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FY 2013 - FY 2014 Continuum of Care Program Competition - FY 2013 Tier 1 Renewal Projects Award Announcement

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced nearly $1.6 billion in grants to renew support for 7,100 local homeless housing and service programs across the U.S., Puerto Rico, Guam and the U.S. Virgin Islands. Provided through HUD’s Continuum of Care (CoC) Program, the funding announced today will ensure these local projects remain operating in the coming year, providing critically needed housing and support services to those persons and families experiencing homelessness. These grants support a variety of programs including street outreach, client assessment, and direct housing assistance to individuals and families with children who are experiencing homelessness. HUD will award additional grant funding to support hundreds of other local programs in the coming weeks. View a complete list of all the state and local homeless projects awarded funding.

HUD funding will continue offering permanent and transitional housing to persons experiencing homelessness as well as services including job training, health care, mental health counseling, substance abuse treatment, and child care. HUD is continuing to challenge local communities to reexamine their response to homelessness and give greater weight to proven strategies, from providing ‘rapid re-housing’ for homeless families with children to permanent supportive housing for those experiencing chronic homelessness. CoC grants are awarded competitively to local projects to meet the needs of individuals and families experiencing homelessness in their community. The grants fund a wide variety of programs from street outreach and assessment to transitional and permanent housing for homeless persons and families. HUD funds are a critical part of the Obama Administration’s strategic plan to prevent and end homelessness.

The Fiscal Year 2013 grants awarded today were reduced in part due to last year’s automatic across-the-board budget cuts under sequestration. 

Details About Funds Announced Today for CoCs and Applicants

FY 2013 Tier 1 

As stated in the FY 2013 – FY 2014 CoC Program Competition NOFA, the national total of the Annual Renewal Demand (ARD) amounts submitted by CoCs in the FY 2013 CoC Registration exceeded the funding available after adjustments were made as a result of sequestration. In order to provide communities with the opportunity to make strategic decisions, HUD included a ranking process in the NOFA that required CoCs to prioritize projects into two tiers to communicate to HUD which projects were of the highest priority for the FY 2013 process. CoCs were required to rank all renewal projects, new projects created through reallocation, CoC planning projects, and UFA costs projects, if applicable. 

CoCs were notified of their specific tier amounts through the FY 2013 CoC Annual Renewal Demand (ARD) and ARD Less 5 Percent list posted on the OneCPD Resource Exchange.  
  • Tier 1 is equal to the CoC’s FY 2013 ARD approved by HUD either during the registration process or within the 7-day grace period after the NOFA was published minus 5 percent. 
  • Tier 2 is the amount remaining in FY 2013 ARD plus the approved amounts for CoC planning costs and UFA costs (if applicable).
  • If a project fell partly in Tier 1 and partly in Tier 2, the entire project was considered to be in Tier 2.
HUD will award projects based on the selection priorities stated in Section VII.B.1.b of the NOFA, with an initial announcement for Tier 1 renewal projects, followed by a second award announcement later in the year for all new (Tier 1 and Tier 2) and remaining renewal (Tier 2) projects.

Adjustments to Funding
The conditional award amounts included for renewal projects in the Tier 1 renewal announcement may be different than the request that was submitted in the project application. The McKinney-Vento Act, as amended by the HEARTH Act, requires HUD to make certain adjustments to funding prior to award. These adjustments were made AFTER the tiers were established and are as follows:
  1. Funds awarded for rental assistance were adjusted by applying the Fair Market Rent (FMR) in effect at the time of application submission (including decreases). View the FY 2014 Fair Market Rent Limits.
  2. Funds awarded for operating and leasing in permanent housing projects were increased based on the average increase in FMR amounts within a CoC’s geographic area, weighted for population density. Because operating and leasing costs do not decrease relative to rent amounts for specific units, adjustments were not made to these costs if the FMRs decreased in the geographic area. 
  3. In addition to these required adjustments, projects were reviewed to ensure that they were consistent with the approved Grants Inventory Worksheet and CoC Program interim rule. 
If you have additional questions or require more specific information, please submit a question to the e-snaps OneCPD Ask A Question or contact your local HUD CPD field office.

Visit the OneCPD Resource Exchange at https://www.onecpd.info
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