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On February 17, President Obama signed into law the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). This wide-ranging legislation included a number of provisions that are described below that provide additional assistance and resources that can help prevent and end homelessness. As the White House and federal agencies release information about the allocations, application processes, and awards for these funds, the information will be posted on our newly created Recovery Act page.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Emergency Shelter Grants. $1.5 billion for homelessness prevention and rapid rehousing activities to be distributed through this formula program to states, cities and local governments. HUD Secretary may establish minimum grant size. HUD to publish a notice within 30 days. Eligible activities include short or medium term rental assistance, housing relocation and stabilization services including housing search, mediation or outreach to property owners, credit repair, security and utility deposits, rental assistance for a final month at a location, moving cost assistance and case management. Emphasis is on the timely expenditure of funds. Grantees must expend 60% of funds in two years or Secretary can reallocate unspent funds.
Neighborhood Stabilization Program. $2 billion to assist states, local governments and non profits entities or consortia of nonprofit entities, which may submit proposals in partnership with for profit entities, in the purchase and rehabilitation of foreclosed, vacant properties in order to create more affordable housing and reduce neighborhood blight. These funds are in addition to $3.92 billion made available in the Housing and Economic Recovery Act of 2008, but unlike the earlier funds will be awarded through competitive application. HUD must publish selection criteria within 75 days and applications will be due within 150 days of enactment. ( note: day of enactment is February 17). In selecting grantees, HUD shall ensure that the grantees are in areas with the greatest number and percentage of foreclosures and grantees must be able to spend at least 50 percent of allocated funds within 2 years and 100 percent of such funds within 3 years. Renter Protection: provisions are included that tenants in foreclosed properties purchased with these new Neighborhood Stabilization Program funds receive a minimum 90 days notice before eviction and may be allowed to remain for the term of their leases.
Community Development Block Grants (CDBG). $1 billion
HOME. $2.250 billion to coordinate with Low Income Housing Tax Credits to jumpstart stalled housing development projects.
Public Housing Capital Fund. $4 billion to Public Housing Authorities (PHA) for building repair and modernization, of which $3 billion will be distributed by existing formula grant and $1 billion will be awarded by September 30, 2009 by competition for priority investments including investments that leverage private sector funding for renovations and energy conservation retrofit investments. PHAs are to give priority consideration to capital projects that can award contracts based on bids within 120 days from the date the PHA receives funds and also to the rehabilitation of vacant rental units. PHAs must obligate 100% of the funds within 1 year or Secretary will reallocate.
Promoting HUD Assisted Housing Stability and Increased Energy Efficiency
$2 billion for full year payment to landlords participating in the Section 8 Project Based program and $250 million to assist owners of Section 202, Section 811 and Section 8 properties increase energy efficiency, which may include new insulation, windows, and furnaces.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Community Health Centers: $500 million for services; and $1.5 billion for construction, renovation and equipment, and acquisition of health information technology systems. The $500 million in services money "are to be used to support new sites and service areas, to increase services at existing sites, and to provide supplemental payments for spikes in uninsured populations. Grants for new sites and service areas are to be two years in length as startup is phased in." HRSA is encouraged to consider supporting currently unfunded but approved community health center applications.
Community Services Block Grant: $1 billion with 1% of the funds made available to each state to be used for benefits enrollment coordination activities relating to the identification and enrollment of eligible individuals and families in federal, state, and local benefit programs. States may elect to allow services to be provided with these funds to individuals and families with incomes up to 200% of the federal poverty level during fiscal years 2009 and 2010.
Child Care and Development Block Grant: $2 billion. Expected to serve 300,000 children.
DEPARTMENT OF EDUCATION
Education for Homeless Children and Youth: $70 million to be distributed to states within 60 days in proportion to the number of homeless students identified during the 2007-2008 school year. States shall then subgrant the funds by competition or formula to local educational agencies within 120 days based on number of homeless students.
DEPARTMENT OF ENERGY
Weatherization Assistance Program. $5 billion for this program which assists low income individuals and families make their homes more energy efficient. Income eligibility ceiling increased from 150% to 200% of poverty level and funding assistance per dwelling unit increased to $6500 from $2000.
FEMA
Emergency Food and Shelter Program: $100 million
DEPARTMENT OF JUSTICE
Violence Against Women Transitional Housing. $50 million included as part of a $225 million appropriation to the Office on Violence Against Women for prevention and prosecution programs. DOJ to prepare intended spending plan for this and all other funding for DOJ programs under this Act within 60 days.
DEPARTMENT OF LABOR
Employment and Training. $2.95 billion for WIA formula grants to states including $500 million for adults, $1.25 billion for dislocated workers and $1.2 billion for youth programs. Increase age limit for youth funding from 21 to 24. $50 million provided for YouthBuild and for program years 2008 and 209 would allow participation by young people who've dropped out of high school and re-enrolled in alternative school if that re-enrollment is part of a sequential service strategy.
Job Corps. $250 million for construction, rehabilitation, and acquisition of ready to go Job Corps Centers. Up to 15 percent for operations, which may include training for careers in the energy efficiency, renewable energy, and environmental protection industries.
DEPARTMENT OF AGRICULTURE (USDA)
USDA Rural Housing: $200 million will support over $11 billion in direct and guaranteed single family loans.
USDA Community Facilities Program: $130 million will support over $1.2 billion in loans and grants for essential rural community facilities.
FOOD ASSISTANCE
Emergency Food Assistance (commodities purchase for food banks): $150 million of which up to $50 million may be used for costs associated with the distribution of commodities.
Increase to SNAP (Food Stamps) 13.6% increase food stamp benefit beginning April 2009. Suspends for 18 months the 3 month time limit on assistance that many unemployed childless adults face. Click here to view USDA memo and chart of new maximum monthly food stamp allotments by household size.
(Also, $100 million to FEMA Emergency Food and Shelter program as noted above)
AMONG PROVISIONS THAT PROVIDE FINANCIAL ASSISTANCE TO INDIVIDUALS AND FAMILIES :
"Making Work Pay" Tax Credit. For 2009 and 2010, a refundable tax credit of up to $400 for working individuals and $800 for working families. This tax credit is calculated at a rate of 6.2% of earned income, and phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 for married couples filing jointly).
Economic Recovery Payment of $250. Recipients of Social Security, SSI, Railroad Retirement ,and Veterans Disability Compensation Benefits will receive a one-time payment of $250. The one-time payment is a reduction to any allowable Making Work Pay credit.
Unemployment Compensation Benefits. $25 weekly increase in unemployment benefits through 2009 and the up to 33 weeks of extended unemployment benefits for workers who've exhausted their regular 26 weeks of benefits will continue through December 31, 2009.
Earned Income Tax Credit (EITC). For married couples filing a joint return, raises the beginning of the phase-out threshold by $1880 and also increases the value of the credit for working families with three or more children.
TAX INCENTIVE TO BUSINESS TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH.
Under current law, businesses are allowed to claim a work opportunity tax credit equal to 40 percent of the first $6,000 of wages paid to employees of one of nine targeted groups. The new law creates two new targeted groups of prospective employees: (1) unemployed veterans; and (2) disconnected youth. An individual would qualify as an unemployed veteran if they were discharged or released from active duty from the Armed Forces during the five-year period prior to hiring and received unemployment compensation for more than four weeks during the year before being hired. An individual qualifies as a disconnected youth if they are between the ages of 16 and 25 and have not been regularly employed or attended school in the past 6 months.
www.recovery.gov. The Federal Government has established the recovery.gov website to allow the American people to track over time the expenditure of funds and results from the American Recovery and Reinvestment Act.
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