Orange County supervisors debate urging HUD to renew homelessness grants as funding risks imperil hundreds

The Orange County Board of Supervisors spent much of its Dec. 16 meeting considering whether to ask the U.S. Department of Housing and Urban Development to renew existing Continuum of Care (CoC) grants for 12 months after HUD abruptly removed a NOFO from its website.

Supervisor Sarmiento asked the board to "direct staff to transmit a letter from the board to HUD and the Orange County congressional delegation" to request one-year renewals so local programs would not lose funding; he told the supervisors that the county could lose funding that supports hundreds of households if action were not taken. "We have over 300 households that will be compromised and more than $11,000,000 in funding will expire," he said.

Doug Beck, director of the office of care coordination, told the board the issue is timing and administration of awards rather than an immediate policy dispute. He said HUD had pulled its November NOFO and that, because several local grants expire early in 2026, a renewal option could prevent service interruptions. "The urgency around this letter is to ask HUD to honor the two-year NOFO and renew all of the existing grants so that it provides everybody with timing to adjust," Beck said, adding that eight grants expire between January and June and that those eight serve about 324 households; the broader set of grants serve roughly 1,100 households.

Supervisors were divided on procedure and risk. Supervisor Wagner said he was sympathetic to the problem but criticized the timing and staff process, arguing the board lacked the draft letter and adequate time to assess possible consequences. "There is a question about just the basic facts in the letter," Wagner said, adding that jumping in before a federal court is expected to rule could make the county a target and potentially jeopardize future funding.

Vice Chair Foley and Supervisor Sarmiento said immediate engagement with HUD and the county's congressional delegation was warranted to prevent service gaps. Foley said her office had already sent a letter urging congressional help and that staff had prepared a draft the board could edit.

After extended public comment and back-and-forth among supervisors about precise counts and legal timing, the board did not take a final, binding vote to send a single board-signed letter to HUD on Dec. 16. Instead, supervisors agreed to place the item on the Jan. 13, 2026 agenda for fuller review of the draft letter and supporting schedule; several supervisors said they would also send individual letters in the interim.

Why it matters: the CoC grants fund permanent and supportive housing and care coordination that local providers rely on to keep people housed. Staff said the immediate risk involves a subset of grants expiring early in 2026; failing to bridge those awards could force providers to reduce services or pause programs that help people maintain housing.

What happens next: the matter will be agendized for Jan. 13, when supervisors said they expect to review the drafted letter and a schedule of grant expirations. The county's office of care coordination offered to share a more detailed list of affected grants and households with the board in January.

Representative quotes

"I am asking that we direct staff to transmit that letter to HUD and our congressional delegation ... to prevent any disruptions to programs and maintain our housing stability for those that rely on those monies," Supervisor Sarmiento said.

"If we're still looking and do not have any direction by HUD by Jan. 13, we will be in serious concern," Doug Beck told the board.

"I'm not sure why we are sending a letter to something that a court could resolve next week," Supervisor Nguyen said, urging caution and a full review at the next meeting.

Provenance: topicintro SEG 1460, topfinish SEG 2760.