HOME Investment Partnerships American Rescue Plan Non-Congregate Shelter Program (HOME-ARP NCS)

The HOME-American Rescue Plan (HOME-ARP) Non-Congregate Shelter (NCS) Program, administered by the Pennsylvania Department of Community and Economic Development (DCED), utilizes federal funding provided through the U.S. Department of Housing and Urban Development (HUD) to support the development of temporary, non-congregate shelter units for individuals and families belonging to certain qualifying populations. These populations include people experiencing homelessness, those at risk of homelessness, survivors of domestic violence and human trafficking, and other vulnerable groups as defined in HUD’s CPD Notices 21-10 and 22-13. Pennsylvania has been allocated over $73 million in HOME-ARP funds, with a portion designated specifically for the NCS program. The program aims to mitigate the lasting impacts of the COVID-19 pandemic on housing insecurity by expanding shelter infrastructure through acquisition, rehabilitation, or new construction of private, temporary housing units. The NCS model funded by HOME-ARP is distinguished by its emphasis on privacy and stability for residents. Unlike traditional congregate shelters, NCS units must provide individuals and families with private rooms or units that do not require a lease or occupancy agreement. Eligible projects can include the conversion or rehabilitation of existing facilities such as motels or nursing homes, as well as the construction of new structures designed to meet the HUD-defined standards for safety, sanitation, accessibility, and habitability. Each project must meet applicable federal, state, and local codes and adhere to specific restricted-use periods—15 years for new construction and 10 years for acquisition or rehabilitation projects—during which the units must continue to serve qualified populations. Eligibility to apply for NCS funding is limited to units of local government within Pennsylvania. These government entities may submit applications on behalf of nonprofit organizations, for-profit developers, certified Community Housing Development Organizations (CHDOs), or other public agencies. All applicants must demonstrate their organizational capacity to operate or manage shelter facilities and submit a detailed proposal including a development and operating budget, timeline, and documentation of secured or planned funding sources. DCED also requires integration with local Continuum of Care (CoC) Coordinated Entry systems to ensure equitable and effective referral of eligible individuals and families into funded shelters. The program mandates adherence to a comprehensive list of requirements covering construction, environmental review, fair housing, affirmative marketing, civil rights, and accessibility laws. Applicants are also expected to align their project plans with the strategic goals of their local CoC and must submit documentation supporting the community’s need for additional shelter capacity. This includes data from Point-in-Time counts, local homelessness trends, and waitlists from Coordinated Entry systems. DCED provides a checklist to guide applicants through the documentation and pre-application process, including a mandatory pre-application discussion with a DCED HOME-ARP grant manager. Funding is awarded through a competitive grant process, with a minimum request threshold of $50,000 and up to 5% of the grant total allowable for administrative costs. There is no stated maximum, but funding requests cannot exceed the total amount allocated in Pennsylvania’s HOME-ARP Allocation Plan. Projects must begin within 12 months of award commitment and be completed within three years, with a total contract period not to exceed four years. Acquisition-only projects must become operational within six months. Applications must be submitted via DCED’s Electronic Single Application (ESA) portal and include extensive documentation such as a resolution of support, detailed project design, funding strategy, and operating plans. Successful projects will receive notification following DCED's underwriting process and must enter into a written agreement with DCED that details all compliance requirements. Throughout the development and restricted-use periods, grantees are subject to monitoring and reporting obligations. Funds are drawn down only after all underwriting requirements are met and an executed agreement is in place. The program is not recurring on a regular schedule, and applications are currently being accepted.

Ensure pre-application meeting with DCED; Align proposal with CoC strategy; Provide all required documentation to avoid delays; Prioritize readiness to begin within 12 months of commitment.