(a) ESG Applications for provision of Program Participant services under emergency shelter, street outreach, homeless prevention and/or rapid re-housing may include a request for funds for Homeless Management Information Systems (HMIS) activities. Applications proposing to provide only HMIS activities are not eligible for an award of funds.     
      (b) Subrecipient may not Subgrant funds, but may Subcontract for the provision of services. Such Subcontracts are subject to applicable procurement requirements.     
      (c) The Department's Governing Board of Directors, Executive Director, or his/her designee may limit activities in a NOFA, or by Contract.     
      (d) Program Participant services may be provided under street outreach, emergency shelter, homeless prevention or rapid re-housing, as described in this subsection or otherwise permitted in Federal Regulations.     
      (e) The street outreach component may be provided to unsheltered Homeless persons as defined in 24 CFR §576.101(a). Eligible costs for Program Participants of street outreach include the following services:      
        (1)  Engagement costs to locate, identify, and build relationships with unsheltered Homeless persons, including assessment of needs, crisis counseling, addressing urgent physical needs, provision of information and referrals;       
        (2) Case management costs to assess housing and service needs and coordinate delivery of services;       
        (3) Emergency health services to the extent that other health services are inaccessible or unavailable in the area;       
        (4) Emergency mental health services to the extent that other mental health services are inaccessible or unavailable in the area; and       
        (5) Transportation for outreach workers and Program Participants, not including the purchase or lease of vehicles.       
      (f) The emergency shelter component may be provided to Homeless persons per 24 CFR §576.102. Eligible emergency shelter costs are for Program Participant services and costs related to the shelter building, relocation, and operation.      
        (1) Eligible costs for Program Participants of emergency shelter services include:                  (A) Case management to coordinate individualized services;                   (B) Child care for children under the age of 13, and for disabled children under the age of 18;                   (C) Education services providing instruction or training to enhance their ability to obtain and maintain housing, including but not limited to literacy, English literacy, General Educational Requirement (GED) preparation, consumer education, health education, and substance abuse prevention;                   (D) Employment assistance and job training services;                   (E) Outpatient health services to the extent that other health services are inaccessible or unavailable in the area;                   (F) Legal services, to the extent that legal services are unavailable or inaccessible within the community, to assist with housing needs, excluding immigration and citizenship matters, matters related to mortgages, legal retainers and contingency fees;                   (G) Life skills training including budgeting resources, managing money, managing a household, resolving conflict, shopping for food and need items, improving nutrition, using public transportation, and parenting;                   (H) Outpatient mental health services to the extent that other mental health services are inaccessible or unavailable in the area;                   (I) Outpatient substance abuse treatment services up to 30 days, excluding inpatient treatment; and                   (J) Transportation for staff and Program Participants related to the provision of essential services, not including the purchase or lease of vehicles.         
        (2) Eligible emergency shelter costs related to the shelter building, relocation, and operation include:                  (A) Certain costs for operation of emergency shelters, including provision of hotel or motel vouchers to Program Participants when no appropriate emergency shelter is available and minor or routine repairs to the shelter facility; and                   (B) Assistance required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.         
      (g) The homelessness prevention component may be provided to Homeless persons and persons At-risk of Homelessness per 24 CFR §576.103, and the rapid re-housing component may be provided to Homeless persons per 24 CFR §576.104. Homelessness prevention and rapid re-housing may be provided for up to 24 months of assistance in a 36-month period. Eligible costs for homelessness prevention and rapid re-housing include housing relocation and stabilization for financial assistance, housing relocation and stabilization services, and rental assistance.      
        (1) Housing relocation and stabilization for financial assistance include:                  (A) Rental application fees;                   (B) Security deposits (equal to not more than two month's rent) and last month's rent;                   (C) Utility deposits and/or utility payments;                   (D) Moving costs, such as truck rental or hiring a moving company. Payment of arrearages for temporary storage is not an eligible cost; and                   (E) Costs to break a lease to effect an emergency transfer per 24 CFR §5.2005(e), if Program Participant is receiving rental assistance under ESG.         
        (2) Housing relocation and stabilization services include:                  (A) Housing search and placement costs to assist in locating, obtaining, and retaining suitable permanent housing;                   (B) Housing stability case management for assessing, arranging, coordinating and monitoring the delivery of individual services to facilitate housing stability;                   (C) Mediation between the Program Participant and the landlord/owner to prevent loss of current housing;                   (D) Legal services for housing needs excluding immigration and citizenship matters, matters related to mortgages, legal retainers and contingency fees; and                   (E) Credit repair and resolution, excluding payment or modification of debts.         
        (3) Non-duplicative rental assistance may be provided for up to 24 months within any 36-month period. Late payment penalties during the term of assistance are not eligible ESG expenses. Rental assistance includes:                  (A) Short-term rental assistance which is up to three months of rent, inclusive of arrearages, late fees accrued prior to the term of assistance, and last month's rent; and                   (B) Medium-term rental assistance which is more than three months of rent but not more than 24 months of rent, inclusive of up to six months of arrearages, late fees accrued prior to the term of assistance, and last month's rent.         
      (h) Costs to participate in HMIS are eligible ESG costs. Eligible costs related to HMIS include:      
        (1) Hardware, software, equipment, office space, utility costs;       
        (2) Salary and staff costs for operation of HMIS, including technical support;       
        (3) HMIS training and overhead costs, including travel to HUD sponsored and approved HMIS training programs and travel costs for staff to conduct intake;       
        (4) HMIS participation fees charged by the HMIS lead agency; and       
        (5) HMIS-comparable databases for victim services providers or legal services providers.       
      (i) Eligible administrative costs for ESG are:      
        (1) General management and oversight of the ESG award, excluding cost to purchase office space;       
        (2) Provision of ESG training and costs to attend HUD-sponsored ESG training; and       
        (3) Costs to carry out required environmental reviews.       
     Source Note:        The provisions of this §7.32 adopted to be effective July 7, 2022, 47 TexReg 3805