Supportive-housing advocates press Legislature for $25 million appropriation after state pilots show high retention and cost offsets

Supportive‑housing providers and state officials asked the House Appropriations Subcommittee on Human Services for a $25 million appropriation for FY 2026, saying previous state investments produced high housing retention and reduced public costs.

Catherine Distel Tilrath of the national nonprofit Corporation for Supportive Housing told the panel the program pairs affordable housing with intensive case management for people who are chronically homeless and have disabling conditions. “Supportive housing at its core is really affordable housing paired with supportive services,” Distel Tilrath said, summarizing why providers argue the combination improves outcomes.

The request follows two recent state allocations: a $6 million FY 2023 appropriation and a $20 million FY 2024 supplemental allocation. Distel Tilrath said the FY‑23 funds supported programs that served 470 supportive‑housing residents at a reported 98% housing‑stability rate, and that 82% of those residents maintained or increased income while in the program. She said the FY‑24 funding is expected to serve roughly 2,000 additional residents once MDHHS announces final grantees, and that a $25 million FY‑26 appropriation is estimated to serve about 3,125 residents overall.

Becca Binder of Northwest Michigan Supportive Housing, which serves five rural counties centered on Traverse City, described how case…