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HUD policy shift puts roughly $3 million of local Continuum of Care funding at risk, task force says
Summary
Winter Shelter Task Force presenters told commissioners HUD’s new tiering moves around 40% of local renewal funding into a national competition, leaving approximately $3 million of Washtenaw’s annual $7.5 million renewal demand uncertain and prompting local agencies to reconfigure grants.
Amanda, a Winter Shelter Task Force presenter, outlined a change in HUD’s Continuum of Care funding approach that reduces the portion of locally guaranteed renewal funding and places about 40% into a national, competitive pool.
She said Washtenaw’s annual CoC renewal demand is roughly $7.5 million and that HUD’s change means about $3 million of that renewal funding could be determined through a national competition rather than locally guaranteed tier‑1 renewal. That shift, Amanda said, creates uncertainty for projects that rely on annual renewal and has already led some providers to modify project types or accept budget reductions to remain competitive.
Task force speakers named agencies and impacts: Ozone House and SOS Community Services planned transitions to be more competitive; Avalon Housing and Michigan Ability Partners reduced nearly $700,000 from renewal budgets to preserve competitiveness in tier‑1. Presenters said those local adjustments could mean reduced rental assistance or supportive services for several dozen households unless the board and partners find complementary resources.
Commissioners discussed advocacy and possible state funding sources; one commissioner noted recently approved state budget allocations intended to expand permanent supportive housing capacity and urged staff and partners to pursue those funds through MSHDA.
