A Guide to Federal Grants for Homeless Services: Strategy, Programs, and Management

Organizations serving individuals and families experiencing homelessness are a cornerstone of our nation's social fabric. This critical mission, however, relies on a complex funding landscape. Federal grants are the financial backbone for most homeless assistance systems, providing essential resources for everything from street outreach and emergency shelter to permanent supportive housing and clinical services.

This report offers an expert-level guide to navigating this intricate ecosystem. It is designed for the leaders, program managers, and grant writers on the front lines of this work. The goal is to demystify the federal funding process, illuminate strategic connections between programs, and provide a practical toolkit for securing and managing these vital resources.

A Coordinated Federal Response

The U.S. Interagency Council on Homelessness (USICH) coordinates the federal government's commitment to ending homelessness, orchestrating the efforts of 19 federal agencies. This response is primarily executed through three key departments:

• The Department of Housing and Urban Development (HUD): As the lead agency, HUD provides the largest and most foundational grants for shelter and housing solutions.
• The Department of Health and Human Services (HHS): Through agencies like the Substance Abuse and Mental Health Services Administration (SAMHSA), HHS funds services addressing health, mental health, and substance use challenges that often intersect with homelessness.
• The Department of Veterans Affairs (VA): The VA runs a robust set of targeted programs designed to meet the unique needs of veterans experiencing or at risk of homelessness.

The Importance of the Continuum of Care (CoC)

A fundamental concept for any organization seeking federal funds is that grants are not typically awarded directly from Washington, D.C. Instead, funding flows through a community-based ecosystem. The most important local planning body is the Continuum of Care (CoC), a regional group that coordinates a community's policies, strategies, and application process for most federal homelessness funding.

This structure reveals a deliberate federal strategy that compels local collaboration. HUD's major grant programs require coordination with the local CoC, and specialized programs like HUD-VASH are built on partnerships between local Public Housing Authorities and VA Medical Centers. A successful organization strategically positions itself within its local CoC framework, aligning its programs with community-wide priorities.

At-a-Glance Comparison of Major Federal Homeless Assistance Grants

The Cornerstone Funders and Their Programs

A. The Department of Housing and Urban Development (HUD): Building the Foundation of Housing Stability

The Department of Housing and Urban Development (HUD) is the principal federal agency tasked with addressing homelessness. Its programs form the bedrock of nearly every community's response, providing essential funding for a spectrum of housing interventions.

1. In-Depth Analysis: The Continuum of Care (CoC) Program

The Continuum of Care (CoC) Program is HUD's flagship competitive grant program. It is the primary vehicle for organizing and delivering housing and services to meet the specific needs of people experiencing homelessness within a community. The CoC program promotes a strategic, data-driven system of care rather than a collection of disconnected projects.

The CoC as a System

A Continuum of Care is a local or regional planning body that coordinates a comprehensive housing and services system. This body is a coalition of stakeholders, including nonprofit providers, government agencies, and individuals with lived experience.

Core responsibilities of a CoC include:

• Operating the CoC: Establishing a governance structure to guide its work.
• System Planning: Developing a community-wide plan, conducting an annual Point-in-Time (PIT) count of individuals experiencing homelessness, and holding regular meetings.
• Coordinated Entry: Operating a centralized process for assessing needs and referring individuals to the most appropriate housing and services.
• Homeless Management Information System (HMIS): Managing a local HMIS, a secure database used to collect client-level data.

The Annual Competition (NOFO)

The CoC program is highly competitive, with funding awarded annually through a national Notice of Funding Opportunity (NOFO). Individual organizations do not apply directly to HUD. Instead, the local CoC submits a single, consolidated application on behalf of the entire community. This local competition is a critical gatekeeping step, as organizations must first meet the local CoC's deadlines and performance benchmarks.

How the NOFO Drives National Policy

The annual CoC NOFO is HUD's primary lever for directing national homelessness policy. By assigning points in the scoring criteria for specific project types or populations, HUD can steer the behavior of thousands of local systems without passing new laws. This mechanism has driven major policy shifts, most notably the nationwide adoption of the Housing First model. For an applicant, this means a project must be strategically aligned with the current federal direction as articulated in that year's NOFO.

Eligible Program Components

The CoC program funds projects under five primary components, allowing communities to build a comprehensive system:

• Permanent Supportive Housing (PSH): Long-term, community-based housing with voluntary supportive services for homeless persons with disabilities. PSH is a cornerstone of the "Housing First" approach.
• Rapid Re-Housing (RRH): Short- to medium-term rental assistance and services to move individuals and families into permanent housing as quickly as possible.
• Transitional Housing (TH): Temporary housing with supportive services for up to 24 months to prepare participants for permanent housing.
• Supportive Services Only (SSO): Funds supportive services for homeless individuals not residing in housing operated by the grantee, including the operation of the CoC's coordinated entry system.
• HMIS: Dedicated funds to cover the costs of operating the local Homeless Management Information System.

2. In-Depth Analysis: Emergency Solutions Grants (ESG) Program

The Emergency Solutions Grants (ESG) program is a critical HUD formula grant, meaning funds are allocated based on a predetermined formula. Its purpose is to serve as a community's first line of defense by supporting street outreach, emergency shelters, and providing immediate assistance to people at risk of or experiencing homelessness.

The Flow of Funds

The ESG funding stream is indirect for most providers. HUD allocates funds directly to "entitlement communities" (metropolitan cities, urban counties) and to states. These entities may use the funds for their own programs or sub-grant them to local non-profit organizations. This means the application process for ESG funds is typically with a city, county, or state department.

The Five Eligible Components

The ESG program is structured around five core components:

• Street Outreach: Funds essential services for engaging unsheltered individuals, including case management, emergency health services, and transportation. 
• Emergency Shelter: Covers costs for shelter renovation, essential services for residents (e.g., case management, employment assistance), and shelter operations (e.g., rent, utilities, food).
• Homelessness Prevention: Provides rental assistance and stabilization services to households at imminent risk of becoming homeless.
• Rapid Re-Housing: Offers rental assistance and services to help individuals and families currently experiencing homelessness move quickly into permanent housing.
• HMIS/Data Collection: A portion of funds can be used to pay for participation in the local HMIS designated by the CoC.

ESG and CoC: A Symbiotic Relationship

The ESG and CoC programs are designed to function as two halves of a whole. ESG provides the flexible, immediate resources for crisis response—the "front door" of the system. The CoC program, in contrast, funds the more intensive, long-term housing solutions that serve as the "exits" from homelessness. This demonstrates that the programs are sequential and complementary partners in a single process.

3. Other Key HUD Housing Resources

Several other HUD programs are indispensable tools for increasing housing stability.

• Housing Choice Vouchers (HCV / Section 8): The federal government's largest program for assisting very low-income families, the elderly, and the disabled to afford housing in the private market.
• Emergency Housing Vouchers (EHV): Authorized by the American Rescue Plan Act, this program provided 70,000 vouchers specifically to assist individuals and families who are homeless or fleeing domestic violence.
• HOME Investment Partnerships Program (HOME): The largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.

B. The Department of Health and Human Services (HHS) & SAMHSA: Integrating Health, Recovery, and Housing

The Department of Health and Human Services (HHS), primarily through its Substance Abuse and Mental Health Services Administration (SAMHSA), funds programs that target the critical intersection of housing instability, mental illness, and substance use disorders.

1. In-Depth Analysis: Projects for Assistance in Transition from Homelessness (PATH)

The PATH program is a SAMHSA formula grant that supports services for adults with a Serious Mental Illness (SMI) or a co-occurring SMI and Substance Use Disorder (SUD), who are experiencing or at risk of homelessness.

Eligibility and Application

To receive PATH-funded services, an individual must be an adult with an SMI or co-occurring disorder and be homeless or at imminent risk of losing housing. Organizations seeking PATH funding apply to their designated state agency, not directly to SAMHSA. The program requires a non-federal match of at least $1 for every $3 of federal funds received.

Allowable Services

PATH funds a wide array of services with an emphasis on outreach and engagement. Allowable services include:

• Outreach and Engagement
• Screening and Diagnostic Treatment
• Case Management
• Habilitation and Rehabilitation Services
• Mental Health and Substance Use Treatment
• Limited Housing Services (e.g., security deposits, one-time rental payments), which cannot exceed 20% of the provider's total grant award.

2. In-Depth Analysis: Grants for the Benefit of Homeless Individuals (GBHI)

The GBHI program is a competitive grant from SAMHSA designed to expand treatment and recovery support services for individuals and families experiencing homelessness with a SUD or co-occurring disorders.

Eligibility and Application

Eligible applicants are community-based public and private non-profit entities. State governments are not eligible. The application process is rigorous and requires registration in multiple federal systems (SAM.gov, Grants.gov, eRA Commons), which can take up to six weeks to complete.

Supported Activities

The GBHI program supports three primary categories of activities:

1. Direct Behavioral Health Services: Includes outreach, treatment, case management, and peer support.
2. Coordination of Housing and Services: Focuses on building local infrastructure to better integrate behavioral health treatment with housing.
3. Benefits Enrollment: Supports dedicated efforts to connect clients with health insurance, Medicaid, and other mainstream benefits like SSI/SSDI and SNAP.

3. Specialized HHS Programs

HHS also administers key programs targeting specific populations.

• Runaway and Homeless Youth (RHY) Programs: Administered by the Administration for Children and Families (ACF), these programs provide services specifically for youth and young adults through three main grants: the Basic Center Program (BCP), the Transitional Living Program (TLP), and the Street Outreach Program (SOP).
• Health Care for the Homeless (HCH) Program: Administered by the Health Resources and Services Administration (HRSA), this program provides grant funding to community health centers to deliver comprehensive primary care, mental health, and substance use disorder treatment to people experiencing homelessness.

C. The Department of Veterans Affairs (VA): A Targeted Mission to End Veteran Homelessness

The Department of Veterans Affairs (VA) has developed one of the most comprehensive and effective systems for addressing homelessness among a specific population, often in close collaboration with HUD and community partners.

1. In-Depth Analysis: The HUD-Veterans Affairs Supportive Housing (HUD-VASH) Program

The HUD-VASH program is the flagship federal initiative for homeless veterans. It combines HUD's Housing Choice Voucher (HCV) rental assistance with the VA's comprehensive case management and clinical services. This integrated model is a cornerstone of the national strategy to end veteran homelessness.

How It Works

The program operates through a partnership between a local Public Housing Authority (PHA), which administers the rental voucher, and the local VA Medical Center (VAMC), which provides wraparound supportive services. This collaboration creates a unified system of care focused on ending a veteran's homelessness permanently.

Roles and Eligibility

• Veterans: To be eligible, a veteran must be eligible for VA healthcare, be experiencing homelessness, and be determined by the VA to need case management. The VA is the sole entity for determining eligibility and making referrals.
• Public Housing Authorities (PHAs): PHAs with a strong partnership with their local VAMC can apply to HUD to receive an allocation of VASH vouchers.

A Proven Model of Success

The remarkable success in reducing veteran homelessness is a direct result of the HUD-VASH model, which proves that combining a housing subsidy with intensive clinical support can produce population-level results. It serves as a powerful proof of concept for the effectiveness of the Permanent Supportive Housing model.

2. In-Depth Analysis: Grant and Per Diem (GPD) Program

The VA's Grant and Per Diem (GPD) program is a competitive grant that funds community-based agencies to provide transitional housing and supportive services to veterans experiencing homelessness. It is the VA's largest transitional housing program.

Funding Models

The GPD program offers several different types of grants:

• Per Diem Grants: Provides a per diem payment to organizations to help cover the operational costs of their transitional housing programs.
• Capital Grants: Intermittently offered to help with the costs of construction, renovation, or acquisition of facilities.
• Special Need Grants: Targeted to organizations serving specific veteran populations with high needs.
• Case Management Grants: Provides funding for case managers who help veterans maintain stability in permanent housing after exiting transitional programs.

Application Process

Organizations can only apply for GPD funding when the VA releases a specific Notice of Funding Opportunity (NOFO) on Grants.gov. Eligible applicants include non-profits and state, local, and tribal government agencies.

3. In-Depth Analysis: Supportive Services for Veteran Families (SSVF) Program

The SSVF program is a VA competitive grant that funds private non-profit organizations to provide services to very low-income veteran families who are either homeless or at imminent risk of losing their housing.

Focus on Prevention and Rapid Re-Housing

The core of the SSVF program is its dual focus on preventing homelessness and rapidly resolving it when it occurs.

• Homelessness Prevention: For families at risk of eviction, SSVF grantees can provide services and temporary financial assistance to help them remain in their current housing.
• Rapid Re-Housing: For families already experiencing homelessness, grantees provide assistance to help them quickly locate and move into new permanent housing.

Supportive Services

SSVF grants fund a comprehensive array of supportive services, including case management, assistance in obtaining VA and other public benefits, and Temporary Financial Assistance (TFA) for costs like rent arrears, security deposits, and utility payments.

The Practitioner's Toolkit for Securing and Managing Federal Funds

A. Mastering the Application Process: From Identification to Submission

Successfully navigating the federal grant application process requires a strategic, organized, and persistent approach.

Finding Opportunities

The central hub for all federal competitive grant opportunities is Grants.gov. However, a comprehensive search strategy must also include:

• Monitoring Agency Websites: Regularly check the dedicated grant pages of HUD, SAMHSA, and the VA.
• State and Local Portals: Identify and monitor the websites of state and local agencies that administer formula grants like ESG and PATH.
• Building Networks: Engage with your local CoC and other community partners to learn about upcoming funding opportunities.

Deconstructing the NOFO

The Notice of Funding Opportunity (NOFO) is the rulebook for the competition. Create a comprehensive checklist of every requirement and pay meticulous attention to:

• Eligibility: Ensure your organization meets the specific criteria.
• Deadlines: Note all deadlines and plan to submit at least two to three business days early.
• Formatting and Page Limits: Adhere strictly to all specified formatting rules.
• Scoring Criteria: Structure your narrative to directly address each scoring criterion, using the funder's own terminology.

Grant Writing Best Practices

A successful grant proposal is a persuasive document that combines a compelling narrative with hard evidence.

• Be Realistic and Clear: Propose a project with goals that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
• Know Your Audience (The Reviewer): Write with the reviewer in mind. Avoid jargon, use clear headings, and make the document easy to scan.
• Tell a Compelling, Data-Driven Story: Use local and national data to establish the problem. Then, explain your proposed solution, supporting your claims with both quantitative data and qualitative evidence.
• Justify the Budget: The budget must align perfectly with your project narrative. Every cost must be reasonable, allowable, and directly justified by your proposed activities.

B. Avoiding Common Pitfalls: Why Grant Applications Fail

Many strong projects go unfunded due to avoidable errors in the application process.

Procedural Errors

These are technical mistakes that can lead to disqualification.

• Missing Deadlines: This is the most common and unforgiving error, including preliminary deadlines for Letters of Intent (LOIs). 
• Incomplete Registrations: Federal grants require registration in multiple online portals (e.g., SAM.gov, Grants.gov), which can take weeks to process.
• Ignoring Guidelines: Failing to adhere to specific formatting requirements can lead to an application being rejected without review.
• Budgetary Miscalculations: Errors in the budget or failing to meet a required cost match can signal a lack of attention to detail.

Strategic Errors

These are deeper flaws in the proposal's conception or presentation.

• Mission Drift: Proposing a project that is a poor fit for the organization's core mission and expertise.  
• Unclear Objectives and Outcomes: Failing to clearly articulate what the project will accomplish and how success will be measured.
• Lack of Capacity: Failing to demonstrate that the organization has the necessary infrastructure, stable business model, and qualified staff to support the project.
• Poor Funder Research and Fit: Submitting a generic proposal that does not demonstrate a deep understanding of the specific funder's priorities.

C. Post-Award Excellence: Best Practices in Federal Grant Management

Securing a federal grant is only the beginning. Effective grant management ensures compliance, maximizes impact, and builds a positive reputation with funders.

The Foundation of Compliance: 2 CFR 200

For any organization receiving federal funding, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, known as the Uniform Guidance or 2 CFR 200, is the single most important regulatory document. It provides the standardized, government-wide framework for managing federal grants, and adherence is non-negotiable.

Building Internal Systems for Success

Robust internal systems are the bedrock of compliant grant management.

• Define Roles and Responsibilities: Create a clear internal structure that defines the roles of key players from leadership, fundraising, program, and finance staff.
• Establish Strong Financial Controls: Use separate accounting codes for each grant, implement a system of checks and balances for all expenses, and maintain meticulous records.
• Invest in the Right Tools: Dedicated software for accounting, project management, and a central database or CRM are wise investments for tracking grant-related data, deadlines, and documents.

Executing, Monitoring, and Reporting

Diligent execution and transparent reporting are key to maintaining a funder's trust.

• Track Programmatic Performance: Consistently track progress toward the goals and objectives outlined in your proposal.
• Monitor the Budget: Regularly conduct a "budget vs. actual" analysis to monitor spending rates and identify potential issues early.
• Submit Timely and Accurate Reports: Submitting required financial and programmatic reports completely, accurately, and on time is a fundamental requirement.
• Prepare for Audits: Always operate as if you will be audited by maintaining well-organized, comprehensive, and easily accessible documentation.

Conclusion: The Evolving Landscape of Federal Homelessness Policy

A Shifting Policy Landscape

The federal government's investment in programs to address homelessness remains the single most important factor in a community's ability to provide shelter and services. Recent years have seen significant resource infusions, such as the Emergency Housing Vouchers from the American Rescue Plan Act. However, these investments have occurred against a backdrop of rising homelessness nationwide, which has reached its highest point since tracking began.

For nearly two decades, federal policy has been anchored in the evidence-based "Housing First" model. This approach prioritizes immediate access to permanent housing without preconditions, followed by voluntary supportive services. The success of programs like HUD-VASH has provided powerful validation for this model.

The Rise of "Treatment-First"

Recent policy signals, however, indicate a potential pivot away from this consensus. An emerging framework challenges the core tenets of Housing First by suggesting a shift toward "treatment-first" models. This could involve conditioning housing assistance on participation in behavioral health treatment and prioritizing funding for jurisdictions that enforce laws against public camping.

This creates a potential collision course for service providers. The federal government, through the scoring criteria in competitive grants, may begin to reward program models that contradict the low-barrier principles of Housing First. This is not merely a philosophical debate; it is a strategic crisis with profound financial implications for non-profit organizations.

A Strategy for Organizational Resilience

In this complex and shifting landscape, organizational resilience will depend on a multi-faceted strategy.

• Advocacy: It is more important than ever for providers and local leaders to engage in advocacy, communicating the on-the-ground impact of policy changes to federal agencies and elected officials.
• Funding Diversification: Organizations must proactively diversify their revenue streams by cultivating relationships with private foundations, corporate funders, and individual donors to build a more resilient financial base.
• Data and Evidence: The ability to prove program effectiveness with high-quality, outcome-oriented data is the most powerful tool an organization possesses. Rigorous data collection and evaluation are essential for making a compelling case for support to any funder.
• Strategic Adaptability: The organizations that will thrive will be those that remain steadfast in their mission, are deeply engaged in their communities, and are rigorously data-driven, while also demonstrating the agility to adapt to a changing policy environment.

Frequently Asked Questions