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Finance committee approves $3.5 million allocation for homeless services, extending eviction‑prevention program
Summary
The committee unanimously approved a $3.5 million package combining city levy and federal funds to support homeless services and housing resources in 2026, funding prevention (eviction diversion/defense), emergency shelter operations, street outreach, extreme‑weather hotel stays and rapid‑rehousing programs.
The Madison Finance Committee unanimously approved legislation to allocate approximately $3.5 million in combined city and federal funds across seven nonprofit agencies to support homeless services and housing resources beginning in 2026.
Lynette Rhodes, deputy director with the Community Development Division, and Director Jim O’Keefe briefed the committee on the results of a competitive RFP and staff recommendations. Rhodes said the package is intended to preserve a mix of prevention and crisis response programs: tenant services and eviction diversion and defense, rapid rehousing and landlord‑based scattered‑site permanent housing placements, emergency shelter funding and outreach, and an extreme‑weather hotel program that provides short stays on heat, cold or poor‑air days.
Rhodes told the committee about the funding mix: roughly $1.7 million from the city levy, one‑time HOME American Rescue Plan (HOME‑ARP) funds used to extend a popular eviction diversion and defense program (about $915,000 recommended to be stretched across multiple years), an estimated $165,000 in Emergency Solutions Grant (ESG) funds, Community Development Block Grant (CDBG) program allocations and a tenant‑based rental assistance (TBRA) allowance within HOME funds to support security deposits and initial rent assistance where eligible.
Committee members pressed for transparency and measurable outcomes. Ald. Pritchett and others noted the RFP requires applicants to submit measurable goals tied to HMIS (the regional homeless management information system) and quarterly performance reports; Rhodes said these metrics – length of stay, exits to permanent housing and other standard indicators – are included in contracts and subject to annual review by the CDBG committee. If providers miss targets, staff will meet with them and consider reallocating funds the next year.
The committee voted to approve the recommendations and forward contracts and authorization to the mayor and city clerk for execution.
Funding highlights reported to the committee include an emphasis on maintaining outreach and shelter capacity while ramping permanent‑housing connections through rapid‑rehousing and TBRA uses of HOME funds. Rhodes said the city intends to align federal resources and city levy funding under CDD contracting to streamline oversight and reporting.
