Continuum of Care official warns HUD renewal funding cut could remove ~250 permanent housing units

Kate Green, representing the Home for All Continuum of Care, told the Peoria County Health Committee that a newly released HUD Continuum of Care grant competition sharply reduces secure renewal funding for local permanent supportive housing. "Historically, it's been 90% of our renewal costs. This year, it's down to just 30% of that renewal cost," she said.

Green said the continuum's annual renewal demand to fully fund last year's programs is just under $2.3 million, while the cap for permanent housing in the new competition is under $690,000 — a reduction of about $1.35 million. She said that change could translate to a reduction of roughly 250 permanent supportive housing units in the four-county service area (Peoria, Tazewell, Woodford, Fulton) and would likely drive increased shelter use unless contingency plans are developed.

She described how HUD's competitive scoring appears to penalize systems that show an increase in unhoused people, saying increases are treated as a failure in the competition instead of a signal of need. "If you've seen an increase, that is considered a failure on the part of your system, and so you're actually not getting the points," Green said, adding that other data elements and system-performance measures have been scaled back in the current competition.

Green urged planning, advocacy and local contingency work, noting shelters are largely at capacity and many providers already manage liabilities like leases that assume current funding levels. Committee members asked about methodology and data; Green said the point-in-time count is one-night snapshot and that the continuum has strengthened outreach and counting in rural areas, which can increase reported totals.

Green said the continuum will continue advocacy efforts and asked the committee to be aware of impending federal funding changes.