(The Center Square) – The U.S. Department of Housing and Urban Development announced a $4 billion funding opportunity for homelessness services on Monday, shifting away from the Housing First model.\u200b<\/p>\n
The notice of funding opportunity, or NOFO, for HUD\u2019s Continuum of Care program, represents a major turning point in federal funding for homelessness services. The overhaul prioritizes funding for services focused on treatment and recovery over broad renewals of Tier 1 projects, such as permanent housing.\u00a0\u200b<\/p>\n
The courts blocked a NOFO last year that would\u2019ve dropped the funding cap for Tier 1 renewal projects from about 90% to 30% midway through the existing grant cycle.<\/p>\n
The new NOFO includes a 60% cap on those projects, offering CoCs a compromise, while also directing funds toward transitional housing.<\/p>\n
\u201cThe \u2018housing first\u2019 experiment failed Americans by warehousing the vulnerable without results,\u201d HUD Secretary Scott Turner wrote in a\u00a0press release<\/a> Monday when announcing the shift in federal priorities.<\/p>\n Housing First prioritizes taxpayer-subsidized permanent housing for homeless individuals without any preconditions such as sobriety, participation in addiction treatment or employment.<\/p>\n Supporters argue that it\u2019s supposed to be paired with support services, such as treatment, but participation is voluntary.<\/p>\n Critics say Housing First results in a revolving door, subsidized by everyday citizens with their taxes.<\/p>\n Dr. Sam Tsemberis developed Housing First in the 1990s, and HUD has used the model for 15 years.\u200b<\/p>\n \u201cThis ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels,\u201d Turner wrote, referencing federal\u00a0data<\/a> from January 2024.\u200b<\/p>\n While recent data shows a\u00a03.4%<\/a> decline in estimated homelessness nationwide from 2024 to 2025, HUD\u2019s annual point-in-time count in January 2025 still represents about a\u00a027%<\/a> increase from 2013.<\/p>\n Taxpayer-subsidized beds also increased\u00a0151%<\/a> from 2013 to 2025, according to HUD\u2019s press release.<\/p>\n