to:                 tHE hONORABLE Elizabeth Dole, U.S. Senator

from:           Chris Moran, executive director

subject:     2002 HUD awards and Project Homestart

date:            December 23, 2002

cc:                  mEMBERS, orange county Continuum of Care, Local Governmental officials

On December 18, 2002 the Department of Housing and Urban Development (HUD) announced this year’s Community Planning and Development Homeless Assistance awards including Orange County. Please refer to http://www.hud.gov/offices/cpd/homeless/budget/2002/nc/totals.pdf for specific North Carolina Continuum of Care (COC) awards information.

Orange County was awarded $731,296. However, renewal funds for a crucial transitional housing program, Project Homestart, were not approved. In June 2002, the Orange County COC request package had included $366,156 for Project Homestart. The Inter-Faith Council for Social Service (IFC) share or matching contribution for the request is an additional $95,547.

BACKGROUND INFORMATION:

Project Homestart  (PHS), is a transitional housing program for up to 15 homeless families at any given time. Currently 15 families including 31 children are living on our three-building campus here in Chapel Hill. HUD originally funded this transitional housing program in 1998, for a period of 3 years. We received renewal support last year.

 

The goals of Project Homestart are twofold. First, the project seeks to help families move toward independent, permanent housing in 24 months or less. Second, the project provides participants with the life skills that are needed to ensure that the family does not become homeless again.

 

Up to five families live in each Project Homestart building. One building is designed to serve women and children who are survivors of domestic violence. A Domestic Violence Case Manager helps these residents with their development goals, reduces barriers contributing to violence and continued homelessness, and prepares everyone with the skills that are needed to become self-sufficient.

 

Supportive services are provided to aid all families in their goal of attaining their own housing. Case managers, a program coordinator, a children’s program coordinator, residential advisors and community volunteers provide services. Intensive case management serves as the key tool for helping families to achieve their goals. Program staff and volunteers continually collaborate with other agencies, groups and congregations in Orange County. IFC, the sponsoring organization, regularly shares its experience about the contributing factors that lead to homelessness, and advocates for more transitional and permanent housing opportunities to address this growing need.

 

ORANGE COUNTY CONTINUUM OF CARE REQUESTS AND EXHIBITS:

 

As you may know, as part of its Continuum of Care funding process, HUD requires each COC group to establish a priority ranking for its projects. In 2001, the Orange County COC ranked the Project Homestart transitional housing renewal exhibit as its first priority. It was our understanding that as a consequence of this ranking decision, our request for $525,000 for a Single Room Occupancy, permanent housing project was not approved.

 

For the 2002 process, the COC was strongly advised that Project Homestart, our transitional program, might not be renewed unless we recommended that our top priorities be “permanent housing” projects. Based on this understanding, we approved and submitted our annual report and other exhibits with priorities as follows:

 

ü      Priority #1: $103,296 for Club Nova permanent housing SRO project

ü      Priority #2: $525,000 for affordable, permanent housing project – purchase housing

      to update and rent at affordable rates

ü      Priority #3: $366,156 for Project Homestart – Transitional Housing

ü      Priority #4: $103,000 for Shelter Plus Care application (non-competitive)

 

While this order of priorities did indeed yield funding for new permanent housing projects, it also resulted in the decision by HUD not to fund Project Homestart.  Under these circumstances, IFC would be forced to shut down the Homestart program on March 31st.

 

Recommendations for your consideration:

 

To resolve the Project Homestart dilemma, on December 19th the COC Steering Committee - in consultation with our HUD Greensboro office, the OPC Foundation and OPC Area Program - decided to request reallocation of HUD-approved 2002 COC Award funds as follows:

ü      $366,156 for Project Homestart – Transitional Housing

ü      $262, 140 for purchasing scattered units to update and rent at affordable rates

ü      $103,000 for Shelter Plus Care application (non-competitive)

Such a reallocation decision will support both permanent and transitional strategies for assisting homeless individuals in Orange County. With housing for homeless families in such short supply, it would be extremely unfortunate were we forced to leave 15 families with 31 children homeless in order to move forward with a purchase-to-rent project that might take months to execute.

With the rising numbers of homeless families in Orange County, it is a daunting task for the COC, the Inter-Faith Council and all our partners to help our residents become independent and overcome the root causes for their homelessness. We would appreciate your assistance and participation in our effort to obtain HUD approval of reallocation of the 2002 Orange County COC Homeless Assistance awards so as to preserve the Project Homestart program.

 

[email protected]

(919) 929-6380; fax: (919) 929-3353