HOME American Rescue Plan Program

The Texas Department of Housing and Community Affairs administers funding under the HOME American Rescue Plan program to support housing and homelessness initiatives across the state. This Notice of Funding Availability provides nonprofit capacity building and operating cost assistance intended to prepare organizations for the development of non-congregate shelter projects. The funding is aligned with federal HUD guidance and state regulatory frameworks, including the HOME Investment Partnerships Program and Uniform Administrative Requirements. The program is designed as a precursor funding opportunity, helping organizations build the operational and organizational readiness necessary to successfully apply for larger construction or rehabilitation funding for shelters. The primary purpose of this funding is to strengthen nonprofit organizations so they can develop and operate non-congregate shelters that serve vulnerable populations. These shelters are defined as facilities that provide private units or rooms for temporary housing without requiring leases or occupancy agreements. Eligible populations include individuals experiencing homelessness, those at risk of homelessness, individuals fleeing domestic violence or human trafficking, and households facing severe housing instability. The funding is intended to ensure that nonprofits can effectively plan, staff, and structure these shelters before pursuing full-scale development funding. Funding under this opportunity totals 750000 dollars and is available to one or more nonprofit organizations. Awards range from a minimum of 100000 dollars to a maximum of 750000 dollars. Funds must be split between capacity building and operating assistance, with at least 50000 dollars allocated to each category. Capacity building funds may be used for staff hiring, training, equipment, and technical assistance, while operating funds may support general organizational costs such as salaries, rent, utilities, and administrative expenses. However, funds cannot be used for direct project costs, construction, or shelter operations. Eligibility is limited to private nonprofit organizations with 501(c)(3) or 501(c)(4) status that demonstrate sufficient organizational capacity and financial stability, including a minimum annual operating budget of 500000 dollars. Applicants must be located in or serve areas with demonstrated housing cost increases and high fair market rents. Additional requirements include active registration in the System for Award Management, prior experience in shelter or related services, and the ability to develop a shelter project within a defined timeline. Organizations must also commit to submitting a full shelter development application within nine months of receiving the award. The application process requires submission of an Intent to Apply prior to receiving full application materials. Applications must be submitted electronically through the Department’s secure system and include detailed documentation such as organizational information, proof of nonprofit status, financial records, and a comprehensive plan for capacity building and shelter development. Applications are evaluated based on organizational experience, readiness, community engagement, and the feasibility of the proposed shelter project. A scoring system is used, and only applications meeting minimum thresholds are considered for funding. The timeline for this opportunity includes multiple application periods. The first application period occurred between early May and early June 2025, while a second period runs from mid-July 2025 through December 15, 2025. The program has been extended through December 15, 2026, allowing for continued application intake depending on funding availability. Contracts for awarded funds may last up to 36 months, with required benchmarks including partial expenditure by month 18 and full expenditure by month 36, as well as timely submission of shelter development materials. Following submission, applications undergo review for completeness, eligibility, and scoring criteria. Selected applicants are subject to further review processes, including prior participation assessments and potential monitoring requirements. Awardees must comply with federal and state regulations and are expected to demonstrate measurable progress toward developing a non-congregate shelter. The program ultimately aims to expand shelter capacity across Texas by equipping nonprofits with the foundational resources needed to execute large-scale housing projects.

Focus on demonstrating readiness to develop a non congregate shelter within 9 months; provide strong evidence of prior shelter or service experience; clearly separate capacity building and operating expenses; ensure completeness and compliance with all documentation requirements