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Game-Change: Overview of the HEARTH Act. Jason Satterfield Bridget Kurtt DeJong Piper Ehlen. What is HEARTH? Enacted May 20, 2009

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Game-Change: Overview of the HEARTH Act


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    1. Game-Change: Overview of the HEARTH Act Jason Satterfield Bridget Kurtt DeJong Piper Ehlen

    2. What is HEARTH? • Enacted May 20, 2009 • Changes HUD’s McKinney-Vento Homeless Assistance programs • First significant reauthorization since 1992

    3. HEARTH: Changes to McKinney-Vento Act Overview • This presentation identifies and explains the 10 most significant changes to the McKinney-Vento Act with the passage of the HEARTH Act • The 10 changes are grouped into 4 categories

    4. Changes to McKinney-Vento Act10 Things to Know About HEARTH

    5. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Programs B. CoC System C. CoC Governance • Additional Impacts

    6. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Programs • CoC Homeless Assistance Grants • Emergency Assistance & Prevention • Rural Areas

    7. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to Homeless Assistance Programs • CoC Homeless Assistance Grants • Consolidation of programs • Who can be served?

    8. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Consolidation of Programs Prior to HEARTH, the CoC grants included three programs: • Supportive Housing Program (SHP) • Shelter Plus Care (S+C), and • Section 8 SRO Moderate Rehabilitation (SRO Mod Rehab) Programs were subject to different rules regarding activities, match, etc.

    9. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Consolidation of Programs HEARTH creates one flexible program • SHP, S+C, and Section 8 SRO Mod Rehab are combined into one CoC program • one set of eligible activities • a single match requirement • a unified set of operating rules

    10. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Consolidation of Programs • Match: now 25% (except leasing & administration), can be in-kind, and calculated CoC-wide • Eligible activities: addition of re-housing activities • Administrative costs: up to 10% for project sponsors See Overview of the HEARTH Amendment Reference Tool for detailed description of changes including the new consolidated rules

    11. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Who Can Be Served Prior to HEARTH, all CoC programs (SHP, S+C, SRO Mod Rehab) required that the participants be “homeless” However, the requirements of who could be served varied from program to program

    12. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Who Can Be Served After HEARTH, the rules concerning eligible participants are streamlined and, in some cases, expanded: • The definitions of “homeless” and “chronically homeless” are expanded • The definition of “at risk” is codified • To a small degree, other federal definitions of homelessness are incorporated

    13. Changes to the McKinney-Vento ActA1. CoC Homeless Assistance Grants Who Can Be Served HUD regulations clarify definitions of “homeless” and provide information about documenting homeless status • Lacking fixed, regular, adequate nighttime residence • Imminent loss of primary nighttime residence • Unaccompanied youth or homeless families • Flight from domestic violence or violent situations See Reference Tool for more details

    14. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to Homeless Assistance Programs • Emergency Assistance & Prevention • Re-focused towards prevention & renamed • Increased Collaboration

    15. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Re-focused towards prevention & renamed Prior to HEARTH, HUD used a formula to allocate Emergency Shelter Grant funds to eligible jurisdictions • Shelters and other service providers used funding for: • renovation, rehabilitation, etc. • essential services • operating costs • homeless prevention • administration

    16. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Re-focused towards prevention & renamed

    17. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Re-focused towards prevention & renamed After HEARTH, a newly focused and expanded program • Old ESG: primarily for emergency shelters • New ESG (Emergency Solutions Grant): focus on prevention and rapid re-housing • Similar (but not identical) to HUD’s Homelessness Prevention and Rapid Re-Housing Program (HPRP ) • New ESG Activities • Short or mid-term rental assistance • Housing relocation and stabilization services See Reference Tool for more details

    18. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Re-focused towards prevention & renamed

    19. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Increased Collaboration Prior to HEARTH, to receive funds from the ESG program, the lead agency of an eligible jurisdiction needed to submit and obtain approval of a Consolidated Plan CoC collaboration was not specifically required.

    20. Changes to the McKinney-Vento ActA2. Emergency Assistance & Prevention Increased Collaboration After HEARTH, coordination with CoC now required • HMIS participation mandated by statute • Changes to definition of “at-risk” of homelessness impact Emergency Solutions Grants See Reference Tool for more details

    21. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to Homeless Assistance Programs • Rural Areas • Rural Housing Stability Program

    22. Changes to the McKinney-Vento ActA3. Rural Areas Rural Housing Stability Program Prior to HEARTH, the Rural Homeless Assistance Program was intended to be an alternate, simpler process to obtain CoC funding It was never funded by Congress or implemented

    23. Changes to the McKinney-Vento ActA3. Rural Areas Rural Housing Stability Program HEARTH introduces the Rural Housing Stability Assistance Program, which would fund areas in lieu of CoC grants Increases flexibility to serve people at risk of homelessness or in sub-standard housing SeeReference Tool for more details

    24. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Programs • CoC System • CoC Governance • Additional Impacts

    25. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • CoC System • Applying for Funds • Incentives • Performance Measurement

    26. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to the CoC System • Applying for CoC Funds • Selection criteria and CoC process have been codified • Additional funding streams and responsiveness to changing conditions • Some grant terms will be altered

    27. Changes to the McKinney-Vento ActB4. CoC System Applying for Funds Selection Criteria & CoC Process Have Been Codified Prior to HEARTH, selection criteria and internal CoC process were described annually by HUD in the Notice of Funding Availability (NOFA) and not explicitly spelled out in legislation

    28. Changes to the McKinney-Vento ActB4. CoC System – Applying for Funds Selection Criteria & CoC Process Have Been Codified After HEARTH, the national competition process is codified and selection criteria are defined by statute to include: • Prior CoC & ESG performance • Strategic plans Review & Rank now required; criteria are codified • Use of outcome data • Methodology of priority-setting process See Reference Tool for more details

    29. Changes to the McKinney-Vento ActB4. CoC System - Applying for Funds Additional Funding Streams & Responsiveness to Changing Conditions Prior to HEARTH, expiring contracts were funded through McKinney appropriations Leasing and operations budgets were rarely increased, despite increases in market rents in many communities

    30. Changes to the McKinney-Vento ActB4. CoC System - Applying for Funds Additional Funding Streams & Responsiveness to Changing Conditions • After HEARTH, there are new funding sources for permanent housing renewals • McKinney-Vento AND Project-Based Section 8 • For renewals, HUD will make adjustments proportional to increases in the fair market rents in the geographic area

    31. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to the CoC System • Incentives • Incentivizing Effective Practices • High-Performing Communities

    32. Changes to the McKinney-Vento ActB5. Changes to CoC System Incentives for Effective Program Models Prior to HEARTH, HUD encouraged communities to adopt proven strategies through a variety of means, including funding application scoring and demonstration projects.

    33. Changes to the McKinney-Vento ActB5. Changes to CoC System - Incentives After HEARTH, CoCs implementing proven strategies can receive incentives • HUD may provide bonuses or other incentives • Effective strategies to reduce/prevent homelessness: • Permanent supportive housing for chronically homeless individuals and families • Rapid re-housing services, short-term flexible subsidies to overcome housing barriers, support services to increase income, and strategies for leveraging TANF for families • Other activities that HUD determines to be effective • CoCs that fully implement such strategies can receive the bonus but use it for any eligible activity

    34. Changes to the McKinney-Vento ActB5. Changes to CoC System - Incentives High Performing Communities High-performing CoCs: eligible for incentives for proven strategies • Up to 10 communities designated every year and criteria includes • Shorter lengths of stay and fewer repeat instances of homelessness • Community encouragement of homeless participation in services and HMIS • Effectiveness of services and reaching goals related to families and youth under other federal statutes • High-performing CoCs are permitted to provide rental assistance and housing relocation/stabilization services to an expanded population See Reference Tool for more detail

    35. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Changes to the CoC System • Performance Measurement • HMIS Participation • Homeless Counts

    36. Changes to the McKinney-Vento ActB6. CoC System - Performance Measurement HMIS Participation Prior to HEARTH: Grantees reported on their progress to HUD each year in the Annual Progress Report Grantees input data concerning client demographics and outcomes in their CoC’s Homeless Management Information System (HMIS)

    37. Changes to the McKinney-Vento ActB6. CoC System - Performance Measurement HMIS Participation • HEARTH codifies HMIS expectations requiring, among other things, that systems be able to analyze patterns of use of assistance and comply with HUD Data Standards • Victim service providers must protect confidentiality See Reference Tool for more details

    38. Changes to the McKinney-Vento ActB6. CoC System - Performance Measurement Homeless Counts Prior to HEARTH, HUD required CoCs to conduct annual point-in-time counts of persons who are homeless according to rules established in HUD-issued guides After HEARTH, despite the expansion in the definition of homelessness, the count uses the same definition it has in past years See Reference Tool for more details

    39. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Programs • CoC System • CoC Governance • Additional Impacts

    40. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • CoC Governance • Collaborative Applicants &United Funding Agencies • Strategic & Community Planning

    41. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • CoC Governance • Collaborative Applicants & United Funding Agencies

    42. Changes to the McKinney-Vento ActC7. CoC Governance Collaborative Applicants Prior to HEARTH, CoCs apply for Homeless Assistance funds However, an effective CoC does more: • Takes a long-term perspective • Sets goal accepted by the larger community • Identifies unmet needs • Devises creative strategies to fill gaps in services • Has strong political support

    43. Changes to the McKinney-Vento ActC7. CoC Governance After HEARTH, CoCs will become Collaborative Applicants • Function in much the same way that many CoCs currently operate • Design application process and establish priorities • Participate in the Consolidated Plan • Ensure participation in HMIS • May receive up to 3% of CoC total grant for administrative costs See Reference Tool for more details

    44. Changes to the McKinney-Vento ActC7. CoC Governance Unified Funding Agencies (UFA) Prior to HEARTH, CoCs applied for funds and, in some communities, provided fiscal and program oversight

    45. Changes to the McKinney-Vento ActC7. CoC Governance After HEARTH, Collaborative Applicants may become Unified Funding Agencies • Subset of Collaborative Applicants • Sole recipient of a CoC’s McKinney-Vento funds and subgrantor to project sponsors • Oversees sponsor fiscal controls • Annually audits sponsor financial records • Receives additional 3% for administrative costs (for a total of 6%) • Selection – by application or HUD designation See Reference Tool for more details

    46. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • CoC Governance • Strategic & Community Planning

    47. Changes to the McKinney-Vento ActC8. CoC Governance Strategic & Community Planning Prior to HEARTH, HUD has considered CoC strategic planning when scoring a community’s consolidated application In recent funding cycles, HUD has also rated communities based on the level of coordination with other HUD resources, particularly American Recovery and Reinvestment Act Resources

    48. Changes to the McKinney-Vento ActC8. CoC Governance Strategic & Community Planning After HEARTH, selection criteria for Homeless Assistance funds codified in statute • A community’s homeless plan is evaluated to determine, among other things, how the incidence and duration of homelessness is reduced. • Communities are evaluated on responsiveness to need and the quality of outcomes • All Collaborative Applicants (including Unified Funding Agencies) must participate in the Consolidated Plan

    49. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Programs • CoC System • CoC Governance • Additional Impacts

    50. Changes to the McKinney-Vento Act10 Things to Know About HEARTH • Additional Impacts • Other Elements of HEARTH • Other procedures and systems may be affects