Giving Compass' Take:

• Steve Berg explains what the CARES Act to address the COVID-19 means for homeless individuals and the organizations that serve them. 

• What are the immediate needs of homeless individuals in your community? How can funders fill in gaps left by the CARES Act? 

• Learn why homeless communities are more vulnerable to COVID-19. 

The Senate has passed the CARES Act, the third and largest supplemental spending bill responding to the COVID-19 epidemic and resulting economic dislocation. Every indication is that the House of Representatives will pass the bill and the President will sign it.

There are many provisions that will be important for communities seeking to keep homeless people safe and prevent increases in the number of people who are homeless.

Homeless Assistance

The bill includes $4 billion for homeless assistance, to be distributed through the Emergency Solutions Grants program (ESG). ESG is a formula grant to states and local governments. It funds a broad range of activities for people who are homeless or who are at risk of homelessness, which in this bill includes anyone with income below 50 percent of area median income.

Community Development Block Grants

The bill also provides $5 billion for Community Development Block Grants (CDBG) to state and local governments for a broad range of activities that can include those needed to keep homeless people safe and prevent additional homelessness. Funding will be released in multiple waves, with $2 billion to be allocated to existing CDBG grantees within 30 days.

Coronavirus Relief Fund

One of the larger items in the bill is the Coronavirus Relief Fund, which will provide $150 billion to state and local governments for any expenses incurred due to this public health emergency. This funding is allocated to states, territories, and tribal governments under a formula based on population. Any locality with a population of 500,000 or more is allowed to carve out a proportionate amount of its state’s funding.

Other HUD Programs

A number of other HUD programs received smaller amounts of money, aimed primarily for the important purpose of keeping programs and housing opportunities sufficiently staffed and available to people.

Individual Payments

Section 2201 of the bill provides that any U.S. resident with a work-eligible Social Security number who is not someone else’s dependent and had adjusted gross income under $75,000 ($150,000 for a married couple) will receive a one-time payment of $1,200 ($2,400 for a married couple), plus $500 for each dependent child.

Read the full article about Khomelessness and the CARES Act by Steve Berg at National Alliance to End Homelessness.