Joint committees keep 15% contingency in Housing Initiative Fund as HUD cuts loom

Montgomery County's joint Health and Human Services and Planning, Housing & Parks committees on Monday ratified the County Executive's recommended FY2027 rental assistance budget and agreed to keep a 15% contingency in the Housing Initiative Fund (HIF).

Scott Bridal, director of the Department of Housing and Community Affairs, told the committee, "We recommend that the contingency be left as is," arguing that the contingency allows DHCA and HHS to collaborate through the year and apply funds where needs materialize. The staff presentation showed $28,300,000 recommended for rental assistance programs within a $52,300,000 HIF total and identified a $4,300,000 contingency (about 15% of the rental assistance total).

The contingency retained its advocates at the table. Christine Hong, chief of services to end and prevent homelessness for the county's HHS, warned that recent federal changes to HUD renewal rules could force the county to replace roughly $4.3 million in federal support and said the contingency would be an important buffer: "It is likely 40% of our federally funded housing programs will be cut in 2026," she said, adding the county must be prepared because that funding supports about 350 people.

Committee members repeatedly framed the choice as one between short-term budget offsets and preserving county flexibility to respond to emergent needs. Council Member Andrew Friedson said he appreciated the department's concerns but urged discussion about where final allocation authority should rest. With no objection to staff's restated recommendation, the committee approved the executive'recommended HIF rental assistance program funding and kept the contingency at 15%.

The full County Council will review committee decisions next week as it considers the broader FY27 operating budget.