"President Donald Trump's administration has backed off from upending federal grants to permanent housing programs - for now. A lawsuit filed by Santa Clara County and 10 other governments and nonprofits against the U.S. Department of Housing and Urban Development (HUD) last week has pushed the department to revise federal grant guidelines for homeless funding "in order to assess the issues raised by plaintiffs in their suits," according to a response filed by HUD's attorneys."
"HUD unveiled plans last month to shift Continuum of Care grants away from permanent housing to temporary housing. The grants have historically been used for permanent housing programs - including rental subsidies and supportive services at permanent supportive housing developments. HUD's proposed changes would cap funds for permanent housing at 30%, leaving more than 1,800 Santa Clara County households at risk of losing their homes."
A lawsuit filed by Santa Clara County and 10 other governments and nonprofits prompted HUD to revise federal grant guidelines for homeless funding in order to assess issues raised by plaintiffs. The lawsuit alleges HUD's new point system for Continuum of Care grants illegally ranks projects by alignment with presidential priorities, risking rejection of nonconforming programs. HUD had proposed shifting Continuum of Care funds from permanent to temporary housing and capping permanent housing funds at 30 percent. The proposed cap threatened more than 1,800 Santa Clara County households. Local officials called the reversals a win and vowed continued oversight. HUD promised to revise some guidelines.
Read at San Jose Spotlight
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