Match and Leverage for the Continuum of Care Program U.S. Housing and Urban Development (HUD) homeless program funding is limited and can provide only a portion of the resources needed to successfully address the needs of homeless families and individuals. HUD requires recipients or subrecipients to use supplemental resources as match and leverage to address homeless needs. It is important to note that Match and leverage are separate and distinct. The cash and in-kind amounts listed as a source of leverage are above and beyond the cash and in-kind amounts listed as Match for the proposed project. The HEARTH Act allows for a new, simplified match requirement that includes both cash and in-kind contributions. All eligible funding costs except leasing (which requires no match) must be matched with no less than a 25 percent cash or in-kind match. Match must be used for eligible activities as defined by the CoC Program Interim Rule, 24 CFR Part 578, subpart D. Leverage Leverage is the non-match cash or non-match in-kind resources committed to making a CoC Program project fully operational. This includes all resources in excess of the required 25 percent match for CoC Program funds as well as other resources that are used on costs that are ineligible in the CoC Program. Leverage funds may be used for any program related costs, even if the costs are not budgeted or not eligible in the CoC Program. Leverage may be used to support any activity within the project provided by the recipient or subrecipient.. Examples of leverage are on pages 2-3 of this document. Match Requirements Match is actual cash or in-kind resources contributed to the grant. All costs paid for with matching funds must be for activities that are eligible under the CoC Program, even if the recipient is not receiving CoC Program grant funds for that activity. All grant funds must be matched with an amount no less than 25% of the awarded grant amount (excluding the amount awarded to the leasing budget line item) with cash or in-kind resources. Match resources may be from public (not statutorily prohibited by the funding agency from being used as a match) or private resources. According to section 578.73 of the CoC Program Interim Rule, in CoCs where there is more than one recipient, the recipient must provide match on a grant-by-grant basis. In CoCs in which there is there is a UFA or a sole recipient for the Continuum, matching funds may be provided by the recipient on a Continuum-wide basis. Examples A and B are calculations of match with and without a leasing budget line item. EXAMPLE A Total amount requested from HUD (without leasing) Rental Assistance funding = $95,000 Project Administration funding = $5,000 Total amount requested = $100,000 1 Total amount requested from HUD x .25 = Minimum Match Requirement $100,000 x .25 = $25,000 EXAMPLE B Total amount requested from HUD (with leasing) Leasing funding = $40,000 Supportive Services funding = $55,000 Project Administration funding = $5,000 Total amount requested = $100,000 Total amount requested from HUD, excluding amount requested for leasing $100,000 (Total Amount Requested) - $40,000 (Leasing Funding) = $60,000 Total amount requested from HUD x .25 = Minimum Match Requirement $60,000 x .25 = $15,000 Cash Contributions Cash match and leverage must be provided by the recipient or subrecipient. It is important to note that some Federal sources of funding outside of HUD do not allow their funds to be used as match; applicants need to confirm with each source of funding whether the use of such funding for match purposes is permitted. CoC Programs funds cannot be used to match other CoC funded projects. In-kind Contributions The recipient or subrecipient may use the value of real property, equipment, goods, or services contributed to the project as match and leverage. Services provided by individuals must be valued at rates consistent with those ordinarily paid for similar work in the recipient or subrecipient’s organization. If the recipient or subrecipient does not have employees performing similar work, the rates must be consistent with those ordinarily paid by other employers for similar work in the same labor market. Please note: If your project is awarded funds by HUD, a Memorandum of Understanding (MOU) must be executed for all in-kind match prior to the execution of your grant agreement/operating year. Each applicant must submit written commitments of match and leverage for the project to Strategies to End Homelessness staff by July 19, 2013 in order to participate in Large Group Scoring (Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties (18 U.S.C. §§ 1001, 1010, 1012, 31 U.S.C. §§ 3729, 3802). 2 Examples of leverage Advocacy Assistance to immigration Benefits advocacy Housing advocacy Legal assistance, representation, and referrals Mental health advocacy Tenant rights workshops Education, Employment, and Training Computer classes Benefits and work workshops Education Job development Job research Job placement Job retention Leadership training Life skills training Literacy Nutrition education/cooking classes School supplies Training tuition Tutoring GED training Uniform vouchers Vocational services Children After-school children’s program Child development consultation Child care services Children’s books, training, art supplies Children’s art program Children’s holiday party and shopping spree K-12 homeless education Parenting classes Summer camp Therapeutic day care Health Acupuncture Adult day health care AIDS-related services Dental services Detoxification services Duel diagnosis services Emergency room services Gynecological services Health care resources and education Healthcare services Medical services Psychiatric services Prescription medication/pharmaceutical services Medication Support Mental health services Peer support Pregnancy Testing Prenatal care Psychotherapy Residential and outpatient treatment services Respite Care Substance abuse services Triage Counseling Bereavement counseling and pastoral services Counseling services Crisis intervention Landlord/tenancy counseling Recovery groups Support groups Therapy Financial Services Asset/resource management services Money management Representative payee services Human Resources Pre-employment process Consultation staff New employee orientation Volunteer staff hours Transportation Subsidized/free bus passes Transportation Vehicle Housing Housing placement Supportive Services Artistic services 3 Housing search Maintenance/beautification projects Move-in assistance Property management Furnishings Household items Assessment services Case management Community development Family support services Grooming Independent living services Mentoring services Outreach Recreational trips and activities Referrals Restraining order assistance Support services supervision Team leader Technical assistance Translation services Veterans services Health club membership fees Operations Administrative support Clerical services Consulting and practical services Facility space Indirect expenses Mail service Office/workshop space Programming Voicemail In-Kind goods and equipment Documentation 1. 2. 3. 4. 5. 6. Value of donated goods to be provided to the recipient for the project; Specific date the goods will be made available; The actual grant and fiscal year to which the match will be contributed; Time period during which the donation will be available; Allowable activities to be provided by the donation; and Value of commitments of land, buildings, and equipment–the value of these items are onetime only and cannot be claimed by more than one project or by the same project in another year. 4 DOCUMENTATION OF EXPECTED LEVERAGED RESOURCES OR CASH MATCH Information regarding the leveraged resource or cash match to be provided by this agency is in the chart below and provided to the CoC during the renewal/reallocation submission process. [Note: Prior to the submission of the NOFA this information must be on the letterhead of the entity providing the resource] Please create additional charts for additional contributions MATCH Must be 25% of total request except cost for leasing. Name of organization providing contribution Type of Contribution (cash or in-kind). If inkind, then describe the type of in-kind contribution. Total Value of the Contribution Date the contribution will be availablei [________],2014 through [________],2015 Name of person authorized to commit these resources Title of person authorized to commit these resources. LEVERAGE – HUD requesting 150% of total request Name of organization providing contribution Type of Contribution (cash or in-kind). If inkind, then describe the type of in-kind contribution. Total Value of the Contribution Date the contribution will be availableii [________],2014 through [________],2015 Name of person authorized to commit these resources Title of person authorized to commit these resources. i For renewals, this date must coincide with your 2014-2015 operating year. 5 6