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Peoria officials warn federal funding changes could affect about 250 permanent‑supportive housing units
Summary
City staff told council a federal NOFO change shifts guaranteed pass‑through funds to a more competitive model and limits the portion available for permanent supportive housing, potentially affecting roughly 250 units in the Peoria area and forcing local providers to reassess program types.
Director of community services Doolin briefed the council on a recently released federal Notice of Funding Opportunity (NOFO) that reshapes funding for the Continuum of Care (CoC) program and could significantly affect local supportive‑housing capacity.
Doolin said the funding formula has shifted so that roughly 30% of the prior pass‑through funding is now guaranteed and 70% is returned to a competitive process; of the guaranteed portion, only 30% may be used for permanent supportive housing. "That is shifted and changed to where 30% of that amount is guaranteed, and then the other 70 goes back into a competitive grant process," Doolin said. Locally, staff estimate about 250 permanent‑supportive housing units receive CoC funding today and could face conversion pressures to transitional housing (a 24‑month model) or potential loss of funding.
Doolin warned that the shortened NOFO timeline (reduced application window because of a federal delay) complicates planning and could force nonprofit partners to make rapid decisions. Councilmembers urged staff to inform congressional offices and to keep the council updated as local agencies decide whether to convert units to transitional housing or pursue competitive awards.
Why it matters: The NOFO change touches the city's most vulnerable residents; a reduction in guaranteed supportive‑housing funding could require programmatic shifts and rapid planning among local providers.
