North Carolina Coalition to End Homelessness

Economic Stimulus Act: Homelessness Prevention Fund

The American Recovery and Reinvestment Act of 2009, signed into law on February 17, is providing nearly $800 billion to stimulate the economy. The legislation includes $1.5 billion for a homelessness prevention fund that will provide assistance to homeless or at-risk individuals and families. The text of the legislative language regarding homelessness prevention can be found here.



Eligible Activities:



  • short- or medium-term rental assistance,
  • housing relocation and stabilization services,
  • housing search assistance,
  • mediation or outreach to property owners,
  • credit repair,
  • security or utility deposits,
  • utility payments,
  • rental assistance for a final month at a location,
  • moving costs assistance,
  • case management, and
  • other appropriate activities for homelessness prevention and rapid re-housing of persons who have become homeless 

North Carolina's Allocation of Funds by Community: 

North Carolina State Program $22,157,468
Asheville $509,460
Charlotte $1,930,217
Durham $789,101
Fayetteville $589,648
Greensboro $781,141
Raleigh $991,091
Wake County $582,164
Winston-Salem $748,097

NC Total

This new funding is intended to assist individuals and families who need short-term assistance (3-18 months) in order to stay in their current housing or to move into new housing. The program is designed with new research and best practices in mind—the provision of flexible housing assistance AND services is proving to be cost-effective with exceptional outcomes for the individual or family.

This new approach allows us to shift our system so assistance is available to households who are at high-risk of becoming homeless. A household will not have to enter the homeless shelter system in order to receive adequate assistance; instead ,homeless providers will be able to use their skills and knowledge to assist individuals and families before they lose their housing. If implemented correctly, this new program will help our shelter system with the growing need that is being seen by catching people before they fall into homelessness. For those who do have to go to shelter, this program offers a way to exit quickly back into permanent housing.

The State of North Carolina and communities receiving direct funding (listed above) must turn in a plan of how they will disperse money to HUD by May 18, 2009. In most cases, communities will disperse funds through a competitive process. Information on how to apply for these funds will be provided on NCCEH’s website as they are made public. All funds must be committed to subgrantees by September 30, 2009.


Fast Facts:

Grantees must use HMIS or a comparable database.

Up to five percent can be used for administrative costs.

Grantees will have to spend 60 percent of the funds within two years of obligation from HUD and 100 percent within three years. HUD may reallocate funds from grantees that do not meet the 2-year requirement to those that do.

HUD issued guidelines for the Homeless Prevention and Rapid Re-Housing Program on March 19, 2009.

The State of North Carolina and entitlement communities listed below must submit a plan to HUD by May 18, 2009.

More Resources:

 Release Date  Document  download
04.08.09 NCCEH: Presentation on HPRP for the NC Housing Coalition's Housing Summit view pdf
03.23.09 NCCEH: Presentation on HPRP for Homeless Prevention Fund Leadership Planning Summit view pdf
03.19.09 HUD's Homeless Prevention and Rapid Re-Housing Program (HPRP) Notice view pdf
  HUD's Homelessness Prevention Fund Overview  view pdf
  NCCEH: Explanation of HPF Activities view pdf
 3.12.09 NCCEH: Presentation on HPF for Communities view pdf
  NAEH Guide: Creating a Plan for the Homelessness Prevention Fund view pdf
  NAEH Recommendations: Using the New Prevention and Re-Housing Funds view pdf
  Legislative Text of Homelessness Prevention Fund view pdf
  NAEH: Homelessness Prevention and Re-Housing: Overview of Funds view pdf
  NAEH: Additional ARRA Resources view pdf
  NAEH: TANF Emergency Contingency Fund view pdf

Helpful Links

Category: policy | Sub Category: federal
Tags: policy