Sequestration, the automatic, across-the-board cuts to security and non-security programs, went into effect on Friday, March 1, 2013.
As Monarch Housing has been reporting, sequestration would have devastating impacts on homelessness assistance programs and would likely result in about:
125,000 individuals and families losing assistance provided to them through the Housing Choice Voucher programs and
100,000 homeless and formerly homeless people being removed from housing or shelter programs.
Since programs are funded differently at different times, each one will feel the impact based upon its current funding timeline.
For example, grant programs (such as McKinney-Vento grants and RHYA) will see the 5 percent cut in the next Notice of Funding Availability (NOFA). For McKinney, this means the FY 2013 NOFA that’s likely to come out in late 2013.
The NOFA release varies greatly program-to-program.
While McKinney will be operating largely under the FY 2012 NOFA for most of 2013, many programs will do a grant process earlier, at which time, they will have to assess the 5 percent cuts.
Programs that operate on a non-grant basis will feel the pinch much sooner. For example, Public Housing and Section 8 are likely to see reduced operating costs in the next few weeks or even days.
It’s unclear how cuts will be allocated, and it’s likely to be decided department-by-department, or even program-by-program. The Alliance will make sure to circulate guidance as it becomes available.
Click here for a blog post from the National Alliance to End Homelessness that addresses some of the frequently asked questions about the sequester.