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Assembly hears plan to reallocate HOME-ARP funds to extend rental subsidies after ERA2 expires
Summary
Officials said the administration will propose reallocating some HOME-ARP funds to continue rental assistance for households whose ERA2 subsidies end Sept. 30; committee members stressed pairing subsidies with case management and sustainability supports.
City staff told the Assembly they plan to reallocate HOME-ARP funds to extend rental subsidy support for programs that served the most people exiting homelessness, because Emergency Rental Assistance Phase 2 (ERA2) expires Sept. 30.
Thea Agnewbemben said the administration will target HOME-ARP money to grantees that “served the largest number of people who came out of homelessness into that rental subsidy” because HOME-ARP does not have the ERA2 time limitation.
Assembly members emphasized designing supports that help households progress toward long-term stability, not only short-term rent payments. One member asked how the HOME funding could support case management and employment or other services to reduce long-term subsidy dependence.
Staff noted HOME funds are an annual program (roughly $700,000 per year was cited as a baseline HOME allocation), and that budgets and reallocations would be considered during the 2026 priorities and budgeting process. Staff suggested pairing rental subsidy dollars with partner programs such as Housing First and targeted voucher programs (including returning-home vouchers for people exiting corrections and moving-home vouchers for people with disabilities) operated by other housing partners.
Why it matters: Reallocating HOME-ARP could sustain rental assistance for households losing ERA2 subsidies; committee members said any subsidy extension should include case management or pathways to economic stability.
What’s next: Staff said reallocations will come forward in the City budgeting process; the committee requested more detail on how case management and sustainability supports will be paired with rental assistance and the total HOME funds available for such reallocation.
