Court Temporarily Blocks HUD Shift on Homelessness Funding

In response to a lawsuit challenging a major shift in homelessness funding announced by the Department of Housing and Urban Development (HUD) in November, a federal judge has temporarily blocked the agency from restricting funding for Permanent Supportive Housing (PSH) units.

HUD has a long-standing practice of allowing awards through the agency's Continuum of Care (CoC) program, which supports regional homelessness interventions, to fund permanent, service-enriched housing units. In this year's funding opportunity, HUD capped the amount of each award that could be spent on permanent units for people experiencing or at risk of experiencing homelessness.

The move would jeopardize stable housing for approximately 170,000 people currently living in PSH units, including at-risk older adults. Although HUD recently withdrew their controversial funding guidelines, the agency has yet to re-release them, creating uncertainty and maintaining the potential for harmful policies for the impending funding cycle, which begins as early as January for CoC awardees.

The court's order will temporarily prevent HUD from re-issuing harmful funding policies that limit funds for existing and future PSH units while the court continues to deliberate. LeadingAge applauds the judge's order and will continue to advocate with the agency to fully commit to proven homelessness interventions, including by fully renewing existing PSH contracts for the new year.

Read the plaintiff's press release here.