HUD changes could endanger housing for 170,000 people

The U.S. Department of Housing and Urban Development is introducing changes in how communities fight homelessness

The agency just released new rules for 2025, and providers across the country say these changes could completely rewrite how people get help

The Continuum of Care program is the main federal funding stream communities use to respond to homelessness

It runs on about $3.5 billion a year and supports hundreds of thousands of people nationwide

This year, it's closer to $4 billion. That includes older adults, people with disabilities, veterans, and families who need stable housing for safety reasons

So why does all of this matter? These rules could change how communities respond to homelessness in a very short time

For years, communities could count on most of their funding being safe

About 90% was locked in. Now, only 30% is guaranteed. That means 70% of the money communities use to keep people housed is suddenly up for competition

If a community loses points in scoring, they can lose critical programs

HUD says communities can only spend 30 of their funding on permanent supportive housing and rapid rehousing The Urban Institute says permanent supportive housing is the most effective way to help people

leave homelessness and stay stable long term. Studies 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. It even helps lower a community's rate of chronic

homelessness. In comparison, the Urban Institute says transitional housing does not show the same

results. People get into housing at a slower rate, are less likely to remain housed, and still rely

on public assistance. There is no evidence that transitional housing reduces homelessness or

successfully houses people facing long-term or repeated homelessness. HUD's own documents show

how big the drop is. Nearly 87 percent of next year's funding was set to support permanent housing

but under these new rules, it is capped at just 30 percent. 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

every program has to compete Youth housing projects and domestic violence programs that once had extra protections no longer do They have to be ranked and scored like everyone else HUD also created new reasons a project can be rejected

Programs can be denied money for using racial preferences, for using any definition of sex that is not binary, or for engaging in harm reduction

When 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

These are common tools used in many shelters and outreach programs to keep people alive and safe

The 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

The National Low Income Housing Coalition says the late release could create serious funding gaps

Applications are due January 14th, but awards do not arrive until May

About one-third of all grants expire before then, which means many programs could run out of money even if they are renewed

That could lead to service cuts temporary shutdowns and more people losing housing as funding lapses HUD is also shifting priorities Projects requiring services offering treatment on site or partnering with law enforcement get more points

Communities also get points for having laws against camping or illegal drug use

and for enforcing them. This gives more weight to public safety approaches

and could affect how outreach work is done. New rules change what programs even look like

Transitional housing must offer 40 hours of services a week. Rapid rehousing must require services and show job gains

New supportive housing must focus on older adults or people with physical disabilities

and also require participation in services. The scoring system is different too

A new merit review decides who gets funded. And in Tier 2, projects can earn extra points for requiring services

That means voluntary support models that have been standard for years may start with fewer points

HUD also expanded its risk review. Now it can deny funding based on media reports, findings from the inspector general, or public complaints

For Straight Arrow News, I'm Kaylee Carey. Read the full story right now on SAN.com or download the Straight Arrow News mobile app today