The Emergency Shelter Grant Program is authorized under Section 416 of the Stewart B. McKinney Homeless Assistance Act (Pub. L. 100-77, approved July 22, 1987); Sec. 7(d) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(d). The purpose of the ESG Program is to help improve the quality of existing emergency shelters for the homeless, to help in providing certain essential services to the homeless population, to assist in the operation of emergency shelters, and for homeless prevention activities.

Essential services are categorized as follows: services concerned with employment, health, drug abuse & education and may include (but are not limited to:

a) assistance in obtaining permanent housing;
b) medical and psychological counseling and supervision;
c) employment training;
d) nutritional counseling;
e) substance abuse treatment and counseling;
f) assistance in obtaining other Federal, State & local assistance;
g) other services such as child care, transportation, job placement & job training; and,
h) salaries necessary to provide the above services.

Under the ESG regulations, essential services cannot exceed 30% of the total ESG grant amount; however, it is expected that the City will request a waiver from HUD to allow 80% of ESG funds to be used for essential services.