Overview
- Housing officials told a Rhode Island court they withdrew November’s Continuum of Care notice to reassess legal issues and will reissue a revised policy before January obligations.
- U.S. District Judge Mary S. McElroy called the reversal “intentional chaos,” set a Dec. 15 deadline for HUD to justify the withdrawal, and scheduled a Dec. 19 hearing without ruling on emergency relief.
- The shelved plan would have capped permanent supportive housing at 30% (down from about 90%), prioritized transitional programs with work and treatment conditions, and barred funding tied to DEI, “gender ideology,” and groups serving transgender communities.
- States, cities and nonprofits suing the administration say the overhaul violates federal law and warn it could put more than 170,000 people at risk, with local estimates including roughly 1,400 units in Maricopa County, more than 5,000 L.A. households, about 1,200 Mainers, and 88 beds in Manchester, N.H.
- HUD says it stands by its “fundamental reforms” and plans to reissue the notice with technical corrections, while local agencies report uncertainty over timelines, eligibility and potential funding gaps as application work continues toward Jan. 14.