The Emergency Shelter Grant (ESG)

The Emergency Shelter Grant (ESG) is the smallest grant received by Community Development for redistribution. The ESG program enables Chattanooga's homeless service agencies to provide various programming and shelter to persons who are homeless or are at-risk for becoming homeless. Shelters receiving funds must provide a dollar-for-dollar match with non-federal funds or in-kind volunteer service (valued at $5.00 per hour US). ESG funds must be spent within 24 months of the date of the grant award. Chattanooga receives approximately $85,000 US in ESG funds.

The Emergency Shelter Grants program provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs. Funds are awarded locally for a variety of activities relating to emergency shelter for the homeless including the maintenance/operation of facilities that house the homeless. Funds may also be provided for essential services, including services concerned with employment, health, substance abuse or education, as well as for efforts to prevent homelessness. ESG funds must be used for a new service or a quantifiable increase in the level of service above that provided during the immediately previous 12-month period. Legislation prohibits using ESG funds to replace existing government or non-profit funding of services. Following are examples of eligible uses of the grant.

Renovation – the renovation, major rehabilitation or conversion of buildings to be used as emergency shelters.

Operational Costs – broad array of emergency shelter and transitional housing operating costs such as maintenance, operation, insurance, utilities and furnishings for such housing.

Essential Services – services that address the immediate needs of the homeless and can help enable homeless persons become more independent and to secure permanent housing. Essential services include services concerned with employment, health, drug abuse, and education. Expenditures in this category cannot exceed 30% of the current entitlement.

Examples of eligible activities include:

Assistance in obtaining permanent housing;
Medical and psychological counseling and supervision;
Employment counseling;
Substance abuse treatment and counseling;
Other services such as child care, transportation, job placement and job training.

The application review committee evaluates projects for funding based on the following:

How well the proposed activities meet HUD regulations for eligibility and achievement of national objectives
How well the proposed activities reflect local priorities
Need in the community for the proposed project
Experience and qualifications of organizations proposing various activities
Availability of funding and resources
Financial accountability of funding recipients
Measuring how proposed projects promote coordination, leverage additional funds and demonstrate a proactive approach
The existence of a detailed plan for long-term funding
The level of neighborhood involvement and responsibility the funded project promotes
Whether the project will have a lasting impact while limiting service duplicity
Whether the project is likely to achieve its objectives and be successful
Require income eligibility provisions limiting project benefits to low- and moderate- income persons; or
Restrict project locations to areas predominantly inhabited by low- and moderate- income earning residents