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Department of Community Affairs proposes $50 million trust to target unsheltered homelessness

House Appropriations Subcommittee on Economic Development Appropriations ยท January 28, 2026

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Summary

Commissioner Christopher Nunn said the $50 million one-time proposal would fund competitive local grants to address unsheltered homelessness, emphasizing locally driven solutions and leveraging local matching funds rather than centralized fundraising.

Christopher Nunn, commissioner of the Department of Community Affairs, briefed the subcommittee on a proposed one-time $50,000,000 allocation to the State Housing Trust aimed at addressing unsheltered homelessness. He said the funds would be distributed through competitive grants to local governments and nonprofit partners and emphasized tailoring grants to local conditions.

Nunn described the complexity of homelessness and cited research showing rent increases correlate with rising homelessness; he said the proposed funds would be used for capital and service-related solutions and would be expected to leverage local matching dollars and philanthropic commitments. He stressed the department will require reporting and data from grant recipients to evaluate outcomes.

Nunn also updated members on previous disaster-related grants: the department made 17 grants from a prior $25,000,000 allocation totaling about $13.8 million and reported thousands of pre-applications for federal disaster funds; the agency continues to process applications for housing repairs under those programs.

Members asked clarifying questions about program design; no formal vote occurred in the hearing segment.