Changes to HUD Emergency Solutions Grant (ESG) Policies that Affect Service Providers
Understanding Changes to HUD ESG Policy Waivers
In order to accommodate new social distancing measures, HUD released policy waivers to Emergency Solutions Grant recipients on Wednesday, April 1. These waivers help ensure that youth and service providers can maintain social distance while still continuing with their housing programs and drop-in centers. These waivers aim to lessen the burdens the pandemic has created for service providers and ensure that youth experiencing homelessness can still access housing.
KEY TAKEAWAYS:
Service Providers can now use ESG funding to pay rent for new rapid re-housing units that are higher than Fair Market Rate (FMR), but not greater than the reasonable rent.
Case management is no longer required monthly and can be offered on an as-needed basis (and in a manner that maintains social distancing measures) for the next 2 months.
All ESG recipients can now use their funding to upgrade or enhance their HMIS systems regardless of if they are the HMIS lead or not.
ESG funded programs now only have to re-evaluate program participant eligibility for homelessness prevention assistance every 6 months.
IN-DEPTH:
On April 1st, in response to the COVID-19 pandemic, HUD waived several restrictions on rapid re-housing policy that required service providers, landlords and/or clients to meet face-to-face. These waivers have been implemented to stop the spread of COVID-19 while still continuing rapid re-housing services:
In order to more rapidly house clients, service providers can now place clients in rapid re-housing units that are more costly than the Fair Market Rate, but not greater than the reasonable rent. This policy will remain in effect for 6 months.
This is especially beneficial for service providers in high-cost markets.
There is no information yet on whether or not ESG funding can continue to pay a higher rate than the FMR after 6 months have passed.
Monthly case management is no longer required.
Service providers can now offer case management on an as-needed basis.
This is in effect for 2 months.
Any service provider can use their ESG funds to update their HMIS system now.
Before these waivers, only the HMIS lead could appropriate ESG funds to do this.
This waiver is in effect for 6 months.
ESG funded program staff only need to re-evaluate program participants eligibility for homelessness prevention assistance every 6 months as opposed to every 3 months.
This is in effect for 2 years.
ACTIONS TO TAKE NOW:
To use any of these waivers, service providers need to notify their HUD Field Office’s Community Planning and Development Director via email or mail.
The notification must be sent 2 days before the service provider intends to use the waiver.
The waiver should include:
Name, Title, & Contact Info for service provider
Service area(s) affected by the disaster
When the waiver will start to be used
Which waivers will be used (official waiver names listed here)
Work with clients to determine if they will want case management for the next two months. For clients who decline, consider bringing awareness to services via email/text on a regular basis.
IMPORTANT LINKS: