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ERF Round 5: HUD rule bars motel purchases with RRH; Homekey+ and other funding discussed
Summary
The Executive Committee discussed Encampment Resolution Funding Round 5 eligibility, noted HUD guidance that Rapid Rehousing funds cannot purchase a motel, described California HCD guidance as ambiguous, and identified Homekey+ and other streams as possible alternatives.
The Humboldt Housing and Homelessness Coalition Executive Committee discussed interest from local providers in applying to Encampment Resolution Funding (ERF) Round 5 and reviewed which costs federal and state rules allow.
Committee members noted a HUD rule that Rapid Rehousing (RRH) funds are intended for rental assistance and services and cannot be used to purchase motels. Members said California Department of Housing & Community Development (HCD) guidance is less explicit; because of that ambiguity, committee members flagged Homekey+ and similar funding streams as potential alternative sources to support property acquisition if acquisition is an objective.
Why it matters: ERF is intended to permanently house people by supporting moves into rental housing or stabilizing clients until they can sustain rent payments. Clarifying allowable costs is critical for applicants planning whether to pursue acquisitions (such as motels) versus rental assistance and service models.
Details: The Committee emphasized that multiple organizations can submit ERF applications if the Continuum of Care (CoC) approves and that HCD is expected to award applications that meet threshold requirements even in later funding rounds. The stated goal of ERF — permanent housing outcomes — shaped the Committee’s review of possible project types. Two Executive Committee organizations signaled interest in applying; the Committee agreed to return to ERF funding and applicant interest at a future meeting.
Next steps: The Executive Committee will continue the ERF discussion at a future meeting and will identify which local applicants intend to pursue Round 5 funding and which funding streams they may target.
