Glenside, PA – February 27, 2009 – (RealEstateRama) — Congress included, as part of the $787 billion economic recovery package in the American Recovery and Reinvestment Plan, $1.5 billion for prevention and re-housing activities for a Homelessness Prevention Fund, to be administered through the Emergency Shelter Grant (ESG) program.
The Homelessness Prevention Fund will provide financial assistance and services to prevent individuals and families from becoming homeless and help those who are experiencing homelessness to be quickly re-housed and stabilized. The funds under this program are intended to target individuals and families who would be homeless but for this assistance. The funds will provide for a variety of assistance, including: short-term or medium-term rental assistance and housing relocation and stabilization services, including such activities as mediation, credit counseling, security or utility deposits, utility payments, moving cost assistance, and case management.
At least 60 percent of funds must be spent within two years; all funds must be spent within three years. Reporting requirements will be presented in a forthcoming notice from HUD.
Eligible applicants include Metropolitan Cities, urban Counties and States (for distribution to local governments and private nonprofit organizations).
For more information, visit HUD’s website.