Emergency Shelter Grant (ESG)

Created with the authorization of the Stewart B. McKinney Homeless Assistance Act in 1987, the ESG program provides federal grants to states and localities based on the formula used for the CDBG program. Program funds are awarded to grantees in proportion to their last year's CDBG allocation. If a locality's allocation does not meet minimum grant standards, its funds are added to their state's allocation. ESG funds are accessed through the Consolidated Plan.

Eligible activities for use of ESG include:

  • Renovation, major rehabilitation, or conversion of buildings for use as emergency shelter;
  • Up to 30 percent on essential services for the homeless;
  • Up to 30 percent on homeless prevention efforts; and
  • Shelter operating costs, such as maintenance, insurance, utilities, rent, and furnishings (no more than 10 percent for operating staff costs).

    2005 ConPlan Allocations
    HUD’s ESG page

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