 tenant-based vouchers for special
    needs populations through a competitive application process. These programs are highly competitive
    and strongly encourage the housing authority to partner with non-profit social service providers to
    deliver services to the households receiving the vouchers. Supportive housing sponsors who are
    interested in developing tenant-based leasing programs can approach their local housing authority
    about applying in partnership for the funding, and non-profits serving people with disabilities and
    who meet specified capacity criteria are eligible to apply directly for Mainstream Program Vouchers.

    In addition to the Mainstream Program, HUD has over the past several years offered vouchers under a
    number of different programs targeting different special needs populations: the Family Unification
    Program (FUP) for families reuniting with children in foster care and for youths aging out of foster
    care; the Welfare to Work (WtW) Voucher program for homeless and at-risk families receiving
    TANF benefits; the Certain Developments program for persons with disabilities, and the HUD-VASH
    program for homeless and at-risk veterans. While these programs continue to serve existing tenants,
    no new subsidies were available at the time of this guide’s preparation. Depending on the availability
    of funding for the Section 8 Program, however, HUD may elect to issue new vouchers under these or
    other programs in the future. Supportive housing sponsors who are interested in developing tenant-
    based leasing programs should monitor the HUD webpage
    (http://www.hud.gov/offices/adm/grants/fundsavail.cfm#grants) to stay abreast of these funding
    opportunities.



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    Three other significant sources of HUD operating subsidies, Shelter Plus Care, Section 8 Moderate
    Rehabilitation SRO and the Supportive Housing Program are available through the Continuum of
    Care process described in detail in the Introduction to this guide. Section 202 and 811 operating
    subsidies, described within the Development Section of this guide, are accessed through a competitive
    application process. California also administers competitive grant programs that can provide
    operating subsidies, including the SHIA AB2034 programs, described in the Services Section of this
    guide, and the Emergency Housing and Assistance Program (EHAP), described in the Development
    Section of this guide.

    C. Operating Funding Program Summaries

    The following Federal sources are summarized in this section:
           Housing Choice Voucher Program (Section 8)
           Mainstream Housing Opportunities for People with Disabilities (Mainstream Program)
           Section 8 Moderate Rehabilitation SRO Program (SRO)
           Shelter Plus Care (S+C)

    The following sources may also be used for operating subsidies, but are grouped under the
    Development Section:
           Supportive Housing for the Elderly (Section 202)
           Supportive Housing for Persons with Disabilities (Section 811)
           Supportive Housing Program (SHP)
           VA Homeless Providers and Per Diem Program
           Arizona State Housing Fund
           California Emergency Housing Assistance Program (EHAP)
           Nevada Low Income Housing Trust Fund

    The following sources may also be used for operating subsidies, but are grouped under the Services
    Section:
           Ryan White CARE Act Programs: Titles I & II
           Transitional Living Program for Older Homeless Youth (TLP)
           California Statewide Supportive Housing Initiative Act (SHIA)
           California Integrated Services for Homeless Adults with Serious Mental Illness (AB2034)




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                    OPERATING SOURCES PROGRAM SUMMARIES - FEDERAL

                                HOUSING CHOICE VOUCHER PROGRAM
                                           (SECTION 8)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Public and Indian Housing
(202) 708-0950
http://www.hud.gov/progdesc/voucher.cfm
http://www.hud.gov/offices/pih/programs/hcv/about/fact_sheet.cfm
http://www.hud.gov/offices/pih/programs/hcv/project.cfm

TYPE OF ASSISTANCE
Formula Awards to Local Housing Authorities

PROGRAM DESCRIPTION
Established in 1974, the Section 8 Program is the single largest source of rental assistance in the country.
The program is designed to bridge the gap between the cost of operating and maintaining housing units
and what low-income individuals and families can afford to pay in rent. The Section 8 Program is
administered at the local level by Local Housing Agencies (LHAs), also known as Housing Authorities,
who receive Section 8 funding through an Annual Contributions Contract.

Background
The original Section 8 program of the 1970s included two components: (1) tenant-based assistance, which
provided a rental subsidy to families renting units in the private market, and (2) project-based assistance,
which provided operating subsides to new construction and rehabilitation projects in which the units were
rented to Section 8-eligible tenants. In 1981, HUD ceased providing funding for new project-based
Section 8 units, but continued to expand the tenant-based program. Eventually, the tenant-based program
was divided into certificates and vouchers, each with different rental payment formulas.

In the mid-1980s, in response to rising rents and problems with the utilization of tenant-based vouchers,
Congress authorized Housing Authorities to use up to 15% of their tenant-based voucher allocations for
project-based assistance – essentially attaching tenant-based certificates to groupings of specific dwelling
units. It was hoped that by offering long-term commitments of operating subsidies that Housing
Authorities would garner greater participation in the program by landlords. This project-based option
proved very difficult to implement, however, due to extremely rigid regulations, and by the early 1990s
very few Housing Authorities were employing the project-basing option.

In 1999, Congress passed the Quality Housing and Work Responsibility Act (QHWRA), which merged
the Section 8 voucher and certificate programs into the Housing Choice Voucher program, effectively
converting all Section 8 certificates into vouchers. In 2001, the HUD/VA Appropriations Bill established
new regulations governing the conversion of tenant-based vouchers into project-based Section 8
assistance. This new legislation gives Housing Authorities the authority to use up to 20% of their tenant-
based vouchers for project-based assistance. However, the new regulations grant Housing Authorities
greater flexibility in how the project-based assistance is used than in the previous project-basing
regulations, and represent a promising potential source of funding for supportive housing.

Section 8 Today

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Today, nearly every Housing Authority in the United States operates a Section 8 voucher program. Some
have elected to implement the project-basing option, while others use their allocation of vouchers
exclusively for tenant-based assistance.

In FY2003, Congress appropriated nearly $13 billion dollars for the Section 8 program. While this is a
huge amount compared to many other housing programs, it is critical to note that the vast majority of this
funding is used by LHAs to continue providing assistance to the 1.9 million households who are currently
living in units subsidized through tenant-based or project-based Section 8 vouchers. Congressional
appropriations for Section 8 funding have been relatively static for the past 10-15 years, offering Housing
Authorities few opportunities to expand their supply of vouchers (the one exception is Section 8 set-
asides for special needs populations, which are discussed in the introduction to this section).

Because nearly all Section 8 funds are dedicated to subsidies for existing Section 8 tenants, individuals
and families experience very long waits for assistance. The only way vouchers become available is
through households leaving the program (usually either because their income rises to the point they are no
longer eligible, or they violate program rules and their assistance is terminated). Section 8 “portability,”
which means that tenants can move with their voucher to any State in the country, offers great flexibility
to tenants but it further limits turnover, as tenants rarely give up their Section 8 subsidy when they move.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 Very low income households (those earning below 50% of AMI). Low-income households are
    eligible on an exception basis.
 An eligible household must be either: a family with children or a single person who is over age
    62and/or has a disability. Households who have been displaced by government action are also
    eligible.
 At least 75% of families admitted to the Section 8 program during the LHA fiscal year must be
    extremely low income (earning 30% of AMI or less). This requirement is managed by the Housing
    Authority across all of its Section 8 activities and does not apply on a project-by-project basis. It
    should be noted that this requirement applies only to households newly admitted to the program, not
    to existing recipients of assistance.

Eligible Projects/Programs:

Tenant-Based
Individuals and families who hold tenant-based vouchers rent housing units in the private market.
 Units must meet HUD’s Housing Quality Standards (HQS) to ensure they are safe and habitable, and
    the LHA will inspect each unit to ensure these standards are met.
 The rent for the unit must fall within HUD’s Fair Market Rent, which is based upon a survey of
    existing market rents in the metropolitan area in which the unit is located.

Project-Based
Under the project-basing option, an LHA may allocate up to 20% of its tenant-based vouchers to specific
housing projects. Projects must meet the following criteria:
 Project-based vouchers may be used to subsidize either existing units or newly constructed or
    rehabilitated units. Units are considered “existing” if they require less than $1,000 of rehabilitation
    work or none at all. Project-basing of vouchers in newly constructed or rehabilitated units imposes
    some additional requirements on Housing Authorities, including a requirement to select the units



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    competitively and obtain HUD approval of the selection criteria, and the use of HUD site and
    neighborhood standards.
   No more than 25% of the units in a building may receive project-based assistance, unless the
    assisted units are made available to elderly or disabled households or households receiving supportive
    services. (While HUD has never specifically defined “receiving supportive services,” it has approved
    100% of units in supportive housing settings in some cases.)
   In order to meet HUD requirements for deconcentrating poverty, project-based units must
    be located in census tracts with a poverty rate of less than 20%. HUD staff is currently approving
    waivers for projects located in a HUD defined Empowerment or Enterprise Zone. For projects
    outside of these zones, the PHA must demonstrate that community and economic revitalization efforts
    are underway that are similar to those undertaken in HUD Empowerment or Enterprise Zones. PHAs
    have had real difficulty providing this type of documentation.

Eligible Use of Funds/Activities/Types of Assistance:
The only eligible use of Section 8 funds is for rental assistance, either tenant-based or project-based.

Eligible Applicants/Sponsors:
Generally speaking, only LHAs are eligible to receive a Federal allocation of Section 8 funding. Under
very limited circumstances, other government entities or non-profit organizations may operate Section 8
programs (see Mainstream Program summary). LHAs are required to operate a tenant-based voucher
program, providing subsidies for the rents of individuals and families. LHAs have the option of sub-
granting the funds to housing sponsor/owners through the project-basing option.

Eligible Sub-Grantees for Tenant-Based Vouchers
In order to obtain a tenant-based voucher, a family or individual must put their name on the Section 8
waiting list. As discussed in greater detail in the Introduction to this section, Section 8 waiting lists tend
to be very long, and often are closed for extended periods of time. HUD imposes strict regulations on
LHAs regarding waiting list management, but LHAs have some flexibility to prioritize households on the
list to reflect locally-determined priorities by establishing “preferences” for certain groups. Many LHAs
establish preferences for veterans, and some have preferences for homeless people. Disability-specific
preferences are not allowed under HUD regulations.

Eligible Sub-Grantees for Project-Based Vouchers
LHAs may sub-grant an allocation of project-based vouchers to non-profit owner/sponsors. The LHA has
the flexibility to set criteria regarding the types of sponsors and/or projects that may receive project-based
vouchers.

A critical item to note in regards to project-based Section 8 is that sponsor/owners whose projects receive
such subsidies do not have carte blanche in tenant selection. Households must come from the Housing
Authority’s tenant-based Section 8 waiting list. Please see the introduction to this section for further
discussion of this issue.

Households occupying a project-based Section 8 unit have the right to obtain a tenant-based voucher from
the Housing Authority when they move from a project-based unit after one year of tenancy. If no voucher
is available, they must receive priority for the next available voucher.

GRANT/LOAN TERMS

Maximum/Minimum Awards:
N/A


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Average Awards:
N/A

Term of Awards:
 The term of HUD’s Annual Contributions Contract with each LHA is one-year. These contracts are
   renewable.
 For individual and families receiving tenant-based assistance, the Housing Authority enters into a
   contract with the landlord for a one-year period. These contracts are renewable.
 Under the project-based option, the Housing Authority is authorized by HUD to enter into contracts
   with owner/sponsors for any time period up to 10 years. However, since HUD only commits funding
   to the LHA on an annual basis, project-based Section 8 contracts contain the provision that assistance
   for the full 10-year period is contingent upon HUD funding. Owners who enter into Project-Based
   Assistance (PBA) contracts run the risk that Congress could decide not to renew funding for the
   Section 8 program, thereby rendering their 10-year commitment from the LHA meaningless. This is a
   relatively low risk proposition, however, since Congress has never once in over 30 years failed to
   renew Section 8 vouchers for tenants already receiving assistance.

Matching Requirements:
There are no matching requirements

Formula:
The number of vouchers available through a given Housing Authority is not based on any set formula –
instead, it is simply the aggregate result of how many vouchers a Housing Authority has requested from
HUD since the Section 8 program began in 1974. During the 1970s and 1980s HUD offered Housing
Authorities the opportunity to apply both to renew their existing Section 8 vouchers and also to obtain
new “increments” of vouchers. Some Housing Authorities were more proactive in requesting new
increments, while others requested few or none at all. During the past ten years, there have been fewer
opportunities for Housing Authorities to obtain new increments, as Congress has limited HUD to
renewing existing vouchers. Generally speaking, Housing Authorities in large urban areas will have more
vouchers than those in suburban, affluent areas, but the number of vouchers available depends to some
degree on the housing authority’s aggressiveness in applying for vouchers in past years.

APPLICATION PROCESS
LHAs receive their allocation of Section 8 vouchers from HUD on an annual basis, through the execution
of an Annual Contributions Contract (A.C.C.). The Housing Authority must submit, and HUD must
approve, a Housing Authority Plan, in order to receive the funds.

Tenant-Based Assistance
As discussed above, individual and families apply for tenant-based assistance by placing their name on
the Section 8 waiting list. Once they come to the top of the list, they will be interviewed by the LHA. If
the LHA determines the family is eligible for the program, it will issue a voucher and the family can lease
a rental unit. Subject to their terms and conditions of their leases and any applicable regulatory
requirements, families may move from one unit to another and maintain their assistance, even if they
move outside the LHA’s jurisdiction (Section 8 vouchers are “portable” anywhere in the United States).

Project-Based Assistance
Housing Authorities who elect to use the project-basing option establish their own process and criteria for
applications, within HUD guidelines. Supportive housing project sponsors should approach their local
Housing Authority to inquire about their process for awarding project-based assistance.


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As noted above, Housing Authorities are not required to use the project-basing option, and many have
chosen to use their allocation of vouchers exclusively for tenant-based assistance. Some Housing
Authorities, due to previous negative experiences with the earlier incarnation of project based Section 8
(which was highly burdensome to administer), may be reluctant to consider entering into a PBA contract.
If an LHA does not offer project-based vouchers, supportive housing developers and operators may wish
to engage in education and advocacy with the Housing Authority executive staff about the new flexibility
allowed by HUD in administering a PBA program, and about the critical need for affordable housing
combined with services and the need for operating subsidies to make those units affordable to those with
the lowest incomes. Sponsors can also make the case that supportive housing is often most cost effective
in project settings rather than in scattered sites.

As discussed above, owners/sponsors of projects with project-based Section 8 subsidies must take tenants
from the Section 8 waiting list. It should also be noted that households occupying a project-based Section
8 unit have the right to obtain a tenant-based voucher from the Housing Authority when they move from a
project-based unit after one year of tenancy. If no voucher is available, they must receive priority for the
next available voucher.

CFDA CODE
14.871

AUTHORIZING LEGISLATION/STATUTE
Housing Act of 1937, Section 8(o), as amended, 42 U.S.C. 1437(o); Department of Housing and Urban
Development Act, Section 7(d), 42 U.S.C. 3535(d); Housing and Urban-Rural Recovery Act of 1983,
Public Law 98-181; Housing and Community Development Act of 1987, Part 3, Public Law 100-242;
National Affordable Housing Act of 1990, Public Law 101-625; Housing and Community Development
Act of 1992, Public Law 102-550; Housing Opportunity Program Extension Act of 1996, Public Law
104-120; Departments of Veterans Affairs, Housing and Urban Development, and Independent Agencies
Appropriations Act of 1998, Public Law 105-65; Quality Housing and Work Responsibility Act of 1998,
Public Law 105-276; Preserving Affordable Housing for Senior Citizens and Families into the 21st
Century Act of 1999, Public Law 106-74; Departments of Veterans Affairs, Housing and Urban
Development, and Independent Agencies Appropriations Act of 2000.

REGULATIONS/GUIDELINES
24 CFR Part 982
http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr982_00.html

ADDITIONAL RESOURCES
The Section 8 Housing Choice Voucher Project Based Assistance Program: A Primer:
http://intranet.csh.org/docs/Section-8-PBA-Primer.doc
Section 8 Made Simple: http://www.tacinc.org/CMS/




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      MAINSTREAM HOUSING OPPORTUNITIES FOR PERSONS WITH DISABILITIES
                         (MAINSTREAM PROGRAM)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Public and Indian Housing
(202) 708-1872, ext. 4064
http://www.hud.gov/offices/pih/divisions/ffmd/faq/hcv_mainstream.cfm

TYPE OF ASSISTANCE
Competitive

PROGRAM DESCRIPTION
The Mainstream Program provides special-purpose vouchers within the Section 8 program. The purpose
of the program is to enable persons with disabilities to access affordable housing of their choice in the
private rental market. The program provides tenant-based rental assistance and seeks to ensure that
support services are provided to help participants secure and maintain housing.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 Very low-income persons with disabilities
 Vouchers must be provided to eligible households selected from the Housing Authority’s Section 8
    waiting list
 No preference system may be established favoring any specific type of disability over another, but
    Housing Authorities may be able to establish local preferences based on other criteria to prioritize
    those households eligible for assistance.

Eligible Projects/Programs:
 Applicants may receive a maximum of 75 vouchers
 Applicants receive a competitive advantage for entering into agreements with non-profit
    organizations to provide participating households with assistance with moving costs, security
    deposits, utility deposits, medical care, transportation, educational opportunities, employment and
    childcare. Applicants also receive an advantage for promoting the participation of grassroots and
    other community-based organizations in the implementation of the program.

Eligible Use of Funds/Activities/Types of Assistance:
The only eligible use of funds under this program is tenant-based rental assistance. No funding is
provided for the provision of supportive services. HUD staff is currently approving waivers for projects
located in a HUD defined Empowerment or Enterprise Zone. For projects outside of these zones, the
PHA must demonstrate that community and economic revitalization efforts are underway that are similar
to those undertaken in HUD Empowerment or Enterprise Zones. PHAs have had real difficulty providing
this type of documentation.

Eligible Applicants/Sponsors:
 Housing Authorities. Those who have leased 97% of their Section 8 vouchers or who are expending
    at least 97% of their Section 8 funding allocation receive a competitive advantage.


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   Non-profit organizations providing services to disabled persons. Non-profits must meet fairly
    stringent capacity requirements and must also comply with the requirement that vouchers be issued to
    eligible individuals with any type of disability, not to just a sub-population of disabled persons (such
    as persons with severe mental illness).
   The point scoring system used for rating the proposals includes as a rating factor the number of
    disabled persons at or below poverty level, as calculated by HUD using Census data. Consequently,
    applicants from more urbanized areas with concentrations of poverty receive higher scores.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
Grantees may receive a maximum of 75 vouchers

Average Awards:
N/A

Term of Awards:
Grantees receive vouchers for a five-term. After five years the vouchers may be renewed on an annual
basis, subject to availability of funding.

Matching Requirements:
There are no matching requirements

Formula:
N/A

APPLICATION PROCESS
HUD issues a NOFA for the Mainstream Program on an annual basis as part of the SuperNOFA. While
non-profit supportive housing sponsors may be eligible applicants, many will have difficulty meeting the
capacity requirements for this program as an applicant. However, since the program encourages Housing
Authorities to partner with non-profit service providers to deliver services to the tenants, it represents an
opportunity for supportive housing program sponsors. Organizations that work with people with
disabilities and that are interested in developing programs in which people with disabilities lease
scattered-site units in the private market can approach their local Housing Authority about applying in
partnership for the funds.

CFDA CODE
14.871

AUTHORIZING LEGISLATION/STATUTE
Housing Act of 1937, Section 8(o), as amended, 42 U.S.C. 1437(o); Department of Housing and Urban
Development Act, Section 7(d), 42 U.S.C. 3535(d); Housing and Urban-Rural Recovery Act of 1983,
Public Law 98-181; Housing and Community Development Act of 1987, Part 3, Public Law 100-242;
National Affordable Housing Act of 1990, Public Law 101-625; Housing and Community Development
Act of 1992, Public Law 102-550; Housing Opportunity Program Extension Act of 1996, Public Law
104-120; Departments of Veterans Affairs, Housing and Urban Development, and Independent Agencies
Appropriations Act of 1998, Public Law 105-65; Quality Housing and Work Responsibility Act of 1998,
Public Law 105-276; Preserving Affordable Housing for Senior Citizens and Families into the 21st



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Century Act of 1999, Public Law 106-74; Departments of Veterans Affairs, Housing and Urban
Development, and Independent Agencies Appropriations Act of 2000.

REGULATIONS/GUIDELINES
24 CFR Part 982
http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr982_00.html

ADDITIONAL RESOURCES
2003 Mainstream Program NOFA:
http://www.hud.gov/library/bookshelf18/supernofa/nofa03/sec8.pdf




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      SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY (SRO)
                                PROGRAM

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office of Special Needs Assistance Program (SNAPS)
 (202) 708-4300
http://www.hud.gov/offices/cpd/homeless/programs/sro/index.cfm

State/Local:
For local Continuum of Care contact information, go to:
http://www.hud.gov/offices/cpd/homeless/programs/cont/coc/index.cfm

TYPE OF ASSISTANCE
This is a competitive grant program that functions within a formula allocation.

PROGRAM DESCRIPTION
The Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program is one of three sources
collectively known as Continuum of Care funding (the other two are the Shelter Plus Care and Supportive
Housing Programs). These programs are also often referred to as HUD McKinney funding or Targeted
Homeless Assistance Programs.

The Section 8 Moderate Rehabilitation SRO Program is designed to provide rental assistance to homeless
persons living in single room occupancy (SRO) housing that has undergone moderate rehabilitation of at
least $3,000 per unit. An SRO unit is a one-room unit intended for occupancy by a single individual. It is
distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and
bathroom. An SRO unit is not required to have either one, although many may have one or the other.

HUD awards funding to Local Housing Authorities (LHAs), who enter into contracts with the owners of
SRO properties. The owner rehabilitates the units, and Housing Authority makes Section 8 rental
assistance payments on behalf of homeless individuals who rent the rehabilitated dwellings. The rental
assistance payments cover the difference between the tenant’s share of the rent (30% of their income) and
the Fair Market Rent for the unit as established by HUD. The rental assistance also pays for any debt
service for any funds borrowed by the owner to rehabilitate the units.

ELIGIBILITY INFORMATION

Eligible Target Populations:
Only homeless persons may receive assistance in Section 8 Moderate Rehabilitation SRO projects. The
definition of homelessness that applies to this funding source may be found here:
http://www.hud.gov/offices/cpd/homeless/library/sro/understandingsro/eligibleparticipants.cfm

Eligible Projects/Programs:
 The structure may be of any type, but when rehabilitation is completed, the unit must meet the
    definition of SRO housing. SRO housing is defined as a residential property that includes multiple
    single room dwelling units. Each unit is for occupancy by a single eligible individual. The unit need
    not, but may, contain food preparation or sanitary facilities, or both.

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   Studios (efficiency units) are also eligible unit types, but the owner does not receive any additional
    rent than if the units were SROs. In other words, HUD will still base the amount of the rental subsidy
    on the fair market rent for an SRO unit, which is only 75% of the fair market rent for a studio unit.
    One-bedroom units are not eligible for assistance.
   Each assisted unit in the structure must require a minimum of $3,000 of rehabilitation, including its
    prorated share of work to be accomplished on common areas or systems, to meet HUD’s Housing
    Quality Standards (HQS). The maximum cost of rehabilitation is $19,000 per unit.
   At least 25% of the units must be vacant at the time of application so that a significant number of the
    units are immediately available for homeless individuals. This requirement presents a significant
    barrier for many supportive housing sponsors, as it is difficult to locate existing SRO buildings that
    have such high vacancy rates.
   No project may contain more than 100 assisted units.

Eligible Use of Funds/Activities/Types of Assistance:
The only eligible use of funds under this program is for rental assistance. Sponsor/owners must secure
funding to cover rehabilitation costs from other sources. However, owners receive an additional amount
of rental assistance to cover the any debt service associated with the rehabilitation.

Eligible Applicants/Sponsors:
Only a locally constituted Continuum of Care may apply to HUD for CoC funding, which includes
requests for SRO, S+C and SHP funds. (Technically, HUD does allow an individual organization to
submit a “solo” application for SHP funding, but such proposals, since they are not submitted as part of
an overall Continuum of Care plan, will rarely, if ever, receive funding.) Please see the general
introduction for further information about CoC plans and CoC funding.
Applicants eligible to request SRO funds through the local CoC process and receive an award from HUD
include:
 Housing Authorities.
 Non-profit organizations, which must contract with the local Housing Authority for administration of
    the SRO rental assistance.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The grant amount is based on the number of units in the project and the HUD determined Fair Market
Rent for SRO units, which is 75% of HUD Fair Market Rent for a studio unit. Owners receive an
additional increment of rental assistance above the Fair Market Rent to cover the costs of debt service for
eligible rehabilitation costs.

Average Awards:
N/A

Term of Awards:
The contract between the LHA and the owner allows one year for completion of the rehabilitation and
provides 10 years of rental assistance. The contracts are renewable at the end of the 11-year term.

Matching Requirements:
 There are no set matching requirements for individual SRO projects, but the sponsor must secure
   funding for the rehabilitation from sources other than the SRO Program.




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   Use of leveraged resources is among the criteria used to score the overall CoC plan. CoCs are
    strongly encouraged to seek out mainstream resources to support activities within their housing and
    service system.

Formula:
HUD allocates for each CoC a certain “pro rata need” funding amount. The pro rata need is calculated
based on a formula that uses the same indices of need as are used in the CDBG program (including such
factors as poverty and poor housing conditions). The pro rata need is adjusted to help communities meet
the burden of renewing existing SHP and SRO grants. In past years, HUD has also incentivized the
creation of permanent supportive housing by giving an additional pro rata need adjustment to
communities who place a new permanent housing project first on their ranked list of projects.

APPLICATION PROCESS
While SRO grantees ultimately receive their awards directly from HUD, they must apply for funding
through their local Continuum of Care process. Each year, as part of the SuperNOFA, HUD issues a
NOFA announcing the availability of Continuum of Care funding. CoCs are required to conduct a
community-based planning process to determine goals and strategies for addressing homelessness and
priorities for funding for the coming year. The CoC also is required to conduct a broadly publicized
application process whereby individual project sponsors submit proposals to the CoC, which rates and
ranks all applications received. The CoC then submits its CoC Plan along with a ranked set of funding
applications to HUD. HUD awards funding to projects in the order they have been ranked by the CoC, up
to the community’s adjusted pro rata need amount.

 CoCs have the option of electing to have all CoC funding granted to a unit of local government (such as
a County Department of Human Services), which then enters into subcontracts with the individual
project sponsor. Very few communities employ this option, as sponsors typically prefer to receive funds
directly from HUD and counties generally prefer not to take on the burden of administering the grant
funds.

CFDA CODE
14.249

AUTHORIZING LEGISLATION/STATUTE
McKinney-Vento Homeless Assistance Act of 1987, Title IV, as amended.

REGULATIONS/GUIDELINES
24 CFR Part 882
http://www.hud.gov/offices/cpd/homeless/rulesandregs/regulations/882sro/index.cfm
Program guide: http://www.hud.gov/offices/cpd/homeless/library/sro/finalguidepdf.pdf

ADDITIONAL RESOURCES
2003 Continuum of Care NOFA:
http://www.hud.gov/library/bookshelf18/supernofa/nofa03/thhasec.pdf




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                                        SHELTER PLUS CARE
                                              (S+C)

ADMINISTRATIVE AGENCIES

Federal:
Department of Housing and Urban Development, Office of Community Planning and Development,
Office of Special Needs Assistance Program (SNAPS)
(202) 708-4300
http://www.hud.gov/offices/cpd/homeless/programs/splusc/index.cfm

State/Local:
For local Continuum of Care contact information, go to:
http://www.hud.gov/offices/cpd/homeless/programs/cont/coc/index.cfm

TYPE OF ASSISTANCE
This is a competitive grant program that functions within a formula allocation.

PROGRAM DESCRIPTION
The Shelter Plus Care (S+C) Program is one of three sources collectively known as Continuum of Care
funding (the other two are the Supportive Housing Program, summarized in the Development Section of
this guide, and Section 8 Moderate Rehabilitation SRO Programs, summarized earlier in this section).
These programs are also often referred to as HUD McKinney funding or Targeted Homeless Assistance
Programs.

S+C is designed to provide permanent supportive housing for homeless persons with disabilities,
primarily those with serious mental illness, chronic problems with alcohol and/or drugs, and AIDS or
related diseases and their families. The program provides rental assistance, which must be matched with
supportive services funded from sources outside the program. The rental assistance is offered in several
forms (tenant-based, project-based or sponsor-based) and can be provided in a variety of housing settings,
including both single site and scattered site units.

S+C rental assistance is modeled on the Section 8 program, with tenants paying 30% of their adjusted
income for rent and the program paying the difference between the tenant’s share and the HUD-
established Fair Market Rent for the unit. The program is somewhat more flexible than Section 8, making
it a highly desirable operating source for supportive housing sponsors. For example, S+C allows grantees
to exceed the HUD-established Fair Market Rent for a unit, so long as the rent is reasonable (i.e.
comparable to similar units) and the grantee has sufficient grant funds to pay the higher rent. Also,
tenants do not have to be selected from the local Housing Authority’s Section 8 waiting list.

S+C is widely used for permanent supportive housing projects, since the funds are restricted to serving
only homeless individuals with serious disabilities and because grantees are required to provide
supportive services. S+C is the only federal funding source for supportive housing that explicitly allows
a project sponsor to require participation in services as a condition of tenancy. However, some S+C
programs have elected to make services voluntary.

ELIGIBILITY INFORMATION

Eligible Target Populations:

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   Eligible participants must be homeless. The definition of homelessness that applies to S+C may be
    found here:
    http://www.hud.gov/offices/cpd/homeless/library/spc/resourcemanual/section2/spcmanual2_2.cfm
   Eligible participants must have one of the following targeted disabilities: serious mental illness,
    chronic substance abuse, both serious mental illness and chronic substance abuse, AIDS or related
    diseases, or other disabilities. The definition of disability that applies to S+C may be found here:
    http://www.hud.gov/offices/cpd/homeless/library/spc/resourcemanual/section2/spcmanual2_2.cfm
   Applicants must specify number of people with the different disabilities they will be focused on
    serving in their application.

Eligible Projects/Programs:
The S+C Program has four components. Applicants must specify the component(s) for which they are
applying.

1. Tenant-Based Rental Assistance (TRA)

This component provides funding for tenant-based rental assistance modeled after the Section 8 Program.
Tenants select their own housing in the private rental market and retain the rental assistance if they move.
Grantees are allowed to limit the geographic area where participants may live if necessary to facilitate the
coordination of supportive services.

2. Sponsor-Based Rental Assistance (SRA)
This component provides rental assistance through contracts between the local Housing Authority and
sponsor organizations, usually non-profit providers of housing and/or services. The sponsor may either
own or lease the units that receive the subsidy. The units may be located in a single structure or in
scattered sites. Sponsors are allowed to change the location of units over the life of the grants.

3. Project-Based Rental Assistance (PRA)
This component provides rental assistance through contracts between the Local Housing Authority and
the owner of a housing structure, where the owner agrees to lease the subsidized units to participants.
Changing the location of the units is not permitted and tenants do not keep the rental assistance if they
move.

4. Moderate Rehab for Single Room Occupancy Dwellings (SRO)
This component provides rental assistance for 10 years in connection with the moderate rehabilitation of
single room occupancy housing units. It is very similar to the Section 8 Moderate Rehabilitation SRO
Program. The major differences are that the S+C version is limited to assisting persons who are homeless
and have a disability, and requires that support service be provided. Other differences between the two
programs are detailed here:
http://www.hud.gov/offices/cpd/homeless/library/spc/understandingspc/attachmentb.cfm

Eligible Use of Funds/Activities/Types of Assistance:
           The only eligible use of S+C funding is rental assistance.
           Eight percent of each S+C grant may be used for program administration

Eligible Applicants/Sponsors:
Only a locally constituted Continuum of Care may apply to HUD for CoC funding, which includes
requests for S+C, SHP and SRO. (Technically, HUD does allow an individual organization to submit a
“solo” application for SHP funding, but such proposals, since they are not submitted as part of an overall



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Continuum of Care plan, will rarely, if ever, receive funding.) Please see the general introduction for
further information about CoC plans and CoC funding.

Applicants eligible to request SRO funds through the local CoC process and receive an award from HUD
include:
 Housing Authorities
 Other governmental entities (such as a County Mental Health Department)

Non-profit organizations are not eligible to become S+C grantees, but are often sponsors of projects under
the SRA component (see below).

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The grant amount is determined by multiplying the number of units to be assisted times the applicable
Fair Market Rent times 60 months (for five year grants).

Average Awards:
N/A

Term of Awards:
 The initial term of a TRA or SRA grant is five years, with renewals in one-year increments.
 The initial term of a PRA grant can be either five years or ten years. To qualify for ten years of rental
   subsidies, the owner must complete at least $3,000 of eligible rehabilitation for each unit. This
   rehabilitation must be completed within 12 months of grant award.
 The initial term of an SRO grant is 10 years.

All S+C grants are renewable.

Matching Requirements:
 S+C Program sponsors must match every dollar of HUD funding with a dollar of leveraged support
   services. This service match must be tracked and documented on an annual basis. In-kind and
   donated services can satisfy the match requirement, but providers must comply with HUD’s
   guidelines on documenting the match. (See the HUD S+C webpage for more info, or 24 CFR
   582.110.)
 Use of leveraged resources is among the criteria used to score the overall CoC application. CoCs are
   strongly encouraged to seek out mainstream resources to support activities within their housing and
   service system.

Formula:
HUD allocates for each CoC a certain “pro rata need” funding amount. The pro rata need is calculated
based on a formula that uses the same indices of need as are used in the CDBG program (including such
factors as poverty and poor housing conditions). The pro rata need is adjusted to help communities meet the
burden of renewing existing SHP and SRO grants. There is no adjustment for S+C renewals, as these are
not counted towards a community’s pro rata need.

APPLICATION PROCESS
Each year, as part of the SuperNOFA, HUD issues a NOFA announcing the availability of Continuum of
Care funding. CoCs are required to conduct a community-based planning process to determine goals and


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strategies for addressing homelessness and priorities for funding for the coming year. The CoC also is
required to conduct a broadly publicized application process whereby individual project sponsors submit
proposal to the CoC body, which rates and ranks all applications received. The CoC then submits its CoC
Plan along with a ranked set of funding applications to HUD. HUD awards funding to projects in the
order they have been ranked by the CoC, up to the community’s adjusted pro rata need amount.

CFDA CODE
14.238

AUTHORIZING LEGISLATION/STATUTE
McKinney-Vento Homeless Assistance Act of 1987, Title IV, as amended.

REGULATIONS/GUIDELINES:
24 CRF Part 582
http://www.hud.gov/offices/cpd/homeless/rulesandregs/regulations/582spluscare/index.cfm
Understanding S+C: http://www.hud.gov/offices/cpd/homeless/library/spc/understandingspc/index.cfm
S+C Resource Manual: http://www.hud.gov/offices/cpd/homeless/library/spc/resourcemanual/index.cfm
Enhancing S+C Program Operations:
http://www.hud.gov/offices/cpd/homeless/library/spc/shelterplusguide.PDF

ADDITIONAL RESOURCES
2003 Continuum of Care NOFA:
http://www.hud.gov/library/bookshelf18/supernofa/nofa03/thhasec.pdf




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V. INNOVATIVE FUNDING PROGRAMS AND INITIATIVES INTRODUCTION

Due in large measure to the efforts of advocacy organizations like the Corporation for Supportive
Housing and the National Alliance to End Homelessness, in 2001 President Bush and Congress
established a national policy goal of ending chronic homelessness in ten years. They also revitalized the
dormant Interagency Council on Homelessness, designed to coordinate federal funding for efforts to end
homelessness.

Stemming from this policy direction have been a number of special funding programs and initiatives
aimed at developing permanent supportive housing to meet the needs of chronically homeless persons,
who are defined by all of the Federal agencies participating in the Interagency Council on Homelessness
(ICH) as “an unaccompanied homeless individual with a disabling condition who has either been
continuously homeless for a year or more or has had at least four episodes of homelessness in the past
three years.” These programs and initiatives either provide a permanent funding stream for services in
permanent supportive housing or improve coordination and leveraging of existing HUD and HHS, VA,
and DOL programs serving homeless people, with an emphasis on permanent housing.

One of the underlying objectives of these new funding programs and initiatives is interagency
coordination. Historically, the Department of Housing and Urban Development (HUD) has been the
major provider of resources to communities to meet the housing and service needs of homeless persons.
While the majority of homeless persons need the types of services that are offered through mainstream
services program (mental health, substance abuse, primary health, employment, etc.), the other Federal
Departments have made few efforts to develop programs that provide services linked to housing to meet
the needs of homeless persons to mainstream services for this population. The Federal agencies have
worked to identify barriers to access to mainstream services for homeless persons, and have established
inter-agency and intra-agency workgroups, and sponsored a series of conferences and Policy Academies
for state and local governments to improve access to mainstream services. These efforts have raised
awareness among mainstream program officials, particularly in state government, and provided
encouragement for states to use block grant funding or other Federal resources to serve homeless people,
or to take steps to enroll homeless people in benefits to which they are entitled. So far they have not
produced significant changes in Federal policy or regulations, or significantly increased the investment of
mainstream resources in supportive hosing, but they have laid the groundwork for efforts at both the
Federal and state levels to move in that direction.

Working through the Interagency Council on Homelessness, the Federal departments are attempting to
better coordinate and integrate funding for housing and services. In FY 2002, two NOFAs were issued
offering a blend of HUD housing funds with services funding from HHS and VA, in one, and HUD and
DOL in the other. These two initiatives are described in this section. While it is unknown if new funding
will continue to be available under these specific initiatives, it appears likely that this approach to the
funding of supportive housing will continue.




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     INNOVATIVE FUNDING PROGRAMS AND INITIATIVES SUMMARIES - FEDERAL

                  THE SAMARITAN INITIATIVE/COLLABORATIVE INITIATIVE
                           TO END CHRONIC HOMELESSNESS
                                     (HUD/HHS/VA)

ADMINISTRATIVE AGENCIES

Federal:

Funding is administered by:

Department of Housing and Urban Development, Office of Community Planning and Development
(202) 408-7300
http://www.hud.gov/offices/cpd/homeless/apply/2002nofa/index.cfm

Department of Health and Human Services, Substance Abuse and Mental Health Services Administration
(SAMHSA)
(301) 443-4111
http://www.samhsa.gov/grants/grants.html

Department of Health and Human Services, Health Resources Services Administration (HRSA)
(301) 443-2216
http://www.hrsa.gov/grants/default.htm
Veterans Administration, Substance Abuse, Mental Health and Provider Care Services
http://www.va.gov/homeless/index.cfm

Program is coordinated by:

Interagency Council on the Homeless
(866) 450-2273
www.ich.gov

PROGRAM DESCRIPTION
In January 2003 the Interagency Council on the Homeless announced the availability of $35 million to
fund permanent housing, health care and other supportive services for those people experiencing chronic
or long-term homelessness. This funding source was created by combining funds from the Departments
of Housing and Urban Development (HUD), Health and Human Services, (HHS), and Veterans Affairs
(VA). While the funding represents new dollars, the grants are awarded through existing programs and
mechanisms at the three departments. The President’s FY04 budget proposal (submitted to Congress in
2003) proposes to sustain and expand this interagency collaborative funding arrangement through “The
Samaritan Initiative,” which would be implemented through legislation to create a new program,
streamlining the administration of grant funding. (As of November 2003, the legislation to create the new
program had not been introduced, and the details of the Samaritan Initiative were still under review by the
participating Federal agencies.)

Through this initiative, eligible non-profit organizations and public entities, as a consortium, were invited
to submit one consolidated application for HUD’s Supportive Housing Program or Shelter Plus Care
funds; HHS Substance Abuse Treatment, Mental Health, and Related supportive services funds; HHS



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Primary Health Care Service funds; and VA funds. Applicants request funding for housing through the
HUD component of the application and for services through HHS and VA.

The goals of the initiative are to: (1) Increase the effectiveness of integrated systems of care for
chronically homeless people; (2) create additional permanent supportive housing units; (3) increase the
use of mainstream resources; (4) replicate proven, effective service, treatment, and housing models; and
(5) support development of infrastructures that sustain the effort.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 Eligible households receiving assistance must be persons experiencing chronic homelessness,
    including veterans.
 A chronically homeless person is defined as: “an unaccompanied homeless individual with a
    disabling condition who has either been continuously homeless for a year or more OR has had at least
    four (4) episodes of homelessness in the past three (3) years.”
 Homeless is defined as: "sleeping in a place not meant for human habitation or in an emergency
    homeless shelter."
 Disabling condition is defined as: "a diagnosable substance use disorder, serious mental illness,
    developmental disability, or chronic physical illness or disability, including the co-occurrence of two
    or more of these conditions. A disabling condition limits an individual's ability to work or perform
    one or more activities of daily living.”
 Not more than 10 percent of the funds awarded will be targeted to projects that serve homeless
    families with a disabled adult member.

Eligible Projects/Programs:
 Projects must adopt a comprehensive and integrated approach to the needs of the target population,
    including permanent housing, substance abuse and mental health treatment and related supportive
    services, and primary health care, with the integration of additional VA services for chronically
    homeless veterans. Applicants could apply for grant funding for any or all of these components.
    Whether or not they were seeking grant funding for a particular component, each project was required
    to describe how participants’ needs would be met in each area by completing portions of the grant
    application applicable to each component.
 The housing component of the project must be funded either using certain components of the SHP or
    S+C programs. Under SHP, the only components that may be funded are: Permanent Housing for
    Persons with Disabilities and Safe Havens (see SHP section for definitions). Under S+C, only tenant-
    based, sponsor-based, or project-based (without rehab) projects will be funded (see S+C section for
    further information on these components)
 There is a strong emphasis on projects that can bring units on line quickly, and will rapidly move
    chronically homeless persons into housing with necessary supportive services.
 All HUD funds must be coordinated with the Continuum of Care for the area.

Eligible Use of Funds/Activities/Types of Assistance:
 Under the HUD component, SHP funds may only be used for acquisition, minor rehabilitation,
    leasing, operating costs, and administration. SHP funds available through this NOFA cannot be used
    for new construction, major rehabilitation, or supportive services. S+C funds may only be used for
    rental assistance.
 SAMHSA funds may be used for substance abuse treatment, mental health services, and a wide range
    of supportive services that promote entry and maintenance of permanent housing. These funds can


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    also be used to provide for the coordination efforts of partnering entities and for the management of
    implementing the comprehensive approach.
 HRSA funds may be used to provide primary health care and coordination of care with other
    providers
Eligible Applicants/Sponsors:
 The lead organization must be a non-profit or public entity. That organization is expected to take the
    lead in submitting the consolidated application, which identifies the consortium arrangements, and is
    responsible for coordinating this consortium over the term of the grant.
 The agency applying for the HUD funds must meet applicable SHP or S+C requirements for eligible
    applicants (see SHP and S+C sections)
 The agency applying for the SAMHA funds must be licensed and have been providing services for a
    minimum of 2 years prior to application date.
 The agency applying for HRSA funds must be an existing Health Center Grantee (including Health
    Care for the Homeless grantees).
 VA funding will not be awarded directly to the grant recipient, but funding is available for a VA
    facility that partners with the applicant as part of the consortium.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
The maximum grant amount is $3.5 million. The maximum award under each component are: HUD
permanent housing - $2,000,000; HHS/SAMHSA - $700,000; HHS/HRSA - 300,000; VA - the equivalent
of 2 FTEs (one to provide or coordinate care for homeless vets, the other to perform evaluation and data
collection).

Average Awards:
$3 million to $3.5 million (in 2003)

Term of Awards:
The term of the grant is 3-5 years (depending on whether it is SHP or S+C). Some components will be
subject to annual appropriations.

Matching Requirements:
 Housing funds must meet SHP or S+C match requirements, as applicable.
 SAMHSA funding will cover a declining percentage of services costs [100% in year 1, 70% in year 2,
   and 40% in year 3] to encourage a shift to other mainstream funding sources such as Medicaid, block
   grants, state or local funds.

Formula:
N/A

APPLICATION PROCESS
Funding was announced through a NOFA issued in January 2003, with applications due in April.
Funding awards were announced on October 1, 2003. (See www.ich.gov for a listing of grantees.)

The application is relatively complex, with separate sections for each of the four funding components
(HUD, SAMHSA, HRSA and VA) plus a section on coordination. Each section is roughly equivalent to
an entire grant from one of the federal agencies.



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The Administration's proposed FY 2004 budget includes $70 million for the Samaritan Initiative, which
would provide HUD with $50 million in new funding for permanent housing, HHS with $10 million
(primarily for second year renewal funding for projects selected in 2003) and the VA with $10 million.
If authorized, some of this funding will be used to provide a second year of funding for those grantees that
are successful in the first round, but some is expected to be available for new projects.
CFDA CODE, AUTHORIZING LEGISLATION/STATUTE, REGULATIONS:
The Initiative does not currently have its own authorizing legislation or regulations. In 2003 (the first
year of this collaborative funding initiative), applicants applied for funding through programs established
by HUD, HHS and the VA. For relevant citations, see sections on: Supportive Housing Program (SHP)
and Shelter Plus Care (S+C). See also the websites of SAMSHA, HRSA, and the VA, which are
provided in the Services funding program summaries. The Administration has indicated that legislation
to implement a new program which would streamline the allocation of funding from the three Federal
agencies will be introduced but the details of this proposal have not yet been finalized or made public.


ADDITIONAL RESOURCES:
Corporation for Supportive Housing www.csh.org (click on Resources)




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      ENDING CHRONIC HOMELESSNESS THROUGH EMPLOYMENT AND HOUSING
                               (DOL/HUD)

ADMINISTRATIVE AGENCIES

Funding is administered by:

Department of Housing and Urban Development, Office of Community Planning and Development
(202) 408-7300
http://www.hud.gov/library/bookshelf18/supernofa/nofa03/fundsavail.cfm

Department of Labor, Office of Disability Employment Policy (ODEP), Employment and Training
Administration (ETA), and Veterans Employment and Training Service (VETS)
http://www.dol.gov/odep/archives/archive.htm

Program is coordinated by:
Interagency Council on the Homeless
(866) 450-2273
www.ich.gov

PROGRAM DESCRIPTION
In July 2003 the Interagency Council on the Homeless announced the availability of $13.5 million to fund
innovative approaches to providing permanent housing and economic self-sufficiency for chronically
homeless individuals. Under the NOFA, the DOL is making available $3.5 million to fund up to 4
Cooperative Agreements (funding contracts) designed to increase and improve employment opportunities
for chronically homeless persons. These agreements will begin or expand the delivery of “customized
employment strategies” for people who are chronically homeless so that they may live, work and fully
participate in their communities. In conjunction with the DOL funding, HUD is making available $10
million from recaptured McKinney funds to supplement each DOL Cooperative Agreement with a HUD
grant for supportive housing. While the funding represents new dollars, the grants are awarded through
the existing programs and mechanisms at the two departments. Applicants must apply for both DOL and
HUD funding.

The goal of the initiative is to enable persons who are chronically homeless to achieve employment,
permanent housing and self-sufficiency. The initiative is designed is to bring together the expertise and
capabilities of the local workforce development system and permanent housing service organizations, to
develop and document the increased employment outcomes that can be achieved when these types of
organizations combine their efforts to respond to the employment and housing needs of persons who are
chronically homeless. This effort recognizes that neither housing nor employment alone will help
homeless persons become more self-sufficient. The two in combination are essential for their full
reintegration back into the community.

The DOL funds are to be used in accordance with the principle of “customized employment” services,
which refers to an approach in which services are designed based upon a person’s individual needs,
interests, and abilities. Examples of customized employment approaches include: supported employment
and supported entrepreneurship; individualized job development; job carving and restructuring; use of
personal agents (including individuals with disabilities and family members); development of micro-
boards, micro-enterprises, cooperatives and small businesses; and the use of personal budgets and other
forms of individualized funding that provide choice and control to the person and promote self-


Corporation for Supportive Housing                 140
March 17, 2004
determination. This approach is recognized as a highly effective disability-related employment method –
one that responds to the employment needs of persons who are chronically homeless. The proposed
program should also demonstrate enhanced coordination with community and state partners, particularly
the One-Stop Career centers.

The HUD funding available through this initiative may only be used to secure new housing units for
persons who are served through the DOL Cooperative Agreement and who indicate a willingness to
accept employment supports designed under the DOL portion of the award. Participation in the
customized employment services is not mandatory but it should be an established intention for all who
receive permanent housing supports under these funds.

ELIGIBILITY INFORMATION

Eligible Target Populations:
 Eligible households receiving assistance must be persons experiencing chronic homelessness,
    including veterans.
 A chronically homeless person is defined as: “an unaccompanied homeless individual with a
    disabling condition who has either been continuously homeless for a year or more OR has had at least
    four (4) episodes of homelessness in the past three (3) years.”
 Homeless is defined as: "sleeping in a place not meant for human habitation or in an emergency
    homeless shelter."
 Disabling condition is defined as: "a diagnosable substance use disorder, serious mental illness,
    developmental disability, or chronic physical illness or disability, including the co-occurrence of two
    or more of these conditions. A disabling condition limits an individual's ability to work or perform
    one or more activities of daily living.”
 Not more than 10 percent of the funds awarded will be targeted to projects that serve homeless
    families with a disabled adult member.

Eligible Projects/Programs:
 The DOL funds must be used for projects that employ a “customized employment” approach.
    Cooperative Agreements will be funded for a one-year period, and may be renewed for a period up to
    4 years, at varying funding levels, depending upon availability of funds and the efficacy of the project
    activities.
 The housing component of the project must be funded either using SHP or S+C funds. Under SHP,
    the only components that may be funded are: Permanent Housing for Persons with Disabilities and
    Safe Havens (see SHP section for definitions). Under S+C, only tenant-based, sponsor-based, or
    project-based (without rehab) projects will be funded (see S+C section for further information on
    these components). The term of the award with be three years for SHP funding and five years for
    S+C.

Eligible Use of Funds/Activities/Types of Assistance:
 The DOL funds must be used to fund support services. Services should be designed according to the
    principles of “customized employment.”
 Under the HUD component, SHP funds may only be used for acquisition, minor rehabilitation,
    leasing, operating costs, and administration. SHP funds available through this NOFA cannot be used
    for new construction, major rehabilitation, or supportive services. S+C funds may only be used for
    rental assistance.

Eligible Applicants/Sponsors:



Corporation for Supportive Housing                  141
March 17, 2004
   The application must be submitted by a partnership between two organizations – one applicant for the
    DOL Cooperative Agreement and one applicant for the HUD funding. The applicants must document
    their partnership in the form of an MOU.
   Eligible applicants for the DOL Cooperative Agreements are Local Workforce Investment Boards
    (Local Boards), or, if appropriate, the WIA Cooperative Agreement recipient or fiscal agent for the
    local area on behalf of the local board under the Workforce Investment Act. The applicant for the
    DOL funds must demonstrate that they have a partnership with the applicant for the HUD grant and
    with other public and private entities (particularly homeless serving organizations), consistent with
    the proposed activities of the Cooperative Agreement.
   The agency applying for the HUD funds must meet applicable SHP or S+C requirements for eligible
    applicants (see SHP and S+C sections)
   The applicants must be able to document that their locality has at least 150 people who are
    chronically homeless.

GRANT/LOAN TERMS

Minimum/Maximum Awards:
 A total of four proposals were funded in 2003
 The DOL awards range between $500,000 and $625,000
 HUD awards range between $2 million and $3 million each

Average Awards:
(See www.ich.gov for a listing of grantees.)

Term of Awards:
 Five years for the housing component, renewable
 one-year for the services component with the possibility of renewal

Matching Requirements:
 DOL funding will decrease in years four and five, with funding in year four at 80% of the third year
   funds, and funding for year 5 at 60% of third year funds. This decreased funding strategy is designed
   to encourage program sustainability beyond the federally funded Cooperative Agreement period.
 Housing funds must meet SHP or S+C match requirements, as applicable.

Formula:
N/A

APPLICATION PROCESS
Funding was announced through a NOFA issued in July 2003, with applications due in August. Funding
awards were announced on October 1, 2003. Since this initiative was funded in part with one-time HUD
recaptured McKinney funds, it is not yet known whether another round of funding will be offered.

CFDA CODE, AUTHORIZING LEGISLATION/STATUTE, REGULATIONS: The Initiative does
not have its own authorizing legislation or regulations. Applicants apply for funding through programs
established by HUD and the DOL. For relevant citations, see sections on: Supportive Housing Program
(SHP), Shelter Plus Care (S+C), and DOL.




Corporation for Supportive Housing                142
March 17, 2004
                                                 SUPPORTIVE HOUSING FINANCING RESOURCES
                                        APPENDIX 1: TARGET POPULATION BY SERVICE NEED OVERVIEW

This chart provides information on the target populations that each funding source is primarily designed to serve. Please note that while a source
may not be primarily intended to serve a given population, this does not mean a sponsor is precluded from using that source for a project serving a
particular population. For example, the Shelter Plus Care Program (S+C) primarily targets homeless persons with disabilities. However, S+C may
also be used to provide housing to homeless disabled veterans, even though that box has not been checked on this chart. Please also note that many
programs have additional criteria for eligible beneficiaries (e.g., income criteria) or restrict the program to sub-groups of the target populations
listed. Please check the funding program summary "eligible target populations" section for more detail.

                                                                                         PEOPLE WITH DISABILITIES          CHILDREN &
                                                                        PEOPLE
                                                                                                                             YOUTH
                                                                        WHO
 LEVEL                  FUNDING PROGRAMS/SOURCES                                                                                  AGING     VETER
                                                                        ARE       SUBST-    MENT-                       CHILD-
                                                                                                      HIV/     OTHER               OUT       -ANS
                                                                        HOME       ANCE     AL                          REN &
                                                                                                      AIDS                        FOSTER
                                                                        LESS        USE     ILLNESS                     YOUTH
                                                                                                                                  YOUTH

              Affordable Housing Program (AHP)
              Child Care and Development Block Grant (Child Care and                                                        X
              Development Fund/CCDF)
              Community Development Block Grant (CDBG)
              Community Mental Health Services (CMHS) Block Grant                              X                            X
              Community Services Block Grant (CSBG)
              Development of Comprehensive Drug/Alcohol and Mental         X         X         X
    FEDERAL




              Health Treatment Systems for Persons who are Homeless
              (Treatment for Homeless Persons)
              Education for Homeless Children and Youth                    X                                                X
              Ending Chronic Homelessness Through Employment and           X         X         X        X           X                          X
              Housing
              Grants to Expand Substance Abuse Treatment Capacity in                 X
              Targeted Areas of Need (Targeted Capacity Expansion –
              TCE)
                                                 SUPPORTIVE HOUSING FINANCING RESOURCES
                                        APPENDIX 1: TARGET POPULATION BY SERVICE NEED OVERVIEW

                                                                                         PEOPLE WITH DISABILITIES         CHILDREN &
                                                                          PEOPLE
                                                                                                                            YOUTH
                                                                          WHO
LEVEL                 FUNDING PROGRAMS/SOURCES                                                                                   AGING    VETER
                                                                          ARE      SUBST-   MENT-                       CHILD-
                                                                                                      HIV/     OTHER              OUT      -ANS
                                                                          HOME      ANCE    AL                          REN &
                                                                                                      AIDS                       FOSTER
                                                                          LESS       USE    ILLNESS                     YOUTH
                                                                                                                                 YOUTH

           Health Center Grants for Homeless Populations (Health            X
           Care for the Homeless – HCH)
           Home Investment Partnership Program (HOME)
           Housing Choice Voucher Program (Section 8)
           Housing Opportunities for People with AIDS (HOPWA)                                           X
           HUD-VA Supported Housing (VASH) Program & VA                     X        X         X                                            X
           Supported Housing Program
           Low Income Housing Tax Credits (LIHTC)
           Mainstream Housing Opportunities for People with                          X         X        X           X
           Disabilities (Mainstream Program)
           Medicaid                                                                            X        X           X     X
 FEDERAL




           Projects for Assistance in Transition From Homelessness          X        X         X
           (PATH)
           Ryan White Comprehensive AIDS Resources Emergency                                            X
           (Care) Act Programs: Title I & II
           Samaritan Initiative/Collaborative Initiative to End Chronic     X        X         X        X           X                       X
           Homelessness
           SAMHSA Discretionary Grants                                               X         X
           Section 8 Moderate Rehabilitation SRO Program (SRO)              X
           Shelter Plus Care (S+C)                                          X        X         X        X           X
           Social Services Block Grant (SSBG)
           Substance Abuse Prevention and Treatment (SAPT) Block                     X
           Grant
                                                   SUPPORTIVE HOUSING FINANCING RESOURCES
                                          APPENDIX 1: TARGET POPULATION BY SERVICE NEED OVERVIEW

                                                                                       PEOPLE WITH DISABILITIES         CHILDREN &
                                                                        PEOPLE
                                                                                                                          YOUTH
                                                                        WHO
LEVEL                   FUNDING PROGRAMS/SOURCES                                                                               AGING    VETER
                                                                        ARE      SUBST-   MENT-                       CHILD-
                                                                                                    HIV/     OTHER              OUT      -ANS
                                                                        HOME      ANCE    AL                          REN &
                                                                                                    AIDS                       FOSTER
                                                                        LESS       USE    ILLNESS                     YOUTH
                                                                                                                               YOUTH

             Supportive Housing for the Elderly (Section 202)
             Supportive Housing for People with Disabilities (Section                        X                    X
             811)
             Supportive Housing Program (SHP) – Transitional              X
             Housing, Support Services Only, Innovative Supportive
             Housing and HMIS Components
             Supportive Housing Program (SHP) – Permanent Housing         X        X         X        X           X
             for Persons with Disabilities and Safe Havens Components
 FEDERAL




             Targeted Capacity Expansion Initiatives for Substance
             Abuse Prevention (SAP) and HIV Prevention in Minority
             Communities
             Temporary Assistance for Needy Families (TANF)
             Transitional Living Program for Older Homeless Youth         X                                             X        X
             (TLP)
             VA Homeless Providers and Per Diem Program                   X                                                               X
             VA Loan Guarantee for Multifamily Housing Program            X                                                               X
             Veterans’ Employment Program (Veterans’ Workforce                                                                            X
             Investment Programs – VWIP)
             AZ Behavioral Health Funds                                                      X
             AZ State Housing Fund
     STATE




             CA Emergency Housing Assistance Program (EHAP)               X
             CA Integrated Services for Homeless Adults with Serious      X                  X
             Mental Illness Program (AB 2034)
                                                        SUPPORTIVE HOUSING FINANCING RESOURCES
                                             APPENDIX 1: TARGET POPULATION BY SERVICE NEED OVERVIEW

                                                                                                 PEOPLE WITH DISABILITIES              CHILDREN &
                                                                               PEOPLE
                                                                                                                                         YOUTH
                                                                               WHO
 LEVEL                   FUNDING PROGRAMS/SOURCES                                                                                             AGING      VETER
                                                                               ARE        SUBST-    MENT-                           CHILD-
                                                                                                               HIV/       OTHER                OUT        -ANS
                                                                               HOME        ANCE     AL                              REN &
                                                                                                               AIDS                           FOSTER
                                                                               LESS         USE     ILLNESS                         YOUTH
                                                                                                                                              YOUTH

            CA Multifamily Housing Program (MHP) – Supportive                      X         X          X         X          X
            Housing Funds
            CA Multifamily Housing Program (MHP) – Regular MHP                     X         X          X         X          X         X         X             X
    STATE




            Funds (a competitive advantage is given for serving special
            needs populations – see program summary)
            CA Special Needs Financing Program                                               X          X         X          X         X         X             X
            CA Statewide Supportive Housing Initiative Act (SHIA)                            X          X         X          X
            NV Low Income Housing Trust Fund

KEY: Target Population Categories

People who are Homeless =           Definitions of homelessness vary depending on the funding source, consult funding program summary
People with Disabilities

    Substance Use/Abuse =           People with substance use issues
    Mental Illness            =     People with mental illness
    HIV/AIDS                  =     People with HIV or AIDS
    Other                     =     Other disabilities may include physical disabilities, chronic health conditions, and developmental disabilities. Consult
                                    funding program summary for the detail on qualifying disabilities.
Children & Youth
    Children and Youth        =     Usually defined as children age 18 and younger, consult funding program summary
    Aging out Foster Youth    =     Usually defined as youths ages 18 to 22 who are no longer eligible for services through the foster care system. Consult
                                    funding program summary.
Veterans                      =     Veterans of the U.S. military forces.
                                           SUPPORTIVE HOUSING FINANCING RESOURCES
                              APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

                                                            FEDERAL/ ELIGIBLE USES                           TYPE OF ASSISTANCE
                                                             STATE
LEVEL              FUNDING PROGRAMS/SOURCES
                                                            AGENCY DEVELOP OPERAT-              SERVI-   COMPE-   FORM-    HYBRID/
                                                                              -MENT   ING        CES     TITIVE   ULA      OTHER
                                                            (if applicable)

            Affordable Housing Program (AHP)                HUD                  X                           X
            Child Care and Development Block Grant (Child   ACF                                   X                   X
            Care and Development Fund/CCDF)
            Community Development Block Grant (CDBG)        HUD                  X                X                   X
            Community Mental Health Services (CMHS) Block SAMHSA                                  X               X
            Grant
            Community Services Block Grant (CSBG)           ACF                                   X               X
            Development of Comprehensive Drug/Alcohol and SAMHSA                                  X          X
            Mental Health Treatment Systems for Persons who
            are Homeless (Treatment for Homeless Persons)
            Education for Homeless Children and Youth       ED                                    X               X
  FEDERAL




            Ending Chronic Homelessness Through             DOL,                 X          X     X          X
            Employment and Housing                          HUD
            Grants to Expand Substance Abuse Treatment      SAMHSA                                X          X
            Capacity in Targeted Areas of Need (Targeted
            Capacity Expansion – TCE)
            Health Center Grants for Homeless Populations   HRSA                                  X                           B
            (Health Care for the Homeless – HCH)
            Home Investment Partnership Program (HOME)      HUD                  X                                X
            Housing Choice Voucher Program (Section 8)      HUD                             X
            Housing Opportunities for People with AIDS      HUD                  X                X          X    X
            (HOPWA)
            HUD-VA Supported Housing (VASH) Program &       VA                              X     X                           C
            VA Supported Housing Program
            Low Income Housing Tax Credits (LIHTC)          N/A                  X                                            A
                                            SUPPORTIVE HOUSING FINANCING RESOURCES
                              APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

                                                              FEDERAL/ ELIGIBLE USES                           TYPE OF ASSISTANCE
                                                               STATE
LEVEL             FUNDING PROGRAMS/SOURCES
                                                              AGENCY DEVELOP OPERAT-              SERVI-   COMPE-   FORM-    HYBRID/
                                                                                -MENT   ING        CES     TITIVE   ULA      OTHER
                                                              (if applicable)

           Mainstream Housing Opportunities for People        HUD                             X
           with Disabilities (Mainstream Program)
           Medicaid                                           CMS                                   X                  X
           Projects for Assistance in Transition From         SAMHSA                                X                  X
           Homelessness (PATH)
           Ryan White Comprehensive AIDS Resources            HRSA                            X     X          X       X
           Emergency (Care) Act Programs: Title I & II
           Samaritan Initiative/Collaborative Initiative to End HHS,               X          X     X          X
           Chronic Homelessness                                 HUD, VA
           SAMHSA Discretionary Grants                        SAMHSA                                X          X
           Section 8 Moderate Rehabilitation SRO Program      HUD                             X
           (SRO)
           Shelter Plus Care (S+C)                            HUD                             X
           Social Services Block Grant (SSBG)                 ACF                                   X                  X
           Substance Abuse Prevention and Treatment           SAMHSA                                X                  X
           (SAPT) Block Grant
           Supportive Housing for the Elderly (Section 202)   HUD                  X          X                                 A
           Supportive Housing for People with Disabilities    HUD                  X          X                                 A
           (Section 811)
 FEDERAL




           Supportive Housing Program (SHP)                   HUD                  X          X     X                           A
           Targeted Capacity Expansion Initiatives for        SAMHSA                                X          X
           Substance Abuse Prevention (SAP) and HIV
           Prevention in Minority Communities
           Temporary Assistance for Needy Families (TANF)     ACF                                   X                  X
                                         SUPPORTIVE HOUSING FINANCING RESOURCES
                            APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

                                                           FEDERAL/ ELIGIBLE USES                           TYPE OF ASSISTANCE
                                                            STATE
LEVEL            FUNDING PROGRAMS/SOURCES
                                                           AGENCY DEVELOP OPERAT-              SERVI-   COMPE-   FORM-    HYBRID/
                                                                             -MENT   ING        CES     TITIVE   ULA      OTHER
                                                           (if applicable)

          Transitional Living Program for Older Homeless   ACF                  X          X     X          X
          Youth (TLP)
          VA Homeless Providers and Per Diem Program       VA                   X          X     X
          VA Loan Guarantee for Multifamily Housing        VA                   X                                            D
          Program
          Veterans’ Employment Program (Veterans’          DOL                                   X          X
          Workforce Investment Programs – VWIP)
          AZ Behavioral Health Funds                       ADHS                 X                           X
          AZ State Housing Fund                            ADH                  X          X     X                           A
          CA Emergency Housing Assistance Program          HCD                  X          X     X          X       X
          (EHAP)
 STATE




          CA Integrated Services for Homeless Adults wit   DMH                  X          X     X                           B
          Serious Mental Illness Program (AB 2034)
          CA Multifamily Housing Program (MHP)             HCD                  X                           X
          CA Special Needs Financing Program               CalHFA               X                           X
          CA Statewide Supportive Housing Initiative Act   DMH                             X     X          X
          (SHIA)
          NV Low Income Housing Trust Fund                 DBI                  X          X     X                  X
          Redevelopment Funds                                                   X                           X
          Special Bonds and Taxes                                               X                           X
  LOCAL




          Housing Trust Funds                                                   X                           X
          General Fund (Distributed through County                                               X          X       X
          Departments: Health, Mental Health,
          Alcohol & Drug Treatment, HIV/AIDS, etc.)
                                                               SUPPORTIVE HOUSING FINANCING RESOURCES
                                                APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

                                                                                  FEDERAL/ ELIGIBLE USES                            TYPE OF ASSISTANCE
                                                                                   STATE
       LEVEL                         FUNDING PROGRAMS/SOURCES
                                                                                  AGENCY DEVELOP OPERAT-               SERVI-   COMPE-   FORM-    HYBRID/
                                                                                                     -MENT   ING        CES     TITIVE   ULA      OTHER
                                                                                   (if applicable)

                              Private Foundations                                                       X          X     X          X



                              Corporation for Supportive Housing (CSH)                                  X          X     X          X
         INTERMEDIARIES




                              Local Initiatives Support Corporation (LISC)                              X                           X
                              Low Income Housing Fund (LIHF)                                            X                           X
                              Rural Community Assistance Corporation (RCAC)                             X                           X
                              Enterprise Foundation                                                     X                           X
                              Northern California Community Loan Fund                                   X                           X



KEYS
Federal Agencies:
ACF                       =    Department of Health and Human Services, Administration for Children and Families
CMS                       =    Department of Health and Human Services, Centers for Medicare and Medicaid Services

DOJ                       =    Department of Justice
DOL                       =    Department of Labor
ED                        =    Department of Education
HHS                       =    Department of Health and Human Services
                                                  SUPPORTIVE HOUSING FINANCING RESOURCES
                                    APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

Federal Agencies (continued):
HRSA         =    Department of Health and Human Services, Health Resources and Services Administration
HUD          =    Department of Housing and Urban Development
SAMHSA       =    Department of Health and Human Services, Substance Abuse and Mental Health Services Administration

VA           =    Veterans Administration


State Agencies:
ADH          =    Arizona Department of Housing
ADHS         =    Arizona Department of Health Services
CalHFA       =    California Housing Finance Agency
DBI          =    State of Nevada Division of Business and Industry
DMH          =    California Department of Mental Health
HCD          =    California Department of Housing and Community Development
                                                  SUPPORTIVE HOUSING FINANCING RESOURCES
                                   APPENDIX 2: ELIGIBLE USES OF FUNDS & TYPE OF ASSISTANCE OVERVIEW

Eligible Use Categories:
Development      =     Acquisition, Rehabilitation, Construction, Financing Costs, Predevelopment
Operations   =   Operating Expenses, Operating Reserves
Services   = Case Management, Health/Mental Health Care, Alcohol and Drug Treatment, Daily Living Skills, Benefits Eligibility,
   Advocacy, etc.
Types of Assistance:
Competitive =    Allocated by a competitive process for specific projects
Formula      =   Allocated to units of government based on a distribution formula; sometimes subgranted competitively to specific projects
Hybrid/Other
   A         =   Competitive grant that functions within a formula allocation
   B         =   Competitive grant that is renewable
   C         =   Authorization/mandate provide services
   D         =   Type of assistance has not yet been determined

				
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