Emergency Solutions Grant Program
The ESG program provides funding to: (1) engage homeless individuals and families living on the street; (2) improve the number and quality of emergency shelters for homeless individuals and families; (3) help operate these shelters; (4) provide essential services to shelter residents, (5) rapidly re-house homeless individuals and families, and (6) prevent families and individuals from becoming homeless.
General information about this opportunity
Last Known Status
Agency: Department of Housing and Urban Development
Office: Office of Community Planning and Development
Type(s) of Assistance Offered
Fiscal Year 2014: The ESG grants was awarded $250,000,000 in the fiscal year 2014. Fiscal Year 2015: The ESG grants was awarded $274,000,000 in the fiscal year 2015. Fiscal Year 2016: No Current Data Available.
McKinney-Vento Homeless Assistance Act of 1987, Title IV, as amended, 42 U.S.C. 11371-78.
Who is eligible to apply/benefit from this assistance?
Eligible recipients generally consist of metropolitan cities, urban counties, territories, and states, as defined in 24 CFR 576.2. Metropolitan cities, urban counties and territories may subgrant ESG funds to private nonprofit organizations. States must subgrant all of their ESG funds (except for funds for administrative costs and, under certain conditions, HMIS costs) to units of general purpose local government and/or private nonprofit organizations. Each recipient must consult with the Continuum(s) of Care operating within the jurisdiction in determining how to allocate ESG funds.
The minimum eligibility criteria for ESG beneficiaries are as follows: For essential services related to street outreach, beneficiaries must meet the criteria under paragraph (1)(i) of the “homeless” definition under § 576.2. For emergency shelter, beneficiaries must meet the “homeless” definition in 24 CFR 576.2. For essential services related to emergency shelter, beneficiaries must be “homeless” and staying in an emergency shelter (which could include a day shelter). For homelessness prevention assistance, beneficiaries must meet the requirements described in 24 CFR 576.103. For rapid re-housing assistance, beneficiaries must meet requirements described in 24 CFR 576.104. Further eligibility criteria may be established at the local level in accordance with 24 CFR 576.400(e).
Recipients must certify they will meet program requirements and applicable federal requirements. Government recipients and subrecipients must comply with OMB Circular No. A-87. Subrecipients that are private nonprofit organizations must comply with OMB Circular No. A-122. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Preapplication coordination is required. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. In addition to meeting the application submission requirements in 24 CFR part 5, subpart K, each State, urban county, or metropolitan city must submit a consolidated plan, an annual action plan, and certifications to HUD, in accordance with the requirements in 24 CFR part 91, and each territory must submit a consolidated plan, an annual action plan, and certifications to HUD, in accordance with the requirements that apply to local governments under 24 CFR part 91. The consolidated plan and annual action plan cover four major HUD formula programs, including ESG. The annual action plan must describe how the funds will be used. The uniform administrative requirements at 24 CFR parts 84 and 85 apply as specified in 24 CFR 576.407(c).
The HUD field office reviews the grantee's Consolidated Plan and, upon plan approval, notifies the applicant of the award and prepares the grant agreement.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
Each jurisdiction should submit its consolidated plan to HUD at least 45 days before the start of its program year. In no event will HUD accept a submission earlier than November 15 or later than August 16 of the federal fiscal year for which the grant funds are appropriated.
The plan will be deemed approved 45 days after HUD receives the plan, unless before that date HUD has notified the jurisdiction that the plan is disapproved. If the plan is disapproved, the jurisdiction may revise or resubmit a plan within 45 days after the first notification of disapproval. HUD must respond to approve or disapprove the plan within 30 days of receiving the revisions or resubmission.
Formula allocations may not be appealed. Disapproved plans may be resubmitted in accordance with 24 CFR 91.500.
How are proposals selected?
Proposed ESG projects are part of the prospective grantee's Consolidated Plan, which is reviewed according to criteria set forth in 24 CFR 91.
How may assistance be used?
ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and HMIS; as well as administrative activities (up to 7.5% of a recipient’s allocation can be used for administrative activities). For specific uses and use restrictions, see 24 CFR part 576, subpart B.
What are the requirements after being awarded this opportunity?
Each recipient must report its program accomplishments for each program year in the Consolidated Annual Performance and Evaluation Report (CAPER). Each recipient's efficient expenditure of grant funds is evaluated through information provided in the program management's information system, known as the Integrated Disbursement and Information System (IDIS). Each recipient must also comply with the reporting requirements under the Federal Funding Accountability and Transparency Act of 2006, (31 U.S.C. 6101 note), which are set forth in appendix A to 2 CFR part 170. Monitoring is "risk-assessment based" with high-risked grantees receiving priority status for monitoring and review. The performance report shall be submitted to HUD within 90 days after the close of the jurisdiction's program year. Recipients draw down ESG funds from the Integrated Disbursement and Information System (IDIS). This is HUD's primary method of capturing financial and expenditure data from the recipients. Progress reports are not applicable. Through the CAPER and IDIS draw down information, recipients provide reports on expenditures. In accordance with 24 CFR Part 85, recipients are required to monitor their subrecipients for compliance with the ESG requirements.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503.
Sufficient records must be established and maintained to enable the recipient and HUD to determine whether ESG requirements are being met. All records pertaining to each fiscal year of ESG funds must be retained for the greater of 5 years or the period specified under 24 CFR 576.500(y).
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: The formula for this program is part statutory and part regulatory (see section 414 of the McKinney-Vento Homeless Assistance Act and 24 CFR 576.3). HUD will set aside for allocation to the territories up to 0.2 percent, but not less than 0.1 percent, of the total amount of each appropriation in any fiscal year. The remainder will be allocated to States, metropolitan cities, and urban counties. The percentage allocated to each State, metropolitan city, and urban county will be equal to the percentage of the total amount available under section 106 of the Housing and Community Development Act of 1974 for the prior fiscal year that was allocated to the State, metropolitan city or urban county. If an allocation to a metropolitan city or urban county would be less than 0.05 percent of the total fiscal year appropriation for ESG, the amount is added to the allocation of the State in which the city or county is located. If the recipient or subrecipient is a unit of general purpose local government, its ESG funds cannot be used to replace funds the local government provided for street outreach and emergency shelter services during the immediately preceding 12-month period, unless HUD determines that the unit of general purpose local government is in a severe financial deficit in accordance with 24 CFR 576.101(c).
Matching Requirements: Metropolitan city and urban county recipients must match grant funds with an equal amount of funds from cash or the following in-kind sources: services contributed by volunteers, the donation of materials and buildings, or the value of any lease on a building. States must match all but $100,000 of their awards, but must pass on the benefit of that $100,000 exception to their sub-recipients that are least capable of providing matching amounts. Territories are exempt from the match requirement.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Metropolitan cities, urban counties and territories must obligate all funds, except for the amount for administrative costs, within 180 days after HUD signs the grant agreement. States must obligate all funds, except the amount for administrative costs, to subrecipients within 60 days after the date that HUD signs the grant agreement. Each subrecipient that is a unit of general purpose local government must obligate its grant funds within 120 days after the date the State obligates its funds. All grant funds must be expended within 24 months after HUD signs the grant agreement with the recipient. Method of awarding/releasing assistance: by letter of credit.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Contact appropriate HUD Field Office listed in Appendix IV of the Catalog.
Michael Roanhouse, Office of Special Needs Assistance Programs, U.S. Department of Housing and Urban Development, Community Planning and Development, 451 7th Street, SW, Room 7262, Washington, District of Columbia 20410 Email: Michael.Roanhouse@hud.gov
Phone: 202-402-4482 Fax: 202-708-3617
(Formula Grants) FY 14 $250,000,000; FY 15 est $274,000,000; and FY 16 est $250,000,000
Range and Average of Financial Assistance
The .05 percent minimum entitlement allocation resulted in $74,478 minimum grant in FY2015. The maximum entitlement allocation was $13,600.063.
Regulations, Guidelines and Literature
The program regulations can be found at 24 CFR Part 576. Guidance on the program can be found at www.hudexchange.infoesg.
Examples of Funded Projects