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An Introduction to the Homeless Assistance Grants Homelessness in America has always existed, but it did not come to the public's attention as a national issue until the 1970s and 1980s, when the characteristics of the homeless population and their living arrangements began to change.
Throughout the early and middle part of the 20 th century, homelessness was typified by "skid rows"—areas with hotels and single-room occupancy dwellings where transient single men lived. 1, pp. 20-21, 27-28.")
Skid rows were usually removed from the more populated areas of cities, and it was uncommon for individuals to actually live on the streets. 2 Beginning in the 1970s, however, the homeless population began to grow and become more visible to the general public.
According to studies from the time, homeless persons were no longer almost exclusively single men, but included women with children; their median age was younger; they were more racially diverse (in previous decades the observed homeless population was largely white); they were less likely to be employed (and therefore had lower incomes); they were mentally ill in higher proportions than previously; and individuals who were abusing or had abused drugs began to become more prevalent in the population.
3 A number of reasons have been offered for the growth in the number of homeless persons and their increasing visibility. Many cities demolished skid rows to make way for urban development, leaving some residents without affordable housing options.
4 Other possible factors contributing to homelessness include the decreased availability of affordable housing generally, the reduced need for seasonal unskilled labor, the reduced likelihood that relatives will accommodate homeless family members, the decreased value of public benefits, and changed admissions standards at mental hospitals. 5, pp. 31-126.")
The increased visibility of homeless people was due, in part, to the decriminalization of actions such as public drunkenness, loitering, and vagrancy. 6 In the 1980s, Congress first responded to the growing prevalence of homelessness with several separate grant programs designed to address the food and shelter needs of homeless individuals. 7, the Emergency Shelter Grants Program ( P.
L. 99-591 ), and the Transitional Housing Demonstration Program ( P. L.
99-591 ). In 1987, all three were incorporated into the Stewart B. McKinney Homeless Assistance Act ( P.
L. 100-77 ), although the Transitional Housing Demonstration Program was renamed the Supportive Housing Demonstration Program.") Then, in 1987, Congress enacted the Stewart B.
McKinney Homeless Assistance Act (McKinney Act), which created a number of new programs to comprehensively address the needs of homeless people, including food, shelter, health care, and education (P. L. 100-77).
The act was later renamed the McKinney-Vento Homeless Assistance Act (McKinney-Vento) in P. L. 106-400 after its other prominent sponsor, Bruce F.
Vento. 8 Among the programs authorized in the McKinney-Vento Act were four grants to provide housing and related assistance to homeless persons: the Emergency Shelter Grants (ESG) program, the Supportive Housing Demonstration program, the Supplemental Assistance for Facilities to Assist the Homeless (SAFAH) program, and the Section 8 Moderate Rehabilitation Assistance for Single Room Occupancy Dwellings (SRO) program.
These four programs, administered by the U.S. Department of Housing and Urban Development (HUD), were created to provide temporary and permanent housing to homeless persons, along with supportive services. Over the years, Congress changed the makeup of the Homeless Assistance Grants, but for 20 years, from 1992 to 2012, the same four grant programs composed the Homeless Assistance Grants.
These were the ESG program, the Supportive Housing Program (SHP), the Shelter Plus Care (S+C) program, and the SRO program. 9.") On May 20, 2009, for the first time since 1992, the Homeless Assistance Grants were reauthorized as part of the Helping Families Save Their Homes Act (P.
L. 111-22). The law is often referred to as the "HEARTH Act" after its title in P.
L. 111-22 (the Homeless Emergency Assistance and Rapid Transition to Housing Act).
The HEARTH Act changed the makeup of the four existing grants—the SHP, S+C, and SRO programs were combined into one grant called the "Continuum of Care" (CoC) program; the ESG program was renamed the "Emergency Solutions Grants"; and rural communities were to have the option of competing for funds under a new Rural Housing Stability Assistance Program (RHS).
The way in which the funds are distributed, the purposes for which grantees may use funds, and the people who may be served have also changed. The HEARTH Act authorized the Continuum of Care Program, together with the Emergency Solutions Grants Program, at $2. 2 billion in FY2010 and such sums as necessary for FY2011.
[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)Report Organization In FY2011, HUD first awarded funds under the new ESG program, and FY2012 was the first year that funds were awarded pursuant to the CoC program. New regulations regarding the definition of homelessness became effective on January 5, 2012, and HUD released proposed regulations for the RHS program on March 27, 2013 (with comments due by May 28, 2013).
This report has multiple sections describing the implementation of the HEARTH Act provisions.
It describes * the HEARTH Act changes to the definition of homelessness in the section "The Definition of Homelessness"; * the way in which ESG operated prior to HEARTH Act implementation as well as the changes made beginning in FY2011 in the section "The Emergency Solutions Grants Program (ESG)"; * components of the competitive Homeless Assistance Grants prior to enactment of the HEARTH Act, and how they have been absorbed in the CoC program in the section "Transition to the Continuum of Care Program"; * how funds are distributed pursuant to the CoC program in the section "Distribution of Continuum of Care Program Funds"; and * the housing and services that are authorized to be provided through the RHS program and how communities are to receive funds in the section "Rural Housing Stability Assistance Program."
[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)The Definition of Homelessness The way in which homelessness is defined is an important part of how the Homeless Assistance Grants operate, as it determines who communities may assist with the grants they receive.
The definition had been the subject of debate for a number of years, with some finding that the definition governing the HUD homeless programs was too restrictive when compared to definitions used in other federal programs that assist those experiencing homelessness.
Until enactment of the HEARTH Act, "homeless individual" was defined in Section 103(a) of the McKinney-Vento Act as (1) an individual who lacks a fixed, regular, and adequate nighttime residence; and (2) an individual who has a primary nighttime residence that is—(A) a supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); (B) an institution that provides a temporary residence for individuals intended to be institutionalized; or (C) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.
This definition was sometimes described as requiring one to be literally homeless in order to meet its requirements10—either living in emergency accommodations or having no place to stay. The HEARTH Act expanded the definition of "homeless individual,"11 and on December 5, 2011, HUD issued final regulations clarifying aspects of the HEARTH Act definition of homelessness. 12 The regulation took effect on January 4, 2012.
The HEARTH Act retained the original language of the definition with some minor changes, but also added provisions that move away from the requirement for literal homelessness and toward housing instability as a form of homelessness. Each subsection below explains separate ways in which the HEARTH Act changed the definition of homelessness.
The Original McKinney-Vento Act Language The HEARTH Act made minor changes to the existing language in the McKinney-Vento Act.
The law continues to provide that a person is homeless if they lack "a fixed, regular, and adequate nighttime residence," and if their nighttime residence is a place not meant for human habitation, if they live in a shelter, or if they are a person leaving an institution who had been homeless prior to being institutionalized.
The HEARTH Act added that those living in hotels or motels paid for by a government entity or charitable organization are considered homeless, and it included all those persons living in transitional housing, not just those residing in transitional housing for the mentally ill as in prior law.
The amended law also added locations that are not considered suitable places for people to sleep, including cars, parks, abandoned buildings, bus or train stations, airports, and campgrounds. When HUD issued its final regulation in December 2011, it clarified that a person exiting an institution cannot have been residing there for more than 90 days and still be considered homeless.
13 In addition, where the law states that a person "who resided in a shelter or place not meant for human habitation" prior to institutionalization, the "shelter" means emergency shelter, and does not include transitional housing. 14 P. L.
111-22 added to the current definition those individuals and families who meet all of the following criteria: * They will "imminently lose their housing," whether it be their own housing, housing they are sharing with others, or a hotel or motel not paid for by a government or charitable entity.
Imminent loss of housing is evidenced by an eviction requiring an individual or family to leave their housing within 14 days; a lack of resources that would allow an individual or family to remain in a hotel or motel for more than 14 days; or credible evidence that an individual or family would not be able to stay with another homeowner or renter for more than 14 days. * They have no subsequent residence identified.
* They lack the resources or support networks needed to obtain other permanent housing. HUD practice prior to passage of the HEARTH Act was to consider individuals and families who would imminently lose housing within seven days to be homeless. [](https://www.
congress. gov/crs-product/RL33764)Other Federal Definitions P. L.
111-22 added to the definition of "homeless individual" unaccompanied youth and homeless families with children who are defined as homeless under other federal statutes. The law did not define the term youth, so in its final regulations HUD defined a youth as someone under the age of 25.
15 In addition, the HEARTH Act did not specify which other federal statutes would be included in defining homeless families with children and unaccompanied youth.
In its regulations, HUD listed seven other federal programs as those under which youth or families with children can be defined as homeless: the Runaway and Homeless Youth program; Head Start; the Violence Against Women Act; the Healthcare for the Homeless program; the Supplemental Nutrition Assistance Program (SNAP); the Women, Infants, and Children nutrition program; and the McKinney-Vento Education for Children and Youth program.
16 Five of these seven programs (all but Runaway and Homeless Youth and Health Care for the Homeless programs) either share the Education for Homeless Children and Youths definition, or use a very similar definition. * The Department of Education defines homeless children and youth in part by reference to the Section 103 definition of homeless individuals as those lacking a fixed, regular, and adequate nighttime residence.
17 In addition, however, the ED program defines children and youth who are eligible for services to include those who are (1) sharing housing with other persons due to loss of housing or economic hardship; (2) living in hotels or motels, trailer parks, or campgrounds due to lack of alternative arrangements; (3) awaiting foster care placement; (4) living in substandard housing; and (5) children of migrant workers.
18 * The Runaway and Homeless Youth program defines a homeless youth as either ages 16 to 22 (for transitional housing) or ages 18 and younger (for short-term shelter) and for whom it is not possible to live in a safe environment with a relative or for whom there is no other safe alternative living arrangement. 19.")
* Under the Health Care for the Homeless program, a homeless individual is one who "lacks housing," and the definition includes those living in a private or publicly operated temporary living facility or in transitional housing. 20(5)(A).")
Youth and families who are defined as homeless under another federal program must meet each of the following criteria: * They have experienced a long-term period without living independently in permanent housing. In its final regulation, HUD defined "long-term period" to mean at least 60 days.
* They have experienced instability as evidenced by frequent moves during this long-term period, defined by HUD to mean at least two moves during the 60 days prior to applying for assistance.
21 * The youth or families with children can be expected to continue in unstable housing due to factors such as chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse, the presence of a child or youth with a disability, or multiple barriers to employment.
Under the final regulation, barriers to employment may include the lack of a high school degree, illiteracy, lack of English proficiency, a history of incarceration, or a history of unstable employment.
22 Communities are limited to using not more than 10% of Continuum of Care program funds to serve individuals and families defined as homeless under other federal statutes unless the community has a rate of homelessness less than one-tenth of 1% of the total population. 23.") Another change to the definition of homeless individual was added as subsection 103(b) to McKinney-Vento.
The law now considers to be homeless anyone who is fleeing a situation of "domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions in the individual's or family's current housing situation, including where the health and safety of children are jeopardized." 24.") The law also provides that an individual must lack the resources or support network to find another housing situation.
The final regulation issued by HUD in December 2011 specified that the conditions either must have occurred at the primary nighttime residence or made the individual or family afraid to return to their residence. 25 [](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)Documenting Homeless Status For the first time, the regulations governing the Homeless Assistance Grants specify how housing and service providers should verify the homeless status of the individuals and families that they serve.
(Previously, guidance had been provided in program handbooks.) The final regulations issued in December 2011 create different requirements depending both on the part of the statutory definition under which individuals or families find themselves homeless as well as the type of service provided.
In general, it is preferred that service providers have third party documentation that an individual or family is homeless (such as an eviction order or verification from a family member with whom a homeless individual or family had lived). However, under some circumstances, it may also be acceptable to confirm homelessness based on intake worker observation or certification from the person or head of household who is homeless.
26 Where someone is seeking assistance at an emergency shelter, through a street outreach program, or from a victim service provider, failure to separately verify homeless status should not prevent an individual or family from receiving immediate assistance. [](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)Definition of Chronically Homeless Person P.
L. 111-22 also expanded the definition of "chronically homeless person," which had been defined in regulation. 27 Under the regulation, the term had been defined as an _unaccompanied individual_ who has been homeless continuously for one year or on four or more occasions in the last three years, and who has a disability.
28 A regulation released by HUD on December 4, 2015 (and effective January 4, 2016) clarifies that four or more occasions of homelessness in the last three years must total at least 12 months, with at least seven nights separating each occasion. 29 The HEARTH Act added to the definition of chronically homeless those homeless _families_ with an adult head of household (or youth where no adult is present) who has a disability.
The definition of disability specifically includes post traumatic stress disorder and traumatic brain injury. Note, however, that to be considered chronically homeless, an individual or family has to be living in a place not meant for human habitation, a safe haven, or an emergency shelter; the HEARTH Act's changes to the definition of "homeless individual" do not apply to chronic homelessness.
In addition, a person released from an institution will be considered chronically homeless as long as, prior to entering the institution, they otherwise met the definition of chronically homeless person, and had been institutionalized for fewer than 90 days. HUD began using the new definition in its administration of the Homeless Assistance Grants as part of the FY2010 competition.
30 for the Continuum of Care Homeless Assistance Program , September 14, 2010, p. 6, http://archives. hud.
gov/funding/2010/cocsec. pdf .") [](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)The Emergency Solutions Grants Program (ESG) The Emergency Solutions Grants, until enactment of the HEARTH Act known as the Emergency Shelter Grants, was the first of the Homeless Assistance Grants to be authorized. It was established one year prior to enactment of McKinney-Vento as part of the Continuing Appropriations Act for FY1987 (P.
L. 99-591). 31 Funds are distributed to grantee states and local communities to assist those experiencing homelessness (see the next section for information on how funds are distributed).
From its creation through FY2010, the funds distributed through the ESG program were provided primarily for the emergency shelter and service needs of homeless persons. However, when the ESG program was reauthorized as part of the HEARTH Act (P. L.
111-22), it not only changed its name, but the focus of the program was broadened to include an expanded role for homelessness prevention and rapid rehousing (assistance to quickly find permanent housing for individuals or families who find themselves homeless). On December 5, 2011, HUD issued interim regulations for the ESG program, and they became effective on January 4, 2012.
32 Funding for the program's new purposes was made available as part of a second round of funding in FY2011. 33 In FY2012 and thereafter, all funds awarded could be used for the ESG program activities as authorized by the HEARTH Act.
Eligible Activities Prior to Enactment of the HEARTH Act Prior to enactment of the HEARTH Act, ESG funds could be used for four main purposes: (1) the renovation, major rehabilitation, or conversion of buildings into emergency shelters; (2) services such as employment counseling, health care, and education; (3) homelessness prevention activities such as assistance with rent or utility payments; and (4) operational and administrative expenses.
34(1)-(4).") States and communities that received ESG funds were limited to using not more than 30% of the total ESG funds they received for services, not more than 30% for homelessness prevention activities, not more than 10% for staff costs, and not more than 5% for administrative costs.
Additional Eligible Activities After Enactment of the HEARTH Act As amended by the HEARTH Act, ESG allows grantees to use a greater share of funds for homelessness prevention and rapid rehousing. Specifically, funds may be used for short- or medium-term rental assistance (tenant- or project-based) and housing relocation and stabilization services for individuals and families who are homeless or at risk of homelessness.
**At Risk of Homelessness:** The law defines the term "at risk of homelessness" to include an individual or family with income at or below 30% of area median income and who has insufficient resources to attain housing stability.
An individual or family must also meet one of the following conditions:35 * have moved for economic reasons at least twice during the last 60 days; * are living with someone else due to economic hardship; * have been notified in writing that their current housing will be terminated within 21 days; * are living in a hotel or motel not paid for by a government or charitable entity; * are living in overcrowded housing (more than 2 persons in an efficiency unit or more than 1.
5 people per room otherwise); * are leaving an institution such as a health or mental health care facility, foster care, or correctional facility; or * are living in a housing situation that is unstable in some other way. In addition, families with children and youth defined as homeless under other federal statutes are considered "at risk" of homelessness.
As with the definition of homelessness generally, the other federal programs under which children and youth may be considered homeless are the Runaway and Homeless Youth program; Head Start; the Violence Against Women Act; the Healthcare for the Homeless program; the Supplemental Nutrition Assistance Program (SNAP); the Women, Infants, and Children nutrition program; and the McKinney Vento Education for Homeless Children and Youth program.
36 Under the updated ESG program in the HEARTH Act, the amount of funds that grant recipients can use for emergency shelter and related supportive services are limited to the greater of 60% of their ESG allocation or the amount they had used prior to enactment of the HEARTH Act for emergency shelter and related services. Funding for the ESG Program Until enactment of P. L.
111-22, the allocation of funds for ESG had not exceeded $160 million in all the years of the program's existence. The HEARTH Act provided that 20% of funds made available by Congress for the Homeless Assistance Grants would go to the newly named program (traditionally, HUD had reserved somewhere between 10% and 15% of funds for the ESG program).
However, in appropriations laws since enactment of the HEARTH Act, Congress has not required HUD to allocate 20% of funds to ESG, and has instead specified a dollar amount for ESG, which has ranged from $215 million to $286 million. 37, $286 million in FY2012 (15%), $215 million in FY2013 (11%), $250 million in FY2014 (12%), $266 million in FY2015 (...")
The percentage of funds that recipients can use for administrative costs also changed pursuant to the HEARTH Act. Prior to its enactment, recipients could use up to 5% of their grants for administrative costs. This was raised to 7.
5% by the HEARTH Act. 38 [](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)Distribution of ESG Funds ESG funds are distributed to both local communities (called "entitlement areas" and defined as metropolitan cities and urban counties)39, which refers to the statute governing the Community Development Block Grant program at 42 U.S.C.
§§5302(a)(4)-(6). A metropolitan city is the central city within a metropolitan statistical area, or a city of 50,000 or more within a metropolitan statistical area, and an urban county is a county within a metropolitan area that has a population of 200,000 or more, or 100,000 or more if the county contains no incorporated areas.")
and states (called "non-entitlement areas") for distribution in communities that do not receive funds directly, through the Community Development Block Grant (CDBG) program formula. 40 Puerto Rico is considered a state and its cities are entitlement areas under the CDBG formula, and the District of Columbia is also an entitlement area.
The four territories of Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and American Samoa also receive ESG funds. The interim regulations governing ESG changed the allocations to these four territories, however. Previously, regulations provided that the four territories receive 0.
2% of total funds, but the interim regulations provide that the territories receive "up to 0. 2 percent, but not less than 0. 1 percent" of the ESG allocation.
41 Funds are then distributed among the four territories based on population. 42 Tribes do not receive funds through ESG; instead, funds for homeless assistance are distributed through the Indian Community Development Block Grant.
43 The CDBG program formula is meant to distribute funds based on a community's need for development; the ESG program has used the CDBG formula to target funds for homeless assistance since its inception, and the HEARTH Act did not alter this part of the law. The formula awards funds to metropolitan cities and urban counties (70% of funds) and to the states for use in areas that do not receive funds directly (30% of funds). 44 - (d).")
As a condition for receiving ESG funds, states and communities must present HUD with a consolidated plan explaining how they will address community development needs within their jurisdictions. The consolidated plan is required in order for communities to participate in four different HUD grant programs, including ESG. 45 program.
For more information about CDBG, see CRS Report R43520, Community Development Block Grants and Related Programs: A Primer , by Eugene Boyd , for HOME, see CRS Report R40118, An Overview of the HOME Investment Partnerships Program , by Katie Jones , and for HOPWA, see CRS Report RL34318, Housing for Persons Living with HIV/AIDS ,...")
The plan is a community's description of how it hopes to integrate decent housing, community needs, and economic needs of low- and moderate-income residents over a three- to five-year time span. 46.") Consolidated plans are intended to be collaborative efforts of local government officials, representatives of for-profit and non-profit organizations, and community members.
HUD may disapprove a community's consolidated plan with respect to one or more programs, although communities have 45 days to change their plans to satisfy HUD's requirements. 47 If HUD disapproves the ESG portion of the plan, the applicant community will not receive ESG funds. If HUD approves a community's consolidated plan, the community will receive ESG funds based on its share of CDBG funds from the previous fiscal year.
However, the community must have received at least 0. 05% of the total CDBG allocation in order to qualify to receive ESG funds. 48 In cases where a community would receive less than 0.
05% of the total ESG allocation, its share of funds goes to the state to be used in areas that do not receive their own ESG funds. 49.") In FY2016, more than 360 states, cities, counties, and territories received ESG funds.
50 After the recipient states and entitlement communities receive their ESG funds, they distribute them to local government entities, nonprofit organizations, public housing authorities, and local redevelopment authorities that provide services to homeless persons. 51 added public housing authorities and local redevelopment authorities as eligible subgrantees.")
These recipient organizations have been previously determined by the state or local government through an application process in which organizations submit proposals—HUD is not involved in this process. Each recipient organization must match the federal ESG funds dollar for dollar. 52.")
States need not match the first $100,000 that they receive, and the match does not apply to the territories. 53 The match may include funding from other federal sources and be met through the value of donated buildings, the lease value of buildings, salary paid to staff, and volunteer time. 54.")
[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)Transition to the Continuum of Care Program The bulk of the funding for the Homeless Assistance Grants is awarded as competitive grants through what is now the CoC program. 55 The CoC program differs from ESG in that it focuses on the longer-term housing and services needs of homeless individuals and families.
For the 20 years prior to creation of the CoC program, there were three separate competitive grants, each of which provided different services to different populations. Enactment of the HEARTH Act brought each of the three programs' functions under the umbrella of the CoC program.
The programs were * **The Supportive Housing Program (SHP):** The SHP provided funds for transitional housing for homeless individuals and families for up to 24 months, permanent housing for homeless individuals with disabilities, and supportive services. Eligible recipients were states, local government entities, Public Housing Authorities (PHAs), private nonprofit organizations, and community mental health centers.
Grantees were required to meet different match requirements: acquisition, rehabilitation, or new construction with an equal amount of the grant recipient's own funds, supportive services with a 20% match, and operating expenses with a 25% match.
* **The Single Room Occupancy Program (SRO):** The Single Room Occupancy (SRO) program provided permanent housing to homeless individuals in efficiency units similar to dormitories, with single bedrooms, community bathrooms, and kitchen facilities. The SRO program did not require residents to have a disability and did not fund supportive services. Eligible recipients were PHAs and private nonprofit organizations.
The program did not have a match requirement. * **The Shelter Plus Care (S+C) Program:**The S+C program provided permanent supportive housing through rent subsidies for homeless individuals with disabilities and their families. The S+C rent subsidies could be tenant-based vouchers, project-based rental assistance, sponsor-based rental assistance, or single room occupancy housing.
Eligible recipients were states, local government entities, and PHAs. The S+C program required grant recipients to match the amount of grant funds they received for rental assistance with an equal amount of funds for supportive services. (For a more detailed description of the three programs, see the **Appendix**.)
Applicants no longer apply for one of the three existing grants—S+C, SHP, or SRO—based on the type of housing and services they want to provide. Instead, the new consolidated grant provides funds for all permanent housing, transitional housing, supportive services, and rehousing activities. [](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)[](https://www. congress. gov/crs-product/RL33764)[](https://www.
congress. gov/crs-product/RL33764)[](https://www. congress.
gov/crs-product/RL33764)The Continuum of Care and Collaborative Applicants The terminology surrounding the Continuum of Care program can be confusing.
For years the term "Continuum of Care" has been used to describe three different things: (1) the way in which communities plan their response to the needs of homeless persons, (2) the local communities themselves (typically cities, counties, and combinations of both) that collaborate to arrive at a plan to address homelessness and apply to HUD for funds, and (3) the HUD process through which service providers apply for HUD funds.
56 With the advent of the HEARTH Act, the term "Continuum of Care" is also used to refer to the main program through which HUD funds homeless services providers.
Through the CoC strategy, which remains largely the same under the HEARTH Act, local communities establish CoC advisory boards made up of representatives from local government agencies, service providers, community members, and formerly homeless individuals who meet to establish local priorities and strategies to address homelessness in their communities.
The CoC plan that results from this process is meant to contain elements that address the continuum of needs of homeless persons: prevention of homelessness, emergency shelter, transitional housing, permanent housing, and supportive services provided at all stages of housing.
57 The CoC system was created in 1993 as the Innovative Homeless Initiatives Demonstration Program, a grant program that provided funding to communities so that they could become more cohesive in their approach to serving homeless
According to the current listing, eligibility includes: State and local government agencies, nonprofit organizations, and public housing authorities. Confirm the full requirements in the official notice before applying.
The current listing shows $11,966,057. Verify award ceilings, matching requirements, and allowable costs in the official notice.
Shelter Plus Care and Transitional Housing Programs is funded by U.S. Department of Housing and Urban Development (HUD). Verify program details on the funder's official page before applying.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
Five weeks after a federal judge vacated the FY2026 Continuum of Care NOFO in its entirety, HUD published a Notice of Research Justifying Additional Incentives for Certain Activities To Reduce Homelessness. It is not a NOFO and not a proposed rule — it is the administrative record HUD needs to reissue the same policy and survive the next lawsuit. Here is what the four named activities tell you about the revised competition, why the October 13 comment deadline is now the real leverage point, and what CoC leads should be building right now.
Read articleCDBG, HOME, HOPWA, Choice Neighborhoods, and the Continuum of Care — all proposed for elimination. Work requirements for voucher holders. A 60-month time limit on assistance. The definitive analysis for housing organizations navigating the most aggressive HUD budget in history.
Read articleHUD tried to slash permanent supportive housing funding from 90% to 30% of Continuum of Care grants. Federal courts in Rhode Island and the First Circuit stopped it. What the ruling means for housing-first policy, communities across 21 states, and organizations that depend on CoC funding.
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