Washington, D.C. – July 13, 2009 – (RealEstateRama) — Congressman Eliot Engel announced the awarding of a $73,929,729 Housing and Urban Development (HUD) grant for New York City. The grant is to rapidly re-house families who become homeless, or prevent them from becoming homeless in the first place.
Rep. Engel said, “This money is provided through the American Recovery and Reinvestment Act of 2009, and is to help persons and families facing a sudden financial crisis that could lead to homelessness.
“This is money that will not only spare families the hardships of homelessness, but will save taxpayers significant money in the long run,” said Rep. Engel. “Quite often, a little bit of financial assistance can make the difference between a stable home and being forced to live in a shelter or on the streets.”
The grant is part of HUD’s new Homeless Prevention and Rapid Re-housing Program (HPRP) which provides $1.5 billion for communities to provide short- and medium-term rental assistance and services to either prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be quickly re-housed and stabilized.
Grants provided under HPRP are not intended to provide long-term support for individuals and families, nor will they afford mortgage assistance to homeowners facing foreclosure. Rather, HPRP offers a variety of short- and medium-term financial assistance to those who would otherwise become homeless, many due to a sudden economic crisis. This can include short-term rental assistance (up to three months), medium-term rental assistance (up to 18 months), security deposits, utility deposits, utility payments, moving cost assistance, and hotel vouchers. Payments will not be made directly to households, but only to third parties, such as landlords or utility companies.
