Steps 2 Stability

Purpose: Steps 2 Stability (S2S) merges MSHDA's shelter diversion and housing navigation initiatives to help households at or below 30% of area median income quickly avoid entry into shelter or exit shelter into stable housing. The program uses state HCDF funds to expand effective practices statewide. Project eligibility: Funded activities include strengths-based diversion case management, robust housing search, landlord engagement and mediation, assistance with tenant documentation and recertifications, and administration of flexible financial assistance including limited rental help (up to 3 months and within a $2,500 per-household cap). Budgets must dedicate at least 50% to staffing; flexible financial and rental assistance may not exceed 30%; administrative costs are capped at 10%; and a floating 10% may be used for HMIS and/or staffing. Household eligibility includes income at or below 30% AMI, meeting a HUD homelessness category, and rent meeting FMR or rent reasonableness. Applicant eligibility and priorities: Applicants must be recommended by their CoC/LPB and be a Michigan 501(c)(3) or local unit of government with HMIS participation and adequate fiscal/administrative capacity. Application process: The NOFO and application documents were released 04/28/2025; an overview webinar was held 05/05/2025. The IGX application portal opened 07/01/2025. Subgrantees submitted to their fiduciary by internal CoC/LPB deadlines (fiduciary target 07/01/2025), and fiduciary applications were due to MSHDA in IGX by 07/11/2025. Required documents included a Memorandum of Understanding among key partners, a coordinated entry diagram, an administrative compliance certification, and a cost allocation plan. The grant term runs 09/01/2025 to 08/31/2026.