Senate panel debates H.91 plan to shift homeless services to community action agencies

Vice Chair Sen. Martina Lirok Ulek convened the Senate Health & Welfare Committee to take up H.91, a bill that would reorganize the state's Housing Opportunity Program (HOP) by placing major service administration with community action agencies (CAP agencies) and creating regional advisory councils.

The measure drew praise for parts of the proposal but also repeated concerns from providers about capacity, funding and timing. Jeanne Montrose, executive director of Helping Overcome Poverty's Effects (HOPE), told the committee, "I do have concerns about moving, at least moving quickly to decouple that." Montrose recommended a study or phased transition rather than an immediate handoff.

Why it matters: H.91 would shift responsibility for shelter and related supportive services, change reporting and oversight, and includes provisions aimed at reducing reliance on hotels and motels. Committee members said any transition affects budgets, pipelines for housing placement and front-line service capacity.

Committee discussion and provider testimony

Montrose, who leads a longstanding Addison County nonprofit, described HOPE's direct service operations and warned that "we're gonna be faced with so many more challenges" if federal funding is cut and the program is moved too quickly. She recommended a study period and said a realistic transition timeline would be "maybe 3 to 4 years, at the shortest."

Frank, with the Housing Homelessness Alliance of Vermont, told the committee that regional infrastructure already exists: "we already have a strong regional infrastructure," citing two Continuums of Care (CoCs) that cover Chittenden County and the balance of state plus 11 local housing coalitions. He and others said the infrastructure exists but is underfunded.

Lily Sochinger, director of the Office of Economic Opportunity (OEO), provided funding context: "Vermont received just over $4,000,000 in community service block grant funds. Approximately 3,600,000.0 is passed on directly to the community action agencies," and she said HOP also leverages roughly $1.5'$1.7 million in HUD funding.

Brenda Siegel, executive director of End Homelessness Vermont, urged caution about timing, saying the sector and CAPs are "in the middle of currently right now in this moment, handling a pretty chaotic transition," and recommended building clear statewide liaison and planning language into the bill.

Key provisions discussed

- Regional advisory councils: The draft directs creating regional councils early in the timeline so they can help plan and advise on implementation. Committee members debated whether to set a minimum size and how to ensure representative membership.

- Provider selection and reauthorization: The bill text would allow the department to authorize a CAP or another entity to deliver services in a geographically distinct region and requires reauthorization reviews at least every three years.

- Services and shelter definitions: The draft groups services into supportive services, extreme weather event shelters, and emergency shelters (including congregate shelters, master leases, motel use and lease arrangements). The committee clarified that CAPs are intended to coordinate with existing housing coalitions and coordinated entry systems rather than replace them.

- Motel and hotel use: The bill includes an intent to decrease reliance on hotels and motels, requires data reporting about motel use, and contemplates negotiated block rates if motels are used.

- Reporting and data: The draft creates monthly reporting requirements to policy committees (to be transitioned to quarterly reporting after an initial period) and an initial and triannual regional needs assessment tied to existing planning requirements. The report items include numbers served by region and provider, beds available (including low-barrier beds and domestic violence beds), diversions, transitions to permanent housing, and barriers from local regulations.

Budget and capacity concerns

Multiple senators and providers flagged budget and staffing constraints. Committee members asked for CAP-provided inventories of existing services and clearer budget estimates for ramping up administration. Montrose and others warned that diverting funds to administration would reduce service money and that local mental-health providers already have high vacancy rates.

Process and next steps

Several committee members supported adding a study or demonstration phase to test whether one or two CAPs can deliver the full range of services before statewide rollout. Staff said they would incorporate requested clarifications on data flows (OEO and CAP reporting) and intake/assessment standards into forthcoming drafts and the October 1 reporting requirement.

Ending

Committee members agreed to continue mark-up work and asked agencies and CAPs to provide inventories, budgets and recommendations to inform an October report and future bill drafts. No formal motions or votes were recorded during the session.