Detroit officials recommend about $5 million in homeless-services funding; Legal Aid files appeal

Detroit housing officials on the Committee of the Whole presented funding recommendations for the city’s Homelessness Solutions Notice of Funding Availability (NOFA), proposing roughly $2.7 million in Emergency Solutions Grant (ESG) funding combined with about $2.4 million in Community Development Block Grant (CDBG) dollars — just over $5 million total — to support emergency shelter, warming centers, street outreach, rapid rehousing and homelessness-prevention activities.

Tara Linsner, Homelessness Solutions Division director in the Housing and Revitalization Department, told council, “we expect approximately $2,700,000 to be allocated under emergency solutions grant or ESG funding. And then as emergency solutions grant requires a dollar to dollar match, we do have $2,400,000 of community development block grant funding that is combined with this NOFA for an anticipated expected amount to be over just, just over $5,000,000.”

The recommended awards cover 31 activities across multiple program components and list 21 subrecipients HRD proposes to fund. Linsner said HRD also recommends two noncompetitive awards: $185,000 to the Homeless Action Network of Detroit (HAND) for required data entry into the Homeless Management Information System (HMIS), and $200,000 to Wayne Metro Community Action Agency for coordinated entry and the CAM call center. "This is a federal, this is a federal requirement," Linsner said of HMIS reporting.

Why it matters: the Council must adopt a resolution to finalize awards so HRD can issue contracts in time for warming-center operations to begin Nov. 1. Linsner told council she is recommending two-year subrecipient agreements that would set the same annual amounts for 2026 and 2027, contingent on future HUD ESG/CDBG allocations and local performance reviews.

Most important details

- Emergency shelter: HRD received 14 applications and recommended funding six providers for just under $1.5 million in total. Michigan Veterans Foundation was recommended to receive the full amount requested, about $204,293; four larger shelters were recommended at $277,000 each; Covenant House of Michigan was recommended at $120,000. Several shelters that currently receive ARPA or general-fund support were not recommended for ESG/CDBG awards this NOFA cycle.

- Warming centers: HRD received four applications and recommended all four, at a combined total of about $500,000. Some awards are set at a capped amount (about $220,000) and two smaller programs at $100,000 each to ensure seasonal beds come online.

- Street outreach: four applications; HRD recommended all four at just over $1,000,000 total, with per-agency caps (approximately $350,000).

- Rapid rehousing: three applications recommended for funding at just under $1 million total. Alternatives for Girls scored 76 percent but was recommended at a reduced rate because rapid rehousing is the only housing intervention eligible under these federal funds and the system needs more outflow into housing.

- Homelessness prevention: four applications; HRD recommended two providers, totaling about $450,000.

- Noncompetitive awards: HAND ($185,000) for HMIS and Wayne Metro ($200,000) for coordinated entry/CAM staffing.

Council questions and public concerns

Several council members pressed HRD for additional detail about providers that scored below HRD’s informal 80 percent benchmark or were not recommended for ESG/CDBG funding. Council member Scott Benson asked specifically about Detroit Rescue Mission’s Gratiot site and whether the provider’s existing general-fund contract (through June 30, 2026) would prevent service disruption. "A lot of meetings with HRD to get the community on board... now I'm seeing that they're not being recommended for the CDBG dollars because of low score," Benson said, asking whether the city had accounted for neighborhood stability.

Linsner said providers that did not receive ESG/CDBG awards in this NOFA frequently hold general-fund or ARPA contracts that HRD expects to continue through June 30, 2026. "We do not anticipate that the funding that not being recommended for ESG or CDBG funding would result in shelters closing or having to reduce beds," she said.

Council members also requested HRD provide more transparent scoring breakdowns for specific providers and a map showing shelter and service locations across the city. Linsner agreed to provide a map and more detailed scoring information to council offices before a reconvened session.

Appeals and next steps

Chris Gulak, city planning/CPC staff, explained the appeals process: organizations not recommended for funding can submit appeals to council for reconsideration and HRD will review and respond. Gulak said HRD had received one appeal over the weekend from Legal Aid and Defender Association and forwarded it to the city clerk; that was the only appeal filed at the time of the hearing. Michelle Johnson, chief executive officer of Legal Aid and Defender Association, spoke during the appeals portion and said the organization’s proposal would provide rental assistance and housing-navigation supports for people facing eviction and other barriers. "This particular funding request ... will provide rental assistance, assistance with locating, alternate housing, especially for those who are lowest income, seniors, disabled," Johnson said.

No awards were finalized during the hearing. Council deliberations on recommendations and any appeals are scheduled to reconvene Wednesday at 2 p.m., with a Council vote on funding sought for Tuesday, May 20 (as noted during the hearing). HRD also told council it will continue quarterly performance reviews and retain contract cancellation authority if subrecipient performance jeopardizes resident outcomes.

Public comment at the hearing raised housing-stability concerns including recent evictions and shelter safety. Speakers asked the city to prioritize preventing evictions and to improve oversight of funded shelter providers.

What remains unresolved

HRD’s recommended awards, specific scoring rationales for providers that missed informal thresholds, and any council adjustments requested during reconvened sessions. Legal Aid’s appeal will be reviewed; HRD said it will provide analysis to council before the next meeting. Council members also said they want a shelter-location map and additional performance data for providers.

Ending note

The Committee of the Whole closed the public hearing and moved to the appeals portion of the NOFA process; council members and HRD staff agreed to exchange requested scoring details and location data ahead of the reconvened session and final Council action.