1. INTRODUCTION

Homelessness remains a national priority. The National Homelessness Initiative (NHI) will work with communities to develop the tools to plan and implement local strategies to help reduce homelessness. Communities will be encouraged to work together with provincial, territorial and municipal governments as well as the private and not-for-profit sectors to address the needs of homeless people and take steps to reduce and prevent homelessness.

Through the NHI, the Government of Canada will provide funding over three fiscal years, from 2003/04 to 2005/06, with a one-year administrative extension to March 31, 2007, to help reduce homelessness. The NHI includes the Supporting Communities Partnership Initiative (SCPI), Urban Aboriginal Homelessness (UAH), the Regional Homelessness Fund (RHF), the National Research Program (NRP), the Homeless Individuals and Families Information System (HIFIS) initiative, and the Surplus Federal Real Property for Homelessness Initiative (SFRPHI).

For the purpose of these Terms and Conditions the NHI is a class contribution and class grant program. It is comprised of the SCPI (class contribution), UAH (class contribution), the RHF (class contribution), and the NRP (class contribution and class grant). The HIFIS initiative and the SFRPHI are noted as information to their involvement within the larger initiative of the Government of Canada, but does not form part of what is being requested through this document, nor the program Terms and Conditions.

2. OBJECTIVES

The objectives of the National Homelessness Initiative are:

• To develop a comprehensive continuum of supports to help homeless Canadians move out of the cycle of homelessness and prevent those at-risk from falling into homelessness by providing communities with the tools to develop a range of interventions to stabilize the living arrangements of homeless individuals and families— encouraging self-sufficiency where possible—and prevent those at-risk from falling into homelessness.
• To ensure sustainable capacity of communities to address homelessness by enhancing community leadership and broadening ownership, by the public, non-profit and private sectors, on the issue of homelessness in Canada.

By March 31, 2007 the National Homelessness Initiative hopes to achieve the following outcomes:

• Enhanced supports and services available to meet the needs of homeless individuals and families and those at-risk of homelessness by facilitating integrated community responses to help improve their living conditions and to help them access and maintain secure accommodation.
• Increased knowledge and understanding of homelessness at the local, regional, and national levels through data collection, research, and the review and assessment of the effectiveness of interventions and by supporting the dissemination and sharing of this information.
• Broader engagement of partners to address homelessness by strengthening partnerships and collaboration with other federal departments, all orders of government, and the private and not-for-profit sectors.

3. INTERPRETATION

For the purpose of these Terms and Conditions, the National Homelessness Initiative will include SCPI, UAH, RHF, and the NRP as described below:

Working in partnership with the Urban Aboriginal Strategy (UAS) of the Privy Council Office (PCO), UAH/UAS funds are designed to test new ideas that further the well-being of urban Aboriginal people and reduce the disparity between Aboriginal and non-Aboriginal people in eight urban centers (Vancouver, Calgary, Edmonton, Regina, Saskatoon, Toronto, Thunder Bay and Winnipeg.) These funds will target the coordination of local responses designed to meet the needs of homeless Aboriginal people. This effort will be driven by a transparent and inclusive community process which is reflected in, or linked to, a broad community plan.

UAH initiatives do not require cost-matching with other partners, although cost-matching will be encouraged whenever possible.

The primary aim of the RHF is to complement initiatives undertaken through other components of the NHI, by assisting both non-designated communities and the “other affected” communities in meeting identified homelessness needs.

RHF proposals must include evidence of support from a broad range of community-based partners. As well, the RHF may support projects that respond to priorities best met by coordinated efforts among several communities if initiatives reflect priorities that are:

• identified and fully endorsed by local communities; and
• supported by other community partners.

RHF funds flowing to "other affected" communities may only be used to address the needs of homeless youth and youth at risk of homelessness.

RHF initiatives do not require cost-matching by community partners, although cost-matching will be encouraged.

The following interpretations apply to the SCPI, UAH and RHF components of the NHI:

The “continuum of supports approach” builds on existing programs and work already underway within communities to facilitate the coordination of services, which could include but is not limited to prevention and outreach, shelters and housing, support services, health care, and skills development.

A continuum of supports approach promotes a coordinated community-based process of identifying assets and needs, using an asset-based community development approach to build complimentary measures to address those needs. The continuum of supports is intended to focus communities on developing a comprehensive and long-term strategy to reduce homelessness, with the goal of assisting people who are homeless to move to self-sufficiency, to the extent possible.

The “community contribution” is the accumulation of the various resources identified by the community that will be matched by NHI funds. This “community contribution” may include funding from other partners such as provincial and municipal governments, private sector donations, charitable donations and in-kind services. All resources making up the “community contribution” must be targeted to activities that address homelessness in the community.

An initial “community plan” has been developed in each of the current “SCPI-designated” communities. Ideally, it has been developed as a comprehensive and long-term strategic plan, developed by members of the community to reduce homelessness. Projects funded in designated communities must support priorities identified in their respective community plan.

Designated communities will be required to assess and update their community plans to ensure that investments are recorded, and that the updated program policy objectives defined for the new initiative are reflected. This assessment must be completed before communities can access SCPI funding. It is anticipated that the community plan will be an evolving document, changing over time to respond to changing community needs. If a new community is designated for SCPI funding, that community will be required to develop a community plan to be approved by the appropriate authority.

The community plan should capture the priorities of all affected populations within that community, including the youth and Aboriginal communities. This will be captured during the SCPI community planning process. It is strongly recommended that each community allocate a level of funding for Aboriginal homelessness that is representative of the percentage of the Aboriginal population in that community and that funding be administered, where possible and practical, by Aboriginal community groups working with homeless people.

In “non-designated” communities, requirements for a community plan and cost-matching will be waived when accessing UAH and the RHF. These communities must demonstrate how their projects meet the overall objectives of the NHI, must demonstrate a need, have an effective plan for sustainability, show community support, and demonstrate the inclusion of other partners in the project.

“Delivery Models” - There are two delivery models under the NHI – the Community Entity Model and the Shared Delivery Model. These are as follows:

Community Entity - The community, in consultation with Human Resources and Skills Development Canada (HRSDC), may choose to designate responsibility for delivery of the plan to a Community Entity. A Community Entity is normally an incorporated organization that will be responsible for the implementation of a community plan. In cases where groups emerge in a community with a Community Entity model and request SCPI funding, they may only do so through the approved Community Entity. The Community Entity will be responsible for project selection, contracting and monitoring.

Shared Delivery Model-   In the Shared Delivery Model (i.e., where a Community Entity does not exist), both HRSDC and the community work in partnership, resulting in a joint selection and decision-making process. HRSDC will be responsible for project approval, contribution agreement preparation and monitoring.

"Exceptional Circumstances"

Emergency situations that are outside the control of a community may arise, that could not have been reasonably foreseen when a community revised or developed its plan (for example, an emergency shelter could burn down). In such exceptional cases, the community will revise its community plan to address the situation and, if all funding for that community for the current fiscal year has already been expended, an appropriate incremental federal contribution (as part of that community’s allotment) may be made to address the emergency, based on demonstrated financial need. All other provisions in these Terms and Conditions would continue to apply.

"Non-Designated Communities" - Funding under the NHI will be made available to other communities with a demonstrable need through UAH and the RHF.
"Notional Allocations" - Notional allocations have been determined for all “designated communities”. These notional allocations were calculated using the original funding allocation for the SCPI, which was based on three indicators: Low Income Cut-off (LICO); vacancy rates; and population. All notional allocations will be made publicly available.

"Eligibility Requirements" - The following eligibility requirements, Sections 4 to 24, apply to all four components under the federal contribution of the NHI unless otherwise indicated.

4. ELIGIBLE ACTIVITIES

Activities eligible for support include, but are not limited to:

Planning and Assessment (SCPI, UAH, RHF only)
Each eligible designated community may use a portion of their allocation to support the evaluation, assessment and updating of their community plan. If a new community is designated, funding will be provided to develop a community plan. Non-designated communities may receive funding to conduct a needs assessment if required.

Administration
Financial assistance may be provided to community-based not-for-profit organizations, for-profit organizations, municipal governments or the Régies régionales de la santé et des services sociaux (RRSSS) to cover all or a portion of costs associated with planning, organizing, operating, delivering and evaluating eligible activities. This cost should not exceed 15% of the overall project cost.

Pre-Development
Implementation costs such as environmental assessments, proposal development, architectural fees, feasibility studies, etc. are eligible for funding during the pre-development phase of a project.

Research and Data Collection
Funding of activities eligible for support under all components of the NHI include, but are not limited to:

• Conferences and consultations at the national, regional and local levels to facilitate information exchange, increase awareness and mobilize action around homelessness and its alleviation.
• Research, data collection, analysis and studies, including those on best practices, local, regional, national and international experiences, and the feasibility of adopting specific approaches.

Building Capacity (SCPI, UAH, RHF only)
Through ongoing community development related to building community capacity, communities will mobilize to address a spectrum of homelessness issues. These could include absolute homelessness, emergency response, transitional or supportive housing, socioeconomic inclusion and participation, and prevention of homelessness.

In addition, activities such as organizational assistance (such as proposal development, strategic planning, board training, conflict resolution, decision-making, etc.); access to educational opportunities (such as workshops, etc.); encouragement of multi-sectoral and multiorganizational collaboration; information sources; data collection (including system implementation, upgrades and resources, etc.), and community development initiatives are eligible for funding.

Meeting the Needs (SCPI, UAH, RHF only)
Activities that meet the needs of people living on the streets, in shelters, or transitional and supportive facilities including, for example: providing outreach and street workers to link homeless people or those at risk of becoming homeless, with resources; enhancing multiservice centres (such as drop-in centres that provide food, clothing, laundry and showers facilities, foot care, sleeping bags, dental hygiene, service referrals, etc.); and supporting the construction and renovation of, for example, emergency shelters, transitional facilities and other support facilities are eligible for funding.

General (SCPI, UAH, RHF only)
Where outlined in the applicable community plan, other initiatives that build on a continuum of supports approach (such as prevention) are eligible to receive funding.

5. CLASS OF RECIPIENTS

Not-for-profit organizations, individuals, municipal governments, Band/tribal councils and other Aboriginal organizations are eligible to receive funding and act as coordinators for activities. Public health and educational institutions, and the Régies régionales, may be eligible for funding, with the agreement of the provincial or territorial government.

For-profit enterprises are eligible for funding provided that the nature and intent of the activity is non-commercial and fits within the community plan. For-profit enterprises, research organizations and research institutes may also receive funding to carry out research that will help communities understand and address homelessness issues.

In addition to the above, to be eligible for SCPI funding an organization’s request for funding must benefit a SCPI designated community as defined in Section 6.

6. ELIGIBLE COMMUNITIES (SCPI, UAH, RHF only)

Designated Communities:
Most Affected Communities
The communities currently identified as designated are Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Hamilton, Ottawa, Montreal, Quebec City and Halifax and are “SCPI eligible” communities. These communities are eligible to receive funding under the SCPI and UAH components of the NHI.

Other Affected Communities
In addition, other communities or group of communities working jointly in a single geographic area, with demonstrable homelessness problems may also be eligible for SCPI funding. These communities will be specifically identified based on demonstrated need. This identification will be done in consultation between the federal and provincial or territorial governments, where the province or territory wishes to participate, with a final determination by the responsible Minister. These communities are eligible to receive funding under the SCPI, UAH and RHF components of the NHI.

Non-Designated Communities:
Funding under the NHI will be made available to other communities with a demonstrable need through UAH and the RHF only.

7. TYPE OF FINANCIAL ASSISTANCE

For SCPI, UAH, and RHF, financial assistance may be provided to eligible recipients in the form of a contribution.

For NRP, financial assistance may be provided in the form of grants and/or contributions. Funding will be distributed either as a grant or through a contribution agreement. The key is to provide flexibility to achieve the desired outcomes of the research agenda.

The majority of funding will be invested in the form of grants to researchers, including partnerships with research organizations. The aim is to facilitate research partnerships to ensure that a deeper understanding of homelessness occurs to help guide effective solutions to the issue. However, in certain instances flexibility may be required to continue to use contribution funds. Contribution agreements may be required, for instance, in more-complicated cases where HRSDC requires of the researcher additional benchmarks and deliverables, and/or where the value of the proposal is over $250,000.

8. ELIGIBLE COSTS (For contribution agreements only)

Planning (SCPI, UAH and RHF only)
Contributions may be made to cover the full reasonable and direct costs of preparing or revising a plan to reduce homelessness or a needs assessment in each eligible community, and disseminating information about that plan. These costs may include items such as: renting space to hold consultation meetings, hiring a consultant to facilitate the planning process and draft the plan at community’s direction, publication of the community plan (e.g., layout and printing), postage and other costs associated with the distribution of the plan.

General
NHI contributions may cover all or any portion of the costs associated with developing, delivering and evaluating projects that fall within the community plan, where applicable. Contributions may be provided for capital projects. The eligible costs of a project will be described in detail in the contribution agreement.

Project costs that would be eligible, in whole or in part, as part of the implementation of the plan, where applicable, include such items as: research, planning and feasibility studies; environmental assessments*; architectural costs for new buildings; costs of building, buying, renovating or making additions to shelter space, supportive or transitional housing; enhancing the skills of the staff of service organizations; supplies and equipment required to carry out an approved project; and administrative costs as outlined below, where applicable.

Software development for the collection of homelessness data that is similar to HIFIS is not eligible.

*When providing funding for the completion of an Environmental Assessment, note that HRSDC must fulfill all responsibility to the environment before additional monies can be paid out to a project, as per the Canadian Environmental Agreement Act (CEAA).

Administrative Costs
Contributions may be provided to cover such administrative costs as wages and employment related costs for staff, licenses, permits, fees for professional service, disbursements for 8 research or technical studies, disability needs, banking fees, interest (where agreed to by HRSDC), utilities, materials, supplies, travel, insurance, rental of premises, costs associated with conferences, leasing or purchase of equipment, costs of audits, evaluations and assessments.

9. ALLOWABLE BUDGETARY COSTS (For Grants Only)

Administrative Costs
Financial assistance may be provided to cover such administrative costs as wages and employment related costs for staff, licenses, permits, fees for professional service, disbursements for research or technical studies, disability needs, banking fees, interest (where agreed to by HRSDC), utilities, materials, supplies, travel, insurance, rental of premises, costs associated with conferences, leasing or purchase of equipment, costs of audits, evaluations and assessments.

Research
Costs associated with the NRP include, but are not limited to:

• Conferences and consultations at the national and regional levels to facilitate information exchange, increase awareness and mobilize action around homelessness and its alleviation.
• Research, analysis and studies, including those on best practices, regional, national and international experiences, and the feasibility of adopting specific approaches.

10. PROPOSALS OR APPLICATIONS

Proposals for funding to support community planning must, at a minimum:

1. describe the process the community will follow to develop their plan;
2. estimate the cost of developing the plan;
3. disclose the involvement of former public servants who are under the Conflict of Interest and Post-employment guidelines; and
4. provide a time frame for the planning process.

Proposals or applications to support specific projects or activities must, at a minimum:

1. demonstrate that the proposed project fits within the objectives of the NHI, and meet expected program outcomes;
2. describe the activities to be undertaken;
3. identify the expected result within a specified time frame and the impact this is intended to have on homelessness;
4. provide an estimate of expenditures to be incurred;
5. address the sustainability of the activities proposed, if they will not be completed by March 31, 2006, or if there are ongoing costs associated with the effectiveness of the expenditure (e.g., ongoing operating costs of a new shelter);
6. disclose the involvement of former public servants who are under the Conflict of Interest and Post-employment guidelines;
7. in SCPI eligible communities, a link must be made to the community plan priorities;
8. in non-designated communities, where there is no community plan, proposals must demonstrate a need within the community, support from the community, and a written demonstration of a clear linkage to NHI objectives; and
9. NHI research application requests must link to the overall objectives of the NHI.

11. APPLICATION PROCESS

All application processes will assure fairness and transparency; all proposals will be reviewed, at a minimum, on the degree to which they directly contribute to the priorities established in the community plan, and/or the broad NHI objectives, and their eligibility for NHI funding.

12. AGREEMENTS

Contributions:
There must be a written agreement between the Department and the recipient of a contribution which identifies the conditions of the contribution, the expected results to be achieved, the obligations of the parties involved and the conditions for payment.

Agreements will include a requirement to disclose the involvement of former public servants who are under post-employment guidelines. A clause will be included in the agreement which would allow for a reduction in the amount of financial assistance specified should funding made available to HRSDC be reduced or cancelled.

Agreements will also include appropriate termination clauses indicating that agreements may be terminated upon notice by either party.

Grants (For National Research Projects only):
There must be a written agreement between the Department and the recipient of the grant which establishes eligibility, entitlement and qualification, how the proposed research activity addresses the overall objectives of the program, the expected results to be achieved and the conditions of payment. A potential recipient of a class grant must meet any requirements for eligibility and entitlement set out in the grant program.

13. MAXIMUM CONTRIBUTION AND DURATION

SCPI
Notional allocations have been determined for all “designated communities”, and will be publicly available. Funding for specific projects can not exceed the maximum allocation for that community.

The contribution for any agreement within the community plan may be up to 100% of the cost, provided that the 50% SCPI contribution to implementation of the overall plan is respected during the three-year period (2003-2004 to 2005-2006), and the one-year extension of the administrative year 2006-2007.

The maximum contribution per recipient will not exceed $75 million.

UAH/RHF
There is no requirement to match UAH or RHF funds, although cost matching will be encouraged.

The maximum contribution per recipient under the UAH will not exceed $10 million. The maximum contribution per recipient under the RHF will not exceed $10 million.

NRP
Recognizing the high cost of undertaking national comparative and/or longitudinal studies the maximum contribution per recipient under the NRP will not exceed $5 million. Funding for research projects in excess of $250,000 may be in the form of a contribution.

The duration of an agreement cannot exceed March 31, 2007.

14. STACKING LIMITS

HRSDC must obtain a statement from a potential recipient about other sources of proposed funding for a project, either through information on application forms or other suitable means, prior to approving a grant or contribution in excess of $100,000.

The maximum level (stacking limit) of Total Government Assistance (federal, provincial/territorial and municipal assistance for the same eligible expenditures) for this program may not exceed 100 % of eligible expenditures. This stacking limit must be respected when assistance is provided. In the event that actual total government assistance to a recipient exceeds the stacking limit, it will be necessary for the recipient to repay the Crown on a pro-rated basis (based on total assistance received) so that the stacking limit is not exceeded. The Program will require all potential recipients to disclose all confirmed and potential sources of funding for a proposed project at the start and end of their projects.

15. BASIS OF PAYMENT

Payments to recipients must be made in accordance with the policy and procedures established in Treasury Board’s Policy on Transfer Payments, as follows:

1. monthly or quarterly progress payments based on expenditure claims and a final payment of any sums due following receipt of the final claim; or
2. advance payments based on demonstrated need.

Generally, a minimum of 10% of the overall value of the project will be held back until after the recipient's compliance with the agreement has been confirmed, and a final calculation of payment has been made. A rational for any variance from this 10% holdback must be provided and documented on the file.

Any payments that exceed the amount to which the recipient is entitled are debts to the Crown and must be repaid.

16. DISPOSAL OF CAPITAL ASSETS

Once a project is completed, any capital asset as identified by HRSDC (in accordance with the Grants and Contributions Operational Guidelines) purchased with NHI funds, which has not been physically incorporated into a project, may be disposed of in a manner determined by HRSDC. The governing considerations will be to encourage the continued use of assets in support of strengthened community capacity to reduce homelessness and to ensure that assets are not redirected for HRSDC’s own use.

17. AUTHORITY TO APPROVE PROPOSALS

The final approval of proposals may be delegated by the Minister of Human Resources and Skills Development to the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness; the Minister of HRD may also authorize the further delegation of this authority by the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness to appropriate officials of the Department as per HRSDC's delegation instruments.

18. AUTHORITY TO SIGN AGREEMENTS

The authority to sign and subsequently amend agreements may be delegated by the Minister of Human Resources and Skills Development to the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness; the Minister of HRSD may also authorize the further delegation of this authority by the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness to appropriate officials of the Department as per HRSDC's delegation instruments.

19. AUTHORITY TO APPROVE PAYMENTS

The authority to approve payments by certifying compliance with the terms of the agreements may be delegated by the Minister of Human Resources and Skills Development to the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness; the Minister of HRSD may also authorize the further delegation of this authority by the Minister of Labour and Housing, and/or the Minister designated as Federal Coordinator on Homelessness to appropriate officials of the Department as per HRSDC's delegation instruments.

20. AUDIT

Contributions:
Each agreement will specify that HRSDC retains the right to audit the records of the recipients and, if it is determined that the amount paid exceeds the amount payable, the difference will be considered as a debt to the Crown.

The existing risk-based framework for monitoring and auditing of recipients, an internal audit plan, including an evaluation of program management of the transfer payment program remains in effect for the period of the extension. 

Grants (NRP only):
The recipient of a grant is not required to account for the type of expenditures for which the grant is used. Where a grant is paid in installments, the recipient is not required to meet any conditions other than continuing eligibility for and entitlement to the grant. Since a grant is unconditional, there is no unexpended balance to return unless the grant is of a type that requires continuing eligibility (e.g. a scholarship) and the recipient ceases to be eligible. Amounts paid after the expiry of eligibility or paid on the basis of fraudulent or inaccurate application or in error are subject to recovery action.

21. ACCOUNTABILITY FRAMEWORK

The existing results-based management and accountability framework, including performance indicators, expected results and outcomes, methods for the reporting on performance and evaluation criteria to be used in the assessment of the effectiveness of the transfer payments remains in effect for the period of the extension.

Each contribution agreement will specify that HRSDC and/or the province/territory and/or community will develop and conduct an evaluation and that the party signing the agreement is prepared to actively participate in the evaluation process as needed.

22. DUE DILIGENCE

Departmental systems, procedures and resources for ensuring due diligence in approving transfer payments and verifying eligibility and entitlement for the management and administration of the programs are in place, such as but not limited to, the Grants and Contributions Operations Guide, the Quality Assurance Framework, and the Common System for Grants and Contributions.

23. COST MANAGEMENT

The cost of managing the program has been addressed in the Treasury Board submission.

24. LEGISLATIVE AUTHORITY

In the February 2003 Budget, the Supporting Communities Partnership Initiative was extended for three years. The Prime Minister, in announcing the Initiative in March 2003, emphasized the need to strengthen the quality of life in our communities and cities by working towards breaking the cycle of poverty by providing shelter and supports to homeless people. As such, the NHI’s four components, through stabilizing the lives of homeless and at-risk individuals, contributes to HRSDC's mandate of facilitating Canadians fuller participation in the community.

25. DURATION OF TERMS AND CONDITIONS

These Terms and Conditions will expire March 31, 2007.