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HUD changes could endanger housing for 170,000 people
Straight Arrow News
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4 hours ago
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00:00
The U.S. Department of Housing and Urban Development is introducing changes in how communities fight
00:05
homelessness. The agency just released new rules for 2025 and providers across the country say
00:12
these changes could completely rewrite how people get help. The Continuum of Care program is the
00:19
main federal funding stream communities use to respond to homelessness. It runs on about three
00:25
and a half billion dollars a year and supports hundreds of thousands of people nationwide.
00:30
This year it's closer to four billion. That includes older adults, people with disabilities,
00:35
veterans and families who need stable housing for safety reasons. So why does all of this matter?
00:41
These rules could change how communities respond to homelessness in a very short time. For years
00:47
communities could count on most of their funding being safe. About 90 percent was locked in. Now
00:53
only 30 percent is guaranteed. That means 70 percent of the money communities use to keep
00:58
people housed is suddenly up for competition. If a community loses points in scoring, they can lose
01:04
critical programs. HUD says communities can only spend 30 percent of their funding on permanent
01:10
supportive housing and rapid rehousing. The Urban Institute says permanent supportive housing is the
01:16
most effective way to help people leave homelessness and stay stable long term. Studies show permanent
01:22
housing reduces time spent unhoused, improves housing stability, cuts arrests and jail stays, reduces
01:29
emergency room visits and improves overall quality of life. It even helps lower a community's rate of
01:35
chronic homelessness. In comparison, the Urban Institute says transitional housing does not show the
01:42
same results. People get into housing at a slower rate, are less likely to remain housed and still rely on
01:48
public assistance. There is no evidence that transitional housing reduces homelessness or successfully houses
01:55
people facing long term or repeated homelessness. HUD's own documents show how big the drop is. Nearly 87 percent
02:03
of next year's funding was set to support permanent housing. But under these new rules, it is capped at just 30 percent.
02:10
A HUD briefing says about 170,000 people could be at risk of losing housing because of these cuts. Another big shift is that almost
02:18
every program has to compete. Youth housing projects and domestic violence programs that once had extra
02:24
protections no longer do. They have to be ranked and scored like everyone else. HUD also created new reasons a
02:32
project can be rejected. Programs can be denied money for using racial preferences, for using any definition of sex
02:39
that is not binary, or for engaging in harm reduction. When HUD talks about harm reduction, they mean basic safety steps like
02:48
providing safer use supplies to prevent disease or giving people Narcan to reverse an overdose. These are common
02:55
tools used in many shelters and outreach programs to keep people alive and safe. The National Low Income Housing
03:01
Coalition says the new scoring rules push communities toward models focusing on camping bans, mandated services and
03:09
strict public safety measures rather than on housing that actually works. The National Low Income Housing Coalition says the late
03:16
release could create serious funding gaps. Applications are due January 14th, but awards do not arrive
03:23
until May. About one-third of all grants expire before then, which means many programs could run out of money
03:29
even if they are renewed. That could lead to service cuts, temporary shutdowns, and more people losing housing
03:36
as funding lapses. HUD is also shifting priorities. Projects requiring services, offering treatment on site,
03:43
or partnering with law enforcement, get more points. Communities also get points for having laws against
03:49
camping or illegal drug use and for enforcing them. This gives more weight to public safety approaches
03:55
and could affect how outreach work is done. New rules change what programs even look like. Transitional
04:01
housing must offer 40 hours of services a week. Rapid rehousing must require services and show job gains. New
04:09
supportive housing must focus on older adults or people with physical disabilities and also require
04:15
participation in services. The scoring system is different too. A new merit review decides who gets
04:21
funded. And in Tier 2, projects can earn extra points for requiring services. That means voluntary support
04:28
models that have been standard for years may start with fewer points. HUD also expanded its risk review. Now,
04:35
it can deny funding based on media reports, findings from the inspector general, or public complaints.
04:42
For Straight Arrow News, I'm Kaylee Carey. Read the full story right now on san.com or
04:47
download the Straight Arrow News mobile app today.
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