DHCD Regarding Flex Funds and Transition to FY2012


June 29, 2011

To:                          EA Shelter Providers

FROM:                  Bob Pulster, Associate Director

RE:                          Transition to HomeBASE / July rent payments to Landlords

As you may know, the Governor just signed a ten-day interim FY12 budget.  This budget will be in place July 1, while the Legislative Conference Committee continues its deliberations on a final budget.  Pending final authorization through the FY12 Budget, the Department is delaying the implementation of HomeBASE until the Legislature has produced its final FY12 budget proposal.  Consequently, the current EA eligibility and benefit determination system will remain in place until the launch of HomeBASE at a date to be announced.

DHCD is asking providers to make payments of July rents to landlords of Flexible Fund households who would have transitioned to HomeBASE effective July 1, 2011.  You should also inform landlords to continue their lease with families as tenants at will until the implementation of HomeBASE.  The Department will be executing a Master Service Agreement (MSA) for the period of July 1 through September 30, to provide a vehicle for reimbursement of these expenditures.  Providers who have funds available in their restricted Flex Funds accounts, which include funds made available for clients who have not utilized their full Flex Fund allocation may also be used for this purpose.  As these funds are currently available to you to assist current Flex Fund families they would not be eligible for reimbursement.  Please contact your Contract Manager immediately with any questions.

Finally, we continue to emphasize the importance of timely invoicing to assist in a successful fiscal transition from FY11 to FY12.  Providers must complete all FY11 invoices by July 22nd.  In addition, we expect that all FY11 Flex Fund extensions must be entered into the Flex Fund data base by June 30 to be approved for payment.

This fiscal year has been another significant milestone in our efforts to work with families in shelter but also those we have placed in housing.  The Department projects that over 5,500 families entered the shelter system while you also supported over 4,000 families in their own homes.  We can all be proud of a system that has supported so many families to move toward a better life.

Thank you for your commitment and dedication.

Click here for the letter.

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