Community Development Block Grant (CDBG) funds
CDBG is one of the most flexible and well funded of HUD's housing and economic development programs. CDBG provides funding to improve and expand decent housing and economic opportunities, primarily for persons with low and moderate incomes.
The majority of CDBG funds must be used for "bricks and mortar", such as acquisition, rehabilitation, new construction of property. A small percentage can be used to fund services and non-capital expenses of programs serving low and moderate income residents. Many communities use CDBG to build or improve streets, sidewalks, sewer and water systems.
How to Access:
Communities with populations of 50,000 or more receive CDBG funds directly. These communities are called "Entitlement Communities". Nonprofits and local governments in Non-Entitlement Communities must apply for CDBG through the Texas Department of Housing and Community Affairs (www.tdhca.state.tx.us). All Entitlement Communities (including the State of Texas) are required to hold annual public hearings on their spending plan for CDBG funds. These hearings are held as part of the Consolidated Plan development. The Consolidated Plan is a strategic plan that addresses a community's housing and economic conditions. The Consolidated Plan lists proposed expenditures of HUD funds, including CDBG. The Consolidated Plan must be rewritten every five years, and updated annually. Public input is required at both the annual and five year planning stages.
HOME Investment Partnership Act (HOME) funds
HOME is another HUD grant program created specifically to expand the availability of decent, safe, sanitary, and affordable housing. Funds are targeted to low income persons and can be used for:
- Homeowner based housing rehab Acquisition of single family homes New Construction Tenant Based Rental Assistance
- Acquistion/rehabilitation of rental housing
15% of HOME funds must be allocated to Community Housing Development Organizations (CHDOs) to develop and manage affordable housing. CHDOs are nonprofit organizations with a Board that includes at least one-third participation by low-income persons. (For more information on CHDOs, click here.
How to Access:
HOME funds are allocated directly to communities of 75,000 or more. These communities are called "Participating Jurisdictions" or PJ's. Nonprofit organizations and local governments in Non-Participating Jurisdictions must apply through the Texas Department of Housing and Community Affairs for HOME funds (www.tdhca.state.tx.us). CHDOs in PJ's may compete for both State and local HOME funds. All Participating Jurisdictions (including the State of Texas) are required to hold annual public hearings on how they plan to spend their HOME funds. These hearings are held in conjunction with the development of the Consolidated Plan. See the discussion under Community Development Block Grant funds for information on the Consolidated Plan.
Emergency Shelter Grant (ESG)
This HUD program funds services and shelter for homeless persons. Eligible activities include:
- Rehabilitation of shelter or transitional housing Operations and maintenance costs of shelter or transitional housing "Essential Services" - supportive services for homeless persons
- Homeless Prevention
Note that funding for Essential Services and Homeless Prevention is limited to 15% of a community's total Emergency Shelter Grant.
How to Access:
ESG is allocated directly to States and larger cities. Nonprofit organizations and local governments that do not receive ESG directly may apply through the Texas Department of Housing and Community Affairs (www.tdhca.state.tx.us). Organizations and local governments that do receive ESG funding are also eligible to apply for State ESG.
All communities receiving ESG (including the State of Texas) are required to hold annual public hearings on how they plan to spend their funds. See the Community Development Block Grant discussion for information on Consolidated Plan hearings.
Board Commitment of Cash Donations
Every nonprofit should engage in some form of fundraising in order to generate unrestricted funds for their budget. This fundraising may take the form of direct mail campaigns, special events, on-line solicitations, sales of products or individual donations. Whatever the approach, the result should be cash donations that can be used as matching funds for a Continuum of Care project.
How to Access:
Since the Continuum of Care requires a written commitment of matching funds, it is best to have the Board of Directors take a formal vote dedicating donated funds to the Continuum of Care project. Funds should be promised from the upcoming year's (or multiple years') expected contributions, since this is when matching funds are needed. Once the Board has voted, the Board Chair or other authorized individual should sign a letter stating the Board's commitment to dedicate donations to the project.
United Way Funding
The United Way is a locally based fund that provides grants to nonprofit organizations. The United Way system includes approximately 1,400 organizations, each of which is independent, separately incorporated and governed by local volunteers. In 2000-01, United Ways collectively raised $3.91 billion. Each United Way has a community impact agenda - a collaborative consensus of the community's most pressing needs. These agendas determine funding allocations and generally focus on the following:
- Helping people to live healthier lives Making it easier for families live and grow together Helping to build safer neighborhoods Investing in the nation's children to give them the skills and resources they need to succeed
- Helping adults in need get back on their feet and remain self-sufficient
How to Access:
Contact the local United Way for information on their application process (look up using http://national.unitedway.org/index.cfm.) In general, the United Way gives to community organizations with several years of experience.
Local / Community Foundations
Nearly every city or region has local or regional foundation that targets its grant awards to their geographic area. These foundations may be private foundations established by local families or corporations that want to give back to their community, or community foundations established through local donations. Such foundations are a good starting point for smaller nonprofit organizations that have limited experience with foundation funding. Local foundations are also interested in providing gap or matching funds that leverage larger dollar amounts from other entities, such as the federal government.
How to Access:
Each local and community foundation has its own set of priorities and procedures. Conduct research on local foundations at a "cooperating collection" of The Foundation Center. These libraries have directories that can be used to identify private, public and corporate foundations that give to specific causes or geographic areas. Many also offer assistance in researching and writing grants. (Find a library near you on: http://fdncenter.org/collections/cctx.html.) Be sure to check out the Directory of Texas Foundations for information on smaller, Texas based foundations.
Federal Home Loan Bank (FHLB) Affordable Housing Program
The Federal Home Loan Bank Affordable Housing Program (AHP) is a highly competitive grant/loan program that subsidizes long-term financing for housing serving very low-, low- and moderate-income families. In 2000, FHLBanks funded $218 million in housing projects serving 41,000 families. AHP funds may be used to:
- Finance the purchase, construction, and/or rehabilitation of owner-occupied housing for families with incomes at or below 80% of the median income for the area; and/or
- Finance the purchase, construction, or rehabilitation of rental housing in which at least 20% of the units are occupied by and affordable to households with incomes at or below 50% of the median income for the area.
AHP funds may be used to pay closing costs, partial down payments, to buy down principal amounts, to buy down interest rates, or any combination of the above. They may also be used for funding construction or rehabilitation of housing.
How to Access:
Applications for funding must be submitted by stockholder financial institutions in Texas. Nonprofit organizations and local governments should work with a member institution to develop a project application. Applications that are processed through the FHLB Dallas are due on or before April 15 and October 15. For more information, see: http://www.fhlb.com/community/ahp.html.
"Special Population" Programs
A number of grants targeted to specific population groups can be used as matching funds for Continuum of Care projects. These programs were not created to address homelessness, but address the needs of special populations that comprise a large percentage of homeless persons. By focusing services on subpopulations that meet HUD's homeless definition, these programs can leverage Continuum of Care grants:
Many of the "special population" grant programs are administered by the U.S. Department of Health and Human Services. For a complete listing of HHS programs that address homelessness, see http://www.os.dhhs.gov/news/press/2001pres/01fshomelessness.html. Some of the better matches are described below.
Texas MHMR
The Texas Department of Mental Health Mental Retardation contracts with over 40 mental health authorities across the state to administer services for persons with serious mental illness. The PATH program is specifically designed to serve literally homeless mentally ill persons by providing outreach and supportive services (see: www.mhmr.state.tx.us/centraloffice/behavioralhealthservices/path.html). Other programs, such as Supported Housing, Supported Employment and Assertive Community Treatment, are not specifically designed for homeless persons, but can be used to assist this population. (For more information, see: www.mhmr.state.tx.us/CentralOffice/BehavioralHealthServices/ACT.html). Runaway and Homeless Youth Programs:
The Family and Youth Services Bureau of the U.S. Department of Health and Human Services oversees programs for runaway and homeless youth. These programs include the Basic Center Program, which funds crisis intervention and emergency shelter; the Street Outreach Program, which funds outreach and services to homeless "street" youth; and the Transitional Living Program, which funds transitional housing and supportive services for youth aged 16-21. These programs could be paired with supportive services or transitional housing grants under the Continuum of Care to meet matching fund requirements (see: www.acf.dhhs.gov/programs/fysb/grant.htm). Ryan White Care Act
The Ryan White Comprehensive AIDS Resources Emergency (CARE) Act provides funding to states, public and nonprofit entities to develop, coordinate and operate health care and support services to medically underserved individuals and families affected by HIV. Ryan White Title I grants provide funding to areas with a high incidence of HIV disease. Ryan White Title III grants support community planning for HIV services and expansion of early intervention programs. Title IV grants focus on primary care and social services for women, infants, children and youth. The Health Resources and Services Administration, which administers Ryan White funds, has published a technical guide, Housing is Healthcare: A Guide to Implementing the HIV/AIDS Bureau Ryan White CARE Act Housing Policy, providing information on how to use funds to assist homeless individuals. For more information see:http://hab.hrsa.gov/care.html. Texas Commission on Alcohol and Drug Abuse / SAMSHA / CSAT
The Substance Abuse and Mental Health Services Administration (SAMSHA) and Center for Substance Abuse Treatment (CSAT) are divisions of U.S. Department of Health and Human Services that fund substance abuse research, prevention and treatment. A portion of this funding is "block granted" directly to states for services to indigent and homeless persons with substance abuse problems. These funds are administered by the Texas Commission on Alcohol and Drug Abuse (www.tcada.state.tx.us/funding). SAMSHA also sponsors competitive grant programs targeted to underserved populations, including homeless. The Targeted Capacity Expansion Grant (www.samhsa.gov/programs/programs.html) is one example of such a program. SAMSHA also recently sponsored a program specifically targeted to homeless persons. For a list of SAMSHA grant opportunities, see: www.samhsa.gov/grants/grants.html.
Veterans Administration
Given the large number of veterans among the homeless, the VA has created several programs to address their needs (see: www.va.gov/pressrel/hmls01fs.htm). Several programs are especially suited to match Continuum of Care programs. The VA Supported Housing program funds long-term transitional or permanent housing with case management. The Homeless Providers Grant and Per Diem Program funds acquisition, construction or rehabilitation of transitional housing as well as reimbursement of operating costs associated with housing veterans. The VA also offers foreclosed VA properties for sale at a significant discount. Other VA programs fund supportive services, including health care and employment.
Larger Foundations
If you have prior experience with foundation funding, larger foundations can be an excellent source of gap financing for Continuum of Care projects. One of the best resources for matching funds, especially for housing projects, is right here in Texas. Funding is competitive, but awarded in large enough amounts to be worth the effort. Foundations that have supported homeless projects in Texas are listed below. Note that this list does not include community or geographically based foundations, which were described under item #6.
How to Access:
Every foundation has its own set of priorities and procedures. Research the foundations listed above, and other large foundations by using directories available at a "cooperating collection" of The Foundation Center. These libraries have directories that provide information on how each foundation prefers to be approached. Find a library near you on: http://fdncenter.org/collections/cctx.html.
