The Alliance has created this guide to help communities prepare a plan to submit to HUD for their share of the $1.5 billion Homelessness Prevention Fund (HPF), which can fund homelessness prevention or re-housing for households (individuals or families) who are homeless or at risk of homelessness. This guide can be used by public agencies responsible for submitting the plan, as well as the public and private partners who will be involved in developing the plan. The Guide was prepared before HUD issued its guidelines for the HPF. The content reflects the legislation as passed by Congress and best practices in prevention and re-housing. HUD's program guidance is scheduled to be released March 19, and the plans will likely be due to HUD in April or May. The Alliance will update this document to reflect HUD's notice and any other new information.

In addition to preventing increases in homelessness because of the recession, the Homelessness Prevention Fund offers a once-in-a-generation opportunity to transform homeless assistance to be more effective and efficient. This resource can be used not only to enhance existing activities, but to transform homeless assistance, shifting the focus from providing shelter to preventing homelessness and quickly re-housing people who do become homeless.

This Guide will help communities prepare a plan to submit to HUD for the Homelessness Prevention Fund (HPF). It includes information about the best practices for using funds effectively and efficiently. In more normal times, and especially during this economic crisis, there are many people who are in poverty and have housing problems. HPF resources cannot possibly meet all of their needs, and so communities must be strategic about their use of resources. Without careful planning and targeting, homelessness prevention funds will have little impact on homelessness.

Two principles are reflected throughout this document that will help make HPF resources more effective at preventing and ending homelessness.

• Resources should be targeted to households with the highest likelihood of becoming homeless.
• Programs should provide just enough assistance to prevent or end an episode of homelessness, stretching resources as far as possible.