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Donovan Announces $300 Million Dollars In Recovery Act Funding To Prevent Homelessness

Press Release

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Date:
Location: Washington, DC

Donovan Announces $300 Million Dollars In Recovery Act Funding To Prevent Homelessness

U.S. Housing and Urban Development Secretary Shaun Donovan today awarded $300 million in Recovery Act funding to nearly 100 communities across the nation. The funding will rapidly re-house families who fall into homelessness, or prevent families from becoming homeless in the first place. The funding, provided through the American Recovery and Reinvestment Act of 2009, is also designed to help persons and families facing a sudden financial crisis that could lead to homelessness. To view the list of grantees and funding amounts under this round, visit HUD's Recovery Act website.

To date, HUD has obligated $10 billion, nearly 75 percent, of the Department's $13.61 billion in Recovery Act grants, thereby allowing State and local communities to begin spending these funds Today's announcement means all $1.5 billion in Homelessness Prevention and Rapid Re-Housing funds have been awarded.

"HUD is moving quickly to ensure that Recovery Act investments can be put to work helping those who are in desperate need during these challenging times," said Donovan. "Today, we are proud to announce that all of the Homelessness Prevention and Rapid Re-Housing funds made available through the Recovery Act are in the hands of those on the front lines of helping families and individuals confronting homelessness. I am thrilled that in just over six months we have made $10 billion available for states and communities to spend, creating jobs and helping families impacted by the tough economic times. "

The Recovery Act provides $1.5 billion to fund HUD's new Homeless Prevention and Rapid Re-housing Program (HPRP). These grants offer communities a resource to provide short- and medium-term rental assistance and services to prevent individuals and families from becoming homeless or to quickly re-house those who are experiencing homelessness. HUD announced the first round of grants under this program on July 9 to over 400 communities, totaling $1.2 billion. Today's announcement brings the total awarded amount of HPRP funds to 100 percent, or $1.5 billion.

Grants provided under HPRP are not intended to provide long-term support for individuals and families, nor will they afford mortgage assistance to homeowners facing foreclosure. Rather, HPRP offers a variety of short- and medium-term financial assistance to those who would otherwise become homeless, many due to sudden economic crisis. This can include short-term rental assistance (up to three months), medium-term rental assistance (up to 18 months), security deposits, utility deposits and/or utility payments, moving cost assistance, and hotel vouchers. Payments will not be made directly to households, but only to third parties, such as landlords or utility companies.

The program also provides assistance to rapidly re-house persons who are homeless and likely to remain stably housed, whether subsidized or unsubsidized, once the HPRP assistance concludes.

Secretary Donovan and the Department are committed to providing the highest level of transparency possible as Recovery Act funds are administered. It is vitally important that the American people are fully aware of how their tax dollars are being spent and can hold their federal leaders accountable. Every dollar of Recovery Act funds HUD spends can be reviewed and tracked at HUD's Recovery Act website. The full text of HUD's funding notices and tracking of future performance of these grants is also available at HUD's Recovery Act website.


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