The Department of Housing and Urban Development has temporarily paused a policy change that would redirect support from permanent housing toward transitional housing and move most funding into a nationally competitive pool, Politico reported Dec. 8.
Two lawsuits — one from a coalition of 21 state attorneys generals and governors and another from a group of 11 local governments and nonprofit organizations — are challenging HUD’s recent changes to the Continuum of Care program.
About 90 minutes before a Dec. 8 court hearing, HUD rescinded the policy change “to assess the issues raised by plaintiffs in their suits and to fashion a revised [notice of funding opportunity],” according to the court filing.
The policy change would have capped funding for permanent supportive housing at 30%, down from 90%, and require grantees to implement transitional housing programs with services requirements. It would also allow HUD to deny funding to organizations that recognize transgender or nonbinary individuals.
U.S. District Judge Mary McElroy ordered HUD to submit new arguments next week addressing the last-minute change.
“The department intends to make resources available in a timely manner so grantees with measurable results can continue to support vulnerable populations. The department remains fully committed to making long overdue reforms to its homelessness assistance programs,” a HUD spokesperson said in a statement.
