Overview
- HUD pulled the Continuum of Care funding notice hours before a hearing on a requested temporary restraining order by cities and nonprofits.
- The agency says it will quickly reissue a modified notice and remains committed to reforms that would shift dollars away from long-term housing to shorter-term programs.
- The contested plan would reduce permanent supportive housing from roughly 87% of awards to about 30%, according to advocacy groups and court filings.
- A separate suit by 19 state attorneys general and two governors is also pending, with plaintiffs including Boston, San Francisco, Tucson, and national nonprofits.
- Local providers report funding uncertainty and potential gaps, with Central Alabama estimating a $5.9 million hit and advocates warning more than 170,000 people could be re-exposed to homelessness.