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Homeless Programs - Emergency Shelter GrantsThe Emergency Shelter Grants (ESG) program distributes formula grants for the rehabilitation or conversion of buildings into homeless shelters. It also funds certain related social services, operating expenses, homeless prevention activities, and administrative costs. ESG is often combined with state, local, and private funds to develop and create the facilities and programs for the emergency homeless shelters. HUD allocates ESG funds annually based on the formula used for the Community Development Block Grant Program. Eligible Grantees ESG provides funds to States, territories, and qualified cities and counties. Beginning October 1, 1998, Indian Tribes are no longer eligible for ESG funds: they may carry out these activities using the new Native American Block Grant. States and territories that receive ESG must distribute the funds to local governments or private nonprofit organizations. Local governments may administer all of the grant themselves or distribute the funds to private nonprofit organizations. Match Required Jurisdictions must match ESG grants dollar-for-dollar from non-ESG sources. States and territories do not need to match the first $100,000 of a grant. Eligible Participants A person must be homeless (or at great risk of becoming immediately homeless) to receive help from ESG projects. Eligible Activities Grantees may use ESG for the conversion, major rehabilitation, or renovation of buildings as emergency shelters. They may also use ESG for shelter operating expenses, essential services (supportive services concerned with employment, health, drug abuse, and education), or homelessness prevention activities. Grantees may use up to 30 percent of a grant for essential services and homelessness prevention activities. They may request a waiver on the cap on essential services. With the exception of homelessness prevention activities, grantees must use the property as a homeless shelter for a specific period. Funding Distribution HUD awards ESG funds through a preset formula to States, territories, and qualified cities and urban counties. To receive ESG funds, grantees must have an approved Consolidated Plan that includes plans for using ESG funds to address the jurisdiction's homeless assistance needs. Descriptions of planned and recently implemented activities undertaken by individual grantees with ESG funds are described in summaries of each community's Consolidated Plan Congress funds ESG together with several other programs as Homeless Assistance Grants. These other programs include: the Supportive Housing; Section 8 Moderate Rehabilitation for Single Room Occupancy and Shelter Plus Care programs. Statutory and Regulatory Cites ESG is authorized under Subtitle B of title IV of the Stewart B. McKinney Act (42 U.S.C. 11371 et seq.) Program regulations are at 24 CFR 576.
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