§11408 Rural Housing Stability Grant Program

Summary

Creates a rural housing stability grant program run by the Secretary of Housing and Urban Development to give money to eligible nonprofits and local governments. Grants must be used to rehouse people who are homeless or in the worst housing situations, to keep people from losing housing when they are about to, and to help the lowest-income residents afford steady housing. Funds can pay for many things in rural areas, including rent, mortgage, or utility help after 2 months of nonpayment to avoid eviction or foreclosure; security deposits, first-month rent, and moving costs; short-term motel or shelter stays or vouchers; building, buying, or fixing housing for transitional or permanent use (not emergency shelter); leasing properties to provide housing or services; tenant- or project-based rental assistance; operating costs for assisted housing; repairs to make homes livable; and a wide range of support services such as outreach, case management, housing counseling, job help, health and mental health care, substance abuse treatment, child care, transportation, emergency food and clothing, family violence services, and legal or veterans referrals. Up to 20 percent of transferred funds for a year may be used for capacity building like operating costs and staff retention. At least 50 percent of the funds must go to communities with fewer than 10,000 people, with priority for communities under 5,000. Priority is also given to places not already getting significant federal help. No single State may receive more than 10 percent of the funds for a year. Applicants must file an application describing who and where they will serve, what help they will provide, how it matches local needs and existing programs, how they will collect data, how low-income people will be involved, and the local level of homelessness. Recipients must provide matching contributions equal to at least 25 percent of the project cost (leasing grants are exempt). In-kind services count toward the match only if documented by a memorandum of understanding. The Secretary will set selection rules that include beneficiary participation, focus on the worst housing problems, local collaboration, past performance, need under the formula in section 11386a(b)(2), and other relevant factors. The Secretary must evaluate the program within 18 months after funding is first made available under the 2009 amendments and must report to Congress within 24 months with any recommendations. The Secretary will give technical help to organizations. Assistance may be ended for program rule violations through a formal process that protects due process and may include a hearing. The Secretary will transfer funds from the Community Homeless Assistance Program to run this program, including at least 5 percent of the amount available under part C; unused transferred amounts for lack of applications go back to part C. Any unobligated payment for a fiscal year stays available to the recipient for the next fiscal year; amounts not obligated by the end of the second fiscal year may be recovered and re-awarded. For any fiscal year, funds under this subchapter to be used in a city or county must be awarded under either part C or part D (in addition to part B funds). Defined terms (one line each): Program — the rural housing stability grant program described above. Rural area / rural community — the kinds of areas or communities covered by the program (rules set in law). Secretary — the Secretary of Housing and Urban Development.