Although the same activities are eligible under both program components, HUD has strongly encouraged jurisdictions to target funds into Rapid Re-Housing because this component assists individuals and families currently living on the streets or in shelter. Additionally, rapid Re-Housing assistance has been found to have a larger impact on homelessness in communities relative to prevention assistance, which is very difficult to target strategically. However, for communities that have chosen to use ESG for homelessness prevention, designing programs to focus on shelter diversion can help ensure resources are used as strategically and cost effectively as possible.
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Eligible activities under the Homelessness Prevention and Rapid Re-Housing components include:
For the specific requirements and the activities eligible under the Homelessness Prevention and Rapid Re-Housing components, please refer to § 576.103-106 of the ESG Program Interim Rule and the ESG Program Components Virtual Binder.