August 26, 2022

LeadingAge Urges HUD Secretary to End Service Coordinator Funding Delays

BY LeadingAge

On August 25, LeadingAge and the American Association of Service Coordinators (AASC) sent a joint letter to Secretary Fudge urging immediate attention on the 9 month delay in annual Service Coordinator grant funds. HUD has issued grant funding for Service Coordinators in its Section 202, Supportive Housing for the Elderly Program, at least 9 months late for the second year in a row.

The delays have caused LeadingAge housing and services provider members to make difficult financial decisions to retain Service Coordination and programming for residents while waiting for HUD funding. “Where Service Coordinator hours and programming must be cut from budgets, older adults feel the pain,” said Katie Smith Sloan, President & CEO of LeadingAge, said in a press release.

The Service Coordinator performance year begins in January and runs for a calendar year before going through its annual renewal. Congressional delays in full-year funding, as well as severe staffing shortages and outdated IT systems at HUD, have caused consistent delays in the program.

“Service Coordinators are key to assisting older adults as they age in their communities, live with dignity, and, in many cases, avoid costly institutional care,” reads the letter. “The delay is forcing property owners across the country to disrupt access to services for HUD-assisted older adults by laying off Service Coordinators, discontinuing programming, delaying building repairs to free up funding, and threatening property operations to make ends meet.”

In the letter, LeadingAge and AASC recommend a number of HUD action steps to avoid further delays and get on track for future grant cycles:

  • Increase Capacity: HUD’s Office of New Funding and Grants is understaffed and underresourced. While HUD is in the process of hiring up in this office, we urge the Secretary to implement an expedited process to immediately increase staff who can assist with the administration of Service Coordinator grants. HUD should also request more funding from Congress to add more capacity in this critical area, including at Headquarters and in the field.
  • Improve Technology: HUD Multifamily’s technological systems are not equipped to quickly process or leverage data from the grants. We urge HUD to work with Congress to improve the technological systems used throughout the Office of Multifamily Housing Programs, including for Service Coordinator grant administration.
  • Streamline Processes and Improve Oversight: HUD’s approach to administering Service Coordinator grants is inherently slow and ineffective. Each year, the grants need to go through multiple steps of budget updates, renewal, review, and approval. We urge HUD to consider streamlining efforts that include options for multi-year renewals and streamlined budget approvals for Cost Of Living Adjustments. We also urge HUD to reconsider the system of oversight at both Headquarters and the field, including establishing a leadership structure that is solely dedicated to overseeing the Service Coordinator program and administration throughout the regions.
  • Access Resources to Leverage Data: Currently, Service Coordinators complete annual resident assessments, but the data is not leveraged or published in the aggregate to Congress or to housing stakeholders. HUD should request funds from Congress to make grants available for technical assistance and data analytics grants that would allow HUD to improve and award new contracts to analyze and leverage the Standards for Success reporting. This will help identify the successes and gaps in Service Coordination and improve advocacy with Congress to appropriate funds for Service Coordination throughout the HUD-assisted portfolio.

The letter also urges Secretary Fudge to reexamine the wide gap in Service Coordination throughout the HUD-assisted senior housing portfolio. “Despite HUD’s stated commitment to serving older adults, fewer than half of Section 202 properties, HUD’s flagship senior housing program, are currently outfitted with a Service Coordination program (funded either through grants or through the property budget)…We urge HUD to live up to its mission and commit to full and timely funding of Service Coordinators for every HUD Section 202 property,” reads the letter.

To read the letter, click here. To read LeadingAge’s press release, click here.