Hawaii receiving economic recovery funds to help families facing homelessness due to sudden financial crises

Washington, D.C. – July 9, 2009 – (RealEstateRama) — U.S. Rep. Neil Abercrombie says the federal government will be providing assistance to prevent homelessness among Hawaii families who are facing a financial crisis and to respond rapidly to re-house families who are among the new homeless because of the economic recession.

“Economic recovery funds totaling $4.0 million will be directed to Hawaii to offer short- and medium-term financial help—ranging from rental assistance to utility payments—to families victimized by these tough economic times,” Abercrombie said. “In addition, the funds will be used to respond rapidly to those who have fallen into homelessness and only need some short-term assistance to weather the recession.”

The funding comes from the American Recovery and Reinvestment Act of 2009 which was approved by Congress and signed by President Obama earlier this year. The money will be available through the U.S. Housing and Urban Development’s new Homeless Prevention and Rapid Re-housing Program (HPRP).

The program awarded a total of $1.5 billion in grants today to nearly 500 communities across the country to help people and families facing sudden financial crises that could lead to homelessness. The grants will be used to provide short-term rental assistance up to three months and medium-term rental assistance up to 18 months. Other forms of assistance will go to help with security deposits, utility deposits, utility payments, moving cost assistance, and hotel vouchers. Payments will be made only to third parties such as landlords or utility companies.

The program will also help to quickly re-house people who are homeless and likely to remain housed, whether subsidized or unsubsidized, after the HPRP assistance ends.

“Congress and the Obama Administration are working to use economic recovery funds to create and to save tens of thousands of jobs and to help the families who are suffering in today’s economy. HUD’s funding is helping to support that goal with these new grants and an earlier release of money that is going to modernize homes to make them energy efficient and generate new business at the same time.”