Homelessness: Grant Applicants' Characteristics and Views on the
Supportive Housing Program (Letter Report, 08/12/1999, GAO/RCED-99-239).

Pursuant to a congressional request, GAO provided information on the
Department of Housing and Urban Development's Supportive Housing
Program, focusing on the: (1) characteristics of Supportive Housing
Program applicants; (2) types of programs and services for homeless
people that this program supports; (3) importance of Supportive Housing
Program grants to applicants' programs for the homeless; and (4) various
funding sources, in addition to Supportive Housing Program grants, that
applicants rely on for their programs and services for homeless people.

GAO noted that: (1) about 90 percent of the applicants for Supportive
Housing Program grants in 1997 are nonprofit organizations; (2) almost
70 percent of the applicants have been in existence for between 10 and
50 years; (3) however, most of the applicants have generally offered
services to the homeless only during the last 20 years; (4) about 64
percent of the applicants serve fewer than 500 homeless people each
year, and the types of homeless people they most often serve include
adults with dependent children, individuals with physical and mental
disabilities, and persons with substance abuse problems; (5) the
majority of the Supportive Housing Program grants support programs that
provide transitional housing with supportive services or supportive
services only; (6) on the basis of applicants' responses, GAO estimates
that about 59 percent of the requests for Supportive Housing Program
grants in 1997 were for programs that provide transitional housing with
supportive services and 30 percent were for programs that provide
supportive services only; (7) the remaining 11 percent were requests for
programs that provide permanent housing for persons with disabilities
and innovative supportive housing projects; (8) the types of supportive
services that applicants most often provide to homeless people include
case management, instruction in life skills; (9) Supportive Housing
Program grants provide a significant portion of the funding available
for some applicants' homeless assistance programs, and applicants
generally believe that these grants are an important source of funding
for their programs; (10) on the basis of applicants' responses, GAO
estimates that Supportive Housing Program grants represent about 45
percent of the resources that applicants receive from all sources to
support their programs for the homeless; (11) the importance of the
Supportive Housing Program is evident from the negative consequences
that applicants often faced when they did not receive an award; (12)
GAO's survey results indicate a widespread belief among applicants that
the Supportive Housing Program is an important and unique source of
funding for homeless assistance programs and that receiving an award
from the program confers legitimacy on the applicants' efforts; and (13)
in addition to Supportive Housing Program Grants, applicants request and
receive funds from a variety of other federal and nonfederal sources to
support their homeless assistance programs.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-99-239
     TITLE:  Homelessness: Grant Applicants' Characteristics and Views
	     on the Supportive Housing Program
      DATE:  08/12/1999
   SUBJECT:  Disadvantaged persons
	     Federal aid for housing
	     Federal grants
	     Homelessness
	     Housing programs
	     Surveys
	     State-administered programs
IDENTIFIER:  HUD Supportive Housing Program
	     HUD Continuum of Care Program

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Cover
================================================================ COVER

Report to Congressional Requesters

August 1999

HOMELESSNESS - GRANT APPLICANTS'
CHARACTERISTICS AND VIEWS ON THE
SUPPORTIVE HOUSING PROGRAM

GAO/RCED-99-239

Supportive Housing Program

(385756)

Abbreviations
=============================================================== ABBREV

  DOL - Department of Labor
  HHS - Department of Health and Human Services
  HUD - Department of Housing and Urban Development
  SHP - Supportive Housing Program
  VA - Department of Veterans Affairs

Letter
=============================================================== LETTER

B-281481

August 12, 1999

Congressional Requesters

Many homeless people in America have multiple personal, social, and
economic problems that prevent them from obtaining permanent housing. 
Research has shown that housing alone is often not a solution to
homelessness for many people.  A comprehensive set of supportive
services--such as substance abuse treatment, mental health treatment,
child care services, and employment assistance--is also needed.  The
Department of Housing and Urban Development's (HUD) Supportive
Housing Program was established in 1992 to address this need. 
Organizations such as state and local government agencies and
nonprofit agencies can apply to HUD for Supportive Housing Program
grants, which they can use to provide housing and certain kinds of
supportive services to homeless people to help them live as
self-sufficiently as possible.  In 1997 and 1998, HUD awarded over
$620 million and $724 million, respectively, in Supportive Housing
Program grants to organizations that serve the homeless.\1

Because many of the supportive services funded by the Supportive
Housing Program mirror services provided by federal mainstream social
service programs and could potentially be funded by them, there is
some concern that this program may be taking scarce resources away
from HUD's core mission of providing housing.  As a result, you asked
us to review the Supportive Housing Program.  Specifically, you asked
us to provide information on (1) the characteristics of Supportive
Housing Program applicants, (2) the types of programs and services
for homeless people that this program supports, (3) the importance of
Supportive Housing Program grants to applicants' programs for the
homeless, and (4) the various funding sources, in addition to
Supportive Housing Program grants, that applicants rely on for their
programs and services for homeless people.  You also asked us to
provide, to the extent possible, information on the percentage of
veterans served by this program.  This report is the third in a
series of reviews you asked us to conduct on issues related to
homelessness.\2

To provide the information that you requested, we surveyed 1,174
applicants for Supportive Housing Program grants in 1997.  We
surveyed applicants that requested grants for previously funded
projects (renewals) as well as new projects.  Some of these
applicants were awarded grants, while others were not.  Our results
can be generalized, with a sampling error of plus or minus 5 percent,
to the entire group of applicants for funds in 1997; however, our
results cannot be generalized to those agencies that did not submit
applications that year.  Furthermore, our results are based on the
information reported by the applicants; we did not verify the
accuracy of this information.  Appendix I provides a more detailed
description of our objectives, scope, and methodology. 

--------------------
\1 These awards require applicants to provide HUD with additional
information about their projects, such as documentation to show that
the projects are financially feasible, before their grants can
receive final approval and funding. 

\2 Homelessness:  Coordination and Evaluation of Programs Are
Essential (GAO/RCED-99-49, Feb.  26, 1999); Homelessness:  State and
Local Efforts to Integrate and Evaluate Homeless Assistance Programs
(GAO/RCED-99-178, June 29, 1999). 

   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

About 90 percent of the applicants for Supportive Housing Program
grants in 1997 are nonprofit organizations.  Almost 70 percent of the
applicants have been in existence for between 10 and 50 years;
however, most of the applicants have generally offered services to
the homeless only during the last 20 years.  About 64 percent of the
applicants serve fewer than 500 homeless people each year, and the
types of homeless people they most often serve include adults with
dependent children, individuals with physical and mental
disabilities, and persons with substance abuse problems. 

The majority of the Supportive Housing Program grants support
programs that provide transitional housing with supportive services
or supportive services only.  On the basis of applicants' responses,
we estimate that about 59 percent of the requests for Supportive
Housing Program grants in 1997 were for programs that provide
transitional housing with supportive services and 30 percent were for
programs that provide supportive services only.  The remaining 11
percent were requests for programs that provide permanent housing for
persons with disabilities and innovative supportive housing projects. 
The types of supportive services that applicants most often provide
to homeless people include case management,\3 instruction in life
skills such as budgeting and parenting, outreach, employment
assistance, and transportation. 

Supportive Housing Program grants provide a significant portion of
the funding available for some applicants' homeless assistance
programs, and applicants generally believe that these grants are an
important source of funding for their programs.  On the basis of
applicants' responses, we estimate that Supportive Housing Program
grants represent about 45 percent of the resources that applicants
receive from all sources to support their programs for the homeless. 
In 1997, the average grant requested by applicants was about
$450,000, and the average grant awarded was about $440,000.  The
importance of the Supportive Housing Program is evident from the
negative consequences that applicants often faced when they did not
receive an award.  For example, our survey results indicate that
almost a third of the applicants had to reduce the programs and
services they provided to the homeless or reduce the number of
homeless people they served because they did not receive Supportive
Housing Program grants.  In addition, over 70 percent of the
applicants that were denied Supportive Housing Program grants were
unable to either expand existing programs or implement new programs
to serve homeless people.  Similarly, about 78 percent of these
applicants were unable to obtain funding from other sources to
replace the Supportive Housing Program funds they had applied for but
not received.  Finally, our survey results indicate a widespread
belief among applicants that the Supportive Housing Program is an
important and unique source of funding for homeless assistance
programs and that receiving an award from the program confers
legitimacy on the applicants' efforts. 

In addition to Supportive Housing Program grants, applicants request
and receive funds from a variety of other federal and nonfederal
sources to support their homeless assistance programs.  However, the
majority of applicants requested and received funds for their
homeless assistance programs from nonfederal rather than other
federal sources.  For example, on the basis of applicants' responses,
we estimate that about 74 percent of the applicants requested funds
from state and local governments, private donors, and foundations. 
In contrast, about 25 percent of the applicants requested funds from
federal sources other than the Supportive Housing Program.  This
relatively low reliance on other federal sources is consistent with
applicants' responses that a lack of knowledge about other federal
programs was their main reason for not applying for other federal
funds. 

--------------------
\3 Case management involves assessing the needs of homeless
individuals and linking them to appropriate housing and supportive
services. 

   BACKGROUND
------------------------------------------------------------ Letter :2

Authorized by the Stewart B.  McKinney Homeless Assistance Act, as
amended, the Supportive Housing Program (SHP) is designed to promote
the development of supportive housing and services that help people
make the transition from being homeless to living as independently as
possible.  Program funds may be used to provide (1) supportive
services only, such as substance abuse treatment, education,
employment assistance, nutritional counseling, life skills training,
and case management; (2) transitional housing with supportive
services for a period of up to 24 months; (3) permanent housing with
supportive services for persons with disabilities; and (4) innovative
special projects that enable agencies to design supportive housing
for homeless people that is not included in the other three
categories.\4 Agencies that receive SHP grants may use the funds to
acquire facilities; build, rehabilitate, or lease facilities; meet
some of the day-to-day operating costs of their facilities; and pay
for new or higher levels of supportive services for the homeless
people they serve.  Agencies that use SHP grants to acquire,
rehabilitate, or construct facilities for homeless people were
required to match these funds with equal amounts of funds from other
sources, such as state and local governments or private contributors. 

Funding for SHP is provided under HUD's ï¿½Continuum of Careï¿½ strategy. 
In 1993, HUD established this strategy to encourage and enable states
and localities to develop a coordinated and comprehensive
community-based approach for providing programs and services that
homeless people need.  The strategy, which is designed to build
partnerships among states, localities, nonprofit organizations, and
the federal government, encourages the development of long-term
solutions for addressing homelessness.  A locality's Continuum of
Care planning effort brings together local housing stakeholders in
order to (1) identify the size and scope of the local homelessness
problem; (2) inventory the assets available in the community to
alleviate homelessness; (3) rank the community's needs in order of
priority; (4) strategically plan the range of services and programs
that should be implemented to address homelessness, and (5) identify
leveraging resources, including other federal, state, local, and
private funds, for addressing concerns about homelessness in the
locality.  Agencies applying for SHP funds for their homeless
assistance programs are generally required to submit requests to the
local Continuum of Care development body, which reviews and ranks all
requests on the basis of the needs and priorities established in the
locality's Continuum of Care plan.  Communities then submit their
Continuum of Care plans along with agencies' applications for SHP
funding to HUD. 

In reviewing communities' Continuum of Care plans and agencies' SHP
applications, HUD conducts two types of reviews.  One review involves
an assessment of each community's Continuum of Care plan and need for
housing and services for homeless people.  The second review involves
an assessment of each SHP application to ensure that the projects for
which funds have been requested meet all of HUD's eligibility
requirements and that the application is complete.  Funding awards
are based on a combination of scores for the community's Continuum of
Care plan and each individual project.  Those projects with the
highest scores receive ï¿½conditional awards,ï¿½ after which awardees
must provide additional technical information to HUD before they can
obtain final approval and funding. 

In 1997, HUD received 3,011 SHP applications.\5 Almost half of these
applications were submitted by agencies in eight states; agencies in
two states alone--California and New York-- submitted over 20 percent
of the applications.  About 81 percent of all 1997 SHP applications
requested funding for new projects, while about 20 percent requested
funding for existing projects.  HUD conditionally awarded over $620
million in SHP grants in 1997 for about half of all the applications
that it received.  Appendix II provides additional information on the
geographical distribution of SHP applications and of the awards HUD
made for 1997. 

--------------------
\4 SHP funds may also be used to provide ï¿½safe havensï¿½ for
hard-to-reach homeless persons who have severe mental illness, are on
the streets, and have been unwilling to participate in supportive
services.  Safe havens are authorized under title IV, subpart D, of
the McKinney Act; however, because the Congress has not funded them
as a separate program, HUD has elected to provide funding for these
efforts under SHP. 

\5 For this study, we used information for 1997, because this was the
latest year for which complete information was available at the time
we conducted our survey.  In 1998, HUD received 2,644 applications
for SHP grants and awarded $724 million, according to a HUD official. 

   MOST SHP APPLICANTS ARE
   NONPROFIT ORGANIZATIONS THAT
   SERVE A WIDE RANGE OF HOMELESS
   CLIENTS
------------------------------------------------------------ Letter :3

SHP applicants are generally nonprofit organizations that are
involved in the development of their community's Continuum of Care
plan.  In addition, on the basis of applicants' responses, we
estimate that almost 70 percent of SHP applicants have been in
existence for between 10 and 50 years, and about half have been
serving homeless people for between 10 and 20 years.  The majority of
the applicants serve fewer than 500 homeless people annually. 
However, many of the applicants serve a wide range of clients,
including adults with dependent children, individuals with physical
and mental disabilities, and individuals with substance abuse
problems. 

      CHARACTERISTICS OF SHP
      APPLICANTS
---------------------------------------------------------- Letter :3.1

According to our survey results, agencies that apply for SHP funds
have the following characteristics: 

  -- About 90 percent of SHP applicants are nonprofit organizations
     with or without a religious affiliation, as illustrated in
     figure 1.1.  The remaining applicants are either state or local
     government agencies or other types of organizations, such as
     public housing authorities. 

   Figure 1.1:  SHP Applicants, by
   Organizational Type

   (See figure in printed
   edition.)

Note:  The percentages do not total 100 because of rounding. 

  -- Almost 70 percent of SHP applicants have been in existence for
     between 10 and 50 years, and about 48 percent have served the
     homeless for between 10 and 20 years.  As indicated in table
     1.1, SHP applicants have generally been in existence for longer
     than they have served homeless people, and over a third of the
     applicants have been serving homeless people for 10 years or
     less. 

                                        Table 1.1
                         
                         Number of Years SHP Applicants Have Been
                          in Existence and Have Served Homeless
                                          People

                   Percentage of applicants that have  Percentage of applicants that have
                    been in existence for this length        served the homeless for this
Range of years                                of time                      length of time
-----------------  ----------------------------------  ----------------------------------
Under 10                                           17                                  36
10 to 20                                           32                                  48
21 to 50                                           36                                  13
51 to 100                                          10                                   2
Over 100                                            6                                   1
-----------------------------------------------------------------------------------------
Note:  The percentages may not total 100 because of rounding. 

  -- The annual budgets of the nonprofit organizations in our survey
     ranged from $2,500 to over $414 million.  About 25 percent of
     the organizations had an annual budget of $616,000 or less, and
     about 25 percent had an annual budget of $5.5 million or more. 
     On the basis of applicants' responses, we estimate that the
     average annual budget of the nonprofit organizations that apply
     for SHP grants is about $5.8 million.  Similarly, the annual
     budgets of the state and local government agencies in our survey
     ranged from $160,000 to about $5 billion.  About 25 percent of
     these agencies had an annual budget of $3.1 million or less, and
     about 25 percent had an annual budget of $67 million or more. 
     We further estimate that the average annual budget was about
     $925 million for the state government agencies that apply for
     SHP grants and about $36 million for the local government
     agencies. 

  -- Approximately 62 percent of the funding for an SHP applicant's
     average annual budget in 1997 was provided by public sources
     that include local, state, and federal governments.  The
     remaining funds were provided by private sources, such as (1)
     donors and contributors, including individuals, corporations,
     and foundations such as the United Way; (2) self-generated
     income, such as sales, rents, and investments; (3) fees for
     services that agencies provide for federal programs such as
     Medicaid, Medicare, and Supplementary Security Income;\6 and (4)
     other sources.  The composition of an SHP applicant's average
     annual budget is illustrated in figure 1.2. 

   Figure 1.2:  Sources of Funding
   for an SHP Applicant's Average
   Annual Budget, 1997

   (See figure in printed
   edition.)

  -- About 69 percent of SHP applicants identified themselves as
     highly involved in the development of their local Continuum of
     Care plan, and another 26 percent identified themselves as
     somewhat involved. 

  -- The majority of SHP applicants serve fewer than 500 homeless
     clients annually.  As figure 1.3 illustrates, about 26 percent
     of SHP applicants serve fewer than 100 homeless people annually,
     while about 5 percent serve 5,000 or more homeless people
     annually. 

   Figure 1.3:  Number of Homeless
   People SHP Applicants Serve
   Annually

   (See figure in printed
   edition.)

Note:  Percentages do not total 100 because of rounding. 

--------------------
\6 Some of the fees for services that applicants receive may come
from federal and state funding sources. 

      CHARACTERISTICS OF CLIENTS
      SERVED
---------------------------------------------------------- Letter :3.2

SHP applicants serve a variety of clients.  For example, more than 80
percent of SHP applicants serve adults with dependent children,
adults without children, and individuals with substance abuse
problems; about 67 percent serve veterans; and about 38 percent serve
unaccompanied or emancipated children and/or adolescents.\7 Table 1.2
shows the types of clients served by SHP applicants and the
percentage of applicants that serve each type. 

                               Table 1.2
                
                 Types of Clients and the Percentage of
                     SHP Applicants That Serve Them

                                          Percentage of SHP applicants
Type of clients                               that serve these clients
----------------------------------------  ----------------------------
Adults with dependent children                                      84
Adults without children                                             83
Individuals with substance abuse                                    81
 problems
Individuals with physical or mental                                 75
 disabilities
Battered women                                                      69
Pregnant women                                                      69
Mentally ill individuals                                            69
Adults aged 60 and older                                            68
Individuals with HIV/AIDS                                           67
Individuals involved with the criminal                              67
 justice system
Veterans                                                            67
Unaccompanied or emancipated children                               38
 and/or adolescents
----------------------------------------------------------------------
With regard to veterans, from our analysis of applicants' responses,
we estimate that almost 30 percent of SHP applicants could not tell
us how many veterans they serve.\8 For SHP applicants that serve
veterans, about 1 percent serve veterans exclusively, while about 53
percent serve a homeless population in which the proportion of
veterans is 25 percent or less, and about 11 percent indicated that
none of the homeless they serve are veterans. 

Finally, SHP applicants generally believe that (1) most of the
homeless people they serve need programs that provide supportive
services in conjunction with housing and (2) a smaller number of
homeless people need only housing with no supportive services. 
Figure 1.4 shows the types of housing and supportive service programs
that SHP applicants believe homeless people most often need. 

   Figure 1.4:  Types of Housing
   and Supportive Services That
   SHP Applicants Believe Homeless
   People Need

   (See figure in printed
   edition.)

--------------------
\7 Emancipated children/adolescents are those who have dissociated
themselves from their parents or guardians and for whom no adult is
willing to take responsibility. 

\8 We did not ask applicants whether they verify the veteran status
of the homeless people they serve.  This kind of verification would
require proof of discharge or confirmation through an official
military service database. 

   MOST SHP FUNDS SUPPORT
   TRANSITIONAL HOUSING PROGRAMS
   AND A VARIETY OF SUPPORTIVE
   SERVICES
------------------------------------------------------------ Letter :4

Although SHP applicants provide a variety of programs to serve
homeless people, the majority of them sought and received SHP funding
for two types of programs--those that provide transitional housing
with supportive services and those that provide supportive services
only.  Through their supportive service programs, SHP applicants
offer several kinds of assistance to homeless people, such as case
management, life skills instruction, and employment assistance. 

      TYPES OF SHP GRANTS
      REQUESTED AND AWARDED
---------------------------------------------------------- Letter :4.1

SHP grants can be used to fund three of the six types of programs
that are most often offered to homeless people by the agencies that
serve them--transitional housing with supportive services, permanent
housing for people with disabilities, and supportive services only. 
(Table 1.3 identifies the six types of programs.) Our survey results
indicate that the majority of SHP applicants offer programs that
provide transitional housing with supportive services and supportive
services only.  Consistent with these results, these were the two
types of programs for which applicants most often requested SHP
grants.  On the basis of applicants' responses, we estimate that
about 59 percent of the SHP applications submitted in 1997 were
requests for funds for transitional housing programs with supportive
services and about 30 percent were requests for funds for programs
that provide supportive services only. 

                               Table 1.3
                
                Types of Programs Agencies Often Provide
                to Homeless People and the Percentage of
                SHP Applicants That Offer These Programs

                                                     Percentage of SHP
Type of program offered to          Description of     applicants that
homeless people                            program       offer program
------------------------------  ------------------  ------------------
Transitional housing with        Temporary housing                  80
 services                           assistance and
                                        supportive
                                         services.
                                    Generally, the
                                 maximum stay is 2
                                            years.
Supportive services without          Services that                  70
 housing                               address the
                                  special needs of
                                      the homeless
                                 (e.g., referrals,
                                 education, health
                                            care).
Emergency shelter                       Short-term                  50
                                 housing. Beds are
                                not guaranteed and
                                 are provided only
                                     for a limited
                                             time.
Permanent housing with           Long-term housing                  38
 services                           assistance and
                                        supportive
                                         services.
Food bank/food pantry                Uncooked food                  37
                                    distributed in
                                     boxes or bags
                                  directly to low-
                                    income people,
                                     including the
                                         homeless.
Soup kitchen                        Food lines and                  20
                                     programs that
                                        distribute
                                          prepared
                                       breakfasts,
                                       lunches, or
                                          dinners.
----------------------------------------------------------------------
Figure 1.5 shows the types of programs for which SHP applicants
sought grants in 1997. 

   Figure 1.5:  Types of Programs
   for Which SHP Applicants Sought
   Grants in 1997

   (See figure in printed
   edition.)

Note:  The percentages do not total 100 because of rounding. 

      TYPES OF SUPPORTIVE SERVICES
      OFFERED TO HOMELESS PEOPLE
---------------------------------------------------------- Letter :4.2

SHP applicants generally offered a wide range of supportive services
to homeless people, directly or indirectly, through contractual
arrangements.  For example, about 93 percent of SHP applicants
provided case management; 84 percent provided instruction in life
skills such as parenting and budgeting; and about three-fourths
offered outreach, employment assistance, and transportation to the
homeless that they serve.  In contrast, fewer than one-third of SHP
applicants provided legal services and AIDS-related treatment.  Table
1.4 shows the different types of supportive services and the
percentage of SHP applicants that offered each type. 

                               Table 1.4
                
                  Types of Supportive Services and the
                   Percentage of SHP Applicants That
                         Provide These Services

                                              Percentage of applicants
Types of supportive services               that provide these services
----------------------------------------  ----------------------------
Case management (including referrals)                               93
Instruction in life skills, including                               84
 parenting classes
Employment assistance                                               77
Outreach                                                            76
Transportation                                                      75
Follow-up with transitional housing                                 74
Clothing                                                            70
Case management for clients living in                               61
 permanent housing
Education                                                           61
Alcohol/drug abuse treatment                                        57
Financial assistance                                                53
Mental health treatment                                             52
Communication services (telephone, voice                            46
 mail, e-mail, Internet access)
Child care                                                          45
Health care (medical, dental, vision,                               43
 and pharmaceutical)
Legal services                                                      31
AIDS-related treatments                                             31
----------------------------------------------------------------------
About 62 percent of SHP applicants provide supportive services
directly to their homeless clients and did not contract for any
services with other providers, while 4 percent contract with other
agencies to provide these services and do not provide any services
themselves.  The remaining 34 percent of SHP applicants provide a mix
of direct and contracted services. 

   SHP IS AN IMPORTANT SOURCE OF
   FUNDING FOR PROGRAMS THAT SERVE
   HOMELESS PEOPLE
------------------------------------------------------------ Letter :5

SHP grants provide applicants with a significant and important
portion of the funding that supports their programs for homeless
people.  According to our survey results, most applicants that did
not receive an SHP grant could not obtain funding from other sources
to replace the funds they did not receive from SHP, and they were
unable to expand existing programs or implement new programs for
their homeless populations.  In addition, according to our survey
results, most applicants agree that SHP grants are an important and
unique source of funding for their programs that serve homeless
people. 

      RELATIONSHIP OF SHP GRANTS
      TO OTHER SOURCES OF FUNDING
      FOR HOMELESS ASSISTANCE
      PROGRAMS
---------------------------------------------------------- Letter :5.1

Our survey results indicate that SHP grants represent about 45
percent of the total funds that applicants received from all sources
to provide services and programs for homeless people.  Figure 1.6
illustrates the relationship of SHP grants to other federal and
nonfederal sources of funding for applicants' homeless assistance
programs.  (Nonfederal sources include state and local governments,
private corporations, and nonprofit organizations and foundations.)

   Figure 1.6:  Relationship of
   SHP Grants to Other Sources of
   Funding for Applicants'
   Homeless Assistance Programs

   (See figure in printed
   edition.)

According to the information provided in responses to our survey, in
1997, applicants requested SHP grants ranging from about $7,000 to
almost $7,500,000.  The average amount requested by applicants that
year was about $450,000, and the average award for projects was about
$440,000. 

      CONSEQUENCES OF NOT
      RECEIVING AN SHP GRANT
---------------------------------------------------------- Letter :5.2

The importance of SHP funding for programs that serve homeless people
is demonstrated by the negative consequences applicants faced when
they did not receive a grant.  On the basis of applicants' responses,
we estimate that over 70 percent of the applicants that did not
receive an SHP grant were unable to expand existing programs or were
unable to implement new programs for homeless people because they did
not receive these funds.  In addition, over 30 percent of these
applicants identified other negative consequences of not receiving
SHP funds, including reductions in programs and services provided to
the homeless and reductions in the number of homeless individuals
served.  In contrast, only about 4 percent of SHP applicants
indicated that no changes were made to their programs or services
when they did not receive a grant.  We estimate that about 78 percent
of the applicants that did not receive a grant were unable to obtain
funding from other sources to replace the SHP funds they did not
receive.  Moreover, according to our survey results, almost all of
the applicants that were able to obtain funding from other sources
received less than they had requested from SHP. 

Despite the importance they assign to SHP grants, about half of the
applicants that had previously applied for SHP grants did not apply
for a grant in 1998.  The reason most often cited by the agencies
that did not apply for an SHP grant in 1998 was that they were
currently implementing prior SHP grant awards.  Some applicants that
did not apply for 1998 funds also said (1) they believed they were
unlikely to receive funding from HUD, (2) they found the application
process too difficult and/or time-consuming, or (3) their staff did
not have the time or technical expertise to fill out the application. 

      IMPORTANCE OF SHP FUNDING TO
      APPLICANTS' HOMELESS
      ASSISTANCE PROGRAMS
---------------------------------------------------------- Letter :5.3

Our survey asked applicants to agree or disagree with a series of
statements about the importance of SHP funding to their homeless
assistance programs.  We developed these statements through
discussions with some homeless assistance providers and advocates for
the homeless.  Our objective was to determine whether applicants
nationwide held similar opinions about the importance of SHP.  Our
survey results indicate that the majority of SHP applicants agree
with the following statements about the importance of SHP funds: 

  -- About 43 percent of SHP applicants agree and another 26 percent
     strongly agree with the statement that SHP grants provide
     legitimacy to their programs, making it easier for them to
     obtain funds from other sources. 

  -- About 47 percent of SHP applicants agree and another 36 percent
     strongly agree with the statement that SHP funding is unique
     because it explicitly links housing and supportive services for
     the homeless. 

  -- About 26 percent of SHP applicants agree and another 59 percent
     strongly agree with the statement that their agencies need to
     receive SHP funding to provide services and programs for
     homeless people. 

   IN ADDITION TO SHP GRANTS,
   APPLICANTS RELIED PRIMARILY ON
   NONFEDERAL FUNDING FOR THEIR
   HOMELESS ASSISTANCE PROGRAMS
------------------------------------------------------------ Letter :6

In addition to applying for SHP grants, most applicants tried to
obtain funds from several nonfederal and other federal sources to
support their homeless assistance programs.  However, of these
sources, SHP applicants relied more on nonfederal than on other
federal sources.  This greater reliance on nonfederal sources is, in
part, attributable to SHP applicants' lack of knowledge about other
federal programs that would fund programs and services for homeless
people. 

      NONFEDERAL FUNDING FOR SHP
      APPLICANTS' HOMELESS
      ASSISTANCE PROGRAMS
---------------------------------------------------------- Letter :6.1

In addition to applying for SHP grants, about 74 percent of SHP
applicants applied for funds from a variety of nonfederal sources to
finance their programs and services specifically targeted to homeless
people.  These sources included state and local governments, private
corporations, and nonprofit organizations and foundations.  On the
basis of applicants' responses, we estimate that SHP applicants that
applied to nonfederal sources received, at a minimum, about $576
million in funding from them.  Specifically, they received a minimum
of about $251 million from state governments, $185 million from local
governments, $69 million from nonprofit organizations and
foundations, $28 million from private corporations, and over $43
million from other sources, such as donations from individuals and
other fundraising efforts.  However, the amounts that applicants
reported receiving from state and local governments may include some
federal funds.  This is because some federal programs, such as HUD's
Emergency Shelter Grants and the Department of Health and Human
Services' Projects for Assistance in Transition From Homelessness,
provide funds to state and local governments that these governments
then distribute as grants to public and private nonprofit
organizations.  Organizations that receive funds from their state and
local governments generally do not know what portion of the total
comes from federal sources.  Table 1.5 identifies the various
nonfederal funding sources from which SHP applicants requested and
received funds, together with our estimates of the percentage of
applicants requesting funding from these sources and the total amount
of funding they may have requested and received. 

                               Table 1.5
                
                    Estimates of Nonfederal Funding
                Requested and Received by SHP Applicants

                         (Dollars in millions)

                                Percentage
                                        of
                                applicants  Total amount  Total amount
                                requesting    of funding    of funding
Type of nonfederal funding         funding   requested\a    received\a
----------------------------  ------------  ------------  ------------
State government                        72  $253,286,344  $250,995,786
Local government                        62   196,533,580   185,485,302
Private corporation                     37    38,761,357    27,560,125
Nonprofit organization/                 62    90,357,740    69,080,561
 foundation
======================================================================
Total                                       $578,939,021  $533,121,774
                                                                    \b
----------------------------------------------------------------------
\a The estimated totals in this table do not account for the
applicants that failed to respond to our questionnaire. 
Additionally, we eliminated survey respondents that did not
consistently answer the series of financial questions we asked them. 
We chose not to impute values for those eliminated from the analysis. 
For these reasons, the estimates should be viewed as minimum
estimates of the totals. 

\b In addition, about 18 percent of the applicants received over $43
million in funds from other sources, such as private donors. 

      OTHER FEDERAL SOURCES OF
      FUNDING FOR SHP APPLICANTS'
      HOMELESS ASSISTANCE PROGRAMS
---------------------------------------------------------- Letter :6.2

Our survey results indicate that few applicants seek funding from
federal sources other than SHP for their homeless assistance
programs.  On the basis of applicants' responses, we estimate that
about 25 percent of the SHP applicants applied for, at a minimum,
about $148 million in funding from other federal sources and
received, at a minimum, about $100 million.  Almost half of the
funding that applicants received from other federal sources came from
other HUD programs, including the Shelter Plus Care, Section 8
Single-Room Occupancy, and Housing Opportunities for Persons With
AIDS programs.\9 In addition, some SHP applicants requested funds
from the departments of Health and Human Services, Labor, and
Veterans Affairs.  SHP applicants that did not seek federal funding
from other sources most often reported that they did not do so
because they were unfamiliar with other federal programs that would
provide money for their homeless assistance programs.  Table 1.6
estimates how much federal funding from non-SHP sources SHP
applicants may have requested and received. 

                               Table 1.6
                
                  Estimates of Non-SHP Federal Funding
                Requested and Received by SHP Applicants

                                   Total amount of
                                           funding     Total amount of
Non-SHP federal funding source         requested\a  funding received\a
------------------------------  ------------------  ------------------
HUD programs other than SHP            $61,334,769         $46,192,826
Department of Health and Human          15,118,372          12,463,781
 Services
Department of Labor                     27,271,041           9,867,453
Department of Veterans Affairs           5,083,369           2,562,422
Other federal sources\b                 38,778,669          28,771,772
======================================================================
Total                                 $147,586,220         $99,858,254
----------------------------------------------------------------------
\a The estimated totals in this table do not account for the
applicants that failed to respond to our questionnaire. 
Additionally, we eliminated survey respondents that did not
consistently answer the series of financial questions we asked them. 
We chose not to impute values for those eliminated from the analysis. 
For these reasons, the estimates should be viewed as minimum
estimates of the totals. 

\b Other federal sources include the Department of Agriculture, the
Federal Emergency Management Agency, and the Federal Home Loan Bank. 

--------------------
\9 A detailed description of each of these programs is provided in
our report entitled Homelessness:  Coordination and Evaluation of
Programs Are Essential (GAO/RCED-99-49, Feb.  26, 1999). 

   AGENCY COMMENTS
------------------------------------------------------------ Letter :7

We provided HUD with a draft of this report for review and comment. 
In its comments, HUD stated that the Supportive Housing Program is an
integral part of the Department's Continuum of Care approach to
addressing homelessness.  According to HUD, the Supportive Housing
Program is so popular because it enables housing and service
providers to develop a package application that includes a request
for funding for both housing assistance and supportive services.  HUD
also provided us with technical comments that have been incorporated
throughout the report as appropriate.  (App.  III includes the full
text of HUD's comments and our detailed responses.)

We also provided the Department of Veterans Affairs with a draft of
this report for review and comment.  The Associate Chief Consultant
for Homeless Veterans told us that the Department had no comments or
concerns about the information included in the report and stated that
the report provided useful information on the types of programs and
services provided to homeless people. 

---------------------------------------------------------- Letter :7.1

We are sending copies of this report to the appropriate congressional
committees; interested Members of Congress; the Honorable Andrew
Cuomo, Secretary of Housing and Urban Development; and other
interested parties.  Copies will be made available to others on
request.  If you have any questions about this report, please call
Anu Mittal or me at (202) 512-7631.  Key contributors to this report
include Lynn Musser, Merrie Nichols-Dixon, Hattie Poole, and John
Vocino. 

Judy A.  England-Joseph
Director, Housing and Community
 Development Issues

List of Requesters

The Honorable Phil Gramm
Chairman, Committee on Banking, Housing
 and Urban Affairs
United States Senate

The Honorable Pete V.  Domenici
Chairman, Committee on Budget
United States Senate

The Honorable James M.  Jeffords
Chairman, Committee on Health, Education,
 Labor and Pensions
United States Senate

The Honorable Arlen Specter
Chairman, Committee on Veterans' Affairs
United States Senate

The Honorable Christopher S.  Bond
Chairman, Subcommittee on VA, HUD
 and Independent Agencies
Committee on Appropriations
United States Senate

The Honorable Wayne Allard
Chairman, Subcommittee on Housing
 and Transportation
Committee on Banking, Housing and
 Urban Affairs
United States Senate

The Honorable Bill Frist
Chairman, Subcommittee on
 Public Health
Committee on Health, Education,
 Labor and Pensions
United States Senate

OBJECTIVES, SCOPE, AND METHODOLOGY
=========================================================== Appendix I

We conducted a nationwide survey of 1,174 agencies that applied in
1997 for grants from the Department of Housing and Urban
Development's (HUD) Supportive Housing Program (SHP).  Our survey was
designed to obtain information on the (1) characteristics of agencies
that apply for SHP grants, (2) types of programs and services for
homeless people that SHP grants support, (3) importance of SHP grants
to agencies' programs for the homeless, and (4) various funding
sources that applicants rely on in addition to SHP funds for their
programs and services for homeless people.  In addition to conducting
the survey, we interviewed HUD officials and homeless assistance
providers in Virginia, Maryland, and the District of Columbia, and we
reviewed documents and legislation related to programs that serve the
homeless.  We conducted our review from September 1998 through June
1999 in accordance with generally accepted government auditing
standards. 

QUESTIONNAIRE DEVELOPMENT AND DESIGN

We developed a questionnaire for mailing to a sample of agencies
nationwide that applied for one or more SHP grants in 1997.  The
questionnaire asked for general information about each agency and
specific information about the agency's programs for the homeless. 
We also asked for information about a specific grant application
submitted by each agency in 1997.  For example, we asked applicants
how much money they received for the grant and how they would
categorize the grant.  Each agency received only one questionnaire,
no matter how many applications it submitted to HUD. 

To aid in designing our survey, we obtained input on the content of
the questionnaire from officials of the Interagency Council on the
Homeless and organizations that either represent or provide services
to the homeless, such as the National Alliance to End Homelessness,
the National Law Center on Homelessness and Poverty, and U.S. 
Catholic Charities.  We pretested the questionnaire with officials of
11 agencies in New York, Texas, and Florida.  Each pretest consisted
of a visit by GAO staff to an agency that had applied for an SHP
grant in 1997.  During these visits, we simulated the actual survey
experience by asking agency officials to fill out the questionnaire. 
We also interviewed agency officials after they had completed the
questionnaire to ensure that (1) the questions were readable and
clear, (2) the terms used were precise, (3) completing the
questionnaire did not place an undue burden on agency officials, and
(4) the questionnaire was independent and unbiased. 

   SAMPLING METHODOLOGY
--------------------------------------------------------- Appendix I:1

To identify agencies that submitted SHP applications in 1997, we
obtained a list from HUD of the total number of applications it
received that year.  This list contained 3,011 applications from
various state, local, and nonprofit agencies nationwide.  We
eliminated 351 applications that HUD did not consider for funding
because they were technically incomplete or otherwise ineligible for
consideration.  We divided the remaining 2,660 applications into four
categories:  (1) applications for new projects that were funded, (2)
applications for new projects that were not funded, (3) applications
for existing (renewal) projects that were funded, and (4)
applications for renewal projects that were not funded.  From these
four categories, we selected a sample of 1,174 applications using the
following process: 

  -- We included all agencies that submitted a renewal application
     that was not funded in our sample.  We did this because we
     wanted to survey as many agencies as we could with experience in
     requesting but not receiving SHP grants for their projects. 
     However, if an agency had more than one nonfunded renewal
     application, we randomly selected one application so that the
     agency would receive only one questionnaire.  If an agency
     submitted applications for both renewal and new projects, we
     randomly selected one renewal application that was not funded
     for our sample and deleted the other applications.  We mailed
     questionnaires to 120 agencies that submitted applications for
     renewal projects that were not funded. 

  -- We also included all agencies that submitted a renewal
     application that was funded unless the agencies had submitted a
     renewal application that was not funded (these agencies were
     already part of our sample).  For agencies that submitted
     multiple renewal applications that were funded, we randomly
     selected one application so that the agency received only one
     questionnaire.  If an agency (1) submitted applications for both
     renewal and new projects and (2) had no nonfunded renewal
     applications, we randomly selected one renewal application that
     was funded for our sample and deleted the other applications. 
     We sent questionnaires to 268 agencies that submitted renewal
     applications that were funded. 

  -- For agencies that submitted only new applications, we randomly
     selected one application for each agency and deleted the others. 
     This left 1,546 applications for new projects, of which 704 were
     funded and 842 were not funded.  We then randomly selected a
     sample of 400 applications from each group.  However, we
     identified additional duplicate agencies after drawing the
     sample and therefore mailed questionnaires to only 391 agencies
     with applications for new projects that were funded and 395
     agencies with applications for new projects that were not
     funded. 

This three-step process yielded a sample of 1,174 applicants.  Of
these, 953 applicants returned completed, useable questionnaires,
which yielded an applicant response rate of 81 percent.  For each
sampled application category, table I.1 shows the number of
applications considered for funding by HUD, the number of
questionnaires we mailed to applicants, and the number of completed,
useable questionnaires returned to us. 

                               Table I.1
                
                     Type of Application, Number of
                Applications Received by HUD, and Number
                 of Questionnaires Mailed and Returned
                       for the Sample Population

                                 Number of
                              applications                   Number of
                                considered     Number of  questionnair
                               for funding  questionnair  es completed
Type of application                 by HUD     es mailed  and returned
----------------------------  ------------  ------------  ------------
Nonfunded renewal                      152           120           100
Funded renewal                         410           268           227
Nonfunded new                        1,095           395           292
Funded new                           1,003           391           334
======================================================================
Total                                2,660         1,174           953
----------------------------------------------------------------------
Note:  Of the 3,011 applications that were received, 351 were
ï¿½droppedï¿½ by HUD because they were incomplete, did not target the
appropriate population, or were otherwise ineligible for funding. 

Our results are based on the information reported by the agencies. 
We did not verify the accuracy of the information that the surveyed
agencies provided. 

   SAMPLING ERRORS AND CONFIDENCE
   INTERVALS OF ESTIMATES
--------------------------------------------------------- Appendix I:2

Since we used a sample (called a probability sample) of 1,174 of the
2,660 SHP applications that were considered for funding in 1997 to
develop our estimates, each estimate has a measurable precision, or
sampling error, which may be expressed as a plus/minus figure.  A
sampling error indicates how closely we can reproduce from a sample
the results we would have obtained if we had sent a questionnaire to
every SHP applicant and asked about each one of the grant
applications.  By adding the sampling error to and subtracting it
from the estimate, we can develop upper and lower bounds for each
estimate.  This range is called the confidence interval.  Sampling
errors and confidence intervals are stated at a certain confidence
levelï¿½in this case, 95 percent.  For example, a confidence interval
at the 95-percent confidence level means that in 95 out of 100
instances, the sampling procedure we used would produce a confidence
interval containing the value we are estimating.  Table I.2 lists the
sampling errors and confidence intervals for selected information
from our survey of SHP applicants. 

                                        Table I.2
                         
                            Sampling Errors of Estimates From
                         Information in the Project Questionnaire

                                                              Confidence interval
                                                       ----------------------------------
Description                Estimate    Sampling error              From                To
-----------------  ----------------  ----------------  ----------------  ----------------
Background information about the agencies
-----------------------------------------------------------------------------------------

Which of the following best describes your agency?
-----------------------------------------------------------------------------------------
Nonprofit agency             79.32%             1.76%            77.56%            81.08%
Nonprofit agency             11.14%             1.39%             9.75%            12.53%
 with religious
 affiliation
Local government              6.14%             1.04%             5.10%             7.18%
 agency
State government              1.22%             0.47%             0.75%             1.69%
 agency
Other                         2.17%             0.61%             1.56%             2.78%

Approximately how long has your agency been in existence?
-----------------------------------------------------------------------------------------
Under 10 years               16.73%             1.71%            15.02%            18.44%
10 to 20 years               32.05%             2.04%            30.01%            34.09%
21 to 50 years               35.50%             2.10%            33.40%            37.60%
51 to 100 years               9.63%             1.29%             8.34%            10.92%
Over 100 years                6.10%             1.02%             5.08%             7.12%

What types of clients does your agency serve?
-----------------------------------------------------------------------------------------
Adults with                  84.42%             1.59%            82.83%            86.01%
 dependent
 children
Adults without               83.44%             1.57%            81.87%            85.01%
 children
Unaccompanied or             37.57%             2.12%            35.45%            39.69%
 emancipated
 children and/or
 adolescents
Battered women               69.06%             2.02%            67.04%            71.08%
Pregnant women               69.09%             2.02%            67.07%            71.11%
Adults aged 60 or            68.37%             2.04%            66.33%            70.41%
 older
Veterans                     67.15%             2.02%            65.13%            69.17%
Individuals with             75.05%             1.86%            73.19%            76.91%
 physical or
 mental
 disabilities
Mentally ill                 68.84%             2.04%            66.80%            70.88%
 individuals
Individuals with             66.74%             2.06%            64.68%            68.80%
 HIV/AIDS
Individuals with             80.97%             1.69%            79.28%            82.66%
 substance abuse
 problems
Individuals                  66.80%             2.04%            64.76%            68.84%
 involved with
 the criminal
 justice system

What is the total budget for your agency for calendar year 1998?
-----------------------------------------------------------------------------------------
Nonprofit agency         $5,795,423          $644,356        $5,151,067        $6,439,779
Local government        $35,668,981        $9,427,275       $26,241,706       $45,096,256
 agency
State government       $925,323,271      $609,067,913      $316,255,358    $1,534,391,184
 agency

Please indicate the approximate percentage of your agency's annual budget that comes from
each of the following sources:
-----------------------------------------------------------------------------------------
Local, state, and            61.82%             1.35%            60.47%            63.17%
 federal
 government
 funding
Private funding              21.07%             1.12%            19.95%            22.19%
Fees for service              7.14%             0.71%             6.43%             7.85%
Self-generated                9.02%             0.82%             8.20%             9.84%
 income
Other                         0.89%             0.22%             0.67%             1.11%

Programs and services for the homeless
-----------------------------------------------------------------------------------------

Which of the following programs and services does your agency offer to the homeless?
-----------------------------------------------------------------------------------------
Emergency shelter            50.12%             2.18%            47.94%            52.30%
Transitional                 79.88%             1.84%            78.04%            81.72%
 housing with
 services
Permanent housing            37.68%             2.10%            35.58%            39.78%
 with services
Food bank/food               37.42%             2.14%            35.28%            39.56%
 pantry
Soup kitchen                 19.55%             1.78%            17.77%            21.33%
Supportive                   69.96%             1.94%            68.02%            71.90%
 services without
 housing

Approximately how long has your agency had programs or services that are specifically
targeted to serve the homeless?
-----------------------------------------------------------------------------------------
Under 10 years               35.88%             2.14%            33.74%            38.02%
10 to 20 years               47.62%             2.20%            45.42%            49.82%
21 to 50 years               12.70%             1.47%            11.23%            14.17%
50 to 100 years               2.33%             0.71%             1.62%             3.04%
Over 100 years                1.47%             0.53%             0.94%             2.00%

Which of the following best describes your agency's delivery of services to the homeless?
-----------------------------------------------------------------------------------------
Provides services            62.09%             2.12%            59.97%            64.21%
 directly to the
 homeless--does
 not contract for
 any services
Provides some                33.42%             2.08%            31.34%            35.50%
 services
 directly to the
 homeless and
 contracts
 (provides
 indirectly) for
 some services
 (excluding
 affiliation or
 linkage
 agreements)
Does not provide              4.49%             0.88%             3.61%             5.37%
 any services
 directly--all
 services are
 contracted out
 to other
 agencies

Which of the following supportive services does your agency offer, directly or
indirectly, to the homeless?
-----------------------------------------------------------------------------------------
Outreach                     75.51%             1.86%            73.65%            77.37%
Case management              93.03%             1.20%            91.83%            94.24%
 (including
 referrals)
Case management              61.17%             2.14%            59.03%            63.31%
 for clients who
 are living in
 permanent
 housing
Education                    61.29%             2.14%            59.15%            63.43%
Instruction in               83.80%             1.71%            82.09%            85.51%
 life skills,
 including
 parenting
 classes
Employment                   77.25%             1.84%            75.41%            79.09%
 assistance
Alcohol/drug                 57.12%             2.18%            54.94%            59.30%
 abuse treatment
Mental health                52.37%             2.20%            50.17%            54.57%
 treatment
AIDS-related                 30.87%             2.02%            28.85%            32.89%
 treatment
Health care                  42.72%             2.14%            40.58%            44.86%
Follow-up with                74.1%             1.96%            72.14%            76.06%
 transitional
 housing
Child care                   44.86%             2.16%            29.44%            33.48%
Legal services               31.46%             2.02%            29.44%            33.48%
Clothing                     70.09%             2.02%            68.07%            72.11%
Transportation               74.75%             1.92%            72.83%            76.67%
Communication                46.14%             2.18%            43.96%            48.32%
 services
Financial                    53.34%             2.20%            51.14%            55.54%
 assistance

Approximately how many homeless individuals (nonduplicated) does your agency serve each
year?
-----------------------------------------------------------------------------------------
100 percent                  25.67%             1.94%            23.73%            27.61%
100-250                      20.56%             1.80%            18.76%            22.36%
250-500                      16.85%             1.63%            15.22%            18.48%
500-1,000                    13.79%             1.47%            12.32%            15.26%
1,000-5,000                  17.92%             1.65%            16.27%            19.57%
Over 5,000                    5.21%             0.92%             4.29%             6.13%

Approximately what percentage of the homeless whom you serve are veterans?
-----------------------------------------------------------------------------------------
100 percent                   0.99%             0.43%             0.56%             1.42%
1 to 25 percent              52.93%             1.96%            50.97%            54.89%
26 to 99 percent              5.96%             0.96%             5.00%             6.92%
None                         10.81%             1.14%             9.67%            11.95%
Did not answer               29.31%             1.82%            27.49%            31.13%
 the question

What percentage of the homeless whom you serve need housing plus supportive services,
supportive services only, or housing only?
-----------------------------------------------------------------------------------------
Individuals who              80.96%             1.10%            79.86%            82.06%
 need housing
 plus supportive
 services
Individuals who              13.64%             0.96%            12.68%            14.60%
 need supportive
 services but no
 housing
Individuals who               5.40%             0.57%             4.83%             5.97%
 receive housing
 but no other
 supportive
 services

Supportive Housing Program (SHP) grant application identified on questionnaire cover
-----------------------------------------------------------------------------------------
Please indicate
 the category of
 your SHP grant
 application:
Transitional                 58.91%             2.20%            56.71%            61.11%
 housing with
 supportive
 services
Permanent housing             8.78%             1.27%             7.51%            10.05%
 for persons with
 disabilities
Supportive                   29.72%             2.08%            27.64%            31.80%
 services only
Innovative                    2.59%             0.71%             1.88%             3.30%
 supportive
 housing

Consequences of not receiving the Supportive Housing Program (SHP) grant
-----------------------------------------------------------------------------------------

Did you receive any funding from other source(s) to replace funds not received from the
SHP grant?
-----------------------------------------------------------------------------------------
No                           78.10%             3.39%            74.71%            81.49%
Yes                          21.90%             3.39%            18.51%            25.29%

How did the money you received from other sources compare with the amount you requested
in your 1997 HUD SHP grant application?
-----------------------------------------------------------------------------------------
Money received                3.55%             2.59%             0.96%             6.14%
 was equal to
 amount requested
 from HUD
Money received               94.62%             3.63%            90.99%            98.25%
 was less than
 amount requested
 from HUD
Money received                1.83%             2.59%          -0.76%\a             4.42%
 was more than
 amount requested
 from HUD

How were your agency's programs and services for the homeless affected by not receiving
the 1997 SHP grant?
-----------------------------------------------------------------------------------------
Reduction in                 18.42%             3.16%            15.26%            21.58%
 agency staff
Reduction in                 34.74%             4.06%            30.68%            38.80%
 programs and/or
 services
 provided to the
 homeless
Reduction in the             31.14%             3.98%            27.16%            35.12%
 number of
 homeless
 individuals
 served
Unable to expand             69.62%             3.94%            65.68%            73.56%
 existing
 programs and/or
 services for the
 homeless
Unable to                    73.16%             3.74%            69.42%            76.90%
 implement new
 programs and/or
 services for the
 homeless
Lost other                   10.97%             2.70%             8.27%            13.67%
 funding that was
 contingent on
 receiving an SHP
 grant
Implemented more              4.72%             1.90%             2.82%             6.62%
 fee-for-service
 programs
Made no changes               4.47%             1.72%             2.75%             6.19%
 in programs or
 services

Other funding sources for programs and services for the homeless
-----------------------------------------------------------------------------------------

During calendar year 1997, did you apply for nonfederal funding to support programs and
services for the homeless?
-----------------------------------------------------------------------------------------
No                           25.84%             1.98%            23.86%            27.82%
Yes                          74.16%             1.98%            72.18%            76.14%

Please indicate where your agency applied for money, the amount of money requested, and
the amount of money received.
-----------------------------------------------------------------------------------------
Where agencies
 applied
State government             71.79%             2.29%            69.50%            74.08%
 (including
 federal pass-
 through money)
Local government             62.45%             2.47%            59.98%            64.92%
Private                      37.06%             2.43%            34.63%            39.49%
 corporations
Nonprofit                    62.35%             2.47%            59.88%            64.82%
 organizations or
 foundations
Other                        18.36%             1.92%            16.44%            20.28%
Amount of money
 requested
State government       $253,286,344       $42,843,578      $210,442,766      $296,129,922
 (including
 federal pass-
 through money)
Local government       $196,533,580       $31,167,717      $165,365,863      $227,701,297
Private                 $38,761,357        $9,641,024       $29,120,333       $48,402,381
 corporations
Nonprofit               $90,357,740       $15,624,576       $74,733,164      $105,982,316
 organizations or
 foundations
Other                   $22,575,658        $8,411,269       $14,164,389       $30,986,927
Amount of money
 received
State government       $250,995,786       $42,439,585      $208,556,201      $293,435,371
 (including
 federal pass-
 through money)
Local government       $185,485,302       $31,416,858      $154,068,444      $216,902,160
Private                 $27,560,125        $3,181,138       $24,378,987       $30,741,263
 corporations
Nonprofit               $69,080,561        $9,137,706       $59,942,855       $78,218,267
 organizations or
 foundations
Other                   $43,194,626       $16,669,173       $26,525,453       $59,863,799

During calendar year 1997, did you apply directly for any federal funding (in addition to
SHP) to support programs and services for the homeless?
-----------------------------------------------------------------------------------------
No                           74.69%             1.90%            72.79%            76.59%
Yes                          25.31%             1.90%            23.41%            27.21%

Which of the following were reasons why your agency did not apply for other federal
funding to support programs and/or services for the homeless?
-----------------------------------------------------------------------------------------
Other federal                21.54%             2.33%            19.21%            23.87%
 agencies are not
 likely to fund
 programs and
 services for the
 homeless
Not familiar with            53.45%             2.84%            50.61%            56.29%
 other federal
 agencies that
 would provide
 money for
 homeless
 programs and/or
 services
Other federal                10.00%             1.69%             8.31%            11.69%
 agencies'
 deadlines and
 time lines are
 difficult to
 meet
Preparing grant              23.06%             2.45%            20.61%            25.51%
 applications for
 federal agencies
 is too time-
 consuming
Past experience              12.24%             1.92%            10.32%            14.16%
 with other
 federal agencies
 has not been
 successful
Applying for                 10.01%             1.71%             8.30%            11.72%
 money to support
 homeless
 programs and/or
 services had a
 lower priority
 than applying
 for money to
 support other
 agency programs
Had sufficient               14.38%             1.84%            12.54%            16.22%
 resources
 without
 additional
 federal funding

Please indicate the federal agencies that you directly applied to for money in 1997 to
support programs and/or services for the homeless, the amount of money you requested, and
the amount of money you received.
-----------------------------------------------------------------------------------------

Amount of money requested from
-----------------------------------------------------------------------------------------
HUD                     $61,334,769       $16,912,103       $44,422,666       $78,246,873
HHS                     $15,118,372        $3,519,006       $11,599,365       $18,637,378
DOL                     $27,271,041        $5,167,706       $22,103,335       $32,438,747
VA                       $5,083,369        $2,923,098        $2,160,271        $8,006,467
Other                   $38,778,669       $10,598,063       $28,180,606       $49,376,731

Amount of money received from
-----------------------------------------------------------------------------------------
HUD                     $46,192,826       $15,580,137       $30,612,689       $61,772,963
HHS                     $12,463,781        $3,098,956        $9,364,825       $15,562,737
DOL                      $9,867,453        $3,024,533        $6,842,920       $12,891,986
VA                       $2,562,422        $1,329,282        $1,233,140        $3,891,704
Other                   $28,771,772        $8,334,955       $20,436,817       $37,106,727

Did your agency submit any new or renewal SHP grant applications to HUD in 1998?
-----------------------------------------------------------------------------------------
No                           48.94%             2.18%            46.76%            51.12%
Yes                          51.06%             2.18%            48.88%            53.24%

Please indicate why your agency chose not to submit any SHP applications in 1998.
-----------------------------------------------------------------------------------------
Agency is not                 2.32%             1.16%             1.16%             3.48%
 part of a
 Continuum of
 Care
Did not receive               7.58%             2.02%             5.56%             9.60%
 information
 about the 1998
 Super NOFA\b
Application                  11.53%             2.29%             9.24%            13.82%
 process is too
 difficult and/
 or time-
 consuming
Staff did not                12.27%             2.39%             9.88%            14.66%
 have time and/
 or technical
 expertise to
 prepare grant
Time frames and/              8.79%             2.08%             6.71%            10.87%
 or deadlines for
 grant
 application are
 difficult to
 meet
Technical                     6.81%             1.80%             5.01%             8.61%
 submission
 process is too
 difficult and/
 or time-
 consuming
Agency currently             57.06%             3.21%            53.85%            60.27%
 is implementing
 SHP grants from
 prior year(s)
Agency has                    3.97%             1.31%             2.66%             5.28%
 adequate funding
 from other
 sources
Believe receiving            16.69%             2.70%            13.99%            19.39%
 funding from HUD
 is not likely

Continuum of Care
-----------------------------------------------------------------------------------------

How involved was your agency in the development of the local Continuum of Care?
-----------------------------------------------------------------------------------------
Not at all                    3.45%             0.78%             2.67%             4.23%
 involved
Somewhat involved            25.58%             1.90%            23.68%            27.48%
Highly involved              69.48%             2.02%            67.46%            71.50%
Agency is not                 1.49%             0.53%             0.96%             2.02%
 part of a
 Continuum of
 Care

Importance of Supportive Housing Program (SHP) grants for your agency's programs and
services for the homeless
-----------------------------------------------------------------------------------------

Receiving an SHP grant provides ï¿½legitimacyï¿½ to your agency's programs, which makes it
easier to obtain funds from other sources.
-----------------------------------------------------------------------------------------
Strongly disagree             3.18%             0.80%             2.38%             3.98%
Disagree                      3.66%             0.82%             2.84%             4.48%
Neither agree nor            24.56%             1.94%            22.62%            26.50%
 disagree
Agree                        42.68%             2.16%            40.52%            44.84%
Strongly agree               25.92%             1.88%            24.04%            27.80%

SHP funding is unique because of it
-----------------------------------------------------------------------------------------
Strongly disagree             2.33%             0.69%             1.64%             3.02%
Disagree                      3.75%             0.80%             2.95%             4.55%
Neither agree nor            10.11%             1.29%             8.82%            11.40%
 disagree
Agree                        47.47%             2.20%            45.27%            49.67%
Strongly agree               36.34%             2.10%            34.24%            38.44%

SHP funding is necessary in order for your agency to provide programs and services for
the homeless.
-----------------------------------------------------------------------------------------
Strongly disagree             1.39%             0.55%             0.84%             1.94%
Disagree                      4.80%             1.06%             3.74%             5.86%
Neither agree nor             9.44%             1.41%             8.03%            10.85%
 disagree
Agree                        25.72%             1.92%            23.80%            27.64%
Strongly agree               58.65%             2.16%            56.49%            60.81%

GAO's analysis of SHP funds in relationship to federal and nonfederal homeless assistance
funding
-----------------------------------------------------------------------------------------
SHP grants as a              44.60%             3.14%            41.46%            47.74%
 percentage of
 agencies' total
 funding for
 homeless
 assistance
 programs
Nonfederal funds             47.30%             3.27%            43.58%            51.02%
 as a percentage
 of agencies'
 total funding
 for homeless
 assistance
 programs
Other federal                 8.10%             1.57%             6.53%             9.67%
 funds as a
 percentage of
 agencies' total
 funding for
 homeless
 assistance
 programs
-----------------------------------------------------------------------------------------
\a Because the lower bound of this estimate falls below zero, the
sampling error and upper and lower bounds should not be considered
reliable. 

\b If an agency did not receive the 1998 Super NOFA (Notice of
Funding Availability), it might not know that funds were available
for SHP grants in 1998. 

GEOGRAPHICAL DISTRIBUTION OF SHP
APPLICATIONS FOR 1997
========================================================== Appendix II

       Number of               Number of   Number of  Percentage
      applicatio   Number of  applicatio  applicatio          of
              ns  applicatio          ns          ns  applicatio
       submitted          ns         not     dropped          ns           Total
Stat          to   funded by      funded          by   funded by         funding
e            HUD         HUD      by HUD       HUD\a         HUD       requested
----  ----------  ----------  ----------  ----------  ----------  --------------
Alab          25           8          16           1          32     $11,022,714
 ama
Alas          13           6           7           0          46       5,555,398
 ka
Ariz          43          20          23           0          47      31,063,833
 ona
Arka          17           4          12           1          24       9,085,140
 nsas
Cali         403         198         165          40          49     210,495,436
 for
 nia
Colo          47          16          22           9          34      17,164,987
 rado
Conn          29          11          18           0          38      23,825,517
 ect
 icu
 t
Dela           8           0           7           1           0       6,053,963
 ware
Dist          34          23          10           1          68      16,735,904
 rict
 of
 Col
 umb
 ia
Flor         143          50          74          19          35      91,882,161
 ida
Geor          75          17          45          13          23      33,973,334
 gia
Hawa          16           9           4           3          56       6,925,884
 ii
Idah           9           3           6           0          33       3,538,052
 o
Illi         147          59          73          15          40      79,301,078
 nois
Indi          82          39          30          13          48      23,257,715
 ana
Iowa          19          12           7           0          63       9,200,757
Kans          11           2           6           3          18       4,391,774
 as
Kent          37          20          12           5          54      17,178,572
 ucky
Loui          66          33          26           7          50      17,497,781
 sia
 na
Main          20          16           4           0          80       3,788,651
 e
Mary          91          51          35           5          56      25,702,752
 land
Mass         133          68          49          16          51      54,776,938
 ach
 use
 tts
Mich         102          56          34          12          55      49,227,046
 igan
Minn          71          42          19          10          59      21,479,555
 eso
 ta
Miss           5           0           4           1           0       1,329,499
 iss
 ipp
 i
Miss          34          16          14           4          47      18,822,093
 ouri
Mont           7           2           5           0          29       1,689,821
 ana
Nebr          22          13           8           1          59       5,916,252
 aska
Neva           9           2           7           0          22       6,319,999
 da
New           18           5          13           0          28      10,653,238
 Ham
 psh
 ire
New           90          27          52          11          30      43,240,143
 Jer
 sey
New           16           8           5           3          50       6,213,593
 Mex
 ico
New          207         110          64          33          53      91,717,766
 York
Nort          51          22          28           1          43      11,533,082
 h
 Car
 oli
 na
Nort           5           1           2           2          20       1,441,469
 h
 Dak
 ota
Ohio         132          97          19          16          74      36,249,787
Okla          40          10          18          12          25      12,474,264
 homa
Oreg          40          15          22           3          38      14,260,473
 on
Penn         151          65          60          26          43      86,092,129
 syl
 van
 ia
Rhod          24          20           0           4          83       7,373,583
 e
 Isl
 and
Sout          17           8           8           1          47       6,693,075
 h
 Car
 oli
 na
Sout           9           0           5           4           0       1,023,405
 h
 Dak
 ota
Tenn          45          19          22           4          42      21,739,147
 ess
 ee
Texa         150          67          64          19          45      82,885,582
 s
Utah          14           1          12           1           7       4,406,576
Verm          20           4           5          11          20       5,451,528
 ont
Virg          58          34          15           9          59      22,228,344
 inia
Wash         128          73          52           3          57      23,269,906
 ing
 ton
West          10           1           9           0          10       8,147,289
 Vir
 gin
 ia
Wisc          57          28          21           8          49      26,333,386
 ons
 in
Wyom          11           2           9           0          18       3,032,115
 ing
================================================================================
Tota     3,011\a       1,413       1,247         351          47  $1,333,662,486
 l
--------------------------------------------------------------------------------
\a Of the 3,011 applications that it received, HUD dropped 351
because they were incomplete, did not target the appropriate
population, or were otherwise ineligible for funding. 

(See figure in printed edition.)Appendix III
COMMENTS FROM THE DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT
========================================================== Appendix II

(See figure in printed edition.)

(See figure in printed edition.)

(See figure in printed edition.)

The following are GAO's comments on the Department of Housing and
Urban Development's letter dated July 22, 1999. 

GAO'S COMMENTS

1.  We revised the report to include the language suggested by HUD. 

2.  We revised the report to clarify that most SHP applicants are
nonprofit organizations. 

3.  In response to HUD's comment, we reviewed our data on the
percentage of SHP applicants that did not provide us with information
on the number of homeless veterans they serve.  We found that the
draft report sent to HUD misstated this percentage.  In fact,
according to our data, almost 30 percent of SHP applicants could not
provide us with this information.  We revised the final report
accordingly. 

4.  The objectives of our report were to provide information on (1)
the characteristics of Supportive Housing Program applicants, (2) the
types of programs and services for homeless people that this program
supports, (3) the importance of Supportive Housing Program grants to
applicants' programs for the homeless, and (4) the various funding
sources, in addition to Supportive Housing Program grants, that
applicants rely on for their programs and services for homeless
people.  Consequently, no changes were made in response to this
comment. 

5.  We modified the report to better distinguish between the most
frequently cited reason and the other reasons cited by SHP applicants
for not applying for 1998 grants. 

6.  We made no change to the report in response to this comment
because we believe the report adequately acknowledges that funds
provided by state and local governments may include federal
pass-through dollars.  While we agree with HUD that it would be
interesting to know how many federal dollars other than pass-through
funds are available to SHP grantees, this information would be
difficult to determine because, as we noted in the report,
organizations generally do not know what portion of their state and
local government funding originally comes from federal sources. 

7.  We revised the report, as appropriate, to incorporate the changes
suggested by HUD. 

*** End of document. ***