Categories: New York State, New York City, Federal
12.05.2013
Sequestration to result in a 5% cut to programs
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The U.S. Department of Housing and Urban Development (HUD) has opened the competition for Continuum of Care (CoC) funding for the 2013 and 2014 fiscal years. New York State’s 25 CoCs must each submit a comprehensive application by February 3, 2014. Providers must submit their project applications in e-snaps at least 30 days prior to this. You can read the HUD Notice of Funding Availability (NOFA) here.
Unlike previous applications, the recently-released community application spans two years: FY 2013 and 2014. This move will allow HUD to get its application process back on track and hopefully avoid cutting funding for renewal projects, as is happening in this round. It is also a strong indication that there will likely be no new funding to address homelessness for the foreseeable future.
This application includes a number of other noteworthy changes from prior years. Chief among them is the stipulation that the only way to create a new project is through reallocation of existing funding. This is due to sequestration, which has eliminated any funding for bonus projects this year. HUD further stipulated that new (reallocated) project funding can only be used for supportive housing for people who are chronically homeless or rapid rehousing for families.
HUD has also required CoCs to create two tiers of projects -- the second tier being the list of projects that will likely get defunded due to sequestration. Like other HUD programs, CoCs are being told to plan for a 5% reduction in funding. In New York City alone, that is a loss of nearly $6 million, affecting housing and services for over 1,200 homeless individuals and families.
Other noteworthy changes in the NOFA include:
- Allowing CoCs to better maximize its rental assistance funding (a.k.a. Shelter Plus Care) to house more homeless households instead of having to send unusable funds back to Washington.
- Incentives to prioritize all units funded by the CoC to serve chronically homeless people.
- A bonus incentive to de-prioritize projects that are services-only.
- Changing the benchmark for employment outcomes. HUD will now consider the employment statistics of those that are currently housed, whereas previously HUD only factored in the employment statistics of those who were discharged from the program.
The Network will now begin the work of fighting next year’s cuts. We look forward to working with our federal advocacy partners to ensure greater funding for CoCs across New York. If you have any question, please contact Steve Piasecki at the Network.