The U.S. Department of Housing and Urban Development has abruptly rescinded a plan to overhaul how it funds local programs serving the homeless, leaving cities unsure how or when billions of federal homelessness dollars will be disbursed.
In mid-November, the department announced massive shifts to its Continuum of Care grant program, which pays for homeless housing and care across the country. Those changes would severely reduce funding for long-term rental subsidies while prioritizing temporary housing programs that require participants to work and seek treatment. One local homelessness service organization, Homebase, estimated San Francisco could lose $38.3 million.
Since then, cities and providers rushed to write grant applications by a Jan. 14 deadline to compete for money Congress had already greenlighted. California and several other states sued HUD over the changes, while San Francisco joined the National Alliance to End Homelessness as part of a separate coalition suing to temporarily halt the changes.
But on Monday, an hour before a federal court hearing about a potential restraining order was set to begin, HUD announced it was rescinding its plan, causing widespread uncertainty among local agencies and the community organizations they fund. No one is sure when money will flow, who qualifies or what conditions will apply.
In a note on its website, HUD said it intends to revise the application process and reissue grant guidelines “well in advance of the deadline for obligation of available Fiscal Year 2025 funds.”
The vagueness of HUD’s message causes fear, Megan Rohrer, policy director at Compass Family Services, wrote in a text.
“The sparse announcement on the HUD website implies a new notice of funding will roll out, further delaying funds,” Rohrer wrote.
If HUD’s reversal means it is funding previously approved grants, that could enable counties to adjust to new priorities and still receive the funds in January.
Rohrer said he hopes Congress steps in to ensure the previously approved grants move forward by explicitly protecting them in HUD’s appropriations bill, which Congress must pass by Jan. 30 to avoid another government shutdown.
HUD did not respond to questions from the Public Press.
Meanwhile, local agencies were working to assess the confusing signals from Washington. The San Francisco City Attorney’s office was aware of HUD’s decision, a representative said.
“Still working to figure out what it all means,” Emily Cohen, deputy director for communications at the Department of Homelessness and Supportive Housing, wrote in an email.