The federal ESG program provides funds for a variety of activities to address homelessness as authorized under the federal Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009 and State program requirements. HCD administers the ESG program with funding received from the U.S. Department of Housing and Urban Development (HUD).
HCD distributes federal Emergency Solutions Grant funds to eligible subrecipients with one- or two-year grants.
Application Process and Distribution of Funds
HCD allocates its funding to the State's CoC service areas using a single, direct-allocation method. This method of distribution was approved in the Executive Order N-66-20 issued May 29, 2020, which provides for partial waiver of the California State ESG Regulations.
Coronavirus Allocation (ESG-CV)
ESG-CV funds are distributed to COC Service Areas to either currently approved units of general-purpose local government, known as Administrative Entities (AEs), or directly to the COC, assuming the COC is a state and federally recognized non-profit organization and has capacity to administer the funding. If the COC does not meet these requirements, the COC must designate an AE to administer the funding for that COC Service area.
HCD allocates its funding to the State’s CoC service areas using a formula method set forth under Section 8402 of the State ESG Regulations to two allocations.
Continuum of Care (CoC) Allocation
CoCs within this allocation have at least one city or county that receives ESG funds directly from HUD. Within the CoC Allocation, Administrative Entities (AEs) are selected by the Department of Housing and Community Development (HCD) to administer an allocation of funds provided through a formula for their service area. These AEs must be local governments of ESG Entitlement Areas and must commit to administering ESG funds in collaboration with their CoC throughout their CoC Service Area, including ensuring access to ESG funds by households living in Nonentitlement Areas. A minimum of 40 percent of each AE Allocation must be used for Rapid Rehousing activities.
CoC Allocation Administrative Entity Contact List (PDF)
Balance of State (BoS) Allocation
CoCs within this allocation have no cities or counties that receive ESG funds directly from HUD.
Within the BoS Allocation, CoCs may select providers to receive a portion of funds available noncompetitively for Rapid Rehousing (RR). HCD will administer these contracts with providers. Remaining funds within the BoS Allocation will be divided into three regional allocations. CoCs will recommend homeless service providers to compete for these funds within their regional allocation under a Notice of Funding Availability (NOFA) issued by HCD.
Balance of State Allocation CoC Contact List (PDF)
California ESG Program
The 2016-17 budget bill, SB 837 (Section 72), created the California Emergency Solutions Grants (CA ESG) Program for which $35 million has been made available to support rapid rehousing, emergency shelter, and other services to address homelessness throughout the State. The legislation provides that the CA ESG program shall be administered by the Department in a manner generally consistent with the Federal ESG Program, and requires the Department to adopt program guidelines to address changes that may be needed to expand the program to cover all areas of the State, or to improve the efficiency and effectiveness of the program. Funds for CA ESG were available in 2017.