Lawmakers urge HUD to rescind homelessness strategy changes

"We write in response to the Department of Housing and Urban Development's (HUD) reckless and disturbing policy change and funding announcement that could push over 170,000 formerly homeless individuals back on the streets and exacerbate our nation's homelessness crisis, the lawmakers wrote. HUD issued the funding notice Nov. 13. Under the changes, allocations for permanent supportive housing would drop from 86% of CoC funds to 30%."

"Waters and colleagues said the timeline for applications is so compressed that it would create a roughly six-month gap in services while deprioritizing communities using Housing First models. At a time when our nation has over 771,000 people experiencing homelessness, this (Notice of Funding Opportunity) will worsen the situation, impacting people with disabilities, veterans, domestic violence survivors, women with children and more, they wrote."

"According to a statement from HUD, the administration believes this approach will increase accountability and encourage independence targeting what it perceives to be the underlying drivers of homelessness. These long-overdue reforms will promote independence and ensure we are supporting means-tested approaches to carry out the President's mandate, connect Americans with the help they need and make our cities and towns beautiful and safe, HUD Secretary Scott Turner said in a release."

HUD issued a funding notice that reallocates Continuum of Care (CoC) funds, reducing permanent supportive housing allocations from 86% to 30% and redirecting resources toward short-term shelters tied to employment and substance-abuse treatment. The compressed application timeline could create an estimated six-month service gap. The change threatens people with disabilities, veterans, domestic violence survivors, women with children, and others amid a national homeless population exceeding 771,000. HUD framed the shift as promoting accountability and independence and announced $3.9 billion in competitive grants. Critics warned the shortened notice could jeopardize rent payments and essential service contracts.

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