1. COSCDA Conference 2012 Washington, DC Susan Ziff, HUD March 12, 2012 Substantial Amendment Process for Second Allocation of FY 2011 ESG Funds

2. Overview of Today’s Presentation Brief Summary of FY 2011 Substantial Amendment Requirements for ESG recipients FY 2012 Action Plans Frequently Asked Questions (FAQs) Next Steps Top 5 Things You Need to Consider Additional Resources Questions and Discussion 22

3. Purpose of ConPlan Regulation Changes Reflect statutory and regulatory standards in ESG Interim Rule Align requirements with major goals established in HUD Strategic Plan and Opening Doors: Federal Strategic Plan to End Homelessness Align Consolidated Plan standards with Continuum of Care Performance Standards 33

4. FY2011 Second Allocation Second allocation of FY2011 Emergency Solutions Grants Program funds released at $90 million Total FY 2011 ESG Allocation = $250 million To receive funds, recipients must prepare, and obtain HUD approval of, a substantial amendment to their FY2011 Consolidated Plan Annual Action Plan 44

5. 5 Substantial Amendment Deadline for ESG recipients: May 15, 2012 HUD approves substantial amendment within 45 days (regular process) HUD signs FY11 grant agreement amendment. Only once both parties have signed grant agreement amendment can the recipient spend funds! ESG Process Overview/Timeline

6. ESG Notice Overview ESG Notice released on January 23, 2012: Clarifies requirements for receiving and limitations on spending FY11 ESG funds Includes requirements and guidance for establishing expenditure limits on emergency shelter and street outreach activities Provides elements that must be included in substantial amendment, plus optional sections Provides guidance on critical decisions to be made in the planning process for FY 2012 and future consolidated planning submissions 6

7. 7 Substantial amendments submitted pursuant to this Notice must be submitted in compliance with amended 24 CFR Part 91 and the recipient’s established citizen participation plan HUD will not allow communities to shorten the planning and public comment process Must follow consultation requirements in preparing the substantial amendment (91.100(d) and 91.110(e)). Substantial Amendment Preparation

8. 8 HUD encourages recipients to pay special attention to the following sections when preparing the substantial amendment Substantial Amendment: Overview Table 2: Relevant Requirements for the Substantial Amendment Local Governments and Territories States Consultation24 CFR 91.100(d)24 CFR 91.110(e) Citizen Participation24 CFR 91.105(c), (k)24 CFR 91.115 (c), (i) Action Plan24 CFR 91.220(a), (c), (d), (e), (l)(4) 24 CFR 91.320(a), (c), (d), (e), (k)(3) Certifications24 CFR 91.225(c)24 CFR 91.325(c)

9. 9 Substantial amendment must address the following: – SF-424 – Summary of Consultation Process – Summary of Citizen Participation Process – Matching Resources – Proposed Activities and Overall Budget – Written Standards for Provision of ESG Assistance – Process for Making Sub-awards – Homeless Participation Requirement – Performance Standards – Certifications – Any optional elements Appendix B provides a summary/checklist Substantial Amendment Components

10. FREQUENTLY ASKED QUESTIONS – FY 2011 ESG Substantial Amendment 10

11. Frequently Asked Question #1 Q) Do all jurisdictions that receive ESG have to complete a substantial amendment to the FY2011 Annual Action Plan? A) Yes – ALL jurisdictions that receive ESG must complete a substantial amendment to the FY2011 Annual Action Plan in order to receive the second allocation of FY2011 ESG funds. 11

12. Frequently Asked Question #2 Q) Can we just combine the second allocation of FY2011 funds with the FY2012 funds? A) No. The FY2011 funds must be tracked and accounted for separately from the FY2012 funds, with separate grant agreements and expenditure deadlines. 12

13. Frequently Asked Question #3 Q) Can we combine the second allocation of FY2011 funds with our FY2012 funds for the purposes of our subrecipient competition? A) Yes – AS LONG AS the funds are accounted for separately AND you track and meet all of the obligation deadlines separately (60 days for States and 180 days for local jurisdictions and territories). 13

14. Frequently Asked Question #4 Q) Can we obligate the second allocation of FY2011 funds before our substantial amendment is approved? A) No. The second allocation of funds cannot be obligated or spent before HUD approves the substantial amendment. 14

15. Frequently Asked Question #5 Q) Will HUD wait until after May 15 th to approve all substantial amendments? A) No. HUD will approve substantial amendments within 45 days of submission. However, you must ensure that you are following the citizen participation process outlined in your Consolidated Plan. You cannot shorten the public comment period. 15

16. Frequently Asked Question #6 Q) Is there a set format for the substantial amendment? A) There is no set format for the substantial amendment. You may use any format, as long as the information contained meets the requirements of the regulations. 16

17. FY 2012 CONSOLIDATED PLAN AND ACTION PLAN 17

18. 18 To receive FY 2012 funds and future fiscal years, ALL Consolidated Plan jurisdictions are required to comply with all the revised requirements – Specified in 24 CFR 91.100, 91.105, 91.220, and 91.225 for local governments (and territories for ESG) and 24 CFR 91.110, 91.115, 91.320, and 91.325 for States After January 4, 2012 all submissions of Consolidated Plan jurisdictions’ housing and homeless needs assessments, housing market analyses, and strategic plans will be subject to revised requirements that apply to submitting complete 5-year Consolidated Plan – If a jurisdiction recently submitted a Consolidated Plan BEFORE January 4, 2012, they will not be required to submit a revised Consolidated Plan Future Consolidated Planning Submissions

19. FY2012 Action Plan – ESG Recipients All ESG recipients’ FY 2012 Action Plans must meet all new ConPlan/ESG requirements (amended 24 CFR part 91). If your FY12 Action Plan has already been approved but does not meet the new Con Plan/ESG requirements, you will need to submit a substantial amendment to the FY 12 Action Plan. If your FY 2012 Action Plan has not yet been approved, you should work with your field office to ensure that your plan meets all new requirements - even if you have already submitted it. 19

20. FY2012 Action Plan – Non-ESG Recipients The new requirements under 24 CFR part 91, as amended by the Interim Rule, are also applicable to non-ESG jurisdictions. However, a substantial amendment is not necessarily required for non-ESG jurisdictions. Contact your local HUD field office if you have questions about your FY 2012 Action Plan submission. 20

21. Con Plan & Action Plan Tools The Con Plan Review Checklist posted on the Con Plan website has been updated to include the changes from the ESG Interim Rule: http://www.hud.gov/offices/cpd/about/conplan http://www.hud.gov/offices/cpd/about/conplan A red-line strikeout of the Interim Rule is posted on the HRE that shows the specific changes to the Con Plan/ESG regulations: http://www.hudhre.info/documents/24CFRPart91_11.21. 11.pdf http://www.hudhre.info/documents/24CFRPart91_11.21. 11.pdf New ESG certifications are required for FY 2012 Action Plan and ESG Substantial Amendment to FY 2011 Action Plan: www.hudhre.info/esgwww.hudhre.info/esg 21

22. FREQUENTLY ASKED QUESTIONS – FY 2012 Consolidated Plan Action Plan 22

23. Frequently Asked Question #7 Q) I am an ESG recipient. My FY 2012 Action Plan was already approved, but it does not meet the new Con Plan/ESG requirements. What should I do? A) You will need to submit a substantial amendment to your FY 2012 Action Plan. Contact your HUD field office if you have questions about the amendment process. 23

24. Frequently Asked Question #8 Q) I am an ESG recipient. My FY 2012 Action Plan was already submitted. Do I have to submit a substantial amendment? A) If your FY 2012 Action Plan has not yet been approved, you do not necessarily need to submit a substantial amendment at this time. Contact your field office to determine the status of your plan and the steps you should take to update your plan so it meets all new Con Plan/ESG requirements. 24

25. Frequently Asked Question #9 Q) Are the substantial amendments for FY11 and FY12 an amendment to the Con Plan or the Action Plan? A) These are amendments to the Action Plan for that program year, not the Consolidated Plan. You do not need to amend your full ConPlan for ESG. 25

26. Frequently Asked Question #10 Q) Are there minimum requirements for consultation with the Continuum of Care? A) HUD recognizes that planning processes vary from community to community. The consultation requirements were developed broadly in order to accommodate this variety. HUD expects that ESG recipients and CoC leadership will work together to determine the most effective process for their community. 26

27. Frequently Asked Question #11 Q) When are ESG subrecipients required to start entering data in HMIS? A) HUD requires that providers start entering data into HMIS as soon as they begin serving people using funds from the second allocation. If a provider does not receive any funding from the second allocation, they are required to start entering data on people served using FY2012 funds. However, recipients can require providers to enter sooner if they choose. 27

28. Frequently Asked Question #12 Q) Can State ESG recipients retain funds to spend on HMIS? A) As long as the State is the HMIS Lead, as designated by the Continuum of Care, the State may retain funds to administer the HMIS. 28

29. Frequently Asked Question #13 Q)Can other federal funds be used as match for ESG? A) ESG funds may be used to satisfy the matching requirements of SHP or another program, so long as the following three conditions are met and documented: – the activities for which ESG funds are used as match are eligible ESG activities; – the other program’s funds are not used to satisfy the ESG matching requirements (the match can only go one way); and – the other program’s requirements do not prohibit ESG funds from being used as match. 29

30. Frequently Asked Question #14 Q)Can a transitional facility receive ESG funds? A)ESG funds may be used for emergency shelters only. A transitional facility will only be eligible to receive ESG funds if EITHER: It meets BOTH of the following criteria under the new emergency shelter definition: (a) its primary purpose is to provide a temporary shelter for the homeless in general or for specific populations of the homeless; and (b) it does not require occupants to sign leases or occupancy agreements; OR It received funds under a FY 2010 ESG grant and met the criteria under the former emergency shelter definition (“any facility, the primary purpose of which is to provide temporary or transitional shelter for the homeless”). 30

31. Frequently Asked Question #15 Q)Will Mike please sing a song about ESG? A)Mike??? 31

32. Next Steps 32

33. 33 While the planning process for developing the FY 2011 substantial amendment is important, recipients should approach it as only the first step in an ongoing comprehensive planning process. Principles and practices in the HEARTH Act will be applicable for years to come Building Capacity for the Long Run

34. Considering All Stakeholders Initiate substantive discussions with CoC representatives and other organizations as soon as possible Active consultation, coordination, and collaboration with key community systems and stakeholders is critical Consider subgranting to HPRP grantees that will do not get ESG funds 34

35. Top 5 Things You Need to Consider (To get you started) 5. Developing Written Standards 4. Developing Performance Standards 3.HMIS Participation for All ESG recipients and subrecipients 2.Learning from HPRP 1. Consulting with CoC(s) 35

36. 36 HUD’s Homelessness Resource Exchange: www.hudhre.info – The published ESG Interim Rule with Consolidated Plan changes – Consolidated Plan Regulation (highlighting changes from the ESG Interim Rule) – Notice on requirements for the FY 2011 ESG Second Allocation (January 23, 2012) – Additional guidance regarding the Consolidated Plan Regulations (user guide, FAQ, etc) will be posted to www.hudhre.info in the near future. www.hudhre.info Further Information

37. Other Questions? 37