Matchand Leverage for the Continuum of Care Program

U.S. Housing and Urban Development (HUD) homeless program funding is limited and can provide only a portion of the resources needed to successfully address the needs of homeless families and individuals. HUD requires recipients or subrecipients to use supplemental resources as match and leverageto address homeless needs.It is important to note that match and leverage are separate and distinct.

Match vs. Leverage
Match is actual cash or in-kind resources contributed to the grant. All eligible funding costs (except leasing) must be matched at least 25%. Match must be used for eligible activities as defined by the CoC Program Interim Rule, 24 CFR Part 578, subpart D. Match excludes program income and participant mainstream benefits. Match may come from any source, including other federal, state, local, or private sources, but it is important to note that some federal sources of funding outside of HUD do not allow their funds to be used as match.It is the applicant’s responsibility to confirm with each source of funding whether the use of such funding for match purposes is permitted.
Please note: Mainstream benefits paid directly to clients are not an eligible source of match.
Leverageis non-match cash or non-match in-kind resources committed to making the CoC project fully operational. It includes all funds, resources, and/or services beyond the 25% required match that the applicant can secure on behalf of the client being served by the proposed project. Recipients and sub-recipients are required to document at least 150% leverage for their CoC-funded project. Leveraged funds may be used for any program-related costs even if the costs are not budgeted or eligible in the CoC Program.

Cash vs. In Kind

Cash Contributions
Cash match is when the recipient or subrecipient pays for an eligible activity with funds from the agency that arenot CoC program grant funds. CoC Program funds cannot be used to match other CoC funded projects.
In-kind Contributions
Non-cash resources are considered in kind. The recipient or subrecipient may use the value of real property, equipment, goods, or services contributed to the project as match and leverage. Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the recipient or subrecipient’s organization. If the recipient or subrecipient does not have employees performing similar work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor market.
Please note: If your project is awarded funds by HUD, a Memorandum of Understanding (MOU) must be executed for all in-kind servicematchprovided by another entity prior to the execution of your grant agreement/operating year.

Match and Leverage Documentation Requirements

This packet includes a template with all elements required to document match and leveragecommitments, as well as instructions for completing the template. Should you choose to modify the template in any way, you must ensure that the documentation submitted includes all required elements. Incomplete documentation will not be accepted.

Documentation of Cash Contributions:

Documentation should be included in a commitment letter and should be able to be tracked through the agency’s financial statements, general ledger statements, or other records that reflect yearly financial status. Written documentation should be provided on the source agency’s letterhead, signed and dated by an authorized representative, and should include the following, at minimum:

  • Amount of cash to be provided to the recipient for the project;
  • Specific date the cash will be made available;
  • The actual grant and fiscal year to which the cash match will be contributed;
  • Time period during which funding will be available; and
  • Allowable activities to be funded by the cash match.

Documentation for Goods and Equipment:

Written documentation of a donation of in-kind goods and/or equipment must be provided on the source agency's letterhead, signed and dated by an authorized representative of the source agency, and must, at a minimum, include the following:

  • Value of donated goods to be provided to the recipient for the project;
  • Specific date the goods will be made available;
  • The actual grant and fiscal year to which the match will be contributed;
  • Time period during which the donation will be available;
  • Allowable activities to be provided by the donation; and
  • Value of commitments of land, buildings, and equipment–the value of these items are one-time only and cannot be claimed by more than one project or by the same project in another year.

Written confirmation must also conform to the OMB Circular requirements in 24 CFR Parts 84 and 85.

Documentation for Services:

Please note: If your project is awarded funds by HUD, a Memorandum of Understanding (MOU) must be executed for all in-kindservice matchprovided by another entity prior to the execution of your grant agreement/operating year

The recipient/subrecipient must enter into a formal memorandum of understanding (MOU) with the agency providing the in-kind service(s) and must establish a system to document the actual value of services provided during the term of the grant. A recipient or subrecipient may use a letter from the partner agency to document the commitment to provide the in-kind service in advance of executing a formal MOU, for instance, if the recipient/subrecipient opts to wait to execute an MOU upon receipt of notification of award from HUD. The MOU may be between a recipient or a subrecipient and another agency, but the terms must be described in the MOU.

At a minimum, an MOU must be executed between a recipient and/or subrecipient and a third party service provider and include the following information:

  • Agency Information:
  • Recipient’s/subrecipient’s identifying information with point(s) of contact
  • Service provider’s identifying information with point(s) of contact
  • Unconditional Commitment of Third Party Provider to Provide the Service
  • Description of Services to be Provided
  • Scope of Services to be Provided and by Whom
  • Specific contract to be matched
  • Length of time services provided/term of contract
  • Point-in-time number of clients receiving service
  • Total clients receiving service over grant term
  • Qualification of persons providing service
  • Estimated value of services provided (such as hourly rate)
  • Documentation of Services Match
  • Documentation requirements and responsibilities of service provider and recipient
  • Timeliness standards of service provider and recipient for providing services to individual
  • A copy of the MOU must be provided to HUD prior to grant agreement execution to document the required match for the grant.

It is the responsibility of the recipient/subrecipient to periodically check with providers of in-kind match, not only to ensure that they are providing adequate documentation but also to determine that the fee structure and types of services provided has not changed.

Proof of Match:

Recipient/Subrecipient records must show that enough matching funds have been secured and that the funds have been spent on eligible activities. Records must also indicate which grant and operating year the match is counted towards.

Each applicant must submit written commitments of match and leverage for the project to Strategies to End Homelessness staff by the date established in the FY 2015 timeline for inclusion in the FY 2015 CoC Consolidated Application.(Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties (18 U.S.C. §§ 1001, 1010, 1012, 31 U.S.C. §§ 3729, 3802).

The table below should be completed for each source of match or leveraged funds, and should be printed on the letterhead of the entity providing the resource.

[Contributing Agency Letterhead--Information regarding the leveraged resource or match to be provided by this agency in the chart below.]

INSTRUCTIONS FOR COMPLETING LEVERAGED RESOURCE OR MATCHCOMMITTMENT

Is this leverage or match? / Match (cash or in-kind) must be used for eligible program costs only and must be equal to or greater than 25% of the total grant request for all eligible costs except leasing. Leverage funds can be used for any program related costs.
Is this cash or in kind? / Indicate whether this commitment is for a cash or non-cash (in kind) resource.
Government or Private? / Select Private or Government to denote the original source of the contribution. (i.e. Medicaid-funded services would be government; United Way-funded would be considered private)
Name of organization providingcontribution / Enter the subrecipient name or the name of the organization providing the resource. This template should be printed on the letterhead of the agency listed here.
Activities funded with leverage or match / For in kind or cash match, enter one or more eligible activities. For leverage, enter one or more activities that make the project fully operational.
Number of clients to be servedwith the contribution / Enter the number of clients anticipated to be served with this contribution.
Value of the contribution per client / Enter the value of the contribution per client.
Total value of the contribution / The total value of the contribution must equal the number of clients to be served x the value of the contribution per client.
Name of project / This should be the name of the project as awarded by HUD.
Name of project sponsor agency / This should be the name of the agency receiving the HUD award.
Date the contribution will be made available / This date should be on or before the start date of your 2016-2017 operating year.
Grant or fiscal year to which contribution will be applied / Fiscal Year 2015
Time period for which contribution will be available / [______],2016 through [______],2017
For renewals, this date must coincide with your 2016-2017 operating year.
Name of person authorized to commit these resources / Enter the name of the person authorized to commit these resources.
Title of person authorized to committhese resources / Enter the title of person authorized to commit these resources.
Signature of person authorized tocommit these resources / Place authorized signature here.
Date of signature / Enter the date the signature was obtained.

LEVERAGED RESOURCE OR MATCHCOMMITTMENT

Type of resource (select one): / Type of contribution (select one): / Source of contribution (select one):
Match
Leverage / Cash
In Kind / Government
Private
Name of organization providingcontribution
Activities funded with leverage or match
Number of clients to be served with the contribution
Value of the contribution per client
Total value of the contribution
Name of project
Name of project sponsor agency
Date the contribution will be made available
Grant or fiscal year to which contribution will be applied / Fiscal Year 2015
Time period for which contribution will be available / [______],2016 through [______],2017
Name of person authorized to commit these resources
Title of person authorized to committhese resources
Signature of person authorized tocommit these resources
Date of signature

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