Emergency Solutions Grants: Funding and Resources for Homelessness Aid

The Emergency Solutions Grants (ESG) program is a cornerstone of the federal strategy to combat homelessness. Administered by the U.S. Department of Housing and Urban Development (HUD), it provides vital funding to help individuals and families who are homeless or at risk of homelessness quickly regain stability in permanent housing.

This program is not merely about temporary shelter. It is a comprehensive initiative offering a range of services, from street outreach and emergency shelter operations to homelessness prevention and rapid re-housing assistance. The following sections provide a definitive look at the program's core components, eligibility requirements, and how these critical resources are accessed at the local level.

The Foundation of Emergency Solutions Grants

The ESG program is a critical federal resource, but its current form is the result of a significant evolution in national policy on homelessness. This history reflects a deliberate move away from simply managing the crisis of homelessness toward implementing strategic, housing-focused solutions.

The Shift to Solutions: How the HEARTH Act Reshaped Homelessness Assistance

The program's origins lie in the Emergency Shelter Grant, first authorized by the Stewart B. McKinney-Vento Homeless Assistance Act of 1987. Its primary function was to provide funding for the operational costs of emergency shelters. However, the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009 fundamentally reshaped the federal approach to homelessness.

The HEARTH Act renamed the program to Emergency Solutions Grants, signaling a profound strategic pivot. This was not just a cosmetic change but a legislative mandate to shift focus from managing needs within the shelter system to resolving housing crises altogether. The legislation broadened eligible activities, placing greater emphasis on homelessness prevention and rapid re-housing.

This change institutionalized a new definition of success. Where success was once a safe bed for the night, the new paradigm defines success as a swift and sustainable exit from homelessness. This philosophical shift has compelled service providers to develop new capacities in areas like landlord negotiation and financial assistance, moving the entire system toward a more proactive, housing-centric model.

Program Mission: A Focus on Prevention and Rapid Re-Housing

The core mission of the modern ESG program is to provide resources to help individuals and families experiencing or at-risk of homelessness to quickly regain stability in permanent housing.

The program's primary objectives are to support a continuum of services that:

• Engage homeless individuals and families living on the street.
• Improve the number and quality of emergency shelters.
• Help operate these shelters and provide essential services to residents.
• Rapidly re-house individuals and families who are homeless.
• Prevent at-risk individuals and families from becoming homeless.

This mission is increasingly operationalized through a "Housing First" approach. This framework prioritizes moving people into permanent housing as quickly as possible with few preconditions, such as sobriety or treatment compliance. The underlying principle is that people are better able to address other challenges once they are stably housed.

How Funding Flows: From Federal to Local Impact

Understanding the ESG funding stream is crucial for organizations and individuals alike. ESG is a formula grant program, meaning HUD allocates funds based on a formula considering factors like population, poverty, and housing conditions, rather than through a national competition.

Crucially, ESG funds are not provided directly to individuals or families. The funding flows through a multi-layered system:

1. Grantee Level: HUD awards grants to eligible recipients, which are generally states, metropolitan cities, large urban counties, and U.S. territories.
2. Subrecipient Level: Grantees then make funds available to "subrecipients." These are the frontline organizations, either local governments or private nonprofits, that deliver services directly to the community.

This tiered structure creates a system of layered accountability. While HUD sets the overarching rules, state and local grantees often establish their own priorities and guidelines. For instance, California requires a minimum of 40% of funds be used for rapid re-housing, while Texas and Pennsylvania have their own distinct application processes. This decentralization allows the program to be tailored to local needs but also means the on-the-ground reality of ESG funding can vary significantly from one community to another.

Eligibility: Who the ESG Program Serves

Eligibility for ESG assistance is strictly defined by federal regulations to ensure resources are targeted to those most in need. There are two primary beneficiary groups: individuals and families who are literally "homeless" and those who are "at risk of homelessness."

Defining "Homeless": The Four Official Categories Explained

To receive assistance under the Street Outreach, Emergency Shelter, or Rapid Re-Housing components, an individual or family must meet one of the four federal definitions of "homeless":

• Category 1: Literally Homeless. This includes individuals lacking a fixed, regular, and adequate nighttime residence. This means sleeping in a place not meant for human habitation (like a car or park), a supervised shelter, or exiting an institution after a short stay where they were homeless before entry.
• Category 2: Imminent Risk of Homelessness. This covers individuals who will lose their primary nighttime residence within 14 days and have no other housing options or resources. Evidence can include a court-ordered eviction notice.
• Category 3: Homeless Under Other Federal Statutes. This is a more complex category for specific populations, like unaccompanied youth, who are unstably housed and likely to remain so due to multiple barriers, but do not meet other definitions.
• Category 4: Fleeing/Attempting to Flee Domestic Violence. This includes any individual or family fleeing domestic violence, stalking, or other dangerous conditions who has no other residence and lacks the resources to obtain one. An oral statement can be sufficient evidence to document this status for safety reasons.

Identifying "At Risk of Homelessness": Criteria for Prevention Assistance

Eligibility for the Homelessness Prevention component is different and more restrictive. To be considered "at risk of homelessness," a household must meet several criteria:

1. Income Test: The household's annual income must be at or below 30% of the Area Median Income (AMI).
2. Resource Test: The household must lack the financial resources or support networks to prevent them from becoming homeless.
3. Housing Instability Condition: The household must meet at least one condition indicating housing instability, such as receiving an eviction notice, moving frequently for economic reasons, or living in another person's home due to hardship.

Income Requirements and Documentation

Income eligibility is a key factor, particularly for housing stabilization components.

• Homelessness Prevention: Participants must have an income at or below 30% AMI upon program entry.
• Rapid Re-Housing: Participants must be literally homeless upon entry. Their income must not exceed 30% AMI at their annual re-evaluation to continue receiving assistance.
• Emergency Shelter and Street Outreach: These services are targeted to those who meet the definition of "homeless" and generally do not have an income test.

Documentation and Systemic Challenges

The strict, evidence-based nature of these definitions is a foundational element of the program's design. Federal regulations require service providers to follow specific procedures for documenting eligibility, prioritizing third-party documentation first. This structured approach is intended to ensure limited resources are targeted to the most vulnerable populations.

However, this rigidity can create significant challenges. For an individual in crisis, obtaining formal documentation can be an overwhelming task, potentially creating a barrier to access. The very rules designed to target aid can inadvertently exclude those unable to produce the required paperwork.

Furthermore, the narrow legal definitions can leave gaps in the safety net. For example, a family earning 35% of AMI, while still in extreme poverty, would be ineligible for ESG prevention assistance. This highlights a persistent tension within the system: the need for accountability versus the need for flexibility to meet the diverse realities of housing crises.

The Five Core Components of ESG Assistance

The ESG program is structured around five distinct components, plus an allowance for administrative activities. The program's design intentionally steers resources toward permanent housing solutions.

Overview of the Five Components

ESG funds can be used for activities that fall under one of the following five components:

1. Street Outreach (SO)
2. Emergency Shelter (ES)
3. Homelessness Prevention (HP)
4. Rapid Re-Housing (RRH)
5. Homeless Management Information System (HMIS)  

A portion of the award can also be used for Administrative Activities, typically capped at 7.5% of the grantee's total allocation. A critical rule is the expenditure cap on shelter-related activities. The total amount used for Street Outreach and Emergency Shelter combined cannot exceed 60% of a subrecipient's total award, reflecting the mandate to focus on housing solutions.

Street Outreach (SO)

• Purpose: To find, engage, and connect with unsheltered homeless individuals and families who may be unwilling or unable to access emergency shelter.
• Eligible Activities & Services:
• Engagement: Locating and building rapport with unsheltered persons.  
• Case Management: Conducting needs assessments and developing plans for securing housing.  
• Emergency Health and Mental Health Services: Funding for direct outpatient treatment when other services are unavailable.  
• Transportation: Costs for outreach workers to travel and to transport clients to critical facilities.  
• Urgent Supplies: Providing essential items like food, blankets, or toiletries.  

Emergency Shelter (ES)

• Purpose: To fund the provision of safe, temporary shelter and supportive services for individuals and families experiencing homelessness.
• Eligible Activities & Services:
• Shelter Operations: Costs to keep a shelter running, including rent, utilities, insurance, food, and supplies.  
• Essential Services: A wide array of services for residents, including case management, childcare, employment assistance, legal services, and mental health services.  
• Renovation: Funds may be used for major rehabilitation or conversion of a building for use as a shelter, but not for property acquisition or new construction. Depending on the cost, the facility must be maintained as a shelter for a minimum of 3 or 10 years.  
• Hotel and Motel Vouchers: Can be used for temporary stays when no appropriate shelter bed is available.  

Homelessness Prevention (HP)

• Purpose: To prevent individuals and families from becoming literally homeless by providing financial assistance and services to help them maintain their housing.
• Eligible Activities & Services:
• Financial Assistance: Includes short-term (up to 3 months) or medium-term (4 to 24 months) rental assistance, rental arrears, security deposits, and utility payments.  
• Housing Relocation and Stabilization Services: Services to help participants find and maintain housing, such as housing search, landlord-tenant mediation, and credit repair.  

Rapid Re-Housing (RRH)

• Purpose: To help individuals and families who are already experiencing literal homelessness move as quickly as possible into permanent housing.
• Eligible Activities & Services: The eligible activities for RRH are identical to those for Homelessness Prevention, including financial assistance and stabilization services. The critical distinction is the population served: HP serves those at risk, while RRH serves those who are already homeless.

Homeless Management Information System (HMIS)

• Purpose: Participation in an HMIS is a statutory requirement. HMIS is a local information technology system used to collect client-level data, which is essential for coordinating services and reporting on program performance.
• Eligible Costs: ESG funds may be used for costs associated with participating in the local HMIS, including hardware, software, staff salaries for data entry, and training.

The following table provides a consolidated overview of these components.

This structured comparison clarifies the distinct yet complementary roles of each component and highlights the critical nuances essential for successful grant management.

A Guide for Organizations: Applying for and Managing ESG Funds

For nonprofit organizations and local government agencies, the ESG program is a vital source of funding. However, accessing and managing these federal funds requires a deep understanding of a complex lifecycle of application, compliance, and reporting.

Eligible Applicants: Who Can Receive ESG Grants

The pathway to receiving ESG funds involves a clear hierarchy. HUD provides grants directly to "grantees," which are states, large metropolitan cities, urban counties, and territories. These grantees then distribute the funds to frontline organizations known as "subrecipients."

A subrecipient must be either a unit of general-purpose local government or a private nonprofit organization with a 501(c)(3) tax-exempt status. For-profit entities are not eligible to be subrecipients.

The Funding Process: From Federal Allocation to Local Competition

Once HUD announces its annual allocations, grantees initiate a local process to award the funds. This typically involves:

1. Notice of Funding Availability (NOFA): The grantee releases a NOFA detailing available funding, priorities, and deadlines.
2. Application Submission: Organizations submit competitive proposals outlining their proposed activities, budget, and expected outcomes, often through online portals.
3. Review and Scoring: Applications are reviewed and scored based on established criteria like experience, program design, and budget reasonableness.
4. CoC Consultation: A critical step is consultation with the local Continuum of Care (CoC). A letter of support from the CoC is a common requirement to ensure the project aligns with the community's strategic plan.

The Matching Requirement: Understanding Your Contribution

Most ESG subrecipients must provide matching funds, typically on a dollar-for-dollar basis. This 100% match does not have to be entirely in cash. In-kind contributions can also be counted, including:

• Donated buildings, equipment, or materials.
• The value of volunteer time.
• Cash from other non-federal funding sources.

This requirement serves as a tool for leveraging federal investment and is a test of an organization's community support and financial health. State grantees are required to match their entire award except for $100,000 and must pass on the benefit of this exemption to their subrecipients least capable of providing a full match.

Key Grantee Responsibilities: Compliance, Reporting, and Audits

Receiving an ESG award is the beginning of a period of intense administrative responsibility. Key duties include:

• Recordkeeping: Maintaining meticulous records to document participant eligibility, services provided, and financial expenditures for at least five years.
• Reporting: Entering client-level data into the local HMIS and submitting periodic performance and expenditure reports to the grantee.
• Financial Management: Adhering to federal cost principles outlined in the Uniform Guidance (2 CFR Part 200).
• Monitoring and Audits: Expecting to be monitored by the grantee and being subject to a comprehensive Single Audit if expending $750,000 or more in federal funds annually.
• Conflict of Interest: Following strict rules to prevent conflicts, such as not making assistance conditional on a participant living in a property owned by the organization.

Adhering to Fair Housing and Civil Rights Laws

All ESG-funded programs must comply with a suite of federal fair housing and civil rights laws. This is a non-negotiable condition of receiving federal funds. Key requirements include compliance with:

• The Fair Housing Act
• Title VI of the Civil Rights Act of 1964
• Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act (ADA)
• HUD's Equal Access Rule
• Providing meaningful access for persons with Limited English Proficiency (LEP)
• The housing protections of the Violence Against Women Act (VAWA)  

The Administrative Burden

The extensive nature of these administrative duties creates a significant barrier to entry. Successfully managing an ESG grant requires a robust infrastructure, including experienced grant writers, compliance staff, and finance officers versed in federal accounting.

This can systemically favor larger, well-established organizations that have this capacity over smaller, grassroots organizations. While these smaller groups may have deep community trust, they may lack the necessary back-office support, a dynamic that can inadvertently centralize funding and stifle innovation.

The ESG Ecosystem: The Crucial Role of the Continuum of Care (CoC)

The ESG program does not operate in a vacuum. It is designed to be one component of a larger, community-wide ecosystem for addressing homelessness, organized by the local Continuum of Care (CoC).

The Mandatory Partnership: Why ESG and CoC Must Work Together

A Continuum of Care is a regional planning body that coordinates housing and services funding for homeless individuals and families. ESG is a funding stream intended to support the strategic goals of the local CoC.

Federal regulations require ESG grantees to consult extensively with their local CoC to ensure that funded activities are integrated into the community plan and address identified gaps. For applicant organizations, active participation in and a letter of support from the local CoC are often prerequisites for receiving ESG funding.

Coordinated Entry: The Single Front Door to Homeless Services

The most significant operational link between ESG and the CoC is the mandatory use of a Coordinated Entry system. Coordinated Entry is a centralized process that acts as the single "front door" for everyone in a community experiencing a housing crisis.

All ESG-funded projects must participate in their local CoC's Coordinated Entry system. This represents a fundamental shift to a client-centric model. The system, not the client, is responsible for assessing needs and referring individuals to the most appropriate resource, prioritizing those with the most severe needs.

Distinguishing ESG from CoC Funding: Different Tools for a Common Goal

While intertwined, the ESG Program and the CoC Program are two distinct federal funding streams. Understanding their differences is key to understanding a community's full range of resources.

• Funding Mechanism: ESG is a formula grant, providing a stable baseline of funding. The CoC Program is a   competitive grant, where organizations compete nationally for funds based on performance.
• Primary Focus: ESG has a broad focus that explicitly includes homelessness prevention. The CoC Program is more heavily focused on   Permanent Supportive Housing (PSH) for individuals with disabilities experiencing long-term homelessness.
• Eligible Activities: The CoC Program can fund certain high-intensity interventions that ESG cannot, most notably new construction and the long-term rental assistance required for PSH projects.

This dual-funding structure creates a strategic balance. Predictable ESG funds provide stability for crisis response services, while competitive CoC funds create a powerful incentive for high performance and innovation.

For Individuals & Families: Finding Local Help Funded by ESG

If you are experiencing a housing crisis, understanding how to access help is the most important step. Assistance comes from local organizations in your community funded by the ESG program.

The Critical First Step: Understanding You Cannot Apply Directly for a Grant

It is essential to know that individuals and families cannot apply directly to the government for an "Emergency Solutions Grant." These grants are awarded to local governments and nonprofit organizations. Your goal is to connect with the local agencies that have received this funding.

Your Local Connection: How to Find ESG Service Providers

There are centralized access points designed to help you navigate the system. The most effective ways to find help are:

• Dial 2-1-1: In most parts of the U.S., dialing 2-1-1 connects you to a free, confidential referral service for local resources, including emergency shelter and rental assistance.
• Contact Your Local Coordinated Entry System: Every community has a "front door" to its homeless services system. You can find your local access point by searching online for "[Your City Name] Coordinated Entry" or "[Your City Name] Continuum of Care."
• Consult Government and HUD Resources: State and local government websites often publish lists of the agencies they fund. The HUD Exchange website also provides extensive resources at   https://www.hudexchange.info/programs/esg/.

Navigating the System: What to Expect When You Seek Assistance

When you connect with a local access point, the process will likely involve several steps:

• An Initial Assessment: A staff member will ask questions about your housing situation, income, and challenges to determine your eligibility and the urgency of your needs.
• Documentation: You may be asked to provide documents like photo IDs, pay stubs, or an eviction notice. If you are missing documents, be honest; workers can often help you obtain what is needed.
• Case Management: If enrolled in a prevention or re-housing program, a case manager will work with you to create a housing stability plan, helping with tasks like apartment searches and landlord negotiations.
• Managing Expectations: Resources are extremely limited, and help may not be immediate. There are often waiting lists. Be persistent, stay in contact with your case worker, and follow through on your housing plan.

Measuring the Impact of Emergency Solutions Grants

Evaluating the effectiveness of the ESG program is critical for accountability and program improvement. Success is measured by tangible, data-driven outcomes that demonstrate progress toward ending homelessness.

Evaluating Success: Key Performance Metrics for ESG Programs

The effectiveness of ESG-funded programs is tracked through data collected in the Homeless Management Information System (HMIS) and reported to HUD. Key metrics include:  

• The number of people served.
• The length of time individuals experience homelessness.
• The percentage of participants who exit to permanent housing.
• The percentage of participants who maintain housing and do not return to homelessness.

Analysis from organizations like the National Alliance to End Homelessness has shown that where the federal government strategically focuses resources, homelessness in those populations has seen significant decreases, demonstrating that funded interventions are effective.  

A National Crisis Response: Lessons from the ESG-CV Program

The COVID-19 pandemic provided a dramatic test of the ESG program. The CARES Act of 2020 allocated an unprecedented $4 billion in supplemental ESG funding, known as ESG-CV, to help communities respond to the pandemic's impact.  

This massive infusion of funds was deployed through the existing ESG framework. Communities used ESG-CV funds for a range of emergency activities, including:

• Rapidly moving individuals from crowded shelters to safer settings like hotels.
• Providing a surge in rental assistance to prevent evictions.
• Expanding street outreach to connect with unsheltered individuals and provide supplies.  

The impact was significant. In California alone, the ESG-CV program enrolled nearly 96,000 people in services. This experience showed that ESG is a scalable and adaptable infrastructure that can be leveraged for future national emergencies.  

The Future of ESG: Advocacy and the Ongoing Fight to End Homelessness

The future of the ESG program depends on continued Congressional support and the ability of local communities to demonstrate positive outcomes. Advocacy groups consistently push for robust annual funding, arguing that these investments are both compassionate and cost-effective.

There is a widely recognized need to sustain the service capacity built with one-time ESG-CV funding. The economic pressures that drive housing instability, such as the severe lack of affordable housing, persist and have worsened in many areas.

The Workforce Crisis

The entire ESG ecosystem is fundamentally reliant on a chronically underfunded and over-stressed workforce. Witnesses before federal committees have described the homeless services workforce as being in a "crisis," with high turnover rates even before the pandemic.

Local nonprofit agencies, the backbone of the system, struggle to offer competitive wages, leading to high rates of staff burnout. This instability undermines program effectiveness by disrupting continuity of care and draining organizations of valuable knowledge. Ultimately, the success of every dollar spent is contingent on the stability and well-being of these frontline workers.

 Frequently Asked Questions