Overview
- The suit, filed in the U.S. District Court for the District of Rhode Island, challenges HUD’s November 13 rescission and replacement of the Continuum of Care funding notice.
- Plaintiffs include San Francisco, Santa Clara County, King County, Boston, Cambridge, Nashville, Tucson, the National Alliance to End Homelessness and the National Low Income Housing Coalition.
- Filers allege violations of the Administrative Procedure Act and the congressionally authorized two-year grant cycle, arguing HUD unlawfully forced reapplications and rewrote criteria late in the process.
- The new notice caps permanent housing spending at 30%, restricts funding tied to diversity, transgender support and harm-reduction practices, and favors jurisdictions that enforce encampment bans.
- Local officials warn of immediate gaps with awards not expected until May, including a projected $40 million shortfall in King County threatening housing and services for about 4,500 households, while HUD defends the shift as a move away from Housing First.