MARTIN COUNTY, Fla. (CBS12) — Changes in federal funding for the homeless could impact who receives help getting off the streets as the Department of Housing and Urban Development (HUD) considers a major policy shift. HUD wants to change the current “Housing First” criteria to a “Treatment First” method, which would require people to go through treatment for issues like drug abuse or mental health before receiving permanent housing. In Martin County, where the housing crisis is growing, it could take much longer for those in need to find permanent homes. A legal battle is taking place right now as Treasure Coast homeless agencies fight to keep the Housing First initiative going.

The Treasure Coast housing crisis may gain another barrier as HUD looks to change the rules for housing assistance grants. Instead of helping people find housing first and treatment second, the new criteria would prioritize treatment as a prerequisite for housing. Michelle Miller, the Human Services Director for Martin County, explained how this would change their funding process.

“They would have to enter with certain stipulations of receiving treatment. How often they would have to receive that treatment, and then certain steps in the process as it goes forward, and enter into more of a transitional style housing style as opposed to a permanent housing,” Miller said.

A study by the National Low Income Housing Coalition indicates that the “Housing First” approach resulted in an 88% decrease in homelessness, whereas the “Treatment First” approach achieved only a 41 percent decrease. While supporters say the new method tackles the root of the problem—such as drug abuse, mental health, or physical disability—Miller says it creates more barriers to permanent housing.

“You do have to have been experiencing chronic homelessness and have to have some type of disability to enter it, whether that is a physical or mental disability. So that part wouldn’t change. But it would just create some additional barriers in the process,” Miller explained.

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If state and local institutions are forced to limit who receives permanent housing, people may be forced to turn to private agencies. Family Promise in Martin County says they’re already seeing a spike in applicants. Madeleine Bozone, the executive director of Family Promise, noted that the numbers are rising rapidly.

“The year before and 2024 was about 40. Last year, it was about 70 or 80, and we were turning people away,” Bozone said.

The lawsuit against HUD is currently being led by attorneys in New York, Rhode Island, and Washington. More updates on the case are expected in the coming hours, which will determine how these funding changes will impact the Treasure Coast moving forward.