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Facing HUD shift, Butler County opts to submit transitional‑housing focused Continuum of Care application
Summary
After reviewing a HUD NOFO that limits permanent supportive housing to 30% of applicants' allocations, the Butler County Commission unanimously directed staff to submit Option 2, prioritizing transitional housing and an accompanying housing stabilization plan, to the balance‑of‑state Continuum of Care.
Butler County commissioners voted Dec. 2 to instruct staff to submit a Continuum of Care application to the Balance of State that prioritizes transitional housing under the U.S. Department of Housing and Urban Development’s recent Notice of Funding Opportunity.
The vote followed presentations by county housing staff and Mindy Mueller, the county’s third‑party Continuum of Care administrator, who outlined two submission options: Option 1 would preserve roughly 64% of current permanent supportive housing (PSH) placements by requesting a renewal at approximately $970,885 while applying other funds to transitional projects; Option 2 would align with HUD’s priority by capping PSH allocations near 30% and using the remainder for transitional housing with service and stabilization supports.
Mindy Mueller told the commission, "That would keep 64 of the households, or 64% of the households currently served in PSH housing," describing Option 1’s effect on existing placements. She also described the complications of automatically moving PSH participants into transitional housing, including eligibility rules that require a showing of imminent risk of homelessness for transitional housing placement.
After deliberation, the administrator read a draft motion authorizing the county administrator to submit the Continuum application in the form presented. Commissioners amended the motion and, by unanimous direction, selected Option 2 to be submitted to the balance of state. "So then, I understand. So it's unanimous. Commissioners prefer the option 2 and only submit option 2," the chair stated during final deliberations.
Why it matters: HUD’s NOFO shifts federal preference toward transitional housing and establishes a 30% cap (for PSH priority) in the competing rubric; counties in the balance‑of‑state must now weigh preserving current PSH residents against federal eligibility priorities that affect total federal dollars available locally. Staff said the changes would take effect beginning Sept. 1, 2026, and emphasized a housing‑stabilization strategy will be necessary to minimize harm for people who must transition out of PSH.
Next steps: Staff will submit the Option 2 application to the balance‑of‑state Continuum of Care and coordinate with state Balance of State administrators; the county administrator was authorized to sign documents to effectuate the submission. The county will return with updates after balance‑of‑state consolidation and conversations with Ohio’s CoC administrators.
