ACF-OCS-CSBG-DCL-25-08 Community Action Housing Highlight

Community Services Block Grant

Dear Colleague Letter

DCL#: ACF-OCS-CSBG-DCL-25-08

DATE: January 6, 2024

TO: CSBG Network

SUBJECT: Community Action 60th Commemoration Continues: Highlight on Housing 

ATTACHMENT(S): Not Applicable

Housing instability remains a critical concern for communities across the United States. The lack of affordable housing can result in eviction, foreclosure, overcrowding, unsafe housing, frequent moves, and unsheltered individuals and families. In January 2023, there was a rapid increase in people who became unhoused for the first time, likely due to factors such as lack of available and affordable housing and the winding down of pandemic protections.¹  On a single night in January 2024, the point-in-time (PIT) count, a snapshot of the number of individuals experiencing sheltered and unsheltered homelessness, was the highest reported since the first PIT in 2007.²   (PDF)Specifically, there were 770,000 individuals experiencing homelessness, an 18% increase from 2023.³ Around 259,473 people in families with children were experiencing homelessness, a 39% rise since 2023.⁴   (PDF)Since the Point-In-Time Count was conducted in January 2024, the Department of Housing and Urban Development (HUD) has released various funding opportunities to address homelessness, the impact of which may not be seen until the PIT count in January 2025.

Housing is a basic need for an individual or family to become self-sufficient and advance towards economic prosperity. Housing instability impacts access to education, generational wealth, quality physical and mental health care, well-paying jobs, healthy food, social supports, and other resources. Housing instability also increases stress and impacts health, with tens of thousands of people dying each year due to the dangerous conditions of living without housing.⁵

We See You, Community Action

As we continue to celebrate the 60th year of Community Action, we acknowledge that Community Services Block Grant (CSBG) funding, the CSBG network, and community action agencies (CAAs) play an essential role in increasing housing stability across the United States.  The Office of Community Services (OCS) was pleased to issue CSBG-IM-2022-163 Mortgage Payment Assistance in August 2022. This guidance confirmed the allowability of using CSBG funding for mortgage payments if identified as a need in the local communities served.

Through integral services that prevent eviction and foreclosure, support equitable access to safe and affordable housing, and address additional needs through wraparound services and cross-sector collaborations, the CSBG network can improve the overall well-being of individuals and families experiencing housing instability. 

In fiscal year 2020, CSBG state grant recipients utilized approximately $163.3 million in CSBG funds, along with 34 CSBG tribal grant recipients, to support housing programs and services⁶ such as:

• Rental assistance, subsidies, mortgage payments and deposits 
• Homeownership counseling and loan assistance 
• Landlord-tenant relations 
• Temporary and emergency housing solutions 
• Eviction prevention 
• Access to transitional shelters and services 
• Utility assistance  

The following videos highlight examples of the essential work that CSBG grant recipients and CAAs are doing with CSBG funds to address the causes and consequences of poverty and to pursue housing stability and access for all:

• The Rural Alaska Community Action Program, Inc. (RurAL CAP) Self-Help Housing Program supports families with low incomes secure new and affordable homes. A group of families work together to build their community from the ground up, with all community members helping build each home. With the cost of housing significantly decreased for each family, the program supports the local economy, builds generational wealth and credit, and most importantly, provides families with a home and community to call their own.
• The First State Community Action Agency in Delaware provides access to transitional housing for the unsheltered through a pallet-home community. Residents receive a small pallet home, along with access to wraparound services, such as onsite nutrition, hygiene and housing necessities, case management, and access to health and mental health services. Through stabilization services and transitional housing, individuals are empowered to transition to permanent housing and reach their full potential.
• Utah Community Action (UCA)  implemented a housing mediation program in 2021 to help address the growing need for housing stability following the COVID-19 pandemic. Through a new intake call center, extended case management services, and the Landlord-Tenant Mediation program, UCA played an integral role in helping community members access safe housing. This program was expanded statewide.  

OCS would also like to highlight the Affordable Housing and Supportive Services Demonstration (AHSSD) program , which provides federal funding to CAAs across eight states and one tribe that receive CSBG funding and own affordable housing units. Award recipients utilized funds to strengthen and enhance wraparound supportive services available to affordable housing residents to increase stability, economic mobility, and well-being. Please visit the AHSSD program page to learn more.

“We See You” engaging in life-changing efforts to ensure all individuals and families with low incomes have access to safe, affordable, and stable housing. Through collaboration and intentional action, we can continue to support communities across the country in addressing housing instability. OCS encourages the CSBG network to mobilize available resources to address locally identified needs related to housing stability.

/s/
Cheryl Zuni
Interim Director
Division of Community Assistance
Office of Community Services