The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 introduced critical funding avenues to combat the escalating challenges of homelessness exacerbated by the pandemic. Among these initiatives, the Emergency Solutions Grant – CARES (ESG-CV) program stands out as a vital resource for communities striving to protect vulnerable populations. Administered under the McKinney-Vento Homeless Assistance Act and the HEARTH Act, ESG-CV grants are specifically designed to help prevent, prepare for, and respond to the coronavirus crisis among individuals and families experiencing or at risk of homelessness.
The urgency of the situation prompted a two-pronged approach in fund allocation. Recognizing the immediate and evolving needs across the nation, the Department of Housing and Urban Development (HUD) distributed ESG-CV funds in two rounds. This strategic distribution ensured that communities received timely support to address both immediate emergency shelter needs and longer-term homelessness prevention strategies during the pandemic.
For instance, in Pennsylvania, the Department of Community and Economic Development (DCED) received a substantial second allocation of ESG-CV funds, totaling $19,930,907. This allocation was calculated using a HUD formula that considered critical factors such as the existing homeless population, the number of unsheltered individuals, and the prevalence of very low-income renters in precarious housing situations. A portion of these funds, specifically $2,997,961, was strategically channeled into a Code Blue program to provide essential winter sheltering during the 2020-2021 season. The remaining $16,932,946 was made available through a competitive application process, aiming to support initiatives that effectively end or prevent homelessness for vulnerable populations throughout the state.
How Can CARES Act Grant Funding Be Utilized?
The ESG-CV grant program offers considerable flexibility in how funds can be applied, allowing recipients to tailor their approach to the unique challenges within their communities. Eligible activities are broadly defined under the Emergency Solutions Grant Interim Rule and further clarified in Notice CPD 20-08. These encompass a range of interventions designed to address homelessness comprehensively:
- Emergency Shelter: Providing and maintaining essential emergency shelters to ensure immediate safety and housing for those experiencing homelessness.
- Temporary Emergency Shelter: Establishing temporary shelter solutions to accommodate surges in need, particularly during public health crises or extreme weather events.
- Rapid Rehousing: Implementing programs that swiftly move individuals and families from homelessness into stable, permanent housing.
- Homelessness Prevention: Funding initiatives aimed at preventing individuals and families at risk of homelessness from losing their housing.
- Landlord Incentives: Offering incentives to landlords to encourage them to rent to individuals and families experiencing or at risk of homelessness, expanding housing options.
- Street Outreach: Supporting outreach efforts to connect with unsheltered individuals, provide essential services, and facilitate access to shelter and housing.
- Hazard Pay: Providing hazard pay to frontline workers in homeless services, recognizing their increased risks and essential role during the pandemic.
- Homeless Management Information System (HMIS): Investing in HMIS to improve data collection, coordination, and service delivery within the homeless service system.
- Administration: Allocating funds for the administrative costs associated with managing and implementing ESG-CV funded programs.
Who is Eligible to Apply for ESG-CV Grants?
The eligibility criteria for ESG-CV grants are designed to ensure that funding reaches the entities best positioned to address homelessness at the local level. DCED accepted applications from a wide array of general-purpose units of local government within Pennsylvania. This included:
- Cities
- Boroughs
- Townships
- Towns
- Counties
- Home rule municipalities
- Communities applying “on behalf of” other municipalities
Local governments were also permitted to apply “on behalf of” nonprofit organizations, fostering partnerships between government and community-based service providers. Non-profit organizations were eligible to apply directly only for regional projects demonstrating a need across multiple counties (defined by DCED as more than one county), emphasizing collaborative, large-scale solutions.
Funding Parameters and Key Details
The ESG-CV program was structured to provide meaningful financial support without imposing burdensome requirements. Key funding parameters included:
- Minimum Funding: Applicants could apply for a minimum of $25,000, ensuring that even smaller-scale initiatives could be supported.
- Maximum Funding: There was no maximum funding limit, allowing for ambitious and comprehensive projects to be considered based on need and impact.
- Matching Requirement: Crucially, no matching funds were required for ESG-CV grants, removing a significant barrier for many applicants, particularly during times of economic uncertainty.
For those seeking more detailed information and application resources, the following links provide valuable supplementary materials:
The Cares Act Grant Program, through the Emergency Solutions Grant – CARES (ESG-CV), represented a critical lifeline for communities grappling with the intertwined crises of homelessness and the COVID-19 pandemic. By understanding the program’s scope, eligible uses, and application process, local governments and non-profit organizations could effectively leverage these resources to protect vulnerable populations and build more resilient communities.
