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Maine Warns 1,200 Could Lose Housing After HUD Caps Supportive Housing Funds at 30%

Maine is rushing new grant applications, with legal action under consideration over public health risks including an HIV outbreak.

Overview

  • Housing officials say roughly 1,800 Mainers currently rely on Continuum of Care aid, with more than 300 in Bangor.
  • HUD’s new notice limits Continuum of Care awards so no more than 30% can fund permanent supportive housing, a major shift away from housing-first.
  • Maine received about $22 million last year, more than $16 million of which supported permanent supportive housing, highlighting the scale of the potential cut.
  • Gov. Janet Mills and providers warn the policy could quickly increase unsheltered homelessness, and Bangor’s public health director says it could worsen an ongoing HIV outbreak.
  • Applications are due Jan. 14, as bipartisan lawmakers nationally urge HUD to pause the changes and providers warn of widespread displacement.