FY2014 CoC Funding Notice-FINAL-09-16-2014-v2.pdf

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5800-N-30]

Notice of Funding Availability (NOFA) for the Fiscal Year (FY) 2014 Funds in the FY 2013

– FY 2014 Continuum of Care Program Competition

OVERVIEW INFORMATION

A. Federal Agency Name: U.S. Department of Housing and Urban Development, Office of

Community Planning and Development.

B. Funding Opportunity Title: Notice of Funding Availability for the Continuum of Care (CoC) Program.

C. Announcement Type: Continuation Announcement.

D. Funding Opportunity Number: The funding opportunity number is FR-5800-N-30.

The OMB Approval number is 2506-0112.

E. Catalog of Federal Domestic Assistance (CFDA) Number: 14.267.

F. Deadline: The deadline for submitting applications to HUD for the FY 2014 Component of the FY 2013-2014 Continuum of Care Program Competition (CoC Program Competition) is

7:59:59 p.m. eastern time, October 30, 2014. Applicants will be required to complete and submit their applications in e-snaps at www.hud.gov/esnaps. See Section VI of this FY 2014 CoC Funding Notice for application submission and timely receipt requirements.

The application process for funding under the FY 2014 Component of the CoC Program

Competition is referred to in this notice as the FY 2014 Application Process, and this notice, which announces availability of FY 2014 funds under the FY 2013 – FY 2014 CoC Program

Competition is referred to as the FY 2014 CoC Funding Notice.

G. For Further Information: HUD staff will be available to provide general clarification on the content of this Notice of FY 2014 Funds. HUD staff cannot assist applicants in preparing their applications to submit for funding.

1. Local HUD CPD Field Office. Questions regarding specific program requirements should be directed to the local HUD CPD Field Office, a directory of which can be found at www.hud.gov/offices/cpd/about/staff/fodirectors/index.cfm.

2. Training and Resources. Continuums of Care (CoCs) and project applicants that need assistance completing the applications in e-snaps or understanding the program requirements under the CoC Program may access the CoC Program interim rule

(24 CFR part 578), training materials, and program resources via the HUD Exchange at www.hudexchange.info.

The CoC program regulations were established by an interim rule published on July 31, 2012, at 77 FR 45422.

http://www.hud.gov/esnaps http://www.hud.gov/offices/cpd/about/staff/fodirectors/index.cfm http://www.hudexchange.info/

3. The HUD Exchange Ask A Question (AAQ). CoCs, Collaborative Applicants, and project applicants that require information and technical support concerning this Funding

Notice and the applications in e-snaps may submit an electronic inquiry via the HUD

Exchange AAQ at www.hudexchange.info/get-assistance/. The AAQ is accessible

24 hours each day. Starting 2 days prior to the application deadline for FY 2014 funds, the AAQ will respond only to emergency technical support questions up to the deadline of 7:59:59 p.m. eastern time. Applicants that are experiencing technical difficulty should contact the AAQ immediately for assistance and document their attempts to obtain assistance.

H. General Section Questions. The Notice of FY 2013 Policy Requirements and General

Section to HUD’s FY 2013 NOFAs for Discretionary Programs (General Section) is applicable to the FY 2014 funding made available under the CoC Program Competition. The

General Section can be found at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail.

The Notice of FY 2014 Policy Requirements and General Section to HUD’s FY 2014

NOFAs for Discretionary Programs does not apply to funding made available under this

FY 2014 CoC Funding Notice.

Questions regarding the General Section should be directed to the Office of Strategic

Planning and Management, Grants Management and Oversight Division at (202) 708-0667

(this is not a toll-free number). Persons with hearing or speech impairments can access these numbers via TTY by calling the Federal Information Relay Service at (800) 877-8339.

I. Additional Overview Information

1. Available Funds. Approximately $1.83 billion is available in this FY 2014 CoC

Funding Notice under the FY 2013 – FY 2014 CoC Program Competition. HUD may add to this amount any available funds that have been carried over or recaptured from previous fiscal years. All of the requirements in the FY 2014 Application Process, including requirements for the project applications and the CoC Priority Listing as well as the total amount of funding available are contained in this FY 2014 CoC Funding Notice.

Although the available amount of funding is expected to be sufficient to fund anticipated eligible renewal projects in the FY 2014 funding process, HUD will continue to require

Collaborative Applicants to rank all projects in two tiers. Tier 1 is equal to the CoC’s

FY 2014 ARD approved during the FY 2014 CoC Registration process less 2 percent.

Please see Section II.B.8. of this FY 2014 CoC Funding Notice for additional detail.

HUD will set aside approximately $40 million for a Permanent Supportive Housing

Bonus (PSH Bonus) to create new dedicated permanent supportive housing to serve the chronically homeless. While all CoCs approved in the FY 2014 CoC Registration process may apply, priority will be given to those CoCs that have a high need in relation to chronic homelessness as described in Section II.C. of this FY 2014 CoC Funding

Notice.

http://www.hudexchange.info/get-assistance/ http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail

2. FY 2014 Application Process.

On November 22, 2013, HUD published the Notice of Funding Availability (NOFA) for the Fiscal Years 2013 and 2014 Continuum of Care (CoC) Program Competition

(FY 2013 – FY 2014 CoC Program Competition NOFA).

Collaborative Applicants submitted a FY 2013 - FY 2014 CoC Application to HUD for the FY 2013 Component of the 2013–2014 CoC Program Competition and the score applies to funding for both fiscal years. On July 18, 2014, HUD required Collaborative Applicants from each CoC to complete a modified registration.

Collaborative Applicants whose registration was approved by HUD during the FY 2014 Registration Process should proceed to apply for funding under the FY 2014 Application Process.

a Collaborative Applicant. As part of the FY 2014 CoC Registration Process, CoCs were required to designate a Collaborative Applicant that would be responsible for submitting the CoC Priority Listing, as described in Section VI.C. of this FY 2014

Funding Notice on behalf of the CoC. Collaborative Applicants will not be able to access the CoC Priority Listing in e-snaps if the CoC does not have an approved

FY 2014 CoC Registration. The Collaborative Applicant approved by HUD during the modified FY 2014 CoC Registration Process must be the same entity that submits the FY 2014 CoC Priority Listing with attached project applications, reallocation forms, and all additional required attachments. CoCs should not attempt to change

Collaborative Applicants during the FY 2014 Application Process without HUD’s prior approval. HUD will approve Collaborative Applicant changes after the modified FY 2014 CoC Registration process under circumstances that include:

(1) an error made by the Collaborative Applicant when entering the

Collaborative Applicant’s name in the CoC Applicant Profile;

(2) the Collaborative Applicant chosen by the CoC is no longer in business;

(3) the Collaborative Applicant withdrew; or

(4) the CoC withdrew the Collaborative Applicant.

In cases where the CoC needs to change the Collaborative Applicant approved during the modified FY 2014 CoC Registration Process, the CoC must notify the local HUD

CPD field office in writing stating the reason for the Collaborative Applicant change.

The notice to HUD must provide documentation of the CoC’s approval of the change (e.g., a copy of the meeting minutes, to include the date and attendees).

This NOFA can be found at http://portal.hud.gov/hudportal/documents/huddoc?id=2013-

2014cocnofa.pdf.

The FY 2014 CoC Registration can be found at www.hudexchange.info/resource/3888/fy2014-coc-program-registration-notice/.

Unless otherwise stated, all references to “registration” in this notice refer to the modified registration process described in Section I.B.2.a. of the 2013-2014 CoC Program Competition

NOFA, and found at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail/nof a13/coc (please see page 7).

https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf https://www.onecpd.info/resources/documents/FY2013-2014CoCProgramNOFA.pdf http://www.hudexchange.info/resource/3888/fy2014-coc-program-registration-notice/ http://www.hudexchange.info/resource/3888/fy2014-coc-program-registration-notice/ http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail/nofa13/coc http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail/nofa13/coc b Project Applicants. Eligible project applicants for the CoC Program are identified in Section V.A.

c Geographic Area Changes from FY 2013 CoC Registration. As stated in the

FY 2013 – FY 2014 CoC Program Competition NOFA, no geographic area changes from the FY 2013 CoC Registration are allowed for the FY 2014 Application Process.

Therefore, HUD will not permit any geographic area changes through an amendment to FY 2014 CoC Registration.

d Changes to Approved FY 2014 CoC Registration. If a CoC with an approved

FY 2014 CoC Registration failed to include an eligible renewal project on the CoC’s

FY 2014 Grant Inventory Worksheet (GIW) during the modified FY 2014 CoC

Registration, the CoC will have the opportunity to amend its FY 2014 GIW to add the missing eligible renewal project. Similarly, any projects that were previously included on the GIW, where it is determined that they are no longer eligible for renewal in FY 2014, must be removed. Any changes to the FY 2014 GIW after CoC

Registration must be approved by the local HUD CPD field office, in consultation with HUD Headquarters, within 7 days–grace period as described in Section II.B.4. of this FY 2014 CoC Funding Notice–after the date that the FY 2014 project applications and CoC Priority Listing are made available in e-snaps.

The due date of final HUD approval for FY 2014 GIW changes is

September 22, 2014 by 5:00 p.m., local time of the applicant. Collaborative

Applicants will be required to attach the final HUD-approved FY 2014 GIW that contains the final FY 2014 ARD to the CoC Priority Listing. HUD will not consider any changes that would increase a CoCs ARD to the FY 2014 GIW following the

7-day grace period. However, if an ineligible project is included on the CoC’s GIW

HUD will reduce the CoC’s ARD by an amount equal to the amount of the ineligible award amount.

3. Additional Information Regarding the FY 2014 Application Process.

The requirements for applying for FY 2014 funds are contained in the FY 2013 – FY 2014

CoC Program Competition NOFA. Additional information and requirements related only to the FY 2014 Application Process are included in this FY 2014 CoC Funding Notice. To ensure that all submission requirements and deadlines are met, applicants should read both the FY 2013 - FY 2014 CoC Program Competition NOFA and the information contained in this FY 2014 Funding Notice Funding Notice. The information below includes requirements specific to the FY 2014 Application Process as well as important reminders that were included in the FY 2013 - FY 2014 CoC Program Competition NOFA:

a CoC Score. The score received for the FY 2013 - FY 2014 CoC Application will apply to the award of FY 2014 funding. This means that projects will be selected following the eligibility and selection priorities outlined in Section VII.A. of this

FY 2014 Funding Notice in order based on that score. PSH Bonus projects will be selected according the criteria outlined in Section II.C. of this FY 2014 Funding

Notice.

b Approved FY 2014 CoC Registration. In order to apply for FY 2014 funds, a CoC must have an approved modified FY 2014 CoC Registration which established its

FY 2014 Preliminary Pro Rata Need (PPRN) and FY 2014 ARD.

c FY 2014 Project Applications. Project applicants must submit project applications for FY 2014 funds in e-snaps. In FY 2014, project applicants may request funds for:

CoC planning costs; Unified Funding Agency (UFA) costs for HUD designated

UFAs only; renewal projects eligible for FY 2014 funds; and new projects which include:

(1) New reallocated projects, which can be either:

(a) new permanent supportive housing projects created through reallocation where all beds will be dedicated for use by the chronically homeless as defined in 24 CFR 578.3; and/or

(b) new rapid re-housing projects created for households with children who originally came from the streets or emergency shelters.

(2) Permanent Supportive Housing Bonus. HUD has set aside approximately

$40 million for Permanent Supportive Housing Bonus projects. See Section II.C. this FY 2014 Funding Notice for more information.

d FY 2014 CoC Priority Listing. With the submission of the CoC Priority Listing as described in Section VI.C. of this FY 2014 Funding Notice, the Collaborative

Applicant provides HUD with the priority rank order for each approved project, which HUD will follow to select projects based on the selection priorities outlined in Section VII.A.2. of this this FY 2014 Funding Notice.

e HUD will conduct an eligibility and threshold review of ranked projects for all

CoCs that submit the CoC Priority Listing by the application submission deadline.

f HUD intends to issue one funding announcement for both new and renewal projects.

g The deadline for submitting applications to HUD for FY 2014 funding under the

CoC Program Competition is 7:59:59 pm eastern time, October 30, 2014.

4. Eligible Costs. Provisions at 24 CFR 578.37 through 578.63 identify the eligible costs for which funding may be requested for the CoC Program. HUD will reject any requests for ineligible costs.

5. Match. 24 CFR 578.73 describes match requirements.

6. Requirements. The following requirement applies to funding available under the

FY 2013 – FY 2014 CoC Program Competition NOFA and this FY 2014 CoC Funding

Notice:

DUNS number and SAM. Project applicants are required to register with Dun and

Bradstreet to obtain a DATA Universal Numbering System (DUNS) number, if they have not already done so, and complete or renew their registration in the Central Contractor

Registration (CCR)/System for Award Management (SAM) per the FY 2013 General

Section, III.C.2.b. and c. HUD will not enter into a grant agreement with an entity that does not have a DUNS Number or an active SAM.

7. Local Competition Deadlines. Provisions at 24 CFR 578.9 require CoCs to design, operate, and follow a collaborative process for the development of an application in response to a NOFA issued by HUD. As part of this collaborative process, CoCs should implement internal competition deadlines to ensure transparency and fairness at the local level.

The CoC should have a process in place that allows the CoC to notify all project applicants no later than 10 days before the application deadline regarding whether their project applications would be included as part of the CoC Priority Listing submission.

Any project applicant that submitted a project that was rejected by the CoC must have been notified in writing, outside of e-snaps, with an explanation for the decision to reject the project(s). Project applicants whose project was rejected may appeal the local CoC competition decision to HUD by submitting a Solo Application in e-snaps directly to

HUD prior to the application deadline of 7:59:59 pm eastern time on October 30, 2014.

The CoC’s notification of rejection of the project in the local competition must be attached to the Solo Application. If the CoC fails to provide written notification, outside of e-snaps, the Solo Applicant must attach a statement that the CoC did not provide the

Solo Applicant written notification of the CoC rejecting the project in the local CoC competition.

8. CoC Transparency. The CoC should have in place a process to make the CoC Priority

Listing available on its website to its community for inspection and to notify community members and key stakeholders that the listing is available. If the CoC does not have a website, the CoC should post this information to a partner website within the CoC

(e.g., county/city website). The process must be conducted in a manner that is accessible for persons with disabilities and persons with limited English proficiency.

9. CoC Review of Project Applications. HUD strongly encourages each CoC to implement a thorough review and oversight process at the local level for both new and renewal projects submitted to HUD in the FY 2014 Application Process. It has been

HUD’s experience that many project applications contain information that results in conditions on the grant, or for more serious infractions, a project being rejected.

Deficient project applications prolong the review process for HUD, which results in delayed funding announcements, lost funding for CoCs due to rejected projects, and delays in funds to house and assist the homeless whom we serve. Specifically, CoCs should closely review information provided in each project application in order to ensure that:

a all proposed participants will be eligible for the project component type;

b the proposed activities are eligible under the CoC Program interim rule;

c each project narrative is fully responsive to the question being asked and that it meets all of the criteria for that question included in the detailed instructions;

d the data provided in various parts of the project application are consistent; and e all required attachments correspond to the attachments list in e-snaps, that they contain accurate and complete information, and that they contain a current date.

FULL TEXT OF THE ANNOUNCEMENT

I. Funding Opportunity Description.

Program Description: The CoC Program (24 CFR part 578) is designed to promote a community-wide commitment to the goal of ending homelessness; to provide funding for efforts by nonprofit providers, States, and local governments to quickly re-house the homeless while minimizing the trauma and dislocation caused by homelessness; to promote access to and effective utilization of mainstream programs by the homeless; and to optimize self-sufficiency among those experiencing homelessness.

A. Authority: The CoC Program is authorized by subtitle C of title IV of the McKinney-Vento

Homeless Assistance Act, (42 U.S.C. 11381–11389) (the Act), and the CoC Program regulations are found in 24 CFR part 578 (the CoC Program interim rule). The FY 2014 funds for the CoC Program were authorized by the Consolidated Appropriations Act, 2014 (Public Law 113-76, approved January 17, 2014) (the “FY 2014 HUD Appropriations Act”).

B. Summary of the FY 2014 Application Process: The FY 2014 Application Process is administered under the FY 2013 – FY 2014 CoC Program NOFA and CoC Program interim rule. Applicants should review and follow the steps as outlined below to ensure that project applications are complete and submitted on time. Documents referenced in this section can be found on the HUD Exchange at www.hudexchange.info.

1. Collaborative Applicants must have completed and successfully submitted the FY 2013

CoC Registration, the FY 2013/FY 2014 CoC Consolidated Application as well as completed and successfully submitted a modified FY 2014 CoC Registration. The modified FY 2014 CoC Registration established the CoC’s FY 2014 Preliminary PPRN and FY 2014 ARD amounts, and allowed Collaborative Applicants to apply to HUD for

UFA designation. During this modified registration process, changes in claimed geography from the FY 2013 CoC Registration were not allowed.

2. The FY 2014 Project Applications. A project application must be completed by project applicants for CoC planning, UFA costs, new projects created through reallocation, new

PSH Bonus projects, and renewal project requests. Project applications submitted to the

CoC for inclusion on the FY 2014 CoC Priority Listing must be reviewed and either accepted and ranked or rejected by the CoC. All projects approved by the CoC, except applications for new PSH Bonus Funding, must be listed on the CoC Priority Listing in rank order which will establish which projects fall within Tier 1 versus Tier 2, as described in Section II.B.8. in this FY 2014 CoC Funding Notice. The purpose of this two-tiered approach is for CoCs to clearly indicate to HUD which projects are prioritized for funding. CoCs that received a higher score on the FY 2013/FY 2014 CoC Application are more likely to be awarded projects ranked in Tier 2.

3. The FY 2014 CoC Priority Listing. The CoC Priority Listing, as described in

Section VI.C. of this FY 2014 Funding Notice, allows CoCs to assign a unique rank to the projects in order of priority and identifies any project requests rejected by the CoC.

The Collaborative Applicant will not be able to complete the FY 2014 CoC Priority

Listing correctly until all Project Applications have been submitted by the project applicants to the CoC.

CoCs will not be required to rank new PSH Bonus projects within the two tiers; instead, all CoCs must assign a rank value of ‘999’ to any project application being submitted for bonus funding. Specific instructions are included in Section II.C. of this FY 2014 CoC Funding Notice.

C. FY 2013 - FY 2014 CoC Program Competition NOFA. CoCs and applicants should read the FY 2013 – FY 2014 CoC Program Competition NOFA in its entirety in conjunction with this FY 2014 Funding Notice in order to ensure a comprehensive understanding of all requirements. It is also necessary to read the CoC Program interim rule to ensure compliance with CoC Program requirements. This FY 2014 CoC Funding Notice frequently makes reference to citations from the CoC Program interim rule (24 CFR part 578). Finally, applicants should review the FY 2013 General Section of the NOFA, published on

July 23, 2012, and the FY 2013 General Section Technical Correction, published on October 13, 2012.

D. Policy Priorities. CoCs should consider the policy priorities established in the FY 2013 -

FY 2014 CoC Program Competition NOFA in conjunction with local priorities to determine the ranking of all projects. See Section II.A. of this FY 2014 CoC Funding Notice for more information on HUD’s homeless policy priorities.

II. HUD’s Homeless Policy and Program Priorities

A. Policy Priorities. Below are the HUD policy priorities that were included in the FY 2013 –

FY 2014 CoC Program Competition NOFA. CoCs should continue to prioritize project applications that address these goals in the FY 2014 Application Process.

1. Strategic Resource Allocation. Each CoC must comprehensively review all existing projects within its geographic area, using CoC-approved scoring criteria and selection priorities, to determine the extent to which each project is still necessary and addresses the listed policy priorities in this FY 2014 Funding Notice. Funds for projects that are determined to be underperforming, obsolete, or ineffective should be reallocated to new projects that are based on proven or promising models.

2. Ending chronic homelessness.

a. Increasing Beds: In order to increase the number of beds specifically for the chronically homeless and work towards the goal of ending chronic homelessness by

2015, CoCs will be able to apply for new projects created through reallocation for permanent supportive housing (PSH) that propose to exclusively serve the chronically homeless–which includes individuals and households with children–as defined in

24 CFR 578.3, as part of its comprehensive strategy to end chronic homelessness.

Chronically homeless and permanent supportive housing are defined in

24 CFR 578.3. Consistent with the interim rule, the chronically homeless includes individuals and families who have a qualifying disabling condition who have been homeless and living in a place not meant for human habitation, emergency shelter, or safe haven for 1 year continuously or over a period of four occasions in the past 3 years. It is important to point out that persons in transitional housing are not considered to be chronically homeless even if they met the criteria prior to entering the transitional housing program.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail/2013gensec

b. Targeting: The chronically homeless should be given priority for non-dedicated PSH beds as vacancies become available through turnover. PSH renewal projects serving specific disabled subpopulations (e.g., persons with mental illness or persons with substance abuse issues) must continue to serve those groups, as required in the current grant agreement. However, the chronically homeless within the specified subpopulation should be prioritized for entry.

c. Housing First is a model of housing assistance that is offered without preconditions

(such as sobriety or a minimum income threshold) or service participation requirements, and rapid placement and stabilization in permanent housing are primary goals. Research shows that it is effective for the chronically homeless with mental health and substance abuse disorders, resulting in fewer inpatient stays and less expensive interventions than other approaches. Permanent Supportive Housing projects should use a Housing First approach in the design of the program.

3. Ending family homelessness.

a. Rapid Re-housing is a model of housing assistance that is designed to assist the homeless, with or without disabilities, move as quickly as possible into permanent housing and achieve stability in that housing. Rapid re-housing assistance is time-limited, individualized, and flexible, and is designed to complement and enhance homeless system performance and the performance of other homeless projects. While it can be used for any homeless person, preliminary evidence indicates that it can be particularly effective for households with children.

b. CoCs may apply for new projects created through reallocation for rapid re-housing to serve homeless households with children. Rapid re-housing projects must serve households with children living on the streets or in emergency shelter.

4. Removing Barriers to CoC Resources.

a. CoCs should review system and project level eligibility criteria to identify and remove barriers to accessing services and housing that are experienced by homeless individuals and families.

b. Centralized or Coordinated Assessment System: Centralized or coordinated assessment is a key step in assessing the needs of the homeless requesting assistance and matching the needs of those households to the most appropriate housing and service options. The CoC Program interim rule requires the implementation of a centralized or coordinated assessment system.

c. Transitional Housing: HUD recognizes that transitional housing can be an effective tool in many communities for addressing the needs of specific subpopulations–such as homeless youth, domestic violence survivors, and the homeless with substance abuse issues. However, recent research shows that transitional housing is generally more expensive than other housing models serving similar populations, it is often more service-intensive than most homeless households need, and that the criteria for entry into many transitional housing programs are so rigorous that transitional housing beds are under-utilized because homeless households cannot overcome the barriers to entry. HUD is strongly encouraging CoCs and recipients to carefully review the transitional housing models within the geographic area for cost-effectiveness, performance, and for the number and type of criteria used to determine eligibility for the program and determine if rapid re-housing may be a better model for the CoC’s geographic area.

d. Prioritizing Households Most in Need: CoCs should prioritize those who are identified as most in need (e.g., those who have been living on the street the longest, homeless households with children living in unsheltered situations, those that are considered most medically vulnerable) for placement into appropriate housing. The

Notice CPD-14-012: Prioritizing Persons Experiencing Chronic Homelessness and

Other Vulnerable Homeless Persons in Permanent Supportive Housing and

Recordkeeping Requirements for Documenting Chronic Homeless Status provides guidance to CoCs and project applicants that receive permanent supportive housing funds in which eligible households should be served in all CoC Program-funded permanent supportive housing.

5. Maximizing the use of mainstream resources.

a. HUD strongly encourages CoCs and project applicants to ensure that they are maximizing the use of all mainstream services available. While the CoC Program interim rule allows for the payment of certain supportive service costs and

Supportive Services Only projects, it is more efficient for CoCs to use mainstream resources where possible and use HUD funds for housing-related costs. CoCs should proactively seek and provide information to CoC Program recipients within their geographic area about mainstream resources and funding opportunities.

b. CoCs should be actively preparing for implementation of the Affordable Care Act by determining how these funds may be used by CoC Program recipients to serve the homeless. While this will vary by state, CoCs should also be encouraging project recipients to participate in enrollment and outreach activities to ensure eligible households take advantage of new healthcare options.

6. Building partnerships.

a. CoCs should proactively seek to engage in partnerships with Public Housing

Agencies (PHA) within their geographic area. HUD encourages CoCs to partner with PHAs, for example, to create homeless preferences or adopt strategies to assist current program participants to access PHA housing resources as they become ready to do so. CoCs and PHAs are encouraged to read and use the following HUD

Notice (PIH 2013-15) published June 10, 2013: Guidance on housing individuals and families experiencing homelessness through the Public Housing and Housing Choice Voucher Programs.

b. CoCs should assess the extent to which philanthropy plays a role within the community. CoCs and project recipients should consider how to engage with philanthropic organizations in a way to maximize resources and increase progress towards ending homelessness.

7. Other Priority Populations: While new funding opportunities through reallocation will only be available for the chronically homeless and homeless households with children, https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf http://portal.hud.gov/hudportal/documents/huddoc?id=pih2013-15.pdf http://portal.hud.gov/hudportal/documents/huddoc?id=pih2013-15.pdf http://portal.hud.gov/hudportal/documents/huddoc?id=pih2013-15.pdf

HUD also expects CoCs to consider the needs of other homeless populations that may be prevalent in the CoC’s geographic area, especially the needs of veterans and their families (Section VII.A.1.k. of the FY 2013 – FY 2014 CoC Program NOFA) and unaccompanied youth (Section VII.A.1.i. of the FY 2013 – FY 2014 CoC Program

NOFA).

a. Veterans: CoC Program funded projects should, to the extent possible, prioritize veterans who are ineligible for VA services and their families. CoCs should work closely with the local Department of Veterans Affairs (VA), and coordinate CoC resources with VA-funded housing and services (e.g., HUD-VASH, Supportive

Services for Veteran Families (SSVF)).

b. Homeless Youth: CoCs should be able to identify and describe the needs of homeless youth within the geographic area and the current programs designed to serve this population, including performance.

B. CoC Program Implementation. Notwithstanding the FY 2013 – FY 2014 CoC Program

Competition NOFA, which stated that HUD would not consider requests for new funding outside of the reallocation process, HUD will be awarding approximately $40 million of

FY 2014 funds for a Permanent Supportive Housing Bonus. The following list highlights important information that applicants should consider as they are preparing the FY 2014

Project Application(s). This is not an exhaustive list of considerations or requirements–all applicants and CoC stakeholders should carefully review the CoC Program interim rule for comprehensive information.

1. HUD will not consider requests for new funding outside of the reallocation process, CoC planning, UFA costs, and the Permanent Supportive Housing Bonus.

2. HUD has set aside $40 million to conduct a competition for projects in CoCs that have been determined to have a high-need in relation to chronic homelessness. Projects awarded under this bonus must exclusively serve the chronically homeless as defined in

24 CFR 578.3. It is important to point out that persons in transitional housing are not considered to be chronically homeless even if they met the criteria prior to entering the transitional housing program.

3. Through the reallocation process:

a. CoCs may create new permanent supportive housing projects where all beds will be dedicated for use by the chronically homeless, as defined in 24 CFR 578.3.

Persons coming from transitional housing are not eligible.

b. CoCs may create new rapid re-housing projects for homeless households with children who enter directly from the streets or emergency shelters. Rapid re-housing projects created through reallocation may include in part or whole, victims of domestic violence; however, these participants must meet all other criteria for this type of housing (i.e., household with children who enter directly from the streets or emergency shelter). Persons coming from transitional housing projects are not eligible.

4. Any changes to the FY 2014 GIW after the modified FY 2014 CoC Registration must be approved by the local HUD CPD field office, in consultation with HUD Headquarters, within the 7 day grace period after the publication of this FY 2014 Funding Notice. The due date of final HUD-approval for changes to the FY 2014 GIW is September 22, 2014 by 5:00 p.m. local time. Collaborative Applicants will be required to attach the HUD-approved FY 2014 GIW that contains the final HUD-approved FY 2014 ARD to the

FY 2014 CoC Priority Listing. HUD will not consider any changes that would increase a

CoCs ARD to the FY 2014 GIW following the 7-day grace period. If an ineligible project is included on the CoC’s GIW, HUD will remove the ineligible project from the

GIW, which will result in the CoC’s ARD being reduced by the amount of the ineligible project application. It is crucial that CoCs ensure the final FY 2014 GIW is accurate and only lists those renewal projects that are eligible for renewal in FY 2014. In order to be eligible for renewal in FY 2014, a project must have an executed grant agreement by

December 31, 2014 and have an expiration date in Calendar Year (CY) 2015 (between

January 1, 2015 and December 31, 2015).

5. Eligible renewal projects requesting rental assistance are 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. Renewal project applicants must ensure that the amount requested will be sufficient to cover all eligible costs as HUD cannot provide funds beyond what is awarded through the competition. Project applications for rental assistance cannot request more than

100 percent of the published FMR. New project applications must adhere to

24 CFR 578.51(f) and must request the full FMR amount per unit. See Section III.H.1.

of this FY 2014 CoC Funding Notice for additional information regarding FMR adjustments for projects receiving funds for rental assistance.

6. HUD will allow new reallocated projects to request funding for 1 year to facilitate implementation of CoC strategies to reduce gaps in permanent housing. Any new reallocated projects requesting capital costs (i.e., new construction, acquisition, or rehabilitation) are not eligible for 1-year requests and HUD will increase the grant term to

3-years if they are submitted for 1-year terms.

7. CoCs will be required to rank all projects, except Permanent Supportive Housing Bonus

Projects, submitted by project applicants in e-snaps: renewal, new projects created through reallocation, CoC planning, and UFA cost projects. All CoCs must assign a rank value of ‘999’ to any project application being submitted for Permanent Supportive

Housing Bonus funding. HUD will not review any project that is rejected by the CoC.

CoCs may only submit: one application for CoC planning costs; one application for UFA costs, if designated by HUD as a UFA; and one Permanent Supportive Housing Bonus project. The applicant for CoC Planning and UFA costs must be the Collaborative

Applicant.

8. HUD will continue the Tier 1 and Tier 2 funding process. Tier 1 is equal to the CoC’s

ARD amount approved in Registration, less 2 percent. Tier 2 is the amount between a

CoC’s Tier 1 and the CoC’s ARD, plus any approved amounts for CoC planning and

UFA costs. The Permanent Supportive Housing Bonus will be administered as a separate national competition and will therefore not be subject to the Tier1/Tier 2 process.

9. HUD intends to issue one funding announcement in FY 2014 for all projects, including new projects created through reallocation, new Permanent Supportive Housing Bonus projects, renewal projects, CoC planning, and UFA costs.

C. Permanent Supportive Housing Bonus. Ending chronic homelessness is the first goal of

Opening Doors. The original goal was to end chronic homelessness by 2015, however, due to insufficient appropriations and the lack of targeting at the local level, the goal has been extended. The 2015 President’s Budget requests the estimated resources that would be needed to end chronic homelessness in 2016. In order to make significant progress towards meeting this goal, and in accordance with Section 428(d) of the McKinney-Vento Homeless

Assistance Act, HUD is setting aside approximately $40 million for a Permanent Supportive

Housing Bonus project competition. All projects created with these funds must exclusively serve the chronically homeless. While any CoC with an approved 2014 CoC Registration may apply for these bonus funds, HUD will prioritize those CoCs with the highest need in relation to chronic homelessness.

The Permanent Supportive Housing Bonus is based on two overarching criteria: CoC need and project quality. In addition to the criteria below, projects must also meet the project eligibility threshold criteria outlined in Section V.E.2.d. of this FY 2014 CoC Funding Notice.

1. Threshold Requirements.

a. To be considered for funding, each Permanent Supportive Housing Bonus project application must:

(1) Propose to serve 100 percent chronically homeless individuals and families;

(2) Provide scattered-site leasing or tenant-based rental assistance; or, if the applicant can provide a deed or long-term lease demonstrating site control for a building or units where evidence of site control exceeds the requested grant term, and where the building or units are ready to be occupied no later than

6 months after the award of funds, the applicant may instead request operating costs or project-based rental assistance;

(3) Be submitted by a project applicant that is in good standing with HUD, which means that the project applicant does not have any open monitoring Findings, or history of slow expenditure of grant funds;

(4) Request no less than 70 percent of total program funding (not including funds for administration) for leasing, rental assistance, or operating costs. No more than 30 percent of the total program funding may be used for supportive services costs and the types of supportive services for which the funding may be used is limited to the following: assistance with moving costs

(24 CFR 578.53(e)(2)), case management (24 CFR 578.53(e)(3)), food

(24 CFR 578(e)(7)), housing/search and counseling services

(24 CFR 578.53(e)(8)), life skills (24 CFR 578.53(e)(10)), outreach services

(24 CFRR 578.53(e)(13)), transportation (24 CFR 578.53(e)(15)), and utility deposits (only if these are not included in rental/lease agreement)

(24 CFR 578.53(e)(16)). All other eligible supportive services costs under the

CoC Program interim rule are not eligible costs under this Permanent

Supportive Housing Bonus;

(5) Demonstrate a plan for rapid implementation of the program; the project narrative must document how the project will be ready to begin housing the first program participant within 6 months of the award;

(6) Demonstrate a connection to mainstream service systems; and

(7) Be a current participant or agree to participate in the CoC’s coordinated assessment system, which must already be implemented prior to HUD executing a grant agreement.

b. Each CoC may only submit one Permanent Supportive Housing Bonus project application. The Permanent Supportive Housing Bonus project application must be approved by the CoC in e-snaps. All Permanent Supportive Housing Bonus project applications must be assigned a rank number of “999” by the Collaborative

Applicant which will allow the project to be submitted for consideration by HUD, and will ensure that it is selected outside of Tier 1 and Tier 2 ranking process.

Permanent Supportive Housing Bonus projects that are selected for funding will be eligible (subject to the availability of appropriations and the terms of future

NOFAs) for renewal as a permanent supportive housing project on an annual basis following the initial expiration of this original award. The project must continue to exclusively serve the chronically homeless unless there are no persons meeting those criteria located in the CoC’s geographic area.

2. Scoring - HUD will use the following rating criteria to score and select Permanent

Supportive Housing Bonus Applications.

a. CoC Need–60 points–For the Permanent Supportive Housing Bonus competition, each application will be awarded a relative need score (defined as need in comparison with other CoCs) based on the following data:

(1) the number of chronically homeless reported in the 2013 Point-in-Time count;

(2) the number of dedicated permanent supportive housing beds available with the

CoC from any funding source, dedicated for use by chronically homeless as reported on the 2013 Housing Inventory Count; and

(3) the extent to which the CoC has prioritized existing permanent supportive housing beds/units not currently designated for the chronically homeless.

HUD has calculated the need score for each CoC, and has published that information for applicants as in the Appendix of this FY 2014 CoC Funding Notice.

Need scoring is based on a sliding scale, with the CoCs with the highest relative need in the U.S. receiving the full 60 points, and CoCs with lower relative need receiving points in four additional groupings, as follows:

Need Level Need Score

Extreme High Need 60 points

High Relative Need 45 points

Medium Relative Need 30 points

Medium-Low Relative Need 15 points

Low Relative Need 0 points

b. Project Quality–40 points–Each application will be scored on the overall quality of the project, and the extent to which the applicant can clearly demonstrate the following:

(1) Prioritizing Highest Need (10 points). Applicants may receive up to 10 points based on the extent to which the project applicant demonstrates that it will first serve the chronically homeless according to the order of priority established in

Section III.A. of Notice CPD-14-012: Prioritizing Persons Experiencing

Chronic Homelessness and Other Vulnerable Homeless Persons in Permanent

Supportive Housing and Recordkeeping Requirements for Documenting

Chronic Homeless Status. To receive full points, the applicant must clearly describe the system it currently uses to determine severity of need for the chronically homeless, its process for prioritizing persons with the most severe needs, and the outreach process used to engage chronically homeless persons living on the streets and in shelter.

(2) Housing First (10 points). Applicants may receive up to 10 points based on the extent to which the Permanent Supportive Housing Bonus project will follow a

Housing First model. To receive full points, the applicant must demonstrate it has experience in operating a successful housing first program, and clearly describe a program design that meets the definition of Housing First as described in Section III.A.3.d. of this FY 2014 CoC Funding Notice.

Applicants must BOTH check the box in the project application indicating a

Housing First model, and include relevant and clear descriptions in the project description narrative contained in e-snaps.

(3) Mainstream Services (10 points). Applicants may receive up to 10 points based on the extent to which the project is fully leveraging mainstream resources for supportive services. To receive full points, applicants must demonstrate the leveraging of Medicaid resources available in the applicant’s state. Applicants will receive up to 10 points as follows:

(a) Applicants may receive up to 5 points for demonstrating that specific activities are in place to identify and enroll all Medicaid-eligible program participants, regardless of whether the project applicant’s state is participating in Medicaid expansion under the Affordable Care Act; and

(b) Applicants may receive up to 5 points for demonstrating that the project includes Medicaid-financed services, including case management, tenancy supports, behavioral health services, or other services important to supporting housing stability. Project applicants may include Medicaid-financed services either by the recipient receiving Medicaid coverage payments for services provided to project participants or through formal partnerships with one or more Medicaid billable providers (e.g., Federally

Qualified Health Centers). No points will be awarded for Medicaid-financed health services provided in a hospital setting. Where projects can demonstrate that there are barriers to including Medicaid-financed services in the project, applicants will receive up to 5 points under this paragraph for demonstrating that the project leveraged non-Medicaid resources available https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf https://www.hudexchange.info/resources/documents/Notice-CPD-14-012-Prioritizing-Persons-Experiencing-Chronic-Homelessness-in-PSH-and-Recordkeeping-Requirements.pdf in the CoC’s geographic area, including mainstream behavioral health system resources such as mental health or substance abuse prevention and treatment block grants or state behavioral health system funding.

(4) Leveraging (5 points). Applicants may receive up to 5 points based on the extent to which the project will leverage additional resources to develop a comprehensive project that meets the needs of the chronically homeless and ensure successful program outcomes. To receive full points, applicants must demonstrate, with a written commitment, that the cash or in-kind value of leveraged commitments is at least 200 percent of the total request to HUD.

Leveraging commitment letters must be attached in e-snaps to the project application.

(5) CoC Score from FY 2013/FY 2014 CoC Application (5 points). Applicants may receive up to 5 points based on the CoC’s score from the FY 2013/FY 2014 CoC Application as follows:

(a) CoC Score 126-156= 5 points

(b) CoC Score 106-125= 4 points

(c) CoC Score 86-105= 3 points

(d) CoC Score 66-85= 2 points

(e) CoC Score 46-65= 1 point

(f) CoC Score less than 45 points = 0 point.

3. Maximum Permanent Supportive Housing Bonus Amount. The maximum amount that CoC may request for the Permanent Supportive Housing Bonus project is 15 percent of the CoCs Final Pro Rata Need or $10 million, whichever is less.

D. FY 2013/FY 2014 CoC Application Scores. CoCs were awarded scores on the CoC

Application for both FY 2013 and FY 2014 funds, based on the criteria described in

Section VII.A. of the FY 2013 - FY 2014 CoC Program Competition NOFA. The following two items were scored based on information included in the project application, and therefore projects will be required to continue meeting these criteria for both FY 2013 and FY 2014 operating years:

1. If the CoC was awarded bonus points in the FY 2013 – FY 2014 CoC Program

Competition for limiting administrative requests to 7 percent of each project budget request, no projects within the CoC may request more than 7 percent for administrative costs in FY 2014.