00:00The U.S. Department of Housing and Urban Development is introducing changes in how communities fight homelessness.
00:06The agency just released new rules for 2025, and providers across the country say these changes could completely rewrite how people get help.
00:17The Continuum of Care program is the main federal funding stream communities use to respond to homelessness.
00:23It runs on about $3.5 billion a year and supports hundreds of thousands of people nationwide.
00:30This year, it's closer to $4 billion.
00:32That includes older adults, people with disabilities, veterans, and families who need stable housing for safety reasons.
00:39So why does all of this matter?
00:41These rules could change how communities respond to homelessness in a very short time.
00:47For years, communities could count on most of their funding being safe.
00:50About 90% was locked in.
00:53Now, only 30% is guaranteed.
00:55That means 70% of the money communities use to keep people housed is suddenly up for competition.
01:02If a community loses points in scoring, they can lose critical programs.
01:06HUD says communities can only spend 30% of their funding on permanent supportive housing and rapid rehousing.
01:13The Urban Institute says permanent supportive housing is the most effective way to help people leave homelessness and stay stable long term.
01:21Studies show permanent housing reduces time spent unhoused, improves housing stability, cuts arrests and jail stays, reduces emergency room visits, and improves overall quality of life.
01:33It even helps lower a community's rate of chronic homelessness.
01:36In comparison, the Urban Institute says transitional housing does not show the same results.
01:42People get into housing at a slower rate, are less likely to remain housed, and still rely on public assistance.
01:50There is no evidence that transitional housing reduces homelessness or successfully houses people facing long term or repeated homelessness.
01:58HUD's own documents show how big the drop is.
02:02Nearly 87% of next year's funding was set to support permanent housing.
02:06But under these new rules, it is capped at just 30%.
02:10A HUD briefing says about 170,000 people could be at risk of losing housing because of these cuts.
02:16Another big shift is that almost every program has to compete.
02:21Youth housing projects and domestic violence programs that once had extra protections no longer do.
02:26They have to be ranked and scored like everyone else.
02:30HUD also created new reasons a project can be rejected.
02:33Programs can be denied money for using racial preferences, for using any definition of sex that is not binary, or for engaging in harm reduction.
02:44When HUD talks about harm reduction, they mean basic safety steps like providing safer use supplies to prevent disease or giving people Narcan to reverse an overdose.
02:54These are common tools used in many shelters and outreach programs to keep people alive and safe.
02:59The National Low Income Housing Coalition says the new scoring rules push communities toward models focusing on camping bans, mandated services, and strict public safety measures rather than on housing that actually works.
03:14The National Low Income Housing Coalition says the late release could create serious funding gaps.
03:19Applications are due January 14th, but awards do not arrive until May.
03:23About one-third of all grants expire before then, which means many programs could run out of money even if they are renewed.
03:31That could lead to service cuts, temporary shutdowns, and more people losing housing as funding lapses.
03:37HUD is also shifting priorities.
03:40Projects requiring services, offering treatment on-site, or partnering with law enforcement get more points.
03:46Communities also get points for having laws against camping or illegal drug use and for enforcing them.
03:52This gives more weight to public safety approaches and could affect how outreach work is done.
03:58New rules change what programs even look like.
04:00Transitional housing must offer 40 hours of services a week.
04:04Rapid rehousing must require services and show job gains.
04:09New supportive housing must focus on older adults or people with physical disabilities and also require participation in services.
04:17The scoring system is different, too.
04:19A new merit review decides who gets funded.
04:22And in Tier 2, projects can earn extra points for requiring services.
04:27That means voluntary support models that have been standard for years may start with fewer points.
04:32HUD also expanded its risk review.
04:35Now it can deny funding based on media reports, findings from the inspector general, or public complaints.
04:42For Straight Arrow News, I'm Kaylee Carey.
04:44Read the full story right now on SAN.com or download the Straight Arrow News mobile app today.
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