Committee approves roughly $3.5 million for homeless services and housing resources beginning in 2026

The City of Madison Finance Committee voted unanimously to approve a 2026 funding package that directs roughly $3,500,000 of combined city and federal funds to support homeless services and housing resources beginning in 2026. The allocation follows a competitive request-for-proposals process run by the Community Development Division (CDD) and funds a mix of prevention, emergency and housing stabilization programs offered by nonprofit providers.

Director Lynette Rhodes and staff described the major components of the recommended awards. The package continues an eviction diversion and eviction-defense program that began with use of HOME-ARPA funds; staff recommended stretching about $915,000 of those one-time ARPA HOME funds across a multi-year schedule so the prevention work continues beyond the immediate spending year. Rhodes said the unit views this as a prevention activity and told the committee, “we will be extending that very popular prevention program.”

The funding recommendations also prioritize emergency shelter operations and street outreach services, with specific support directed to rapid rehousing slots and continued funding for street outreach teams. The community development director told the committee staff expect the city to maintain increased shelter budget authority as the purpose-built shelter expected in 2026 comes online. Porchlight received a recommendation in the package for continued support of scattered-site permanent housing placements.

Council members questioned the sources and constraints of the funding. Rhodes explained the funding mix to the committee: roughly $1.7 million of city levy contribution; a one-time HOME-ARPA allocation to extend eviction diversion and defense; about $165,000 in HUD Emergency Solutions Grant funds; reallocated Community Development Block Grant (CDBG) public service funds (the CDD staff had previously used a portion of CDBG public service funds for neighborhood centers but proposed shifting those CDBG amounts into contracts for homeless services); and use of HOME program tenant-based rental assistance (TBRA) as a housing voucher-like tool in some cases.

Alder Figueroa Cole asked staff to clarify the funding sources for committee members and the public; Rhodes walked through each pot and how it would be used. Alder Pritchett asked how the city will track performance measures submitted in the RFP; staff replied that contract performance will be monitored through the homeless management information system (HMIS), quarterly reporting and annual performance reports to the CDBG committee. Rhodes said performance measures (length of stay, exits to permanent housing, and other objective measures) are spelled out in the RFP and will become contract obligations; agencies will submit quarterly reports and the city will review outcomes annually.

The committee recorded a unanimous vote in favor of the resolution to implement the funding recommendations and to authorize the mayor and city clerk to enter into agreements with selected nonprofits to implement the specified programs and services.

Votes and formal action

- Item: Legistar 89724 — Authorizing allocation of approximately $3,500,000 of combined city and federal funds among seven nonprofit agencies to support homeless services and housing resources beginning in 2026 (resolution). Motion carried unanimously; committee recorded a unanimous vote in favor and moved the resolution forward for council action.

What this means locally: The package is intended to preserve eviction-prevention capacity and maintain emergency shelter and outreach capacity while directing resources into rapid rehousing and other housing-stability programs. Contracts will include performance measures and reporting tied to HMIS; staff said they will bring annual and quarterly performance data to the CDBG committee and to the finance committee as part of contract oversight.