Housing advocates and providers warn HUD changes, urge county action to protect homelessness programs
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Summary
At Montgomery County’s Dec. 4 proposed 2026 budget hearing, housing advocates warned that recent HUD policy changes could cut local Continuum of Care funding and urged the county to consider legal challenge, while providers highlighted county investments adding 70 new supportive beds and roughly $3 million in annual operations support.
Housing advocates told Montgomery County commissioners on Dec. 4 that sudden federal changes could substantially reduce funds used for emergency and permanent housing, and asked the county to prepare for service interruptions and possible legal action.
"Last month, HUD enacted these changes with no public notice" said Mike Hayes, director of the Montco 30% project and a Pottstown resident, during public comment. Hayes said Pennsylvania received $177,000,000 in Continuum of Care (CoC) funding last year and that Montgomery County could lose about $3,700,000 in rapid rehousing, transitional and permanent supportive housing, affecting roughly 172 households. He told commissioners the changes cap permanent housing funding at 30% (down from what he characterized as roughly 90%) and impose conditions Hayes called unlawful for providers who serve or acknowledge LGBTQ+ Pennsylvanians.
"When practical, I encourage Montgomery County to challenge these orders in court," Hayes said, urging legal review and contingency planning while acknowledging counties cannot fully backfill federal shortfalls.
Representing a service provider, Brian Matthew Rhodes, CEO of Resources for Human Development (RHD), described RHD’s long history in Montgomery County and recent expansion of two short-term supportive housing programs in Lansdale and Norristown that together will add about 70 beds. Rhodes said the county has invested roughly $3,000,000 annually in the operations of these sites, in addition to substantial capital to develop both locations, and thanked commissioners for the partnership that enabled the projects.
Hayes and Rhodes both warned that abrupt federal policy shifts and funding reductions could force program redesigns on short timelines, risk interruptions to services and increase pressure on local budgets and providers. Hayes recommended legal action where feasible; Rhodes emphasized the importance of continued county support to preserve access and avoid displacement.
The speakers’ comments were part of the public-comment portion of the December 4 proposed 2026 Montgomery County budget hearing. The transcript of the session does not record any immediate action by the commissioners in response to these requests.