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City manager warns of federal housing funding changes that could shift support toward transitional housing

Rio Del City Council · November 19, 2025

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Summary

The City Manager reported that proposed federal formula changes would shift funding away from permanent supportive housing toward transitional programs beginning in January with a two-year runway; the city will monitor impacts on a local permanent supportive housing project.

The City Manager reported to the council that recent federal guidance and funding-formula proposals could shift funding away from permanent supportive housing toward transitional housing models. The manager said implementation timelines appeared to begin in January with roughly a two-year runway and that the city would continue to monitor developments.

The City Manager noted Rio Del has a local permanent supportive housing project “off of a center in Brittany” and that staff do not expect an immediate impact but will track changes and assess potential implications for funding eligibility and project operations. No council action was taken; the update was informational and staff offered to return with further details as the federal rulemaking and guidance evolve.