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HPC hears warning of possible HUD shift away from permanent supportive housing; local contingency planning, provider convening set for Nov. 17
Summary
Allison Lisonbee, policy staff with the Office of Homeless Services, told the Homelessness Planning Council that HUD had not issued a NOFO and that press reports and anonymous HUD sources suggested a major restructuring of Continuum of Care funding that could sharply reduce money for permanent supportive housing.
Allison Lisonbee, policy staff with the Office of Homeless Services (OHS), told the Homelessness Planning Council on an October meeting that there is no HUD Notice of Funding Opportunity (NOFO) yet and that press reports and anonymous internal HUD sources suggest a possible “a really major restructuring of the COC program,” including steep cuts to permanent supportive housing funding and a shift toward transitional housing with work or service requirements.
Why it matters: Nashville has invested in PSH as an evidence-based way to house people with high needs. Lisonbee said a sudden national policy shift could reduce resources for people relying on long-term subsidies and urged local planning. “We know that PSH ... is an extremely cost effective model,” she said, summarizing program evidence and local practice.
OHS staff said HUD staff furloughs during the federal shutdown likely explain delays in the NOFO. Lisonbee also summarized litigation and reporting connected to recent COC Build NOFOs: she said the National Alliance to End Homelessness (NAEH) sued HUD over grant conditions tied to a COC Build NOFO and that awards for a prior NOFO reportedly were decided but not publicly announced; she said Nashville was not on a leaked list of awardees.
Council members asked who would assess local impact if HUD changes program rules. Lisonbee pointed to the Performance Evaluation Committee, which handles rating and ranking for CoC-funded projects; she said the PEC has been discussing contingency options and will meet the following week to begin concrete planning.
OHS said it has prepared an internal report that maps CoC-funded agencies, the projects they run, populations served (including families and people with disabilities), and the number of permanent housing subsidies supported by those projects. Staff said that report can be used to estimate what households and services would be at risk under different federal scenarios.
To broaden planning, OHS and the HPC executive committee proposed a citywide convening of providers and philanthropic partners to discuss contingency planning and collective capacity; the meeting is scheduled for Nov. 17, 10 a.m.–12 p.m., at the Community Foundation of Middle Tennessee. OHS said the convening will include organizational leadership and aims to incorporate substance use, mental health, housing developers and philanthropic representatives to craft contingency options and shared priorities.
Discussion but no formal vote followed. The Council asked OHS to share its local impact estimates with the PEC and to work toward concrete numbers showing how many households could lose permanent subsidies under different policy scenarios.
