San Francisco

HUD CONTINUUM OF CARE

HOMELESS ASSISTANCE GRANTS

Bidders’ Conference

2013 NOFA Competition

HUD TA Manual for New Projects

December 3, 2013

TABLE OF CONTENTS

SUMMARY

2013 NOFA Competition Overview and Funding Available...... 3

PROGRAM INFORMATION

New Projects Created Through Reallocation...... 6

Eligible Beneficiaries: Who Can Be Served...... 11

CoC Program Requirements...... 16

Leverage and Match...... 27

Energy Star...... 31

Later Responsibilitiesfor CoC Program Recipients and Subrecipients...... 32

HUD FORMS

HUD’s Electronic Application System: e-SNAPS...... 36

SUMMARY

2013 NOFA COMPETITION OVERVIEW and FUNDING AVAILABLE

The U.S. Department of Housing and Urban Development has released the 2013/2014 Notice of Funding Availability (NOFA) for the McKinney-Vento Continuum of Care Homeless Assistance Grants.San Francisco is eligible to apply for $22,499,055 in funding to support housing and services for homeless households. That funding breaks down as follows:

Renewal Project Funding:
This funding supports the CoC’s existing housing and services.The CoC can continue to support those programs, or could choose to redirect those resources to new permanent supportive housing for chronically homeless people or new rapid re-housing project(s) for homeless households with children. This amount also includes the CoC Planning grant, which is in renewal status. / $22,499,055
HUD does not anticipate that FY 2013 funding will be adequate to fund all eligible renewal projects, and is using the Tier structure again. Tier 1 is equal to the annual renewal demand amount less 5%. So, 5% of our renewal funding will be in Tier 2 and at risk of not being funded.
The Tier 1 and Tier 2 amounts will be determined upon release of final FY 2013 ARD and Tier 1 amounts by HUD by December 7th, 2013.
San Francisco’s Annual Renewal Demand: $22,499,055
San Francisco’s Projected Tier 1 Amount: $21,374,102
San Francisco’s Projected Tier 2 Amount: $1,124,953

Funds are NOT available for:

  • Emergency shelter
  • Prevention of homelessness projects
  • New transitional housing
  • New HMIS
  • New SSO projects

In order to compete in the 2013 NOFA competition, the CoC prepares one consolidated application to HUD. The application consists of three parts: the CoC Application, which describes the CoC’s efforts to address homelessness; approximately 62Project Applications, each of which deals with one project seeking funding; and the Project Listing, which ranks the project applications for HUD, showing the CoCs priorities for funding.

This competition, which culminates in the Project Review process, will conclude on January 17, 2014. Before that date, the CoC holds a local competition to determine which applications will be included in the consolidated application and their rank order. The results of the local competition dictate for which projects the CoC will seek funding. ThisBidders’ Conference is focused primarily upon how interested agencies can participate in the local competition for McKinney-Vento funds.

In contrast to previous years, in FY2013 there is no funding available for new Permanent Housing Bonus projects. The Continuum of Care, however, has the option to reallocate funds from CoC renewal projects (whose CoC Program budgets would be reduced or eliminated) to fund new permanent supportive housing project(s) for chronically homeless people or new rapid re-housing project(s) for homeless households with children living on the streets or in emergency shelter.

While there is no guarantee, we currently estimate that there may be at least $600,000 in reallocated funds available to create new projects in San Francisco. This number may change as the Priority Panel reviews projects and makes its funding recommendation.

In short, this is the timeline for the competition. A more detailed timeline, including due dates and applicant requirements, is found as a separate page in your Bidders’ Conference packet.

Event / Estimated Date*
National NOFA Competition opens / November 22, 2013
Project Applications Due to the CoC / December 17, 2013
Posting of Preliminary Priority List / January 8, 2014
Appeals Process (If needed) / January 15, 2014
Final Priority List Distributed / January 17, 2014
CoC’s Consolidated Application Submitted to HUD / No later thanFebruary 3, 2014
Anticipated Tier 1 Renewal Awards / March 2014
Anticipated Renewal Grant Execution / Spring 2014

Key Changes from Prior Years:

  • This NOFA and the CoC application will covertwo fiscal years (there will be new project applications next year, but no new CoC application), so the CoC score will remain for two years.
  • As mentioned above, HUD does not anticipate that FY 2013 funding will be adequate to fund all eligible renewal projects, and is using the Tier structure again. Tier 1 is equal to the annual renewal demand amount less 5%.
  • In FY2013, due to funding limitations, HUD will not consider requests for new funding outside of the reallocation process and CoC planning. CoCs may use reallocation to create new PSH projects that serve the chronically homeless; or, through reallocation, CoCs may create newrapid re-housing projects for homeless households with children (Rapid re-housing projects must serve households with children living on the streets or in emergency shelter.)
  • Regarding FY 2014: When the level of funding is known for FY 2014 (no earlier than 60 days after Congress appropriates FY 2014 funding), HUD will announce this amount and submission deadlines through separate notice. At that time, the CoC will submit a modified CoC registration (including a GIW) and a Project Listing. Projects will do applications for FY 2014 funds, including new projects created through reallocation.
  • Under this NOFA, CoCs will be evaluated on the extent to which they are prioritizing the chronically homeless in all CoC Program-funded permanent supportive housing–not just those units that are dedicated to that population. HUD encourages CoCs to prioritize the chronically homeless for placement as units become available through turnover.
  • Eligible renewal projects requesting rental assistance will now be permitted to request a per-unit amount less than the Fair Market Rent (FMR), based on the actual rent costs per unit.This change will help to reduce the number of projects receiving rental assistance that have large balances of unspent funds remaining at the end of the operating year.
  • Like last year, HUD is requiring some deadlines for our local process. These requirements, combined with the NOFA period occurring during the Winter holidays, has limited the flexibility of our local timeline.
  • Like last year, the CoC will be scored on leveraging for all projects (not just new projects). Both new and renewal projects need to collect leverage documentation.
  • The NOFA will be very competitive this year and HUD has changed its scoring factors significantly. We may be asking you for different information to help us complete the CoC Application.

PROGRAM INFORMATION

NEW PROJECTS CREATED THROUGH REALLOCATION

If your agency is interested in applying for funding for a new grant, please read this section closely.

REALLOCATION: In 2013, this CoC may reallocate renewal funding to new permanent supportive housing projects that serve the chronically homeless or to new rapid re-housing projects for homeless households with children.While there is no guarantee, we currently estimate that there may be at least $600,000 in reallocated funds available to create new projects in San Francisco. This number may change as the Priority Panel reviews projects and makes its funding recommendation.

In this CoC, the Reallocation funds can be used for:

  • Rental Assistance
  • Leasing
  • Operating
  • Supportive Services
  • HMIS
  • Administration

New Transitional Housing programs and new Supportive Services Only programs may NOT be funded by reallocated funds.

Threshold Requirements:

For new projects created through reallocation, the review process will consider applicant and subrecipient eligibility and capacity, project eligibility, and project quality as part of the threshold review.

HUD’s project quality thresholds for new projects must be met with clear and convincing evidence.The housing and services proposed must be appropriate to the needs of the program participants and the community.

  • The project eligibility threshold requirements include factors such as applicant/subrecipient eligibility, financial and management capacity, submitting required certifications, serving an eligible population, cost-effectiveness, HMIS participation, and whether project applicants administer their programs or activities in the most integrated setting appropriate to the needs of qualified homeless with disabilities.
  • The project quality threshold includes factors such as the type, scale, and location of housing; the type, scale, and location of services; the plan to connect clients to benefits, maintain their housing, and increase their incomes; whether at least 75% of program participants come from street, shelter or safe havens; and whether amenities are accessible in the community. Please note: In contrast to last year, when the project quality threshold for new PSH projects was achieving at least 5 out of 8 possible points, in FY 2013, the new PSH or RRH project must achieve at least 5 out of 7 possible points (the “most integrated setting appropriate” criteria was moved to the project eligibility criteria).
  • Projects also must evidence satisfactory capacity, drawdowns, and performance for existing grant(s) and meet all timeliness standards. For expansion projects, project applicants must clearly articulate the part of the project that is being expanded. Additionally, the project applicants must clearly demonstrate that they are not replacing other funding sources.
  • HUD reserves the right to deny the funding request for a new project, if the request is made by an existing recipient that is found to have significant issues related to capacity, performance, or unresolved audit/monitoring finding related to one or more existing grants. Additionally, HUD reserves the right to withdraw funds if no APR is submitted on the prior grant.

Eligible Components/Project Types:

  • Permanent supportive housing for disabled people(chronically homeless only)
  • Rapid re-housing (for homeless households with children living on the streets or in emergency shelter)

Eligible Activities(See also CoC Program Requirements section of this Manual):

  • Leasing
  • Where the recipient or subrecipient is leasing the structure, or portions thereof, grant funds may be used to pay for 100 percent of the costs of leasing a structure or structures, or portions thereof, to provide housing or supportive services to homeless persons.
  • Leasing funds may not be used to lease units or structures owned by the recipient, subrecipient, their parent organization(s), any other related organization(s), or organizations that are members of a partnership, where the partnership owns the structure, unless HUD authorized an exception for good cause.
  • Rental assistance
  • Rental assistance may be short-term, up to 3 months of rent; medium-term, for 3 to 24 months of rent; or long-term, for longer than 24 months of rent and must be administered in accordance with the policies and procedures established by the Continuum. (If applying for rental assistance, permanent supportive housing projects need to request long-term rental assistance; whereas rapid re-housing projects may request short-term and/or medium-term rental assistance).
  • Rental assistance may be tenant-based, project-based, or sponsor-based, and may be used for transitional or permanent housing. (new projects created through reallocation may only apply for permanent supportive housing or rapid re-housing).
  • Rental assistance must be administered by a State, unit of general local government, or a public housing agency.
  • Operating costs
  • Grant funds may be used to pay the costs of the day-to-day operation of transitional and permanent housing in a single structure or individual housing units.
  • Program funds may not be used for rental assistance and operating costs in the same project.
  • Program funds may not be used for the operating costs of emergency shelter- and supportive service-only facilities.
  • Program funds may not be used for the maintenance and repair of housing where the costs of maintaining and repairing the housing are included in the lease.
  • Supportive services
  • HMIS (HUD will fund only one dedicated HMIS project in each CoC)
  • Combination of the above
  • Project administration

Current Funding Limits:

  • This year, administrative costs up to 7% of the grant may be awarded. If the recipient has a subrecipient, it must share at least 50 percent of project administrative funds with its subrecipient(s).

Timeliness:

  • Proof of site control, match, environmental review, and the documentation of financial feasibility must be completed within 12 months of the announcement of the award, or 24 months in the case of funds for acquisition, rehabilitation, or new construction. The 12-month deadline may be extended by HUD for up to 12 additional months upon a showing of compelling reasons for delay due to factors beyond the control of the recipient or subrecipient.
  • For recipients of funds for rehabilitation or new construction:
  • Construction activities must begin within 9 months of the later of signing of the grant agreement or of signing an addendum to the grant agreement authorizing use of grant funds for the project.
  • Construction activities must be completed within 24 months of signing the grant agreement.
  • Activities that cannot begin until after construction activities are completed must begin within 3 months of the date that construction activities are completed.

Eligible Applicants:

  • States
  • Local governments
  • Instrumentalities of State and local governments
  • Public housing agencies
  • Non-profit organizations

NOTE: HUD will review the applicant’s capacity to do the work.

Initial Funding Term:

  • NewNewprojects created through reallocation may request funding for a 1-year grant term (but in some cases, can also apply for up to a 5-year grant). The exception is that new projects requesting funds for acquisition, rehabilitation, or new construction are only eligible for a minimum of 3-year grant terms.
  • In FY 2013, this means that a new project requesting, for example, $300,000 would receive the full amount for a one year grant, $150,000 each year for a two year grant, and $100,000 each year for a three year grant, and so on.

Match Requirement:

  • The recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of funds or in-kind contributions from other sources. The 25 percent match must be provided on a grant-by-grant basis.
  • Cash Match: A recipient or subrecipient may use funds from any source, including any other federal sources (excluding Continuum of Care program fundsincluding program income), as well as State, local, and private sources, provided that funds from the source are not statutorily prohibited to be used as a match.
  • In-kind Match:
  • The recipient or subrecipient may use the value of any real property, equipment, goods, or services contributed to the project as match, provided that if the recipient or subrecipient had to pay for them with grant funds, the costs would have been eligible.
  • Before grant execution, services to be provided by a third party must be documented by a memorandum of understanding (MOU) between the recipient or subrecipient and the third party that will provide the services.
  • Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the recipient’s or subrecipient’s organization.
  • The MOU must establish the unconditional commitment, except for selection to receive a grant, by the third party to provide the services, the specific service to be provided, the profession of the persons providing the service, and the hourly cost of the service to be provided.

Program Design:

  • New PSH projects created through reallocation must exclusively serve chronically homeless individuals and/or households with children. Renewal PSH projects may limit admission to, or provide a preference for, specific disabled sub-populations of homeless persons and families who need the specialized supportive services that are provided in the housing, as required in the current grant agreement. However, the chronically homeless within the specified subpopulation should be prioritized for entry. All PSH projects, whether new and renewal, should also use a Housing First[1] approach in their design.
  • New rapid re-housing projects created through reallocation must serve households with children living on the streets or in emergency shelter.

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HomeBase/ Legal & Technical Assistance Advancing Solutions to Homelessness December 3, 2013

ELIGIBLE BENEFICIARIES: WHO CAN BE SERVED

All HUD CoC funding programs require that participants be homeless. However, who counts as homeless, eligible, and both varies for different programs.

While some of the categories below identify a certain subpopulation of homeless people who projects MUST serve exclusively, this does not mean the subpopulation may not be served by another project that is not limited to that population.

As always, what governs is your grant agreement. If your grant agreement limits who you can serve, that is the population you must serve.

Key to abbreviations: HEARTH Definition Categories

PH = permanent housing
SH[2] = Safe Haven
TH = transitional housing
SSO = supportive services only
SB = Projects funded under the Samaritan Bonus or other funding that requires serving chronically homeless people / Cat 1 = Shelter, Streets, etc.
Cat 2 = Imminently At Risk of Homelessness
Cat 3 = Families/youth homeless under other Federal statutes
Cat 4 = Homeless due to domestic violence, etc.

Who Is “Homeless”?

PH / SH / TH / SSO / SB
Living in places not meant for human habitation: cars, parks, sidewalks, and abandoned buildings / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1
Living in emergency shelter or government/charity-funded motel (emergency voucher) / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1
Living in a Safe Haven / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1
Lived in one of the above places but temporarily – for no more than 90 days[3] – in an institution / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1
Living in Transitional Housing for homeless and originally came from the streets or emergency shelter / X
Cat 1 / X
Cat 1 / X
Cat 1 / X
Cat 1 / *See chronically homeless below
Living in Transitional Housing for homeless and DID NOT originally came from the streets or emergency shelter / X
Cat 1 / X
Cat 1
Being evicted within fourteen days[4] and no subsequent residence has been identified and lacks resources and support network to access housing / X
Cat 2 / X
Cat 2
Being discharged within fourteen days[5] from institution (where was resident for more than 90 days[6] or where did not move to institution directly from streets/shelter) and no subsequent residence has been identified and lacks resources and support network to access housing / X
Cat 2 / X
Cat 2
Unaccompanied youth under 25 or families with children homeless under other Federal statutes and who have not had a lease/ownership/occupancy agreement for past 60 days, have moved 2+ times in past 60 days, and will continue being unstably housed because of one of several conditions/situations (e.g. chronic disabilities, employment barriers, etc.) / X
Cat 3
(if have special HUD
approval) / X
Cat 3
(if have special HUD
approval)
Fleeing domestic/dating violence, sexual assault, stalking, etc. and no other residence has been identified and lacks resources and support network to access housing / X
Cat 4 / X
Cat 4 / X
Cat 4 / X
Cat 4

Other Eligibility Requirements for CoC Program Beneficiaries