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FY2012 Tier 2 Renewal Projects Announcement

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced a second round of renewed support for more than 500 local homeless housing and service programs across the U.S. Provided through HUD’s Continuum of Care Program, the funding announced today will ensure these local projects remain operating in the coming year. This year, HUD challenged local communities to reexamine their response to homelessness and give greater weight to proven strategies, from providing ‘rapid re-housing’ for homeless families to permanent supportive housing for those experiencing chronic homelessness (see chart below or view chart here).

The $72 million in grants announced today support a wide range of programs including street outreach, client assessment, and direct housing assistance. In March, HUD awarded more than $1.5 billion in a first round of grant funding to renew support for more than 7,000 other local programs. View a complete list of all the state and local homeless projects awarded funding.

It should be noted that since the announcement of the Tier 1 renewal projects HUD determined, based on the calculations of all project applications submitted by the January 18, 2013 submission deadline, that it would be able to fund Tier 2 renewals.
HUD intends to announce the new projects within the next 60 days. The announcement will include new projects that pass the threshold scoring for project applications that are included in a CoC that scores at a minimum of 97 points out of 130 points. Both the new project applications created through reallocation and CoC planning costs applications do not depend on the CoC Application score; however, these projects are treated as new projects and must pass the project application review threshold in order to be considered for an award.

Adjustments to Funding

The conditional award amounts for many Tier 2 renewal projects are different than the requested amount indicated in the project application. This is because HUD was required to make adjustments to funding in accordance with the HEARTH Act and the CoC Program interim rule. It should be noted that these adjustments were made after the tiers were established, and as follows:

1. Funds awarded for rental assistance were adjusted by applying the Fair Market Rent (FMR) in effect at the time of award, including in the cases where the FMR for a specific area decreased from the previous year. View the FY2013 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 the CoC’s geographic area, weighted for population density. Because leasing and operating costs do not decrease relative to rent amounts for specific units (e.g., operating costs for 10 units that have rents of $500 are likely the same as for 10 units that have rents that are $450), adjustments to leasing and operating line items did not include decreases if FMRs decreased in the geographic area. 
3. Funds awarded for rental assistance project administration were decreased if the awarded amount exceeded 7 percent cap. The amount awarded was reduced back to 7 percent. 
4. Funds awarded for project administration were decreased if the amount awarded exceeded the 10 percent cap. The amount awarded was reduced back to 10 percent.
In addition to these required adjustments, projects were reviewed to ensure that they were consistent with the approved FY2012 Grants Inventory Worksheet.

For a local summary of the grants announced today, visit the FY2012 CoC Renewal Grants Awards page on the OneCPD Resource Exchange.

View FY2012 CoC Program Competition Tier 2 Funding Awards by State below: 
FY2012 CoC Awards Chart by state

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