The Cuyahoga County Office of Homeless Services told council on Oct. 28 that a new federal HUD Notice of Funding Opportunity (NOFO) is expected to cap funding for permanent supportive housing (PSH) and rapid rehousing projects at roughly 30% of prior levels and add mandatory mental‑health or treatment components to funded projects.

Director Lavine Ross said the continuum of care receives approximately $37–$49 million annually for PSH and rapid rehousing; a 30% cap would reduce those allocations to roughly $11 million–$15 million, she said. "If we are capped at 30%, that would take us to — between 11,000,000 to 15,000,000 cap," Ross told council members.

The nut graf: county leaders said the change would force providers and the continuum to shift from a housing‑first model — where clients can receive housing without mandated treatment — to a transitional housing model that includes mandatory mental‑health and treatment components, and that this pivot could leave some clients without an appropriate housing pathway.

Ross described planned operational changes intended to respond to the federal shift, including a redesign of coordinated entry, hiring specialized housing navigators with local market expertise, a forthcoming request for qualifications (RFQ) for standardized shelter inventory, and renovations at Norma Hare and the East 20th shelter locations slated for completion in 2026–27. She also said HUD guidance will shorten application response timelines, increasing staff workload and the need for more Office of Homeless Services personnel.

Ross noted that HUD’s expected funding cap and treatment requirement will create "a compounding change" across the whole continuum and could force projects that previously offered permanent supportive housing without mandated treatment to transition to models with mandatory treatment components. David Merriman, director of health and human services, agreed that the federal change is significant but added that the county and local partners must verify that mental‑health services are available in the community before redesigning housing models.

Ending: Ross requested sufficient staffing to respond to NOFO timelines and to monitor and amend underperforming grants; she warned council that without adequate funding and staffing, the county’s homeless crisis response could be disrupted.