Tenant advocate warns cut to emergency housing fund as demand rises

Johanna Shreve, the District's chief tenant advocate, told the Committee on Housing that the mayor's proposed FY2027 budget would set OTA at $4,525,369, a 1.4% increase over FY26, but would reduce the Emergency Housing Assistance Program from $770,000 to $570,000.

"By the end of the second quarter the agency spent 65% of the FY'26 appropriation," Shreve said, citing recent closures and fire displacements handled by OTA and warning that hotel costs and demand have substantially increased program spending. She told the committee OTA had handled 5,816 intakes in the first half of the year, an average of 969 per month, up from 795 the prior year.

Shreve described steps to recover costs through a new reimbursement program and said the legal branch has "a total of 9 active litigation cases" and is preparing additional affirmative litigation; she noted a $260,000 reimbursement case and a recent $15,000 recovery. Committee members emphasized the value of a dedicated staffer to pursue reimbursements; Shreve agreed that a focused FTE would speed recoupment and be cost-effective if it reduces future appropriations.

The committee also discussed preservation and prevention strategies: targeted small grants or repair funds for buildings with repair needs under a specified threshold, and proposals for multifamily replacement reserve requirements. Shreve urged the council to consider preservation funding a priority for FY27 and warned of a looming affordability shock if proposed federal TANF reductions proceed in October 2026.