Wake County proposes $22 million two-year 'surge' to reduce unsheltered homelessness

Eileen Rosas, Continuum of Care Director for Wake County, told the Raleigh City Council work session that HUD has released renewal funding for three projects that expired in the first quarter of 2026 and that a new notice of funding opportunity is expected in June or July.

Rosas said the first circuit court of appeals recently upheld a preliminary injunction requiring HUD to process FY25 renewals and that the COC's current yearly receipts across all projects total about $6.1 million, with FY26 eligibility potentially reaching $7.5'$7.8 million depending on HUD's final calculations.

Those federal updates framed Rosas' broader presentation of system performance measures and a proposed strategic initiative. Rosas summarized seven HUD system performance measures (length of time homeless, returns to homelessness, number experiencing homelessness, employment/income growth, first-time homelessness, placement retention and related submeasures), and said the COC is re-basing metrics after a leadership and database transition. "We are moving forward with renewals and are on standby to continue those projects," she said.

Why it matters: HUD's notice of funding opportunity awards points for systemwide performance; Rosas warned that accurate metrics affect competitiveness for federal dollars. She said local performance shows a decline in first-time homelessness inflow and that street-outreach teams achieved nearly a 50% exit-to-permanent-housing rate immediately after engagement; permanent supportive housing retention was reported near 97%.

Rosas recommended a phased, two-year surge (phase one through calendar year 2027) to accelerate reductions in unsheltered homelessness. The plan calls for housing 1,400 households in phase one'specifically 400 via a direct-to-housing approach (targeting unsheltered households) and 1,000 via rapid-resolution flex funds and move-in assistance. Rosas outlined a three-part approach: (1) direct-to-housing for prioritized encampments and high-risk unsheltered sites; (2) flexible rapid-exit funds and landlord engagement to prevent longer shelter stays; and (3) integrated multidisciplinary teams for complex-care cases.

Cost and funding: Rosas said the two-year surge is estimated at $22 million to cover unit acquisition, rapid-exit staff, flex funds, landlord incentives, rental assistance and stabilization case management. She said roughly $12 million in public commitments have been identified from the City of Raleigh and Wake County and that the remaining $10 million gap would be sought from private philanthropic partners or other sources. Rosas said the initiative is planned for a formal launch in July, though not all funds need to be available on day one.

Council members asked how the COC will measure returns to homelessness and length of shelter stays given known data gaps. Rosas acknowledged data limitations tied to the COC transition and a database change, and said the COC is reinstating questions (for example, last ZIP code of residence) to better track movement and regional inflow. She also said direct grantees and emergency solutions grant recipients remain required participants in COC governance and report into the system.

Rosas named local governance leads and partners in the room, including Meredith Yakman, COC Governance Board Chair from the Hope Center at Pullen, and Eric Braun, COC Governance Board Vice Chair. She said staff are working on fiscal structures for a public'private partnership, including using a foundation or nonprofit as a fiscal agent to hold and quickly distribute private flex funds.

Next steps: Rosas said staff will continue refining metrics, finalize program models and return with more details as the COC and municipal partners align funding and operational roles. The city's housing and county staff will continue coordination with municipal managers across Wake County to ensure regional coverage of outreach and services.

Ending: Rosas closed by saying more updates will follow as the COC and partners develop the launch materials and funding plan.